Archives for May 17, 2012

Private Equity Invests $144 Billion in 1,702 U.S. Companies in 2011

by

The second annual study examining private equity investment by country, state, and congressional district shows that nearly 500 more companies benefited from private equity investment in 2011 compared to 2010.

“This report shows that despite the challenging economic environment private equity continues to be a critical source of capital for U.S. companies looking to grow or retool,” said Steve Judge, President of the PEGCC. “Over the next several months, we expect the general election to amplify the conversation about private equity, but one thing is clear, private equity drives economic activity and growth across the U.S. economy. These numbers are an unambiguous reminder that, at its core, private equity is about investing in and strengthening American companies.”

Private equity firms invested more than $144 billion in 1,702 U.S.-based companies in 2011, according to the data from the Private Equity Growth Capital Council. The top five states in terms of investment were Texas, New York, California, North Carolina and Oklahoma. Additional states that made the top 20 include Florida, Colorado, Ohio, Virginia, and Nevada. More than $20 billion was invested in 206 companies in Texas, the most of any state during 2011. Oregon rounds out the top 20 with 16 companies receiving more than $1 billion. Overall, 20 states received more than $134 billion in private equity capital during 2011.

This is the PEGCC’s second annual report examining the geographic dispersion of private equity investment, providing new information about the number of companies infused with capital from private equity investors, the number of active private equity firms and the total deal value by region, country, state and congressional district. For more information on the geographic dispersion of private equity investments in 2011 go to www.pegcc.org.

CIT Backs Latest Lion Capital Acquisition

by

CIT Group has provided a senior secured asset-based credit facility to John Varvatos Enterprises, a designer, retailer, and wholesaler of men’s designer apparel and accessories. The financing was completed in conjunction with the acquisition of the company by Lion Capital, a consumer focused private equity firm, from VF Corporation.

“Given CIT’s depth of experience within the apparel/retail sector, we are pleased to have them as our financing partner on this transaction and we look forward to continuing to build our relationship as we further grow the business,” said Jacob Capps, Partner of Lion Capital.

The financing was provided by CIT Bank for working capital, capital expenditures, and general corporate purposes. CIT Retail Finance served as Sole Lender and Administrative Agent for the financing.

John Varvatos Enterprises is a designer, retailer, and wholesaler of men’s designer apparel and accessories. Products include footwear, bags, belts, eyewear, limited-edition watches and men’s fragrances. The company is based in New York, NY (www.johnvarvatos.com).

“John Varvatos is top of mind when people think of great men’s apparel brands,” said Burt Feinberg, Group Head of CIT Retail Finance and CIT Commercial & Industrial. “We were pleased to have structured and financed this transaction, which will provide the company with additional funds to continue to grow its business.”

Lion Capital makes investments in consumer businesses in Europe and North America. With offices in London and New York, the firm’s principals have led the investment of €6 billion of equity capital in consumer businesses across Europe and North America totaling over €19 billion of enterprise value (www.lioncapital.com).

CIT is a bank holding company with more than $34 billion in assets. Sectors of interest include small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and vendor finance. CIT was founded in 1908 and is based in New York, NY (www.cit.com).

Bertram Capital Promotes Ingrid Swenson to Partner and Managing Director

by

Bertram Capital has promoted Ingrid Swenson to Partner and Managing Director. Ms. Swenson, the Chief Financial Officer at Bertram, has been with the firm since its inception in 2006 and oversees all of Bertram Capital’s finance, administrative and internal information technology activities.

Ms. Swenson has led Bertram’s finance team’s efforts in support of each of the twenty-two investments made by Bertram Capital since the firm’s first investment in January of 2007. In addition to her finance and administration responsibilities, Ms. Swenson also serves as the firm’s Chief Compliance Officer. Most recently, Ms. Swenson and her team designed and implemented a comprehensive internal compliance program, coinciding with the firm’s registration with the SEC as a Registered Investment Advisor.

“As a founding team member of Bertram Capital, Ingrid Swenson has played an integral role in the firm’s success and has been instrumental in building our world class Finance, Administrative and IT teams,” said Jeff Drazan, Managing Partner. “Ingrid’s well-earned promotion to Partner and Managing Director is a direct result of the unwavering commitment to excellence and tireless work ethic she displays on a daily basis.”
Prior to Bertram, Ms. Swenson was Controller of Mayfield Fund. Previous to Mayfield Fund, she was a Senior Manager at PricewaterhouseCoopers in its Life Science and Venture Capital practice. Ms. Swenson currently serves on the board of directors of the West Coast Chapter of the Private Equity Chief Financial Officer Association and is a member of the American Society of Women Accountants. Ms. Swenson earned a Bachelor of Science in Agricultural & Managerial Economics from U.C. Davis and is a licensed Certified Public Accountant in the state of California.

