Archives for July 2012

Monroe Capital Backs Latest Seaport Capital Acquisition

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Monroe Capital has provided a $16.5 million unitranche facility to support the acquisition of FTJ FundChoice by Seaport Capital Partners.

FTJ FundChoice provides technology enabled mutual fund trading platforms to investment advisors nationwide. The company was founded in 2001 and is based in Hebron, KT (www.ftjfundchoice.com).

“We were extremely pleased to have Monroe Capital as a financing partner in our acquisition of FTJ. Monroe Capital was able to provide a flexible capital structure and close our transaction in a timely manner. We appreciate the relationship we have developed with the Monroe Capital team,” said Bill Luby, a founding Partner of Seaport Capital Partners.

Seaport Capital invests from $5 million to $20 million of mezzanine debt and equity in US based companies with $3 million to $15 million of EBITDA. Industries of interest include online advertising, education services, co-location and managed services, communication towers, business process outsourcing, event & sponsorship marketing, late stage software, and fiber networks. The firm is based in New York (www.seaportcapital.com).

“We were pleased that Seaport Capital Partners had the confidence in Monroe to provide a financing solution to support the acquisition of this unique service business. We look forward to working with the team as they execute on their growth objectives,” said Theodore Koenig, President and Chief Executive Officer of Monroe Capital.

Monroe Capital is a specialty finance company providing senior and junior debt to middle-market companies. Monroe Capital specializes in originating, structuring and providing one-stop financings. Investment types include senior and junior secured debt as well as bridge loans, acquisition facilities, mezzanine or last-out secured loans and equity co-investments. The firm is based in Chicago, IL (www.monroecap.com).

Blum Capital Adds New Partner and Associate

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Blum Capital Partners today announced that Peter Westley and Carol Fu have joined Blum Capital’s investment team as partner and associate, respectively. “We are fortunate to have professionals as accomplished as Peter and Carol join our team,” said Jane Su, Co-Managing Partner at Blum Capital. Blum Capital plans to continue to enhance its team of senior investment professionals in the coming months to serve both the firm’s existing investors and to expand the Blum franchise.

Mr. Westley was previously a Managing Director at Salomon Smith Barney and a Partner at ThinkEquity Partners. Most recently, he was a Partner at North Point Advisors, an investment banking firm specializing in mergers and acquisitions. Mr. Westley has been both an investor and financial advisor during his career, raising more than $10 billion in equity and debt capital, and advising on more than $2 billion of transactions for his clients in a variety of industries. Mr. Westley received his MBA from the Graduate School of Business at Stanford University and BA from Dartmouth College.

“It is a privilege to be joining the firm,” said Mr. Westley. “Richard Blum’s long-term track record as a strategic financial investor is outstanding. His work as a philanthropist is equally impressive. I am also pleased to be joining Jane Su, who I have known and respected as an investor for more than 20 years. I look forward to working with Richard, Jane, and the rest of the team at Blum Capital, to take advantage of future investment opportunities on behalf of the firm’s investors.”

Ms. Fu was previously a senior analyst at Maverick Capital in New York and San Francisco where she identified investment opportunities and conducted research within the industrial and energy sectors. Her experience also includes positions at Blackstone Group, Merrill Lynch and HSBC Securities, all based in Hong Kong, and at UBS in London. Ms. Fu holds a BS degree from the Imperial College in London, a Masters degree in Statistical Sciences from the University of Cambridge, and an MBA from the Wharton School at the University of Pennsylvania.

Blum Capital Partners has $1.6 billion of capital under management and has invested in a wide variety of businesses through multiple going-private transactions. The firm was founded in 1975 and is based in San Francisco, CA (www.blumcapital.com).

Bertram Capital Exits Author Solutions

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Bertram Capital announced today the sale of Author Solutions, a provider of professional self-publishing services, to Pearson plc, the parent of Penguin Books Ltd, one of the largest traditional book publishers in the world, for $116 million in cash. The sale of Author Solutions marks Bertram Capital’s third portfolio company exit in the last nine months.

