Archives for September 14, 2012

MidSpan Partners Advises Jordan on Sale to Turnbridge Capital

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MidSpan Partners, a San Francisco-based investment bank, was the exclusive financial advisor to Jordan Technologies on the recent sale of the company to Flare Industries, a portfolio company of Texas-based private equity firm Turnbridge Capital.

MidSpan Partners was formed in 2010 by three former senior members of investment bank Harris Williams & Co. MidSpan provides mergers & acquisition and capital raising advisory services o lower middle market companies across a range of industries, including consumer products, business services, specialty industrial, energy & environmental services, software, and transportation & logistics. Jordan represents the fifth closed transaction of the year for MidSpan (www.midspanpartners.com).

“From our first meeting through to the closing, the MidSpan team was an invaluable partner,” said Mark Jordan, president, Jordan Technologies. “They worked closely with management and the shareholders through every step of the process and were able to guide the company through the intricacies of the sell-side process. MidSpan’s focus and dedication of resources ensured the best possible outcome for Jordan.”

Jordan Technologies designs, manufactures and y services vapor recovery units which recover a variety of volatile organic compounds in truck, rail, marine and tank breathing applications as well as crude, ethanol and natural gases. The company was founded in 1980 and is based in Louisville, KY (www.jordantech.com).

Flare is a designer, manufacturer and installer of combustion and pollution control technology and equipment. Products include flare systems, thermal oxidizers and ignition systems which burn, combust, or oxidize industrial gases. The company is based in Austin, TX (www.flareindustries.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-14-12

Calvert Street Hires Matt McLain

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Calvert Street Capital Partners has added Matt McLain to its investment team. Prior to joining Calvert Street, Mr. McLain was an investment banker with Harris Williams & Co. His experience includes sell-side M&A transactions across a variety of industries, including advanced manufacturing, building products, distribution, consumer products, and general industrials. Prior to Harris Williams he worked at Irving Place Capital and Deloitte Financial Advisory Services.

Mr. McLain earned an MBA from the Fuqua School of Business at Duke University and holds a Bachelor of Science degree in Economics from Vanderbilt University.

Calvert Street makes control investments in established niche manufacturing and business service companies that have a minimum of $5 million of EBITDA and are located in the US or Canada. The firm is based in Baltimore, MD (www.cscp.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-14-12

Star Avenue Capital Invests in Macadamia Natural Oil

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Star Avenue Capital has made an investment in Macadamia Natural Oil, a professional hair care brand. Macadamia is Star Avenue’s second investment in the fashion and beauty space, having previously invested in J Brand, a denim and apparel brand.

Macadamia Natural Oil is a professional hair care brand that incorporates nature-based ingredients, including macadamia and argan oils, into professional hair care products. The company was founded in 2009 and is based in Chatsworth, CA (www.macadamianaturaloil.com).

Star Avenue is a consumer growth equity vehicle formed in partnership with private equity firm Irving Place Capital and entertainment and sports agency Creative Artists Agency. Star Avenue invests in branded consumer products and branded retail companies. The firm has offices in New York, NY and Los Angeles, CA (www.staravenuecapital.com).

Roth Capital Partners acted as the exclusive financial advisor to Macadamia. Bank of America Merrill Lynch’s Global Commercial Banking Group provided working capital financing.

Star Avenue will work with CEO and Founder John Fasan to support the company’s growth and to help build Macadamia into a leader in the global hair care industry. “Star Avenue is thrilled to partner with a dynamic entrepreneur like John,” said Craig Elson, Managing Director of Star Avenue Capital. “He has built a global business in a very short period of time. We look forward to working with him to continue growing the company’s international business while applying our resources to bolster Macadamia’s U.S. presence.”

“Star Avenue shares our vision for the Macadamia brand and brings unique resources, capabilities, and insight that would otherwise not be available to the company. Star Avenue has access to Creative Artists Agency’s extensive network of relationships and resources as well as the agency’s unique insight into popular culture,” said Mr. Fasan. “Irving Place Capital has relevant investment experience in the consumer and retail sectors, which are valuable assets for high-growth consumer brands such as Macadamia. These additional resources make Star Avenue the right partner for Macadamia – one that can help me transform my business.”

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities and 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 in capital including its current $2.7 billion institutional fund. The firm is located in New York (www.irvingplacecapital.com).

Creative Artists Agency is a talent agency, representing professionals working in film, television, music, video games, theatre, and the Internet, and provides a range of marketing and consulting services to corporate clients. The company also represents more than 700 athletes in football, baseball, basketball, hockey, soccer, tennis, and golf, and works in the areas of broadcast rights, corporate marketing initiatives, licensing, and sports properties for sales/sponsorship opportunities. The agency has eight offices and is based in Los Angeles (www.caa.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-14-12

Kinderhook Acquires Rizzo Environmental Services

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Kinderhook Industries has acquired Rizzo Environmental Services, a municipal solid waste collection company. This acquisition represents the eleventh environmental services transaction completed by Kinderhook in the last four years.

Rizzo Environmental Services is a provider of municipal solid waste collection services in 16 municipalities throughout Southeast Michigan. The company’s services include curbside collection of municipal solid waste, recycling and compost. Rizzo Environmental Services is headquartered in Sterling Heights, MI (www.rizzoservices.com).

“The recapitalization of Rizzo by Kinderhook will enable the company to continue to expand its service footprint throughout Southeast Michigan,” said Chuck Rizzo, Jr., CEO, President and Founder of Rizzo Environmental Services. “Our partnership with Kinderhook will enable us to further grow our platform and expand our current service offerings.”

Financing for the transaction was provided by Comerica and Kirkland & Ellis served as legal counsel to Kinderhook Industries.

Kinderhook Industries is a manager of private equity funds with $770 million of committed capital. Kinderhook primarily makes control investments in companies with transaction values of $25 million to $100 million in which the firm can achieve financial, operational and growth improvements. Kinderhook pursue private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm is located in New York, NY (www.kinderhook.com).

“Rizzo has had extraordinary growth due to its loyal customer base, market leading service and exceptional management team led by Chuck Rizzo Jr. who has 25 years of waste industry knowledge. This management team brings unprecedented leadership and relationships and we are excited to partner with them,” said Rob Michalik, Managing Director at Kinderhook Industries. “Rizzo’s long history in the Southeastern Michigan waste market began with Chuck’s father, Charlie Sr., who will continue as an advisor to the company.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-14-12