Archives for June 20, 2012

CIT Backs Healthcare Portfolio Company of Cressey

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CIT Group has arranged and syndicated a $210 million senior secured credit facility to support the refinancing of Encompass Home Health, a Medicare-certified home health care agency and a portfolio company of Cressey & Company.

“This deal underscores how we use our industry knowledge to help meet the needs of and finance healthcare companies,” said Steven Warden, President of CIT Healthcare. “We are pleased to have the opportunity to work with Encompass and its management team to provide financing solutions that meet its long-term needs and support its growth strategy.”

Encompass Home Health is a Medicare-certified home health and hospice care agency. The Encompass network has grown to over one hundred home care and hospice branches in Texas, Oklahoma, New Mexico, Colorado, Utah, Idaho and Oregon and has $250 million in annual revenues. Encompass Home Health is based in Dallas, TX (www.ehhi.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).

CIT Healthcare served as Joint Lead Arranger, Sole Bookrunner and Administrative Agent for the transaction.

“CIT’s expertise and guidance have provided value to our business and helped make Encompass the standard for patients who need superior in-home care. This facility will provide additional working capital and allow us to continue our focus on enhanced patient care and ensure we remain the leader in innovative home health services,” said April Anthony, founder and Chief Executive Officer of Encompass.

Cressey & Company makes equity investments of $5 million to $100 million in healthcare services, providers and facilities that have at least $5 million of EBITDA. The firm has offices in Chicago and Nashville (www.cresseyco.com).

Salus Surpasses $100 Million in New Loan Commitments

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Salus Capital Partners, a subsidiary of Harbinger Group, has recently surpassed $100 million in new loan commitments through May 2012. Salus has provided loans to ten companies throughout North America in situations ranging from turnarounds to emerging growth stories. To date, the companies Salus has financed span a range of industries and include American Apparel, Big M, Brodkey Brothers, Frederick’s of Hollywood Group, Miss Matched, Namco, Roomstore, and Strauss Auto.

“The Salus lending platform was officially launched in January 2012 as part of Harbinger Group. Together, we embrace a like-mindedness in how we approach credit risk and lead with a focus on execution and a delivery system designed to win business and serve our borrowers with best-in-class relationship management,” said Andrew Moser, President of Salus Capital Partners. “We are excited about the momentum we’ve had in the short time since our launch and feel that our flexible, responsive, consistent and forward-thinking approach will continue to be very attractive to companies seeking creative capital solutions.”

Salus Capital is a provider of senior secured asset-based loans to the small and middle-market across a variety of industries with additional complementary financing throughout the capital structure. Commitments range from $3 million to $30 million with the ability to lead and agent larger transactions. Industries of interest include manufacturing; jewelry; specialty retail; niche distribution; services industries; wholesale apparel and garment; commercial supply chain; internet; direct marketing & catalog; energy; transportation; and consumer receivables. The firm is based in Needham, MA (www.saluscapital.com).

“We could not be more pleased with the performance of Salus Capital Partners having closed on over $100 million in loan commitments only five months after formation,” said Phil Glass, Vice President of Investments at Harbinger Group. “Andy has done a terrific job leading his team in identifying and conducting thorough diligence on attractive loan opportunities that we believe present an exciting business opportunity for Salus Capital Partners and the Harbinger Group.”

AUA Private Equity Acquires InfoStore Records Management

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AUA Private Equity Partners has announced that its portfolio company Two-Twenty Records Management, a provider of records and information management services, has acquired InfoStore Records Management.

InfoStore Records Management is a records and information management company. The company is based in Brooklyn Heights, OH (www.infostorerecords.com).

Two-Twenty Records Management is a records and information management company. The company provides outsourced storage, archiving, digital services, and transportation of multiple media types including documents, computer back-up tapes, film and sound archives, and electronic data vaulting. The company was founded in 1993 and is based in Edison, NJ (www.2-20rm.com).

“InfoStore and Two-Twenty Records Management provide perfect synergies in services as well as customer driven business philosophies. It is this service/solution mindset that allowed InfoStore to so easily fold into the 2-20 family of companies. InfoStore now has the ability to offer the New York, New Jersey and Pennsylvania markets a new and innovative record and information management experience,” said Alex Van Veldhuisen, Vice President, Sales, InfoStore Records Management.

AUA Private Equity Partners makes equity investments in companies in the consumer, media and business services sectors with a particular focus on Hispanic-oriented companies and family-owned businesses located in the United States. The new firm plans to invest $10 to $30 million of equity in companies that generate $3 million to $15 million in EBITDA. AUA Equity makes control and significant minority investments in a variety of transactions and structures including: traditional leveraged buyouts; growth equity; recapitalizations; and roll-up strategies. The firm is based in New York, NY (www.auaequity.com).

Genstar Capital Acquires Hi-Tech Machine

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MW Industries, a manufacturer of specialty springs and fasteners and a portfolio company of Genstar Capital, announced today that it has completed the acquisition of substantially all of the assets of Hi-Tech Machine. “We continue to identify growth oriented companies and to successfully integrate them into our growing platform,” said Bill Marcum, CEO of MW Industries. “We have been working to build the company into a leading national competitor and each strategic acquisition has added enhanced product offerings and broadened MW’s geographic reach.”

Hi-Tech is a precision machining business that serves the medical, aerospace, military/defense and hand power tool markets. The company is based in of Concord, NC (no website found).

MW Industries is a provider of highly engineered springs, specialty fasteners and other precision components to more than 23,000 customers. Its 40,000 plus products are sold through a combination of direct sales, catalogs and distributors to original equipment manufacturers and aftermarket customers in a number of industries, including medical, heavy truck, electronics, agriculture and construction, military and aerospace, energy and automotive. The company is based in Logansport, IN (www.mw-ind.com).

It is planned that Hi-Tech’s equipment and customers will be integrated into MW’s Springmasters Division, based in Greer, SC, over the next few months. Brad Gryder, Owner and President of Hi-Tech, will be joining the Springmasters Organization to work on integration of the existing business base and drive growth opportunities.

Genstar Capital invests in middle-market companies and builds value in those businesses by utilizing the expertise of its operating partners. Genstar has more than $3 billion of committed capital under management and targets investments within the life sciences, healthcare services, financial & business services, software & software services and industrial technology industries. The firm was founded in 1988 and is based in San Francisco, CA (www.gencap.com).

Thompson Street Capital Partners Acquires Allied 100

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It was announced today that Thompson Street Capital Partners has acquired Allied 100, a distributor and on-line retailer of automated external defibrillators.

Allied 100 is a value added distributor and on-line retailer of automated external defibrillators (“AEDs”), AED supplies, accessories and complementary products. The company is based in Woodruff, WI (www.AEDSuperstore.com).

Greene Holcomb & Fisher served as the exclusive financial advisor to Allied’s owners in the transaction. “We worked closely with the owners to find the right partner for the business, and believe Thompson Street will be outstanding,” said Brian Holcomb, Managing Director at Greene Holcomb & Fisher.

Thompson Street Capital Partners makes investments in manufacturing, service and distribution businesses with annual revenues between $20 million and $200 million, and a minimum EBITDA of $5 million. Thompson Street partners with management in recapitalizations, management buyouts, corporate divestitures, family businesses in transition and take-private transactions. The firm was founded in 2000 and is based in St. Louis, MO (www.tscp.com).