Since Bertram Capital’s investment in 2007, Author Solutions (“ASI”) has grown to be the world’s leading provider of professional self-publishing services. Bertram Capital acquired ASI in April 2007 and acquired iUniverse as its first add-on acquisition in October of 2007. After integrating iUniverse, the company then completed the acquisitions of Xlibris and Trafford in 2009. Beginning with a platform investment in a business with approximately $25 million in trailing revenue, these strategic acquisitions, aggressive business development and internal operational improvements expanded the business more than 4x over the ownership period. Author Solutions is based in Bloomington, IN (www.authorsolutions.com).

“ASI’s extraordinary growth and its impact on the self-publishing industry clearly demonstrate the capability our buy and build approach has to create market leaders that are attractive acquisitions for strategic buyers,” said Jeff Drazan, Managing Partner at Bertram Capital. “We successfully executed three add-on acquisitions for the ASI platform and grew the business more than 4x in just over five years, ultimately creating the world’s largest self-publishing business.”

Bertram Capital invests in middle-market business services, consumer, healthcare, industrial and technology companies. Bertram is currently investing out of its $500 million second fund and typically allocates $25 million to $100 million to each investment. Since the firm’s inception, Bertram has managed in excess of $850 million in committed capital and has completed 8 platform investments and 14 follow-on acquisitions. The firm is located in San Mateo, CA (www.bertramcapital.com).

“Working in partnership Kevin Weiss and his team at ASI for the past five years has been a great experience for the Bertram team,” said Jared Ruger, a Partner at Bertram. “Together, we transformed a slow growing, breakeven business into a fast-growing, consistently profitable innovator in its market that ultimately attracted the attention of a major strategic player. We achieved our goal of building a business that was both relevant and attractive to a strategic buyer. We wish Pearson well as they take the reins and lead ASI into the future.”

Propel Equity Partners Invests in POOF-Slinky

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POOF-Slinky, a maker of toys under the Slinky, POOF, Ideal, Cadaco, Scientific Explorer and Fuzzoodles brands, has received a significant investment from Propel Equity Partners.

POOF-Slinky manages a portfolio of recognizable branded toys, sports balls, educational activity kits, table top and board games and novelty products. Best known for its classic metal Slinky and Slinky Dog products and POOF foam balls, POOF-Slinky products are sold in more than 35,000 retail outlets. The company operates two manufacturing plants in Michigan and Pennsylvania and has over 125 employees. The company is managed by CEO Ray Dallavecchia Jr. and COO Doug Ferner. POOF-Slinky was founded more than 65 years ago and is based in Plymouth, MI (www.poof-slinky.com).

“In what is a fragmented industry, POOF-Slinky has consistently excelled as a leader,” says Michael Cornell, Partner, Propel Equity Partners. “Ray and Doug have put together an impressive stable of authentic toy brands that we believe have tremendous additional opportunities for growth at retail in the $20 billion plus toy market. We are looking forward to applying our expertise in the consumer products category to help POOF-Slinky accelerate organic growth, maximize brand potential, expand U.S. production capacity and make strategic acquisitions.”

Propel Equity Partners (formerly MCC Capital Partners) is a private equity firm focused on investments in branded consumer products businesses. Propel Equity Partners provides its portfolio companies with strategic and operational support to enable more efficient operations and accelerated sales growth. The firm is based in Greenwich, CT (www.propelequity.com).

“Propel Equity Partners has a strong track record of partnering with management teams of consumer products companies and providing the capital and expertise needed to help those companies reach new levels of growth and profitability,” says Ray Dallavecchia. “Propel showed particular knowledge and interest in the toy category, and we are looking forward to leveraging the additional resources and building upon our strong existing business.”

The “slinky” was developed in 1943 by naval engineer Richard James as an outgrowth of his work developing cushioning devices for warships; it was his wife, Betty who gave it the “slinky” name. The toy debuted at Gimbel’s Department Store in Philadelphia in 1945. Since then, more than 300 million Slinky’s have been sold. The Slinky is still manufactured in Hollidaysburg, PA, with the original equipment Richard James built.

BC Partners and The Carlyle Group Acquire Hamilton Sundstrand Industrial

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BC Partners and The Carlyle Group today announced an agreement to acquire Hamilton Sundstrand Industrial, a manufacturer of pumps and compressors used in the industrial, infrastructure and energy markets, from United Technologies Corporation for $3.46 billion.

