Arsenal Completes Recapitalization of Headwall Photonics

January 20, 2022

Bolton, MA and New York, NY- Headwall Photonics (“Headwall“) today announced that it has completed a recapitalization led by Arsenal Capital Partners (“Arsenal”), a private equity firm that specializes in investments in industrial and healthcare companies. The recapitalization was completed in partnership with existing management and ownership, resulting in Arsenal becoming the majority owner. The terms of the transaction were not disclosed.

Headwall is a world-leading designer and manufacturer of high-performance hyperspectral imaging systems, spectral instrumentation, and optical components used in a variety of applications such as remote sensing, space and earth monitoring, life sciences, food production and safety monitoring, agriculture monitoring, and machine vision, among others. The company offers a range of precision optical components, including holographic diffraction gratings, custom OEM spectrometers, and sensors, as well as fully integrated hardware / software hyperspectral imaging systems, each of which is built upon proprietary technology from the component level all the way through the systems and solutions software. Headwall’s products identify the unique spectral signature of various materials, allowing customers to non-destructively determine material composition and variation on a chemical and elemental level, providing highly valuable insights to customers. The company serves a global customer base and enjoys a market leadership position through the design and manufacture of spectral instrumentation customized for application-specific performance. The recapitalization occurs at a critical inflection point in the market, with hyperspectral technologies experiencing growing mainstream adoption by an increasing number of industrial customers.

David Bannon, CEO of Headwall, stated, “Arsenal’s deep understanding of the hyperspectral imaging space and use cases for our technology, paired with the firm’s track record of strategically growing industrial technology businesses, make Arsenal the ideal partner to help drive the next phase of Headwall’s growth. In addition to the exciting announcement of this new partnership, I am also very pleased to announce that Don Battistoni, Headwall’s VP of Sales and Marketing, will be elevating his leadership of the company as its new President.”

Don Battistoni, added, “I speak for the entire management team in expressing our excitement for the next chapter of our growth in partnership with Arsenal. We remain focused on providing the highest quality and most capable hyperspectral solutions for our customers and are excited to have the support to further invest in our technology, products, and solutions.”

George Abd, an Operating Partner of Arsenal, said, “We are excited to partner with David, Don, and the entire Headwall organization. The company’s unique optical technologies and understanding of its application-specific uses position the firm well to address the world’s growing demand for hyperspectral solutions in machine vision, remote sensing, space and earth monitoring, and life sciences applications.”

Joe Rooney, an Investment Partner of Arsenal, added, “We look forward to building upon the company’s history of innovation to accelerate, both organically and inorganically, the rollout of new products and solutions that capitalize on the unique advantages and value spectral imaging can provide.”

Bryan Garnier & Co. served as financial advisor, and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP acted as legal advisor, to Headwall. Sidley Austin LLP acted as legal advisor to Arsenal.

About Headwall

Headwall, headquartered in Bolton, MA, designs and manufactures hyperspectral solutions and technologies for the industrial, government, academic, and research end markets. The company’s products operate across the spectral range to analyze complex hyperspectral images and provide actionable insights to its customers. For more information, please visit www.headwallphotonics.com.

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