Archives for May 31, 2012

Leonard Green Closes Fund 6 at $6.25 Billion

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Leonard Green & Partners has held a closing of the firm’s sixth private equity investment fund, Green Equity Investors VI, L.P., substantially above target and at its hard cap of $6 billion in limited partner commitments along with $250 million from affiliates of the firm.

Investors in Fund 6 include domestic and international pension funds, sovereign wealth funds, insurance companies, foundations and family offices. Leonard Green & Partners did not use a placement agent to assist in the raising of the fund.

Leonard Green & Partners’ philosophy is to invest in middle-market companies with market-leading franchises and defensible competitive positions, attractive growth prospects and proven management teams. The firm’s investments are in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Consistent with its prior funds, sectors of focus for Fund 6 include retail, distribution, healthcare, aerospace/defense and consumer/business services.

Leonard Green & Partners was established in 1989 and manages approximately $15 billion of equity capital. The firm is located in Los Angeles, CA (www.leonardgreen.com).

Levine Leichtman Completes Two Dividend Recapitalizations

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Levine Leichtman Capital Partners announced today that two of its portfolio companies – Tronair and Global Franchise Group – were recently recapitalized resulting in a significant return of capital to the firm’s limited partners.

Tronair raised a $50 million senior credit facility in May 2012. Proceeds of the transaction were used to refinance existing debt, pay a shareholder dividend, pay related fees and expenses and provide for on-going working capital needs of Tronair. The senior credit facility was provided by Bank of Montreal and Bank of Ireland.

Tronair is a designer, manufacturer, and seller of ground support equipment for business, commercial and military aircraft. Tronair’s product line is comprised of over 1,000 SKUs used in over 300 aircraft platforms. Customers include aircraft OEMs (Bombardier, Gulfstream, Embraer, Boeing and Airbus), fixed based operators, maintenance and repair providers, corporate hangars, commercial airlines, defense contractors and military airbases. The company is based in Holland, OH (www.tronair.com).

Global Franchise Group successfully increased its senior credit facility to $63.5 million in May 2012. Proceeds of the transaction were used to pay a shareholder dividend and pay related fees and expenses. The senior credit facility was provided by Bank of Montreal and NXT Capital.

Global Franchise Group is a brand management company that owns and manages a portfolio of franchised brands in the quick service restaurant industry and the retail footwear and accessories industry. These brands include Pretzelmaker, Great American Cookies, Marble Slab Creamery, MaggieMoo’s and The Athlete’s Foot. The company has over 1,500 franchised locations worldwide, primarily located in the United States, Canada, Latin America and Asia. The company is based in Atlanta, GA (www.globalfranchise.com).

Levine Leichtman Capital Partners manages approximately $5 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners IV, L.P., Levine Leichtman Capital Partners Deep Value Fund, L.P., and Levine Leichtman Capital Partners SBIC Fund, L.P. The firm is based in Los Angeles, CA with offices in Chicago, IL; Dallas, TX; and New York, NY (www.llcp.com).

Sycamore Partners Acquires Talbots

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Talbots, a specialty women’s retailer, and Sycamore Partners today announced that they have entered into an agreement whereby Sycamore Partners will acquire all the outstanding common stock of the company for $2.75 per share in cash. The transaction is valued at approximately $369 million, including debt and other adjustments. “We believe in the Talbots brand and its more than 8,000 associates,” said Stefan Kaluzny, a Managing Director of Sycamore Partners. “We look forward to a long and successful partnership with Talbots serving its many loyal customers.”

Talbots is a specialty retailer and direct marketer of women’s apparel, shoes and accessories. The company operates 516 Talbots stores in the US and Canada. Its direct marketing operation circulated 15 Talbots brand catalogs in 2011 reaching a worldwide circulation of approximately 41 million. The company was founded in 1947 and is based in Hingham, MA (www.talbots.com).

Sycamore Partners makes equity investments in consumer and retail businesses. The firm is based in New York, NY (www.sycamorepartners.com).

Perella Weinberg Partners is acting as financial advisor to Talbots and White & Case is acting as its legal counsel. Bank of America Merrill Lynch is acting as financial advisor to Sycamore Partners and Winston & Strawn and the Law Offices of Gary M. Holihan are acting as its legal counsel.

Aterian Investment Partners Acquires Burner Systems International

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Aterian Investment Partners announced today that it has acquired Burner Systems International, a supplier of gas appliance components, from Dyson Investments and other equity partners. “For more than 50 years, Burner Systems has been the recognized global leader providing the broadest product offering in the industry. With this investment, Burner Systems has been provided the necessary capital to accelerate its growth in high-quality, innovative products as well as manufacturing technology,” said Christopher Thomas, Partner of Aterian.

Burner Systems designs and manufactures components used by OEMs for gas-fueled cooking and heating appliances. The company was founded in 1960 and is headquartered in Chattanooga, TN with additional manufacturing facilities in Mexico, France, England, and Turkey (www.burnersystems.com).

Aterian Investment Partners invests in small-to-middle market businesses with $25 million to $500 million in revenues that are underperforming, turnarounds or otherwise unique situations. Industries of interest include consumer products; food and beverage; retail; restaurants; health care services; manufacturing; distribution; metals and mining; industrials; and chemicals & commodities. The firm will consider both control and non-control investments. Aterian is based in New York, NY (www.aterianpartners.com).