“Hamilton Sundstrand Industrial is a world-class platform and we are excited about the company’s significant growth prospects, including in key emerging markets,” said Raymond Svider, Co-Chairman and Managing Partner of BC Partners.

The transaction is expected to close in the fourth quarter of 2012.The investment in Hamilton Sundstrand will be funded in an equal partnership with equity from BC Partners and The Carlyle Group as well as third-party debt provided by a banking consortium. External debt financing commitments have been provided by Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley, RBC Capital Markets and UBS.

Hamilton Sundstrand comprises three businesses as follows: Sundyne is a manufacturer of high-speed pumps and compressors used principally for mission-critical, down-stream oil and gas and chemical/industrial infrastructure; Milton Roy is a provider of metering pumps used in chemical, oil and gas and water treatment applications; and Sullair is a global manufacturer of rotary screw air compressors used to power air-driven industrial equipment and tools used in the industrial manufacturing and the energy, mining and chemicals industries. Hamilton Sundstrand operates 19 manufacturing facilities in the U.S., France, China, Australia, the U.K., Spain and India and is headquartered in Windsor Locks, CT (www.hamiltonsundstrand.com).

BC Partners has $16.4 billion of capital under management and invests in companies in a variety of sectors that have significant European operations. The firm has offices in London, Hamburg, Milan, New York and Paris (www.bcpartners.com).

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The firm is based in Washington, DC (www.carlyle.com).

Carlyle and BC Partners have a history of successful industrial investments including Carlyle’s ownership of Allison Transmission, Rexnord Corporation and AxleTech International and BC Partners’ investments in Brenntag, SGB-SMIT Group and Interpump.

LLR Partners and WellPoint Invest in Physicians Immediate Care

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LLR Partners and WellPoint today announced a growth capital investment in Physicians Immediate Care, a provider of management services to independently-owned medical clinics. The financing will be used to expand the company’s network and enhance the patient care offering of the clinics managed by Physicians Immediate Care.

Stanley Blaylock, a veteran of the healthcare services industry, also invested in Physicians Immediate Care and is joining the company as president and chief executive officer. Mr. Blaylock most recently was the president of Walgreens Health Services, the managed care and specialty services division of Walgreens. Prior to Walgreens, Mr. Blaylock was the president and CEO of Medmark, a national provider of specialty pharmacy services. He co-founded Medmark in 2003 and helped it become one of the most rapidly growing healthcare services companies in the U.S. before its sale to Walgreens in 2006. “I am excited about joining the company as we look to grow our footprint of clinics under management while maintaining the high quality of care and patient satisfaction delivered by Physicians Immediate Care’s committed providers,” said Mr. Blaylock.

Physicians Immediate Care provides management services to 20 independently-owned medical clinics in Illinois, Nebraska, and Oklahoma operated under the trade name “Physicians Immediate Care.” These clinics offer a range of services including digital x-rays, lab work, physicals, immunizations, fracture care and minor surgical procedures. The company was founded in 1987 and is based in Chicago, IL (www.physiciansimmediatecare.com).

“Rising costs, a shortage of primary care physicians and crowded ERs are driving consumers to seek more convenient, cost-effective care,” said Scott Perricelli, partner on the Healthcare Services investment team at LLR Partners. “The demand has escalated urgent care to a multi-billion dollar industry serving more than 150 million patient visits per year, but no single provider owns more than a small share. Under the proven leadership of Stan and his management team, Physicians Immediate Care has the opportunity to enhance the position of Physicians Immediate Care clinics in this market by striving to deliver better, faster and more affordable healthcare.”

LLR Partners makes both minority and control investments in middle market growth companies. Industries of interest include healthcare; financial and business services; information technology; and education. LLR is currently investing out of its $800 million third fund, LLR III. The firm has over $1.4 billion of assets under management and is located in Philadelphia, PA (www.llrpartners.com).

WellPoint is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri, Nevada, New Hampshire, New York, Ohio, Virginia, and Wisconsin. In addition to Blue Cross, the company also operates under the Anthem name. WellPoint is base in Indianapolis, IN (www.wellpoint.com).

