Arlington Capital Partners (“Arlington”), a Washington, DC-area private equity firm, today announced that it has acquired Pegasus Steel LLC (“Pegasus” or the “Company”), a leading provider of complex fabricated steel structures used for the construction of submarines, aircraft carriers and other naval and industrial systems. Pegasus is headquartered near Charleston, South Carolina with approximately 350,000 square feet of manufacturing space. Tony Deering, Pegasus’ Founder & CEO, will continue to operate the Company along with the rest of the current management team after closing.

Pegasus is a new platform for Arlington and is a leading provider of fabricated structures and related assemblies primarily to the nuclear-shipbuilding community. The Company addresses the U.S. Navy’s highest priority programs including, among others, the Columbia-class submarine, the Virginia-class submarine and the Ford-class aircraft carrier.

Peter Manos, a Managing Partner at Arlington, said, “Pegasus has earned a tremendous reputation in the nuclear submarine and aircraft carrier market for delivering high quality fabrications on time and on schedule. With parts weighing in excess of 800,000 pounds and among the largest structures in the industry, Pegasus enables its customers to utilize its own shipyards more efficiently to meet the required increase in output that the national security community demands. We are excited to partner with Tony to build upon Pegasus’ impressive achievements.”

Tony Deering said “I am very proud of what the Pegasus team has achieved over the last 16 years. We refined a manufacturing process with a focus on quality, efficiency and meeting customer expectations. This transaction is occurring at an inflection point in Pegasus’ growth trajectory and provides the company with the institutional backing of an experienced defense investor with a track record of growing businesses. The partnership with Arlington offers the large capital base and corporate strategy advice Pegasus desires as it drives towards its goal of becoming the leading ‘tier one’ partner in the nuclear Navy supply chain.”

Ben Ramundo, a Principal at Arlington, said “The supply and demand imbalance within the submarine and aircraft carrier industrial bases threatens the Navy’s future force structure and deterrence objectives. In partnership with Tony, we are laser-focused on scaling the organization with the resources, investment and human capital to meet this challenge.”

KippsDeSanto & Co. acted as sole financial advisor to Pegasus Steel LLC.

About Arlington Capital Partners

Arlington Capital Partners is a Washington, DC-based private equity firm that has managed approximately $7 billion in capital commitments. Arlington is focused on middle market investment opportunities in growth industries including aerospace & defense, government services and technology, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field.

For more information: www.arlingtoncap.com

About Pegasus Steel

Pegasus Steel is a leading provider of complex fabricated steel structures used for the construction of submarines, aircraft carriers and other naval and industrial systems. The Company specializes in cutting, forming, machining and welding of large-scale, complex fabrications. Pegasus is headquartered near Charleston, South Carolina.

For more information: www.pegasussteel.com

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