EQT Private Equity to Acquire South Carolina-based Zeus

The EQT X fund and Orangeburg, S.C.-based Zeus Company, Inc., jointly announced they have entered into an agreement for EQT to acquire Zeus from the Tourville family.

Financial terms weren’t disclosed.

Founded in 1966, Zeus is a pioneer in the design, development, and extrusion of fluoropolymer tubing for medical devices and select industrial applications.

EQT also announced that John Groetelaars, former CEO of Hillrom and EQT Industrial Advisor, will be Zeus' executive chairman upon closing of the transaction.

For more than 50 years, Zeus has delivered innovative and mission-critical components that improve the efficacy and performance of highly complex catheters, which are used in life saving, minimally invasive medical procedures, among other applications.

The company is headquartered in Orangeburg, S.C., with eight facilities across the United States and one in Letterkenny, Ireland.

Zeus serves over 300 customers in more than 100 countries, including leading medical device manufacturers, contract device manufacturing organizations, academic institutions, and industrial customers across aerospace, semiconductors, and automotive, among other industries.  

Officials said that as populations age and chronic conditions become more prevalent, increasing demand for precision, high-performance catheters to support therapeutic areas including structural heart, peripheral and neurovascular interventions, is expected to continue fueling Zeus' growth.

EQT will support Zeus with investments in additional capacity, R&D, and operational excellence, to support the rapidly growing medical fields that leverage minimally invasive technologies, the officials said.

Ethan Waxman, partner within EQT Private Equity's Advisory Team, said, "EQT has tracked the medical device component industry closely for several years, and we believe Zeus is uniquely positioned within the end markets it serves due to its unmatched material science and process expertise."

Waxman added, "We are excited to partner with the Company and invest in its next phase of growth, its employees, and the communities it serves, while maintaining Frank Tourville Sr.'s values and commitment to excellence, which are shared by EQT."

Said Steve Peterson, president and CEO of Zeus: “This acquisition accelerates that momentum and growth by supporting future expansion, new product innovation, process improvements, technological transformation, and enhanced capabilities."

The transaction is expected to close in Q1 2024, subject to regulatory approvals and customary closing conditions.

Piper Sandler Companies acted as financial advisor to EQT Private Equity and Simpson Thacher & Bartlett LLP provided legal counsel. Goldman Sachs & Co. LLC acted as financial advisor to Zeus and Freshfields Bruckhaus Deringer LLP provided legal counsel.

The Private Credit business within Goldman Sachs Asset Management will serve as the Administrative Agent and lead lender in the Senior Secured financing to support the transaction.

Zeus employs over 2,400 people worldwide with facilities in Aiken, Columbia, Gaston, Orangeburg, and St. Matthews, South Carolina; Branchburg, New Jersey; Chattanooga, Tennessee; San Jose, California; Arden Hills, Minnesota; Guangzhou, China; and Letterkenny, Ireland.

EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas.

VC3 Completes Acquisition of Wisconsin-based Information Technology Service Provider

Columbia, S.C.-based VC3, a leading managed service provider serving municipalities, financial services organizations, and commercial businesses across North America, announced the acquisition of Aberdean Consulting, a Madison, Wis.-based technology service provider supporting small to medium-sized companies in 20 states and Mexico.

The acquisition of the veteran-owned technology service provider expands VC3’s presence in the Midwest.

Financial terms weren’t disclosed.

Ryan Vestby, VC3’s chief executive officer, said, “Since 2003, this respected managed service provider has built up a loyal customer base of more than 140 companies and has established a strong presence in the Midwest."

Vestby added, "Our philosophy and mission are very similar, and it is exciting to partner with such a company that understands how to not only grow but also obsess about better serving the many customers we’ve had the good fortune to help with their technology and cybersecurity needs.”

Over 1,100 municipalities and 1,000+ businesses rely on VC3's cybersecurity expertise, sector-specific focus, and automation to manage, protect, and accelerate their organization's technology.

First Community Announces Leadership Moves

First Community Corporation (Nasdaq:  FCCO), the holding company for First Community Bank, announced promotions and additions to its executive leadership team. 

Effective July 1, 2024, J. Ted Nissen will become CEO of First Community Bank while still retaining the role of president and will join First Community's board of directors. 

Effective Jan. 1, 2024, Joseph A. "Drew" Painter and Vaughan R. Dozier, Jr. will become executive vice presidents in the roles of co-chief Commercial and Retail Banking officers. 

Michael C. "Mike" Crapps will continue in his role as president and CEO of First Community Corporation. 

