SGH and ETI Tech:
Synergies in core values to form a successful partnership
Investing in people is at the core of what drives every business transaction at Simon Group Holdings. The partnership between SGH and ETI Tech is a great example of how strong relationships start with a conversation. A conversation led like-minded individuals to want to do business with one another. Finding synergies between their values was the foundation of SGH and ETI Tech coming together to acquire an already successful electro-mechanical flight hardware and ground support company.
A shared passion for growth, innovation and country
The immediate chemistry between Simon Group Holdings and ETI Tech came as no surprise when Sam Simon, Bill McLendon and Jeff Hartman sat down for their first meeting. Bill, the CEO of ETI and a former US Air Force pilot, quickly realized that Sam would make the perfect investment partner when he learned about Simon Group Holdings’ strong support of the U.S. military and love for aviation. Sam shares Bill’s patriotism, and for him, this set Sam apart from other investment partners he had encountered. Bill and Jeff, EVP and CFO at ETI, found Sam to be a sincere leader and strong operator who had proven himself by building his empire from the ground up.
Sam and Bill could clearly see that ETI was positioned for enormous growth potential. Not only were they a sole source provider of key aircraft parts, they had established strong relationships with the U.S. government and aviation giants such as Lockheed Martin. ETI has the highest quality ratings and has been named “Best Supplier” by Lockheed Martin. Additionally, Sam found synergies with other aerospace companies under Simon Group Holdings, specifically with AeroParts Now. But most importantly, Sam and Bill believed that ETI had the right team in place to achieve the growth he knew the company was capable of. For Sam, it’s people who ultimately determine the success or failure of a business.
How Sam stepped in and then stepped back
Sam quickly made his decision to commit Simon Group Holdings to the acquisition of ETI Tech through Soaring Pine Capital Growth Fund I, LLC, in February 2017. After the deal was consummated, SGH did not insert themselves into the company or make any changes. Rather, Sam provided the investments that Bill and Jeff asked for, giving them the ability to purchase equipment that small companies in this domain often don’t normally have. Access to this type of equipment was key in initiating the growth of the company. The financial support provided by SGH, was key to allowing ETI to scale their growth potential. Beyond growing ETI, Sam has encouraged Bill and Jeff to explore other product opportunities and investigate other companies to acquire and partner with; extending their network into the profitable and steadily growing aerospace and defense industry.
Vision + People + Action = Powerful Results
The strategic investment partnership with ETI is a perfect example of how SGH provides vision, decisive action and cross-discipline thinking to investors and the companies it acquires. It fulfills the SGH philosophy of identifying the right people to work with, putting everything you have into making it work and delivering results and a successful outcome.