KPS Capital Partners Acquires CWS Industries

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KPS Capital Partners today announced that its portfolio company International Equipment Solutions (IES) has acquired CWS Industries, a manufacturer of highly-engineered attachment products. This is the fourth acquisition by IES since its formation.

CWS is a manufacturer of highly-engineered attachment products, including tire manipulators, cable reelers, grapples, buckets and various large excavator attachment products. Its customers include a global network of dealers and end-users in the mining, oil & gas, forestry and construction markets. The company employs 140 people at two facilities, located in Surrey, British Columbia and Edmonton, Alberta, Canada (www.cwsindustries.com).

Financing for the transaction was provided by a syndicate of institutional investors agented by Regiment Capital Advisors and PNC Bank.

KPS formed IES in September 2011 as a platform for investments serving the construction, agriculture, landscaping, infrastructure, recycling, demolition, mining, and energy industries. At that time, KPS announced IES’s first two acquisitions, Paladin Brands Holding, Inc. and Crenlo LLC, from Dover Corporation. In November 2011, Stephen Andrews was retained as Chief Executive Officer of IES to lead the integration of the first two acquisitions and to grow and globalize the company. As part of its globalization strategy, IES acquired Siac do Brasil, a manufacturer of cab enclosures in Brazil, in June 2012. IES employs over 2,500 people and operates 15 manufacturing facilities in the United States, Germany, and Brazil. The company is based in Oak Brook, IL (www.iesholdings.com).

“We are very proud of the progress IES has made to date. In only a brief ten months, KPS has created a truly global manufacturing company as a result of four highly synergistic acquisitions. The company has dramatically improved its profitability under our ownership and exceeded all of our expectations for growth. IES continues to capitalize on opportunities to grow its business internationally, and we believe that with each acquisition and subsequent integration, IES increases the value proposition offered to its customers,” said Raquel Palmer, a Partner at KPS.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $2.9 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. KPS has created new companies to purchase operating assets out of bankruptcy; established stand-alone entities to operate divested assets; and recapitalized highly leveraged public and private companies. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. The firm is located in New York, NY (www.kpsfund.com).

“The acquisition of CWS is another important step towards the globalization and diversification of IES. We are very impressed with CWS’s rapid growth trajectory, customer base, engineering capabilities and broad portfolio of highly engineered attachment products,” said Stephen Andrews, Chief Executive Officer of IES. “This acquisition not only strategically enhances our footprint with dealers in Canada and the U.S. Pacific Northwest, but also opens up IES to a growing base of sales relationships located internationally in South America, Russia and Asia. Additionally, the acquisition enhances IES’ product portfolio to include a suite of attachments with applications in the high-growth mining, oil & gas and forestry end-markets, which are currently underserved by IES. As demonstrated with both this acquisition and the acquisition of Siac do Brasil, IES remains committed to supporting our customer’s global expansion initiatives with localized supply, technical resources, and parts and service support. IES intends to invest significant additional capital and resources into CWS to ensure the highest level of production quality and capacity for our customers. IES has made tremendous progress in our first ten months and I am very confident our future is bright.”

Berkery Noyes Publishes New M&A Report for Private Equity in the Information Industry

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Berkery Noyes today released its first half 2012 mergers and acquisitions trend report for Private Equity in the Information Industry. The report analyzes merger and acquisition activity in the private equity market for the first half of 2012 and compares it with activity in the four previous six-month periods. It features transactions made by financially sponsored acquirers within the Information Industry, including purchases made by subsidiaries or platforms of private equity firms. A link to a free copy of this report is available at the end of this article.

Berkery Noyes’ data showed that total volume increased two percent. Vista Equity Partners and Hellman & Friedman each had seven Information Industry transactions in first half 2012, making them the most acquisitive private equity firms by volume. Total value decreased eight percent, from $18.9 billion to $17.3 billion.

M&A activity in the Health and Pharmaceutics segment rose 62 percent and reemerged as the largest vertical market segment tracked in this report. One of the most active related buyers was TPG Capital, which acquired iMDsoft, DecisionView, and PharmARC Analytic Solutions.

