October 16, 2012
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Archives for October 16, 2012

Industrial Opportunity Partners Exits Gulf Coast Machine & Supply Company

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Industrial Opportunity Partners has completed the sale of its portfolio company Gulf Coast Machine & Supply (Gulfco) to Altus Capital Partners. The divestiture represents the firm’s third investment realization from its initial $185 million committed fund. Industrial Opportunity Partners acquired Gulfco in February 2008.

Gulfco is a provider of large format forgings. Capabilities include ring rolling, open die forging, machining, heat treating, and testing for products formed into large format discs, shaped dies, seamless rolled rings, bushings, and blocks. The company’s products are used in subsea production facilities, refineries, offshore oil and gas rigs, and mining. Gulfco is based in Beaumont, TX (www.gulfco.com).

“It has been a pleasure to work with Gulfco’s talented management team over the last four years. Supported by IOP’s continuing strategic direction and investment, Gulfco has broadened its capabilities, increased its capacity, and improved its manufacturing processes. The company is well positioned in its niche market,” said Nick Galambos, Gulfco’s former Chairman of the Board and current IOP Operating Principal.

Industrial Opportunity Partners (IOP) focuses on acquiring and overseeing middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. IOP targets businesses with strong product, customer, and market positions and provides management and operational resources to support sales growth and operational improvements. The firm was founded in 2005 and is headquartered in Evanston, IL (www.iopfund.com).

“Altus is acquiring an excellent business with the potential to grow through expansion of its products and markets. In addition to being an excellent investment for IOP, Gulfco has great prospects with Altus,” said Ken Tallering, a senior managing director of IOP.

Altus Capital Partners invests in corporate divestitures, management-led buyouts and privately held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm has offices in Wilton, CT and Lincolnshire, IL (www.altuscapitalpartners.com).

Harris Williams & Co. acted as financial advisor and McDermott Will & Emery provided legal representation to Industrial Opportunity Partners in connection with this transaction.

Prospect Capital provided a $42 million senior secured loan to support the acquisition of Gulfco by Altus Capital Partners.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-16-12

Flexpoint Ford Exits Home Solutions

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Flexpoint Ford has sold its portfolio company Home Solutions, a provider of home infusion therapy services, to KRG Capital Partners. Flexpoint acquired an interest in the company in 2007.

Home Solutions is a provider of home infusion therapy services located throughout the Northeastern and Mid-Atlantic regions. The company has 400 employees and was founded in 1996 by its current CEO, Todd Timbrook. Home Solutions is Joint Commission accredited and is based in Northfield, NJ (www.infusioncare.com).

“We have had an incredible partnership with Home Solutions over the past five years,” said Ethan Budin, a Senior Principal at Flexpoint. “Todd Timbrook and his team have driven strong growth in the business, increasing from three locations to nine through both organic growth and acquisitions, and increasing revenue nearly three-fold through the tenure of our investment.”

Cain Brothers, an investment banking firm that focuses exclusively on the health care industry, acted as financial adviser to Home Solutions in connection with the transaction. Cain Brothers has office in New York, Chicago and San Francisco (www.cainbrothers.com).

Flexpoint Ford seeks to invest from $10 to $100 million in companies operating in the healthcare and financial services sectors. Flexpoint Ford currently has $1 billion in capital under management. The firm is based in Chicago, IL with an additional office in New York, NY (www.flexpointford.com).

“We identified the home infusion pharmacy market as an area of interest several years before we made our investment in Home Solutions,” said Jonathan Oka, a Vice President at Flexpoint. “Our core strategy of networking in industry segments of interest to find outstanding management teams led us to the company, and to a successful investing partnership. We wish Todd and the rest of the Home Solutions team much success as they continue to grow the business.”

KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. Since inception, KRG has invested in 45 platform companies and has completed 130 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).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-16-12

Levine Leichtman Invests in Senior Helpers

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Levine Leichtman Capital Partners has made an investment in SH Franchising (dba Senior Helpers), a franchisor of private pay, professional in-home care for elderly individuals. Senior Helpers is the second investment from Levine Leichtman Capital Partners SBIC Fund, L.P., a $225 million private equity fund.

CEO Peter Ross and President Tony Bonacuse will retain significant ownership in the company and will continue to lead the company in their current roles. “I am very excited about the partnership with Levine Leichtman. We are confident that their long history of successfully investing in franchised businesses will significantly benefit Senior Helpers and its franchisees,” said Mr. Ross.

Senior Helpers is a franchisor of private pay, professional in-home care for elderly individuals. Through its network of over 270 franchised locations in 39 states, Senior Helpers provides: (i) personal care assistance with eating, bathing, dressing and transferring, (ii) companion care assistance with shopping, light housekeeping, meal preparation and medication reminders and (iii) customized disease management and care programs for clients with Alzheimer’s and other forms of Dementia through its Senior GEMS® program. The company was founded in 2002 and is based in Timonium, MD (www.seniorhelpers.com).

“As Senior Helpers moves into its next phase of growth, having a partner with the financial means and wherewithal like Levine Leichtman to help execute on our collective vision for the future was particularly attractive to us. Both Peter and I expect this partnership to contribute meaningfully to the continued growth of our brand,” said Mr. Bonacuse.

Levine Leichtman Capital Partners manages approximately $5 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners IV; Levine Leichtman Capital Partners Deep Value Fund; and Levine Leichtman Capital Partners SBIC Fund. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).

“Senior Helpers has experienced tremendous growth since inception. With its national network of dedicated franchisees and strong nationwide brand name recognition, the company is uniquely positioned to benefit from the continued strong growth in the in-home elderly care industry. We are excited to partner with two great entrepreneurs in Peter Ross and Tony Bonacuse as well as the rest of the Senior Helpers management team. We look forward to the continued growth of the business,” said Lauren Leichtman, Co-Founder and CEO of Levine Leichtman.

Senior Helpers was advised by McLean Group, a mid-market investment bank based in Washington, DC (www.mcleanllc.com). Senior debt financing was provided by Madison Capital.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-16-12

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