Archives for June 27, 2012

Graham Partners Acquires Ground Effects

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Graham Partners has announced that its portfolio company LINE-X has acquired Ground Effects, Ltd., a designer and manufacturer of automotive accessories and a provider of vehicle upfit services. The acquisition of Ground Effects, which triples LINE-X’s sales, was 100% funded through cash and new senior debt facilities at LINE-X along with a seller note.

Ground Effects is a designer and manufacturer of interior and exterior automotive accessories including step bars and bed rails. The company is also a provider of upfit services to automotive OEMs and dealerships in the United States and Canada. GFX’s products are utilized on over 40 vehicle platforms. The company is based in Windsor, Ontario (www.gfxaftermarket.com).

LINE-X is a developer and marketer of protective coatings used in branded spray-on pick-up truck bedliners, as well as other commercial and industrial coatings. LINE-X also operates an industrial coatings division that offers anti-corrosion and protection for industrial customers and blast protection products for government agencies. The company is based in Huntsville, AL (www.linex.com).

The combination of LINE-X and Ground Effects creates the opportunity to realize significant synergies, including having GFX manufacture automotive accessories that can be installed by LINE-X’s network of 425 plus domestic and Canadian franchisees, as well as by creating customized vehicle upfit packages that LINE-X franchisees can sell and install in the aftermarket. “We couldn’t imagine a more exciting combination. LINE-X has built its reputation as the leader in the automotive aftermarket, and has a franchise base that stands ready to offer new products to their existing customers. GFX sales are up over 2.5x since 2008 and GFX has won coveted awards from virtually all of the OEM truck manufacturers that LINE-X serves in the aftermarket. We look forward to seeing these two businesses work together to deliver industry leading products across the entire spectrum of potential customers,” said Josh Wilson, Managing Principal at Graham Partners.

Graham Partners is a lower middle market industrial private equity firm with over $1.5 billion under management. Graham Partners is sponsored by the privately held Graham Group of York, PA, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners seeks to acquire industrial companies with revenues between $30 million and $500 million that participate in manufacturing niches where it can leverage its combination of operating resources and financial expertise. The firm is located in Philadelphia, PA (www.grahampartners.net).

Industrial Growth Partners Exits Xaloy Superior Holdings

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Nordson Corporation announced today that it has completed the acquisition of Xaloy Superior Holdings, a portfolio company of Industrial Growth Partners and a manufacturer of melt delivery components for injection and extrusion machinery.

Xaloy is a provider of highly engineered, function-critical plastic processing wear components and ancillary equipment used in injection and extrusion machinery in the plastic processing industry. Products include injection barrels, high performance screws, preassembled plasticating systems, heat transfer rolls, melt pumps, screen changers, pelletizers, and cleaning ovens. The company is based in New Castle, PA (www.xaloy.com).

Nordson Corporation engineers, manufactures and markets products and systems used for dispensing adhesives, coatings, sealants, biomaterials and other materials, fluid management, test and inspection, UV curing and plasma surface treatment. Nordson serves the consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. The company was founded in 1954 and is headquartered in Westlake, OH (www.nordson.com).

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm is based in San Francisco, CA (www.igpequity.com).

MidOcean and Crestview Exit OneLink Communications

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MidOcean Partners and Crestview Partners announced today that they have entered into an agreement to sell San Juan Cable (dba OneLink Communications) for an enterprise value of $585 million, or approximately 8x LTM Q1 2012 Adjusted EBITDA, to Liberty Global. OneLink is the largest provider of cable TV, high-speed data and telephony services in Puerto Rico. The transaction is expected to close in the fourth quarter of 2012.

MidOcean and Crestview, together with co-investors and management, acquired OneLink in October 2005 from Adelphia Communications. At the time, its services were limited to basic and digital cable TV and high-speed data. Rebranded as OneLink Communications under MidOcean and Crestview’s ownership, the company upgraded its plant to 860 MHz; expanded its high-speed data service offering; launched telephony services, VoD and HD/DVR services; and launched an all-digital system transition that is expected to be completed in 2012.

“We are proud of everything we have been able to accomplish at OneLink. OneLink is now a best-in-class cable company with a strong commitment to providing outstanding products and service to our valued customers in Puerto Rico. We are leaving our customers and employees in good hands with Liberty Global and Searchlight, who are very experienced cable operators and investors,” said Jeffrey Marcus, Partner at Crestview and a long-time cable industry veteran.

MidOcean Partners is a private equity firm focused on the middle market. MidOcean seeks companies with stable market positions and multiple opportunities for growth. Industries of interest include consumer, media and communications, business and financial services and industrial services. The firm has offices in New York, NY and London, UK (www.midoceanpartners.com).

“We have enjoyed a successful partnership with OneLink’s management team, led by Ron Dorchester, all of whom have done a great job growing the business during our ownership,” said Tyler Zachem, Managing Director at MidOcean. “As a result of the team’s hard work, OneLink’s customers now enjoy superior product offerings across video, high-speed data and telephony, and will benefit even more in the coming months from the pending completion of the company’s all-digital conversion.”

Crestview Partners is a $4 billion private equity firm which invests from $100 million to $250 million in equity in companies with enterprise values up to $3 billion. Sectors of interest include media, financial services, healthcare and energy. The firm is based in New York, NY (www.crestview.com).

Kirkland & Ellis served as legal advisor to MidOcean and Crestview.

KKR Invests in GenesisCare

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GenesisCare and Kohlberg Kravis Roberts & Co. announced today that agreements have been entered into under which KKR will acquire up to a 63% ownership stake in GenesisCare, an operator of cancer and cardiovascular care centers in Australia.

GenesisCare operates an Australia-wide network of comprehensive cancer and cardiovascular care centers. More than 70 clinics and facilities are located across metropolitan and regional Australia. The company has more than 1,000 employees and is based in Sydney, Australia (www.genesiscare.com.au).

“KKR acknowledges the essential role played by GenesisCare in providing the healthcare outcomes to patients in communities right around Australia,” said Justin Reizes, Head of KKR Australia. ““We look forward to supporting GenesisCare as it seeks to expand services further into areas of unmet need.”

KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $62 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).