Private equity M&A within the Software portion of the Information Industry remained flat throughout 2011 but increased 15 percent during the last six months. Three of the top ten overall Software deals in first half 2012 were backed by private equity firms. This consisted of Turaz’s announced merger with Misys for $2 billion, Apax Partners and JMI Equity’s announced acquisition of Paradigm for $1 billion, and GTCR’s announced acquisition of CAMP Systems International for $675 million. These deals together accounted for 21 percent of financially sponsored transaction value in the Information Industry.

“Large private equity firms keen on making acquisitions are likely to continue pursuing deal opportunities in the middle and lower middle market,” stated John Shea, Managing Partner at Berkery Noyes. “There are several factors contributing to this. First, they are finding that it currently takes longer in some instances to sell their portfolio companies, which can temporarily limit the amount of capital they have available to invest elsewhere. Second, they are facing heightened competition from strategic buyers, as was demonstrated by the bidding process for Quest Software between Insight Venture Partners and Dell.”

A copy of the Berkery Noyes report is available by clicking HERE.

Coller Capital Closes Fund 6 over Target

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Coller Capital has held a final closing of Coller International Partners VI with commitments of $5.5 billion. The new fund, which had a target size of $5 billion, will acquire private equity portfolios, positions in existing private equity funds and interests in privately-held companies. Coller International Partners V closed in April 2007 with commitments of $4.8 billion.

The new fund has more than 200 Limited Partners. Pension plans account for 53% of the fund’s committed capital; sovereign wealth funds/government entities for 15%; and insurance companies for 10%; with the remaining commitments coming from endowments and foundations, family offices and other types of asset manager.

As with earlier funds, fund 6 will target assets and sellers located anywhere in the world, and make individual investments ranging in size from $1 million to $1 billion.

“We are delighted to have formed this new fund partnership at such an exciting time in the secondaries market, when investors from all over the private equity world are looking to re-shape their portfolios or exit from the asset class,” said Jeremy Coller, Coller Capital’s chief investment officer. “With $5.5 billion of firepower, fund 6 will be able to provide comprehensive secondaries solutions to even the largest of these investors. We have already committed $800 million of the new fund’s capital, and we have a very full pipeline of potential investments.”

Coller Capital was founded in 1990 and has offices in New York, London, and Hong Kong (www.collercapital.com).

Joe Baratta to Head Global Private Equity For Blackstone

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Blackstone announced today that Joe Baratta will become head of global private equity for the firm. Mr. Baratta currently heads the private equity team in Europe and is a member of the firm’s Executive Committee. He will be based in New York beginning in September.

“Joe Baratta embodies the best of Blackstone – high integrity, strong investment acumen, a focus on the needs of our limited partners and a great developer of talent. He has been a key part of the leadership team at Blackstone and I look forward to having him broaden his role within the private equity group,” said Tony James, Blackstone’s President.

Mr. Baratta joined Blackstone in 1998 in its private equity business. In 2001, he moved to London to help open Blackstone’s London office and establish a European private equity business. Over the years, he has led some of Blackstone’s largest and most successful investments, both in Europe and the United States. These include SeaWorld Parks and Entertainment, Merlin Entertainments Group, Center Parcs and Spirit Group. Mr. Baratta is a graduate of Georgetown University.

Blackstone’s private equity group comprises 129 professionals in New York, London, Germany, Mumbai, Singapore, Hong Kong, Shanghai and Beijing. It currently has $47 billion in assets under management. If its 73 investments and pending transactions were combined, it would represent $117 billion of revenues and approximately 703,000 employees, or the equivalent of what would be the 13th largest company by revenue among the Fortune 500 in 2012. Blackstone Capital Partners VI, Blackstone’s latest private equity fund, closed in January of this year with over $16 billion in commitments (www.blackstone.com).

Irving Place Capital Acquires Colorado Time Systems

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PlayCore Holdings, a designer, manufacturer, and marketer of play and recreation products, and a portfolio company of Irving Place Capital, today announced its acquisition of Colorado Time Systems, a provider of timing, scoring, and display systems.

