Information on the target
Branford Castle has successfully sold Vitrek, a prominent manufacturer of electrical safety testers and precision measurement instruments, to Industrial Physics, a portfolio company of KKR. This transaction marks the conclusion of an over eight-year hold that commenced in January 2018 when Branford acquired the company from co-founder Kevin Clark. The sale represents the third exit from Branford’s inaugural fund and the firm’s fifth overall exit.
Vitrek specializes in creating instruments that ensure the electrical safety of products prior to reaching consumers. Its high potential and ground bond testers apply high voltage across a device’s insulation to verify that electricity will not leak to accessible parts, a critical requirement for manufacturers of medical devices, appliances, and power supplies to achieve safety certification. Additionally, Vitrek’s power analyzers assess the electricity consumption and efficiency of products, serving engineers in various sectors including electric vehicles and solar inverters.
Industry overview in the target’s specific country
The Electronic Equipment & Parts (NEC) industry in the United States is a dynamic sector characterized by rapid technological advancements and stringent regulatory requirements. The market for electrical test equipment is projected to reach $23 billion by 2031, growing at a compound annual growth rate (CAGR) of 6%. This growth is driven by increasing demand for compliance with electrical safety regulations, particularly as industries such as renewable energy and electric vehicles expand.
In the U.S., the electrical test equipment market holds a significant share, with North America accounting for approximately 38.7% of the projected revenue in 2025. The broader test and measurement equipment market is also on an upward trajectory, expected to grow from $36 billion in 2026 to $51 billion by 2033, fueled by advancements in technology and the need for precise measurement solutions across various industries.
Key drivers of growth in the Electronic Equipment & Parts (NEC) industry include the increasing complexity of electronic devices and the corresponding need for sophisticated testing solutions. As manufacturers strive to meet higher safety and efficiency standards, the demand for advanced electrical safety testers and measurement instruments continues to rise. Furthermore, the industry's strong valuations, with EV/EBITDA multiples averaging 15.7x for industrial instrumentation, reflect investor confidence in the sector's future.
Recent transactions in the industry, such as KKR’s acquisition of Spectris and CVC Capital Partners’ carve-out of Smiths Detection, highlight the competitive landscape and the strategic importance of comp…