#United States #San Diego #Cogenuity Partners #ISC #Tide Rock

Tide Rock's Successful Sale of Interconnect Solutions Company

Tide Rock LLC recently announced a significant milestone with the sale of Interconnect Solutions Company (ISC) to Cogenuity Partners, a private equity firm known for its investments in high-performing advanced industrial businesses. This transaction marks the culmination of Tide Rock's multi-year strategic effort to transform ISC into a leader in the highly competitive and demanding sectors such as aerospace, defense, and medical industries.

ISC, a vertically integrated manufacturer, specializes in producing complex interconnect assemblies that are pivotal in systems demanding exceptional reliability and performance under extreme conditions. Its engineering capabilities encompass prototyping, low-to-mid volume production, precision assembly, thorough testing, and dedicated customer support. This unique combination of services places ISC at the forefront of production for mission-critical applications in various high-stakes environments.

Ryan Peddycord, the CEO of Tide Rock, expressed satisfaction with the acquisition's strategy, stating, "We acquired high-quality businesses with strong foundations and a solid regional presence. We integrated them and made strategic investments to enhance our capacity and capability, ultimately fostering sustainable relationships in high-growth markets. Today, ISC stands as a trusted partner for industry-leading companies in aerospace and defense, prepared for continued growth under Cogenuity's ownership."

The roots of this strategic platform began in 2018, focusing on strategically acquired companies that provide essential services. The pivotal acquisition of ISC Engineering, renowned for custom molded cable assemblies, set the foundation for ISC's evolution. Over the years, key acquisitions included PKC in 2020, TriTek Electronics in 2022, MX Electronics in 2023, and CableNet Aerospace in 2024, each contributing vital manufacturing capabilities and quality certifications pivotal for ISC’s upward trajectory.

This robust integration strategy has enabled ISC to deliver high-mix, low-to-medium volume interconnect and electromechanical assemblies that cater to sectors demanding precision and reliability in their supply chains. ISC has cultivated strong relationships with Tier 1 suppliers and is strategically embedded in various long-term defense, space, and UAV programs, being a preferred supplier particularly in crucial projects.

The company’s reputation for meeting stringent production deadlines and maintaining high-quality standards has solidified its position as a go-to partner in the industry. The impressive scales of growth—over 400% during Tide Rock’s hold period—underscore the effectiveness of the careful execution of ISC's strategic plan focused on high-demand markets. Peddycord credited the growth to the dedication of everyone involved and reaffirmed Tide Rock’s commitment to sustaining businesses rooted in legacy-quality products.

The strategy has also paid off in the recent past; for instance, the successful transition of Accu-Fab to Mayville Engineering Company just two months prior indicates a well-aligned vision for growth and a clear operational roadmap within this space. Tide Rock emphasized a clear focus on high-growth markets and the expansion of capabilities during its tenure.

In summary, the sale of ISC to Cogenuity Partners highlights a successful exit strategy typical of Tide Rock’s operational model. The firm, based in both San Diego and New York City, practices unlevered buyouts aimed at businesses capable of generating strong free cash flows and escalating them to larger scales, all while offering high quarterly returns to its investors. As they look to the future, both Tide Rock and its newly restructured businesses are poised to continue their advances in the high-reliability, high-performance sectors, reflecting a thriving investment landscape.

For more about Tide Rock and their approach to investment and growth, visit tiderock.com.