Colorado Time Systems provides professional and amateur aquatic, recreation and athletic facilities with timing, scoring and display systems. Its products include aquatic timing products, LED full color video displays, LED single-color animation displays, ribbon/fascia boards, sport-specific scoreboards, and portable scoreboards. The company was founded in 1972 and is based in Loveland, CO (www.coloradotime.com).

Colorado Time Systems will become a part of PlayCore’s EverActive Brands Group and its general manager Anita Sayed will continue to be responsible for the company’s day-to-day operations as well as its future growth and expansion. Operations will continue from Colorado Time Systems’ manufacturing facility in Loveland, CO and will be supported by the EverActive Brands management team, located in Mendota Heights, MN.

“We believe PlayCore is the best company to acquire us because the synergies are a perfect fit and it gives Colorado Time Systems the ability to expand our reach to new markets and expand our product solutions to our current customer base,” said Ms. Sayed.

PlayCore is a playground equipment and backyard products company specializing in the design, manufacture and marketing of commercial and consumer outdoor playground equipment. The commercial play division markets modular and custom playground systems and components to municipalities, schools, parks and other playground systems users. The consumer division manufactures kits for wooden swing sets and climbing units, plastic slides and play set accessories. PlayCore’s corporate headquarters are located in Chattanooga, TN (www.playcore.com).

“We are excited about the addition of Colorado Time Systems to the family of PlayCore brands as well as the opportunity to increase our commitment to the aquatic industry and expand in the performance recreation category with this acquisition,” said Bob Farnsworth, President and CEO of PlayCore. “The company will be a valuable addition to help support our mission of building communities through play.”

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 55 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is located in New York, NY (www.irvingplacecapital.com).

Moelis Capital Partners Acquires Aeropremier

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Hawthorne Global Aviation Services, a portfolio company of Moelis Capital Partners, today announced the acquisition of a controlling interest in Aeropremier, a fixed based operator for private jets.

Aeropremier is a provider of general aviation services at New Orleans Lakefront Airport with over 50,000 square feet of hangar space which can accommodate aircraft up to the size of a Gulfstream 550. The company is based in New Orleans, LA (www.aeropremier.com).

Hawthorne is a general aviation services company. Moelis Capital Partners and Hawthorne Corporation formed Hawthorne Global Aviation Services in November 2011. The company is headquartered in Charleston, SC (www.hawthorne.aero).

Moelis Capital Partners is a middle market private equity firm founded in 2007 in connection with the formation of Moelis & Company, an independent investment bank. Moelis Capital Partners manages $700 million of committed private equity capital and specializes in traditional private equity investments in the middle market. The firm is based in New York (www.moelis.com).

TA Associates Invests in Coaxis

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Coaxis, the parent company of Viewpoint Construction Software, a provider of financial/accounting compliance, operational, project and document management software to construction companies, today announced that it has received a $76 million minority investment from TA Associates.

Coaxis, through its Viewpoint subsidiary, provides software for mid-sized and large construction firms, including general contractors, heavy/highway and specialty subcontractors. Coaxis/Viewpoint now counts 1,200 construction firms using their products. The company is based in Portland, OR (www.coaxis.net) (www.viewpointcs.com).

“TA’s investment is a vote of confidence in a talented management team that is transforming the information technology available to the construction market,” said Harry Taylor, a Director at TA Associates who will join Coaxis’ Board of Directors. “We have monitored the company’s progress for some time, and our observations, conversations with Viewpoint customers and market validation indicate that their products, services, values and collaborative company culture all differentiate the firm in this growing market.”

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968 TA has invested in over 400 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, MA; London, UK; Menlo Park, CA; and Mumbai, India (www.ta.com).

Cortec Group Acquires Harmar Mobility

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Cortec Group announced today that it has acquired Harmar Mobility, a mobility and accessibility products company, in partnership with Harmar’s Founder and President, Chad Williams and members of his family.

Harmar is a designer, manufacturer, and marketer of mobility and accessibility products focused primarily on the vehicle and residential lift segments. The company’s products include vehicle lifts, stair lifts, vertical platform lifts, turning seats, residential elevators, ramps and bath lifts, among others. Harmar’s products are sold across multiple dealer-based distribution channels as well as through Veterans’ Administration hospitals under company-owned brands, such as Harmar, Summit, Pinnacle, Alpine, Freedom Seat, and certain customer private labels. The company was founded in 1998 and is based in Sarasota, FL (www.harmar.com).

