Arlington Capital Acquires Naval Defense Services Firm

Arlington Capital Partners, a private equity firm with a focus on regulated industries, has agreed to acquire Eptec Defence, a significant player in the Australian naval sector. This strategic move by the Washington D.C.-based investor aims to bolster capabilities in a critical segment of the defense supply chain, particularly for naval vessel maintenance and new construction preservation.

Eptec Defence, a division of the broader Eptec Group, specializes in advanced preservation and remediation services for naval assets. Operating across key Australian naval hubs, the company is integral to the Royal Australian Navy's operational readiness, contributing to accelerated repair timelines and extended vessel service life. With a workforce exceeding 350 skilled professionals, Eptec Defence provides a comprehensive suite of exterior and interior preservation solutions, positioning itself as a vital subcontractor to original equipment manufacturers and prime defense contractors.

The acquisition signals a strategic push by Arlington Capital Partners into the growing global defense services market. The firm, known for its expertise in building platforms within aerospace and defense, sees significant potential in enhancing naval fleet sustainment. Peter Manos, a Managing Partner at Arlington Capital Partners, highlighted the increasing demand for specialized preservation services driven by expanding fleet sizes and heightened operational tempos. He emphasized that Eptec Defence, combined with Arlington's established track record in the naval and defense sectors, is well-positioned to meet these evolving needs.

To drive future growth, Arlington Capital Partners has appointed Steve Zogas as the new CEO of Eptec Defence. Zogas brings over a decade of leadership experience in the U.S. naval ship repair and maintenance industry, including his prior role as CFO of Vigor Marine. His mandate will be to pursue both organic expansion and strategic acquisitions, leveraging technological advancements and global best practices to enhance service delivery. The existing operational management team at Eptec Defence will continue to lead day-to-day activities.

Ben Ramundo, a Managing Director at Arlington Capital Partners, pointed to the geopolitical shifts, such as the AUKUS security pact, as creating substantial opportunities for Eptec Defence. He noted the increasing connectivity between Australia and other allied navies, which could expand Eptec's role as a trusted preservation partner for fleets operating in the Pacific region. This acquisition is viewed as the foundational step in building a global outsourced naval services platform.

The transaction is subject to standard closing conditions and regulatory approvals. Financial and legal advisors for the deal included Johnson Winter Slattery and Kirkland & Ellis for Arlington Capital Partners, while Moelis Australia served as financial advisor and Corrs provided legal counsel to Eptec Group and the sellers.