StingRay Optics LLC Case Study

Stingray Optics Transaction
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The Company

Founded in 2004, StingRay Optics LLC is a designer and manufacturer of infrared lens assemblies, Since inception, StingRay has developed thousands of proprietary designs and produced opto-mechanical systems for varied applications, including: Unmanned Aerial Vehicles (UAVs), handheld thermal binoculars, furnace monitoring equipment, and gas detection systems.

The Challenge

The founding entrepreneur of this world-class infrared optics manufacturer wanted to prepare and position his business to find a new majority investor that could help StingRay achieve its full potential. He wanted an advisory partner who would fully understand and represent the company’s strategy, position in the market, employees, and growth prospects. He wanted to maintain management control of his business and ensure that the operation continued in Keene, New Hampshire, and he wanted an investor that could provide valuable relationships with the military community and stability in key component supply.

The Solution

Phase I – Over a 12 month period, Peloton engaged in the business, working alongside the sales, finance, engineering and design teams to establish a congruent company growth strategy that would resonate with outside investors. Key outcomes included:

  • Created a monthly reporting package of relevant financial and operating metrics
  • Attended industry trade shows and visited with key customers in a business development capacity
  • Refined a key employee incentive plan to align interests with the entrepreneur.
  • Created a market mapping of key direct and adjacent competitors
  • Refined and verbalized StingRay’s strategy to emphasis the highest value-driving components
  • Oversaw the completion of the first outside accountant-reviewed financial statements
  • Over these first 12 months, StingRay’s EBITDA increased by 130%.

Phase II – Over the ensuing 6 months, Peloton proactively sought out investor candidates that would appreciate StingRay’s reputation, capabilities, culture, employees, and intellectual property. With multiple alternatives available, StingRay choose to partner with Gooch & Housego plc, an AIM-listed photonics technology business.

I was so fortunate to engage Peloton in this job – the work they put in was nothing short of epic.

Chris Alexay, President & Chief Optical Designer of StingRay Optics LLC

“I’ve never seen an M&A Advisor as involved from LOI execution to closing as Peloton, yet able to provide objective advice to the owner throughout the transaction.”

John Bentas, McLane Middleton Law Firm

View the transaction announcement.