Archives for August 27, 2012

Wind Point Acquires Shearer’s Foods

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Wind Point Partners has signed an agreement to acquire Shearer’s Foods, a producer of private label salty snacks. Wind Point is partnering with C.J. Fraleigh, who is joining Shearer’s as Chairman and CEO. Mr. Fraleigh, who most recently served as CEO of Sara Lee – North America, has 25 years of experience in consumer products. The transaction is expected to close in October.

Shearer’s is the largest producer of private label salty snacks in North America and the largest producer of kettle cooked potato chips in the world. Shearer’s produces a wide range of salty snack products including kettle and traditional potato chips, tortilla chips, rice crisps, whole grain chips, cheese curls and other extruded products, which it offers in a variety of flavors and packaging sizes. Shearer’s manufactures both branded and private label snacks for retailers and contract manufactures snacks for the nation’s largest branded snack food companies. The company operates five manufacturing facilities in Ohio, Texas, Oregon and Virginia and is base in Brewster, OH (www.shearers.com).

“I’m very excited to be joining the team at Shearer’s,” said Mr. Fraleigh. “With the growth of private label brands and the trend toward outsourcing for branded food companies, Shearer’s is well-positioned to continue its historical growth trajectory. I look forward to working with the company’s 1,850 employees to execute on growth opportunities we’ve identified and continue providing Shearer’s customers with excellent service and consistently high quality products.”

“Wind Point’s partnership with C.J. – a top caliber CEO in the food industry – along with our depth of experience with food investments, creates an excellent opportunity to drive growth at Shearer’s,” said Mark Burgett, a managing director at Wind Point. “We are confident that we will create value through initiatives such as introducing a proactive strategic selling effort, leveraging Shearer’s proven ability to innovate and implementing continuous improvement programs. We are excited to work with C.J. and the management team to continue the Shearer’s success story.”

Wind Point Partners invests from $20 to $70 million of equity in companies with revenues from $100 to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.5 billion in capital under management and is located in Chicago, IL (www.wppartners.com).

Wind Point currently holds four additional food-focused investments – Hearthside Food Solutions, Nonni’s, Rupari Foods and Ryt-way Industries. Wind Point’s former food investments include Toronto-based Santa Maria Foods (sold to Sofina Foods in April 2012) and Bakery Chef.

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12

Pamlico Capital Exits TMW Systems

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Pamlico Capital has announced the sale of TMW Systems, a provider of enterprise software to transportation and logistics companies, to Trimble Navigation for $335 million in cash.

TMW Systems has more than 1,800 customers in the trucking, 3PL, private fleet, construction, municipal government, retail repair and waste management industries. TMW Systems was founded in 1984 and has offices in Cleveland, OH (headquarters); Durham, NC; Indianapolis, IN; Dallas, TX; Vancouver, BC; Nashville, TN; and Oklahoma City, OK (www.tmwsystems.com).

Pamlico acquired TMW from the company’s founder in 2005. During its ownership period, Pamlico recruited and hired the current CEO, Dave Wangler, and assisted the company with five acquisitions. In addition, TMW expanded its market by launching new products and services and targeted new segments of the transportation industry. During Pamlico’s ownership, TMW has grown annual revenue from approximately $25 million to approximately $96 million today.

“Pamlico helped TMW scale and grow into a leading provider of enterprise software to the transportation industry,” said Dave Wangler, TMW’s Chief Executive Officer. “We have truly enjoyed our partnership with Pamlico and want to thank them for their support and confidence in us.”

Pamlico Capital, formerly known as Wachovia Capital Partners, was founded in 1988 and has invested in excess of $3.5 billion in over 200 middle market companies since its inception. Pamlico Capital seeks growth equity and buyout investments of up to $75 million alongside management teams in its target industries, which include business & technology services, communications, and healthcare. The firm currently manages over $2 billion in assets and is based in Charlotte, NC (www.pamlicocapital.com).

“TMW was a tremendous investment for Pamlico and our limited partners. Dave Wangler and his team did an outstanding job of generating strong organic growth and enhancing the company’s position as a leader in the transportation technology market,” said Walker Simmons, a Partner at Pamlico.

TMW and Pamlico were advised by William Blair & Co. (financial advisor) and King & Spalding LLP (legal advisor). Trimble was advised by Lazard (financial advisor) and Weil Gotshal & Manges LLP (legal advisor).

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12

The Anderson Group Acquires Wellnitz

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Oberfields, a concrete block manufacturer and a portfolio company of The Anderson Group, has acquired Wellnitz, a producer of concrete block and masonry products. This acquisition adds to Oberfields’ position as one of the leading producers of concrete masonry and landscape products in the Midwest.

Oberfield’s is a manufacturer of concrete block and other masonry and landscape products in Ohio and surrounding states. Oberfield’s is the dominant block manufacturer in northwestern and central Ohio. The company is based in Columbus, OH (www.oberfields.com).

Wellnitz is a Southeast Ohio based producer of concrete block and masonry products and is headquartered in Columbus, OH (www.wellnitz.com).

The Anderson Group is an operationally focused private equity firm investing its principal’s committed capital in companies at the lower end of the middle market. The firm is industry agnostic and makes control investments in companies with revenues from $10 to $100 million and EBITDA of $1 to $8 million. The firm is located in Bloomfield Hills, MI (www.andersongroup.biz).

