Archives for September 19, 2012

Consumer Spending Down for the Second Consecutive Month

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The Deloitte Consumer Spending Index, which tracks consumer cash flow as an indicator of future consumer spending, has decreased for the second month in a row. “After a rebound during the first half of the year, the Index continued downward in August, primarily due to a drop in the price of new homes and a slight decline in the tax rate,” said Carl Steidtmann, Deloitte’s chief economist and author of the monthly Index. “Looking ahead, rising energy prices may further strain the Index heading into Fall, as rising gas prices are already beginning to crimp spending.”

Gasoline prices are at their highest level ever for this time of the year. Since July 4th, prices reported by the U.S. Department of Energy have climbed 43 cents per gallon, an unusual increase given that gasoline prices typically fade as the summer progresses. Additionally, Hurricane Isaac is creating another temporary price boost.

The Index, which comprises four components — tax burden, initial unemployment claims, real wages and real home prices — fell to 3.13 from a downwardly revised reading of 3.22 the previous month.

“Retailers rode a steady wave of consumer spending this summer, but shopper enthusiasm could start to wane in the coming months especially as prices at the pump increase,” said Alison Paul, vice chairman, Deloitte LLP and retail & distribution sector leader. “To get consumers’ attention now and hold their interest and loyalty through the upcoming holiday season, retailers should highlight their blend of physical and virtual shopping experiences. By providing interactive, digital signage inside stores, mobile applications, and mobile point-of-sale functionality, retailers can make a strong impression on shoppers and encourage them to return whenever, wherever and however they wish.”

Highlights of the index include:

  • Tax burden: The tax burden fell slightly to 11.04 percent in the most recent month. A declining tax burden typically reflects weakening incomes.
  • Initial unemployment claims: Jobless claims moved lower this month to 366,250 from 385,000 the previous month.
  • Real wages: Declining energy prices were not enough to offset weakness in nominal wage growth, leaving real wages flat.
  • Real home prices: For the second month in a row, inflation adjusted new home prices declined, falling 3.85 percent from the previous month.

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-19-12

Robyn Weiss Joins Standish

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Standish Management, a provider of consulting services to managers of private equity firms, announced today that Robyn Weiss has joined the firm’s Santa Monica office as an Engagement Director and will focus on client management and business development for Standish in Southern California.

“Robyn’s background makes her a perfect fit to help us manage our rapidly expanding Southern California presence,” said Judy Tyler, Los Angeles Office Managing Partner. “To bring in someone with direct experience in managing finance, accounting and admin functions for multiple funds and who can hit the ground running is a huge plus for our firm and our clients.”

Prior to joining Standish, Ms. Weiss was a Vice President at Wilshire Private Markets, a private equity fund of funds with approximately $5 billion in assets under management, where she managed back office operations including treasury and financial reporting. Prior to Wilshire she was a senior manager at KPMG. Ms. Weiss obtained her Master of Accountancy from the University of Southern California and her BA from the University of California San Diego.

“Standish has created a business model that fills critical needs for fund managers,” said Ms. Weiss. “I’m excited to join this unique firm and contribute to the tremendous value it provides to its clients.”

Standish provides a range of services including web-based financial reporting to investors, partnership accounting, capital call and distribution management and performance return calculations to private equity, venture capital and fund of funds firms. Founded in 2006, Standish is based in San Francisco with offices in Los Angeles, Palo Alto and Boston (www.standishmanagement.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-19-12

CounterPoint Capital Partners Acquires Parts Now!

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CounterPoint Capital Partners has completed the acquisition of Parts Now! from Svoboda Capital Partners. “This investment is a significant milestone for CounterPoint,” said Chris Iorillo, Managing Partner. “Our hands-on, front-line approach and operating expertise allowed us to quickly work through a variety of challenging issues and close this deal on the timeline we promised – less than thirty days from our selection as the buyer.”

Parts Now! is a distributor of OEM and refurbished consumable printer parts and related accessories. The company sells more than 6,000 products to a range of customers across the US. The company is based in Madison, WI (www.PartsNow.com).

“Parts Now has been at the forefront of its industry since its inception,” said Matthias Heilmann, CounterPoint partner and new CEO of Parts Now. “We are very proud of the company’s authorized distributor status with our critical partners and will be making several strategic and operating improvements to strengthen and expand these key partnerships.”