Bertram Capital has over $850 million in capital under management and targets investments in lower middle market companies. Industries of interest include manufacturing, technology, business services and health care. The firm is located in San Mateo, CA (www.bertramcapital.com).


Nicolet Capital Partners Acquires InterFlex Group

by

Nicolet Capital Partners announced today that it has completed the acquisition of InterFlex Group, a flexible packaging provider. “InterFlex’s high quality converting equipment across multiple geographies combined with its ability to adapt different coatings, barrier technologies and packaging materials make it an ideal investment platform in this segment. Growth will come from both acquisitions as well as internal investment in new equipment and technically oriented sales and marketing resources,” said Brett Snyder, President of Nicolet Capital.

InterFlex operates five manufacturing locations in the U.S. and U.K. an offers a range of flexible packaging products to consumer product customers in the poultry, meat snacks, pet food, baked goods and confectionary products markets. The company’s converting capabilities include a fleet of 8 and 10 color flexographic presses at each facility along with coating, laminating and value-added pouch and bag making. InterFlex’s revenues are well in excess of $100 million. The company is based in Wilkesboro, NC (www.interflexgroup.com).

The acquisition of InterFlex Group represents Nicolet’s third active platform investment in the Plastics, Packaging and Specialty Converting segment. Nicolet has now completed six transactions in total in this segment over the past four years. “We look forward to working with management to pursue opportunities to expand into new end markets and geographies in the U.S., U.K. and Europe. In addition, we will support InterFlex’s ongoing efforts to develop or acquire further unique converting capabilities and new packaging technologies that it will leverage across its strong customer base,” said Mr. Snyder.

Stephen Doyle, who will continue as a major shareholder and the Chief Executive Officer of InterFlex, added “Nicolet stepped up to the plate in a competitive sale process with a clear, organized proposal that was executed in a rapid and professional manner. The InterFlex management team is excited to partner with Nicolet Capital and looks forward to the financial support for the team’s acquisition and organic growth plans. InterFlex will now continue its program to target businesses and make investments that strengthens its position in its core segments and adds converting technology and manufacturing capability.”

InterFlex was advised on the transaction by Lincoln International. “Nicolet Capital Partners has significant flexible packaging industry expertise that provided for a highly efficient diligence process. In addition, Nicolet’s financing process was well organized and completed in a timely manner that accommodated the cross-border complexities of the transaction,” said Luke Webb, a Lincoln International Director.

Nicolet Capital Partners makes both majority and minority equity investments in established businesses across a range of basic industries. The firm targets equity investments of $25 million to $75 million in companies with meaningful, distinct and sustainable competitive positions. In addition to its equity capital, Nicolet Capital can provide complete, committed debt financing for its transactions. The firm is based in Chicago, IL (www.nicoletcap.com).

Mid Oaks Acquires Jet Plastica Industries

by

D&W Fine Pack, a foodservice packaging provider and a portfolio company of Mid Oaks Investments, has acquired Jet Plastica Industries, a manufacturer of food service supplies. “We are pleased to be joining forces with the Jet Plastica team,” said Mark Staton, President and Chief Executive Officer, D&W Fine Pack. “There are tremendous synergies between our product offerings, and we look forward to serving our new customers and providing an expanded suite of products to the market.”

Jet Plastica manufactures plastic cutlery, straws, stirrers and meal kits to for the foodservice industry. The company has manufacturing facilities in Hatfield, PA (headquarters) and Fowler, CA. D&W Fine Pack will continue operations in both plant locations (www.jetplastica.com).

D&W Fine Pack manufactures foodservice and food packaging products including tableware, containers, cutlery, straws, and meal kits. The company is based in Fountain Inn, SC (www.dwfinepack.com).

Mid Oaks makes control and non-control investments in companies with annual revenues of $25 million to $250 million. The firm has a preference for manufacturing companies but will also consider distribution or service company opportunities. The firm was founded in 1986 and is based in Buffalo Grove, IL (www.midoaks.com).