Chad Williams will continue in his current position and remain a material shareholder. “We were looking for a partner with healthcare investing experience and were impressed with Cortec’s successful track record of growing medical products businesses. Our management team is confident that we have found the right partner to support the company as we enter our next phase of development,” said Mr. Williams.

Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $40 million to $300 million. Cortec currently manages over $1 billion in its two active funds and targets platform acquisitions with enterprise values of $40 million to $300 million. The firm was founded in 1984 and is based in New York, NY (www.cortecgroup.com).

“As an industry leader in a growing market, we believe Harmar is well positioned to continue to gain market share across its distribution channels and to capitalize on the favorable demographic trends in its market,” said David Schnadig, a Managing Partner at Cortec. “We look forward to working with Chad and the rest of the Harmar team to achieve their growth objectives.”

Clayton, Dubilier & Rice Exits Sally Beauty

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Clayton, Dubilier & Rice today announced total proceeds of $1.9 billion from its 2006 investment in Sally Beauty Holdings. Including a secondary offering completed today, CD&R has sold all of its 86 million Sally common shares in four underwritten offerings in October 2011, February 2012, May 2012 and July 2012, and a share repurchase by Sally in May 2012, at an average price of $22.68. In November 2006, CD&R invested $571 million to acquire approximately 47.5% of Sally Beauty Holdings, Inc., valued at $6.66 per share, from The Alberto-Culver Company. Post-initial investment, CD&R became the largest single shareholder.

Sally Beauty Holdings is an international specialty retailer and distributor of professional beauty supplies with annual revenues of $3.5 billion. Sally operates primarily through two business units, Sally Beauty Supply and Beauty Systems Group, and is the largest distributor of professional beauty supplies in the U.S. based on store count. The Sally Beauty Supply and Beauty Systems Group businesses sell and distribute through over 4,400 stores, including 185 franchised units, throughout the United States and Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Mexico, France, Ireland, Spain, Germany and the Netherlands. The company is based in Denton, TX (www.sallybeautyholdings.com).

Under CD&R’s ownership, revenues and EBITDA for Sally increased 49% and 101%, respectively, while margins expanded 430 basis points. Sally pursued a number of initiatives to drive earnings growth, including initiatives focused on improving sales productivity at the company’s 4,400-store network, accelerating new store openings, augmenting profitability, growing internationally, and strategically making acquisitions.

CD&R Partners Richard Schnall and Kenneth Giuriceo served as Directors of Sally Beauty, and CD&R Operating Partner James Berges served as Chairman. “Sally Beauty involved the complex carve-out of a non-core distribution business,” said Mr. Schnall. “The company’s strong performance during our ownership was underpinned by solid execution of key operational improvement initiatives, including increasing customer traffic, expanding gross margins and growing the business internationally.”

Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $17 billion in 52 US and European businesses representing a broad range of industries with an aggregate transaction value of approximately $80 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York, NY and London, UK (www.cdr-inc.com).

Windjammer Capital Acquires Shercon

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It was announced today that Protective Industries, a portfolio company of Windjammer Capital Investors, has acquired Shercon, a provider of standard and custom die cuts and molded rubber masking solutions. The transaction closed on April 30, 2012.

Shercon is a provider of standard and custom die cuts and molded rubber masking solutions, including caps, plugs, tapes, die cut maskings and complex rubber maskings, used to protect selected surfaces during industrial finishing processes. The company is headquartered in Cypress, CA with wholly owned manufacturing operations in Hangzhou, China and a distribution center in Louisville, KT (www.shercon.com).

Protective Industries (dba Caplugs) manufactures caps, plugs, tubing, containers, edge liners, fasteners, netting and masking products that are used in the manufacturing, transportation and storage industries. The company specializes in injection molding, vinyl-dip molding and plastic extrusion, producing approximately 2 billion pieces per year. The company has four manufacturing and distribution facilities located on the East and West coasts of the United States and in China. Protective Industries was founded in 1948 and is based in Buffalo, NY (www.caplugs.com).

