LARGO, FL (July 16, 2024) – Edgewater Strategy Group (“Edgewater”), a boutique advisory firm specializing in M&A, capital raises and Office of the CFO services, today announced that it supported the investor group of Torrent Photonics (“Torrent”), a Florida-based photonics engineering and manufacturing company, on Torrent’s acquisition of Knight Optical, a UK-based supplier of custom and catalog precision optical components and sub-assemblies.
Headquartered in Largo, Florida, just outside Tampa, Torrent serves defense, security, medical, industrial and commercial customers with imaging and sensing systems, electro-optical components and assemblies, optical filters, coatings and fire-control optics. Knight Optical, based in Kent, UK, with a US sales office in Rhode Island, holds a stock range of more than 3,000 product lines and supplies scientific, defense, medical, pharmaceutical and optoelectronics customers internationally. The two companies were long-standing partners before the deal. The acquisition was made by Torrent’s parent company, Torrent Holdings LLC.
The combination broadens Torrent’s international footprint and customer base and strengthens its position in photonic and optoelectronic components. Knight Optical will keep its brand and continue to serve customers from Kent, adding many of Torrent’s standard products to its catalog and giving its customers access to Torrent’s custom OEM and volume manufacturing capabilities.
Edgewater worked alongside Torrent’s investor group through close. Its work included a bottom-up operating model for the combined business with standalone and pro forma return scenarios, consolidated pro forma financials and a pro forma capitalization for the combined group, support on financial diligence and net working capital analysis, and preparation of the investor materials and funds flow for the capital raise that funded the transaction.
“On paper, Torrent and Knight Optical complement each other: a Florida engineering and manufacturing business alongside a Kent-based optics specialist with a deep catalog and international reach. The question for the investor group was how the two would perform as one company across the Atlantic. We built the combined model from the bottom up, stress-tested the pro forma returns and capitalization, and gave the investors a clear view of the business before they committed capital. That discipline is what turns a good fit into a durable platform.”
Hawken LordManaging Partner, Edgewater Strategy Group
Terms of the transaction were not disclosed.
Torrent Photonics’ full announcement is available here.
About Torrent Photonics
Torrent Photonics is a vertically integrated photonics engineering and manufacturing company based in Largo, Florida. It supplies multispectral and polarimetric imaging systems, high-reliability electro-optical components and assemblies, optical filters and coatings, and fire-control optics to customers across the defense, security, medical, industrial and commercial markets. For more information, visit torrentphotonics.com.
About Knight Optical
Knight Optical is a UK-based supplier of custom and catalog precision optical components and sub-assemblies, with a stock range of more than 3,000 product lines. Accredited to ISO 9001:2015 and ISO 14001:2015, the company serves scientific, medical, pharmaceutical, optoelectronics, laser, research and industrial customers from offices in Kent, UK, and Rhode Island, USA. For more information, visit knightoptical.com.
About Edgewater Strategy Group
Edgewater Strategy Group is a boutique advisory firm specializing in Mergers and Acquisitions, Capital Raises, and Office of the CFO services. Edgewater works as an extension of its clients’ deal and finance teams, from sourcing and diligence through close and post-close integration. For more information, visit edgewaterstrategygroup.com.
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