Middletown manufacturer KVH hires turnaround firm Black Diamond Capital Management

KVH INDUSTRIES Inc of Middletown announced Feb. 3 it has entered a support agreement with Black Diamond Capital Management LLC, a privately held asset management firm based in Stamford, Conn., that specializes in restructurings and business turnarounds. / COURTESY KVH INDUSTRIES INC

MIDDLETOWN – KVH Industries Inc. has entered a support agreement with Black Diamond Capital Management LLC, a privately held asset-management firm that specializes in restructurings and business turnarounds.

Black Diamond, based in Stamford, Conn., currently holds a 17.2% stake in KVH. It will be granted a waiver to purchase up to 25% of KVH’s outstanding common stock.

Black Diamond managing principal Stephen H. Deckoff will become an independent, nonvoting member of the KVH board of directors. KVH on Feb. 3 said it will support Deckoff’s candidacy and will accept the resignation of one of its incumbent board members at its 2023 annual meeting to keep the panel at seven members.

“As a large shareholder, I look forward to joining the board and contributing to the future success of this strong business,” Deckoff said. “I believe in the opportunity to create value at KVH and look forward to working with my fellow directors on behalf of all shareholders.”

- Advertisement -

Deckoff is currently responsible for all portfolio management and business operations and holds board seats on a number of Black Diamond portfolio companies, including Consumer Portfolio Services, Inc., ION Media, Werner Ladder, White Birch, Bayou Steel, SmarteCarte, Sun World and PTC Alliance.

“We welcome Stephen to the board and are pleased to have reached this agreement with one of our largest shareholders,” said Brent C. Bruun, who was named KVH’s CEO and president in 2022. “We remain fully focused on executing against our plan and prudently operating our business as we continue to work with our advisers to review all strategic alternatives.”

KVH, which designs and manufactures mobile connectivity products and provides services for marine and land mobile uses, posted a $9.8 million loss in 2021 and reported a $100,000 operating loss the third quarter of 2022.

Total revenue from continuing operations in the third quarter of 2022 was $35.2 million, up 2% from $34.4 million in the third quarter of 2021.

In 2022 KVH landed a five-year, $69 million contract with the U.S. Coast Guard, the same year it cut expenses 15% and divested several of its secondary businesses.

No posts to display