Clearlake Capital Finalizes Successful Sale of TEAM Technologies to Arlington Capital Partners

Clearlake Capital Completes the Sale of TEAM Technologies

In a strategic move announced on November 25, 2024, Clearlake Capital Group, L.P. disclosed the successful sale of TEAM Technologies, Inc. to an affiliate of Arlington Capital Partners. While the terms of the transaction were not publicly revealed, the sale signifies a pivotal moment for TEAM Technologies as it transitions into a specialized manufacturing and supply chain solutions provider with a healthcare focus.

The Evolution of TEAM Technologies

Headquartered in Morristown, Tennessee, TEAM Technologies has made significant strides in the healthcare sector by offering specialized manufacturing and strategic supply chain solutions. With 15 operational facilities across North America, the company has established a robust portfolio of advanced manufacturing solutions catering to Class I and II medical devices. Its diverse end-markets include diagnostics, drug delivery, infection control, oral care, patient monitoring, and wound care.

During Clearlake's ownership, TEAM Technologies witnessed extensive operational enhancements through the application of the firm's O.P.S.® framework. The partnership facilitated a restructuring of the company’s go-to-market strategies, targeting key healthcare verticals, and implementing a disciplined mergers & acquisitions (M&A) strategy that included three strategic add-on acquisitions. As a result of these initiatives, TEAM Technologies managed to double its revenues, with over 90% of its revenue now coming from healthcare-related markets.

Leadership's Insight

José E. Feliciano, Co-Founder and Managing Partner at Clearlake, along with Arta Tabaee, Partner and Managing Director, expressed their satisfaction with TEAM's growth trajectory during their partnership. They highlighted how strategic support and operational improvements enhanced TEAM's market positioning, operational capabilities, and overall growth potential.

Marshall White, the Chief Executive Officer at TEAM Technologies, shared pride in the achievements made in collaboration with Clearlake. He stressed that their strategic backing allowed the company to broaden its product offerings and solidify key partnerships within the industry. White expressed optimism about the future prospects and growth avenues that lie ahead following the transaction.

Ben Kruger, Principal at Clearlake, further emphasized the transformation of TEAM Technologies, noting that investments in healthcare-centric manufacturing solutions were critical for stimulating growth in targeted market sectors. Kruger conveyed a sense of pride in the alliance with TEAM's management, anticipating continued success for the company post-sale.

Financial and Legal Advisory

In the stages leading up to this sale, R.W. Baird acted as the financial advisor for TEAM Technologies. Legal counsel was provided by Kirkland & Ellis LLP and Massumi + Consoli LLP for TEAM, while Arlington Capital Partners received similar advisory services from Harris Williams and Goodwin Procter LLP.

About Clearlake Capital

Founded in 2006, Clearlake Capital Group operates across an array of strategies including private equity and credit management. With over $85 billion in assets, Clearlake focuses on technology, industrials, and consumer sectors, looking to partner with proficient management teams to foster operational improvements and growth.

About TEAM Technologies

TEAM Technologies focuses on delivering high-quality non-discretionary consumable healthcare products. Its guiding philosophy, 'ONE TEAM, MANY TECHNOLOGIES', exemplifies its commitment to providing innovative solutions tailored to meet the diverse needs of its clients across the healthcare landscape. For additional information on the company, visit teamtech.com.