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12

Thoma Bravo Acquires Deltek

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Deltek, a provider of enterprise software and information solutions for professional services firms and government contractors, today announced that it has entered into an agreement to be acquired by Thoma Bravo in an all-cash transaction valued at approximately $1.1 billion. Deltek’s largest shareholder is New Mountain Capital.

Deltek’s stockholders will receive $13 in cash for each share of Deltek stock when the transaction closes. The offer price also represents a 14.6x multiple of enterprise value to Deltek’s trailing twelve months Adjusted EBITDA as of June 30, 2012.

Deltek (NASDAQ: PROJ) is a provider of enterprise software and information solutions for professional services firms and government contractors. More than 15,000 organizations and 2 million users in over 80 countries around the world use Deltek products. The company is based in Herndon, VA (www.deltek.com).

“Over the past seven years, we have successfully executed our long term plans for Deltek to enter new markets, grow internationally, and expand our industry-leading solutions for project-based companies,” said Kevin Parker, Deltek’s president, CEO and Chairman of the Board. “Throughout our journey, New Mountain Capital gave us outstanding support and was instrumental in building the Deltek of today. We’re very excited about the opportunity to continue Deltek’s successful journey in partnership with Thoma Bravo.”

Thoma Bravo provides equity and strategic support to management teams building growing companies. The firm originated the concept of industry consolidation investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth. Thoma Bravo currently manages approximately $4 billion of equity capital. The firm was founded in 1981 and has offices in Chicago, IL and San Francisco, CA (www.thomabravo.com).

“We have a long history of investing in highly respected and industry-leading software companies,” said Orlando Bravo, managing partner at Thoma Bravo. “In Deltek, we found a vertical market leader with unmatched solutions, a loyal and broad customer base, passionate employees and significant organic and acquisition-led growth opportunities, and the firm is confident in our approach and experienced in leveraging such assets to drive growth.”

New Mountain Capital invests in growth equity transactions, leveraged acquisitions and management buyouts. The firm currently manages private and public equity funds with approximately $9 billion in aggregate capital commitments. New Mountain is based in New York, NY (www.newmountaincapital.com).

“Working with Kevin Parker and the entire Deltek team to build the company into a global market leader has been a true success story for New Mountain Capital and highlights our focus on building great businesses,” said Alok Singh, lead director of Deltek’s Board of Directors, and a managing director at New Mountain Capital. “We are very proud of the accomplishments that Deltek has achieved during the time we held a majority share in the company. Since we first invested in Deltek, the company has more than doubled in revenue, added more than 4,000 customers, built a global presence with customers in over 80 countries, and is the enterprise solutions provider of choice to some of the world’s most prestigious Global 2000 companies.”

Greenhill & Co. acted as lead advisor and facilitator throughout the process, and Fried, Frank, Harris, Shriver & Jacobson served as a legal advisor to Deltek. Credit Suisse Group also acted as an advisor.

Jefferies & Company served as lead financial advisor to Thoma Bravo, and Jefferies Finance and RBC Capital Markets provided financing commitments to the firm. Kirkland & Ellis served as legal advisor to Thoma Bravo.

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12

Permira Acquires Akindo Sushiro

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Consumer Equity Investments Limited (“CEIL”) an international company located in the Republic of Ireland and backed by the Permira funds, today announced its agreement to acquire Unison Capital’s stake in Akindo Sushiro Co., a sushi restaurant chain based in Japan at an enterprise value of approximately $1 billion. CEIL will draw upon the Permira’s experience in the consumer industry segment and track record of assisting brands to develop in overseas markets.

Sushiro is a leader in the “revolving‟ sushi restaurant space in Japan and currently operates 335 revolving counter sushi bars throughout Japan and three in Korea. Sushiro employs over 1,000 full time and 10,000 part time staff. The company had approximately ¥100 billion in revenues for the year ending September 2011 and is based in Osaka, Japan (www.sushiro.com).

“CEIL was attracted to Sushiro’s corporate vision of providing high quality sushi at attractive prices and sees ample potential in exporting Japan’s food culture further. Sushiro has successfully grown over the last few years and has now become a very well-known and popular brand. CEIL is confident that it is well positioned to further expand both in Japan and overseas,” said Alex Emery, Partner and Co Head of Asia at Permira.

Permira has €20 billion (US$26 billion) of capital under management and invests in the following sectors: consumer; financial services; healthcare; industrials; and technology, media and telecom. Permira is based in London, UK with offices in Frankfurt, Guernsey, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Milan, New York, Paris, Stockholm and Tokyo (www.permira.com).

The investment in Sushiro represents the fourth investment in Asia which has been supported by the Permira funds, and the second investment in Japan following the acquisition in 2008 of Arysta Lifescience, one of the leading global agrochemical businesses.

“We are delighted to be partnering with CEIL as we look to enter the next stage of Sushiro’s development. We believe that there is growing demand both in Japan and elsewhere for our value proposition and that CEIL, supported by the Permira funds with their extensive experience in investing in growing businesses with international potential, is the ideal partner to help us deliver on our growth plans in the coming few years,” said Kenichi Toyosaki, CEO of Sushiro.

Nomura Securities acted as financial advisor to CEIL.

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12