Intrepid Investment Bankers acted as the exclusive M&A advisor to Shercon in connection with the transaction. The Intrepid team included Jim Freedman, Jeremiah Mann, Brian Levin and Zachary Browning. Intrepid is a mergers and acquisitions and corporate finance advisory firm focused on the middle-market. Intrepid was founded in 2010 by the former principals of Barrington Associates, a firm that grew to become a national middle market M&A advisor before its acquisition by Wells Fargo in 2006. The firm is based in Los Angeles, CA (www.intrepidib.com).

“This is an exciting next step in Shercon’s future and we are delighted to partner with Caplugs and Windjammer,” said Keith Ennis, CEO of Shercon. “Intrepid’s diligence in understanding the business and excellent control of the process made the sale efficient and helped us meet all of our objectives and goals.”

Windjammer Capital Investors makes control and non-control investments in middle market businesses in partnership with management. Windjammer manages institutional funds totaling over $1.8 billion of capital and is currently investing its latest fund, Windjammer Senior Equity Fund IV, which it raised in 2012. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).

Triangle Capital Invests in Eckler’s

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Triangle Capital Corporation announced today that it closed a $7.2 million investment in Eckler’s, a multichannel retailer of aftermarket parts for predominantly classic cars, consisting of subordinated debt and equity. Earlier this month Eckler’s was acquired by Baird Capital Partners.

Eckler’s is a large multi-channel marketer of restoration parts and accessories for classic and enthusiast cars and trucks. Eckler’s products are primarily marketed to consumer enthusiasts and small business classic car restorers (www.ecklers.com).

Triangle Capital Corporation invests capital in established companies in the lower middle market to fund growth, changes of control and other corporate events. Triangle specializes in mezzanine financing with equity components and typically invests $5 million to $25 million per transaction in companies with annual revenues between $20 million and $200 million and EBITDAs between $3 million and $20 million. The firm is based in Raleigh, NC (www.TCAP.com).

The Carlyle Group Invests in Genesee & Wyoming

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The Carlyle Group announced today that it has agreed to invest up to $800 million in Genesee & Wyoming, an operator of short line and regional freight railroads, which will enable Genesee & Wyoming to acquire RailAmerica, a portfolio company of Fortress Investment Group, for an all cash purchase price of $2 billion. Genesee & Wyoming is an experienced acquirer of short line railroads, having integrated 65 railroads through 36 acquisitions since 1985. The transaction is expected to close in the fourth quarter of 2012.

Genesee & Wyoming owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. Operations currently include 66 railroads organized in 10 regions, with more than 7,600 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. The company provides rail service at 17 ports in North America and Europe and performs contract coal loading and railcar switching for industrial customers. Genesee & Wyoming is headquartered in Greenwich, CT (www.gwrr.com).

RailAmerica owns and operates short-line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces. The company is based in Jacksonville, FL (www.railamerica.com).

GWI’s acquisition of RailAmerica will combine the two largest short line and regional rail operators in North America. The transaction is transformational for GWI’s North American operations, as GWI will now operate 108 railroads over more than 12,000 track miles. The transaction increases GWI’s total revenues by nearly two-thirds to approximately $1.4 billion and doubles North American revenue to approximately $1.1 billion. Following the transaction, GWI will have 111 railroads (108 in North America), 15,120 miles of track (12,300 in North America), 1.9 million carloads (1.7 million in North America), 1,000 locomotives (900 in North America) and 4,300 employees (3,900 in North America).

Equity for the investment will come from Carlyle Partners V, a $13.7 billion U.S. buyout fund. Financing will be provided by Bank of America Merrill Lynch.

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The firm is based in Washington, DC (www.carlyle.com).

“We believe this partnership offers strategic benefits and will create significant operational synergies. Carlyle’s industry expertise and global network will help surface acquisition and growth opportunities that will strengthen GWI’s long-term profitability. We look forward to partnering with Jack and his team as we capitalize on these high quality assets and the favorable dynamics of the domestic and global rail industry,” said Greg Ledford, Carlyle Managing Director and Head of the Transportation and Industrial team.