CLEVELAND, OH, February 25, 2025 – Arc Drilling today announced the acquisition of H&W Tool, a leading provider of airfoil machining services to the aerospace, defense, and power generation industries. The newly merged company also announced its new brand name, Arc Adaptive Machining Solutions (“Arc” or the “Company”), and unveiled its logo.

Headquartered in Cleveland, Ohio, Arc has become a market leading provider of airfoil machining services.  The Company’s capabilities include electrical discharge machining (EDM), adaptive machining, water jet, and grinding. Arc operates six manufacturing facilities in the United States – Cleveland (OH), Dover (NJ), Euclid (OH), Greenville (SC), Hampton (VA), and Summerville (SC) – all of which have either AS9100 or NADCAP certifications, or both.

“With the combined capabilities of Arc Drilling and H&W Tool, Arc Adaptive Machining Solutions is the manufacturing technology leader in the machining of airfoils and other critical gas turbine parts,” said Arc CEO Jason Busse. “Our unmatched capabilities in EDM and adaptive machining are in high demand, and we are excited to continue making significant investments in technology and capacity to support the rapidly increasing production rates in the aerospace engine and power generation markets.”

Rick Winstead, President of H&W Tool, commented, “I want to thank all of the employees whose hard work and technology innovations over many decades have made H&W Tool into the company that it is today.  Our team is excited to be joining with Arc Drilling, and the combination of our two companies will enable both operations to better serve the needs of our customers and our people.”

“As a result of the H&W Tool acquisition, Arc Adaptive Machining Solutions has become one of a small number of vertically integrated providers in the airfoil machining market,” said Jesse Liu, a Partner at Washington Equity Partners, the majority equity owner of Arc Adaptive Machining Solutions. “We continue to pursue additional opportunities to deepen our customer relationships and expand our capabilities and geographic presence.”

 

About Arc Adaptive Machining Solutions

Arc Adaptive Machining Solutions is a leading provider of electrical discharge machining, waterjet, and grinding manufacturing services to the aerospace, defense, power generation, and medical markets.  The Company has manufacturing facilities in Cleveland (OH), Dover (NJ), Euclid (OH), Greenville (SC), Hampton (VA), and Summerville (SC). Each facility has AS9100 and/or NADCAP certifications, and the Dover (NJ) facility also has the ISO 13485 certification.  https://arcadaptive.com

 

 About Washington Equity Partners

Washington Equity Partners is a sector-focused private equity firm that makes control equity investments in established lower middle market businesses with strong prospects for rapid organic and acquisition-driven growth.  The firm is headquartered in McLean, VA and is focused on investing in: (i)Aerospace, Defense, and Government (ADG), (ii) Medical Device, (iii) Industrial and Advanced Manufacturing, and (iv) Software and Technology.  www.w-equity.com

 

 

Contact:
Jason Busse
Arc Adaptive Machining Solutions
9551 Corporate Circle
Valley View, OH 44125
(216) 525-0920
https://arcadaptive.com

 

Jesse Liu
Washington Equity Partners
8200 Greensboro Drive, Suite 900
McLean, VA 22102
(202) 839-3410

www.w-equity.com

http://www.crainscleveland.com/article/20171121/news/143251/arc-drilling-valley-view-draws-majority-recapitalization-investment

Washington Equity Partners of McLean, Va., said it has made a majority recapitalization  investment of an undisclosed size in Arc, a Valley View-based provider of electrical discharge machining products for the industrial gas turbine and aerospace engine markets.

Arc is Washington Equity’s second portfolio company in the aerospace, defense and government sector. It “will serve as Washington Equity’s platform company in the growing EDM (electrical discharge machining) market,” the Virginia firm said in a news release.

Terms of the investment were not disclosed. On the “investment criteria” page on its website, Washington Equity says it makes “control equity investments in lower middle market businesses in North America with unique and differentiated capabilities.”

Targeted criteria for new platforms are companies with $3 million to $15 million in EBITDA; “committed and proven management;” “established, profitable and sustainable business model;” and “multiple opportunities for rapid organic and acquisition-driven growth,” Washington Equity’s website states.

Arc was founded in 1961 has “a long history of being an industry leader in production quality and turnaround times,” according to the news release. The Valley View company “performs EDM services on over 200,000 parts per year for a diversified customer base that includes GE, Parker Hannifin, Precision Castparts, Swagelok and Woodward,” Washigton Equity says.

With locations in Cleveland and Greenville and Charleston, S.C, Arc “is strategically positioned near major industrial gas turbine and aerospace engine manufacturing centers,” according to the release.

Lee Trem and Kevin Trem, Arc’s current management team, will continue to lead the company.

“We are very excited to partner with Washington Equity as we lead Arc through this next stage of transformative growth,” said Lee Trem, president of Arc in a statement.

Kevin Trem, vice president of Arc, added, “We look forward to leveraging Washington Equity’s resources, relationships and domain expertise in gas turbines as we expand our business. Having more resources and capital available will enable us to provide even better value to our customers through geographic expansion and the development of new capabilities.”