In his role as CEO of the bank, Nissen will be responsible for leadership of day-to-day operations of the bank including its mortgage and financial planning lines of business.

In their roles as co-chief Commercial and Retail Banking officers, Painter and Dozier will be responsible for leading First Community's network of banking offices.

Crapps will continue to focus on board governance, investor relations, strategy development and growth decisions, client retention and prospecting, and leadership development.

Of the changes, Crapps said: "We are excited about Ted's promotion to CEO of First Community Bank. He is a founding member of our Executive Leadership Team and understands our business and our culture at a deep level."

Crapps added, "Drew and Vaughan have been with our bank for twenty and fifteen years, respectively, each incredibly successful in their various roles with our bank, having most recently served as Regional Market Presidents. Each has also been recognized by the South Carolina Bankers Association as the Young Banker of the Year."

And Crapps said, "These changes to our Executive Leadership Team will preserve our bank's culture and prepare for the long-term success and sustainability of our bank which will benefit us now and in the years ahead." 

First Community Corporation is the holding company for First Community Bank, a local community bank based in the Midlands of South Carolina.

First Community Bank is a full-service commercial bank offering deposit and loan products and services, residential mortgage lending and financial planning/investment advisory services for businesses and consumers. 

First Community serves customers in the Midlands, Aiken, Upstate and Piedmont regions of South Carolina as well as Augusta, Ga.

Report Shows Many Americans Surprised by Overdraft Fees

The Consumer Financial Protection Bureau (CFPB) issued a new report finding that many consumers are still being hit with unexpected overdraft and nonsufficient fund (NSF) fees, despite recent changes implemented by banks and credit unions that have eliminated billions of dollars in fees charged each year.

In a recent CFPB Making Ends Meet survey, more than a quarter of consumers responded that someone in their household was charged an overdraft fee or NSF fee within the past year, and that only 22 percent of households expected their most recent overdraft.

Many consumers who were charged overdraft fees had access to a cheaper alternative, such as available credit on a credit card.

“Our research finds that American families are paying fees they do not expect, even when they have access to cheaper forms of credit,” said CFPB Director Rohit Chopra.

The report, Overdraft and Nonsufficient Fund Fees, explores consumers’ experiences with overdraft and NSF fees. Many consumers have access to cheaper credit sources, such as on a credit card, and report being surprised by their most recent overdraft.

Other consumers appear to use overdrafts often and intentionally: in households charged more than 10 such fees in a year, more than half of respondents reported that they expected their most recent overdraft.

Most account overdrafts are exempt from the regulation implementing the Truth in Lending Act, which is designed to promote the informed use of credit and make it easier for consumers to compare the cost of credit products.

Key findings from surveyed households and consumers include:

Households frequently incurring overdraft and NSF fees are more likely to struggle to meet their financial obligations: Among households that frequently incurred overdraft/NSF fees, 81 percent reported difficulty paying a bill at least once in the past year. This drops to 25 percent for households that were not charged a fee.

Many consumers do not expect overdraft fees: Among consumers in households charged an overdraft fee in the past year, 43 percent were surprised by their most recent account overdraft, 35 percent thought it was possible, and only 22 percent expected it. Consumers who overdraft infrequently are more likely to be surprised by a fee: 15 percent of consumers from households charged one to three overdraft fees expected their most recent transaction to overdraft; among households charged more than 10 overdraft fees, 56 percent expected their most recent overdraft.

Most households incurring overdraft fees had available credit on a credit card: Among households charged one to three overdraft fees in the past year, 68 percent had credit available on a credit card, while 62 percent of households charged three to 10 overdraft fees had credit available on a credit card. In households charged more than 10 fees in the past year, 51 percent still had credit available on a credit card.

Households face a substantial overlap in being charged overdraft and NSF fees: Among consumers in households charged an NSF fee in the past year, 85 percent were also charged an overdraft fee. Among consumers in households charged an overdraft fee in the past year, 72 percent were also charged an NSF fee.

Low-income households are hit the hardest Overdraft and NSF fees: While just 10 percent of households with over $175,000 in income were charged an overdraft or an NSF fee in the previous year, the share is three times higher (34 percent) among households making less than $65,000.

The data for the report comes from the 2023 Making Ends Meet survey and the CFPB’s Consumer Credit Panel.

The survey asks consumers about their experiences with overdraft and NSF fees in the past year, as well as their experiences applying for and obtaining credit, use of alternative financial services (e.g., payday or auto title loans), and financial pressures (e.g., difficulty paying bills or carrying an unpaid balance on a credit card).

Read the report, Overdraft and Nonsufficient Fund Fees.

Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).

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