CounterPoint Capital Partners invest in lower-middle market companies headquartered throughout the United States and Canada with $10 million to $200 million in annual revenues. CounterPoint looks for complex situations caused by operational, succession, or financial challenges within a company or industry. The firm is based in Los Angeles (www.counterpointcp.com).

CounterPoint was represented by Rob Carlson of Paul Hastings (corporate, M&A, and tax) and Matthew Wrysinski of Alston & Bird (banking).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-19-12

Black Diamond Acquires White Birch Paper Company

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BD White Birch Investment LLC, a company controlled by Black Diamond Capital Management, has completed the acquisition of the assets of White Birch Paper Company. This acquisition marks the completion of nearly three year restructuring process for the company.

“I am pleased that the conclusion of the restructuring process, together with significant new investment by the Brant Family and the Black Diamond-led investment group, has resulted in a healthier, better capitalized company,” said Peter Brant, Chief Executive Officer of the new White Birch. “The process of turning this company around would not have been possible without the support of our management team, new investors and the strong belief by all of our employees that this is a vital business that is well positioned to succeed in the global paper market for years to come. “

White Birch Paper Company (BD White Birch Investment ) is a manufacturer of newsprint, directory paper and paperboard, with mills located in Canada and the United States, and the second largest newsprint manufacturer in North America. The company is based in Quebec City, Canada (www.whitebirchpaper.com).

“I am pleased that this challenging restructuring process has resulted in a stronger, more competitive and more sustainable new White Birch. While the pulp and paper industry has undergone a significant transformation in recent years, thanks to the hard work and shared commitment of the management team and employees, the new White Birch is better positioned to succeed in this changing environment than ever before. I look forward to continuing to work with our partners at the company to ensure its future success,” said Les Meier, a Black Diamond Principal.

Black Diamond Capital Management invests in performing and distressed markets through the following four platforms: control distressed/private equity; hedge fund; mezzanine funds; and CLOs and other structured vehicles. The firm was founded in 1995 and employs more than 80 people across multiple offices, including Greenwich, CT; Lake Forest, IL; and London, UK (www.bdcm.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-19-12

Thoma Bravo Acquires Mediware Information Systems

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Thoma Bravo has acquired Mediware Information Systems, a provider of clinical software, for $195 million. Under the terms of the pending agreement, shareholders will receive $22 in cash for each share of Mediware common stock. The transaction is expected to close before the end of the year.

Mediware Information Systems designs, develops and markets software used by healthcare institutions in clinical and performance management, blood donor management , blood and biologic management, and medication management. The company was founded in 1970 and is based in Lenexa, KS (www.mediware.com).

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).

Herrick, Feinstein LLP, a law firm based in New York, represented Mediware Information Systems in this transaction. The Herrick deal team was led by Irwin Kishner, Chairman of Herrick’s Executive Committee and Co-Chairman of the firm’s Corporate Department, and included Partners Stephen Fox and Harold Levine (tax) as well as Counsel Fred Green (benefits) and Sung Hwang (tax) and Associate Liliana Chang (www.herrick.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-19-12

KRG Capital Partners Invests in Convergint Technologies

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KRG Capital Partners has completed a recapitalization of Convergint Technologies along with its senior management team. This investment represents the twelfth platform company for KRG’s $1.96 billion Fund IV.

Convergint Technologies is a system integrator focused on electronic security, fire and life safety, and building automation. The company was founded in 2001 and has 1100 employees in 26 cities throughout the US and Canada. Convergint is headquartered in Schaumburg, IL (www.convergint.com)

“We are very pleased to be associated with a high caliber company like KRG,” said Greg Lernihan, President and Co-Founder. “We have always focused on growth and now have more resources available to us than ever before.”

KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. Since inception, KRG has invested in 43 platform companies and has completed 129 add-on acquisitions for those platforms. Founded in 1996, KRG has over $4 billion of capital under management and is based in Denver, CO (www.krgcapital.com).

“KRG is very excited to be part of the Convergint team. They have a successful track record of growth, an outstanding Fortune 500 customer base and is a market leader in their industry,” said Ted Nark, Managing Director of KRG.

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-19-12