MCLEAN, Va. and CLEVELAND, Nov. 21, 2017 /PRNewswire/ — Washington Equity Partners (“Washington Equity,” a private equity firm based in the Washington DC metro area), in partnership with the Company’s existing owners and management, today announced an investment in Arc. Headquartered in Cleveland, Ohio, Arc is a leading provider of electrical discharge machining (EDM) solutions to the industrial gas turbine and aerospace engine markets. Arc is Washington Equity’s second portfolio company in the Aerospace, Defense and Government (ADG) sector and will serve as Washington Equity’s platform company in the growing EDM market.

Founded in 1961, Arc’s capabilities include Fast Hole EDM, Wire EDM and Sinker EDM. The Company has a long history of being an industry leader in production quality and turnaround times, and it performs EDM services on over 200,000 parts per year for a diversified customer base that includes GE, Parker Hannifin, Precision Castparts, Swagelok and Woodward. With facility locations in Cleveland, OH, Greenville, SC, and Charleston, SC, Arc is strategically positioned near major industrial gas turbine and aerospace engine manufacturing centers.

Arc’s current management team, led by Lee Trem and Kevin Trem, will continue to lead the Company going forward. “We are very excited to partner with Washington Equity as we lead Arc through this next stage of transformative growth,” said Lee Trem, President of Arc. “Market demand for high quality EDM suppliers like Arcis at an all-time high, and Washington Equity’s strategic focus on growth and market leadership make it an ideal partner for us.”

Kevin Trem, Vice President of Arc, commented, “We look forward to leveraging Washington Equity’s resources, relationships and domain expertise in gas turbines as we expand our business. Having more resources and capital available will enable us to provide even better value to our customers through geographic expansion and the development of new capabilities.”

Jesse Liu, a Partner at Washington Equity, said, “As a pure-play EDM provider, Arc is uniquely positioned to benefit from the growing demand in the turbine market for manufacturing technologies that can reliably produce small and complex hole channels and gas pathways. Lee Trem, Kevin Trem and the entire management team at Arc have built an industry leader in EDM capability and execution quality and we are proud to have the opportunity to partner with them.”

Gladstone Capital, Farragut Capital and Siguler Guff provided debt and equity financing in support of the transaction.
EdgePoint Capital provided M&A advisory services to Arc.

About Washington Equity Partners
Washington Equity Partners is a sector-focused private equity firm that makes control equity investments in established lower middle market businesses with strong prospects for rapid organic and acquisition-driven growth. The firm is headquartered in McLean, VA and is focused on investing in: (i) Aerospace, Defense, and Government Contracting, (ii) Industrial and Advanced Manufacturing, and (iii) Software and Technology. www.w-equity.com

About Arc 
Headquartered in Cleveland, Ohio, Arc is a leading provider of Fast Hole EDM, Wire EDM and Sinker EDM manufacturing services. The Company was founded in 1961 and is a long-time supplier to OEMs and Tier I suppliers in the industrial gas turbine, aerospace engine and industrial markets. Arc has manufacturing operations in Cleveland, Ohio; Greenville, South Carolina; and Charleston, South Carolina. www.arcdrilling.com

Contact: Jesse Liu, Bob Knibb or Hagen Saville – Washington Equity Partners 1420 Spring Hill Road, Suite 600 McLean, VA 22101 (202) 839-3410 www.w-equity.com

Nadcap recognizes Arc  Inc. for its superior performance and commitment to continual improvement in aerospace quality

Arc  Inc. announces that it has been awarded Nadcap Twenty-Four Month Merit status for Non-Conventional Machining/EDM.

Arc has held Nadcap accreditation since 2009. Having demonstrated their ongoing commitment to quality by satisfying customer requirements and industry specifications, the Nadcap Task Group has determined that Arc has earned special recognition. This means that, instead of having their next Nadcap audit in twelve months, Arc has been granted an accreditation that lasts twenty-four months.  This status was first awarded to the Cleveland-area facility in 2015, and has been achieved in 2017 for the Charleston facility.

“Achieving Nadcap accreditation is not easy: it is one of the ways in which the aerospace industry identifies those who excel at manufacturing quality product through superior special processes. Companies such as Arc go above and beyond achieving Nadcap accreditation to obtain Merit status and they should be justifiably proud of it,” said Joe Pinto, Executive Vice President and Chief Operating Officer at the Performance Review Institute. “Benefitting from a less frequent audit schedule reduces audit costs and associated pressures and demonstrates the trust that the aerospace industry has in Arc, based on their past performance in Nadcap audits. PRI is proud to support continual improvement in the aerospace industry by helping companies such as Arc be successful and we look forward to continuing to assist the industry moving forward.”

 

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About Nadcap
Created in 1990 by SAE Inc., Nadcap is administered by the not-for-profit Performance Review Institute. PRI is a global provider of customer-focused solutions designed to improve process and product quality by adding value, reducing total cost and promoting collaboration among stakeholders in industries where safety and quality are shared goals. PRI works closely with industry to understand their emerging needs and offers customized solutions in response. Learn more at www.p-r-i.org or contact PRI at PRI@p-r-i.org