Archives for October 2012

Grey Mountain Partners Acquires North American Specialty Glass

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Consolidated Glass Holdings (CGH), a portfolio company of Grey Mountain Partners, has acquired the assets of North American Specialty Glass (NASG) out of Chapter 7 Bankruptcy. “With a well-capitalized balance sheet, NASG will be stronger than ever and is poised for tremendous growth. The unique capabilities of NASG will further differentiate and add value to our investments in the glass fabrication space,” said Beth Lesniak, Vice President of Grey Mountain.

North American Specialty Glass is one of the largest safety and security glass producers in the United States, serving customers worldwide in the transportation, architectural, military and other specialty end-use sectors. The company is headquartered in Trumbauersville, PA (www.naspecialtyglass.com).

“With a commitment to customer service and quality products, NASG has a reputation for providing consistently superior laminated glazing systems and components. At CGH, our goal is to bring long-term sustainability to NASG by running a first-class operation and leveraging our other glass fabrication businesses to expand the scope of our offering. We welcome NASG’s talented management team, and we look forward to immediately reopening the business and working with customers to satisfy their needs,” said Tom Ryan, CEO of Consolidated Glass Holdings.

Grey Mountain Partners invests in middle market companies with enterprise values between $30 million and $150 million. The firm is based in Boulder, CO (www.greymountain.com).

“We are thrilled to partner with Grey Mountain and CGH,” said Ted Jenny, President of NASG. “This acquisition and injection of additional capital saved nearly 100 jobs and will allow us to rapidly return to production. We greatly appreciate the continued support of all of our customers through this process. The NASG team is motivated and ready to provide our customers with an even higher level of service and quality products.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-18-12

H.I.G. Growth Partners Acquires Escalate Media and Womensforum.com

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H.I.G. Growth Partners, the growth capital investment affiliate of H.I.G. Capital, has announced that its newly-formed portfolio company, Escalate Media Holdings, has completed the acquisition of womensforum.com and Escalate Media.

Womensforum.com and Escalate are online advertising companies encompassing a number of owned and operated websites, an online advertising network and an affiliate network. As part of the investment, John Kim and Nik Shah from H.I.G. Growth Partners will join Escalate Media’s Board of Directors. Escalate Media Holdings is based in Chicago, IL.

“Escalate and womensforum.com are market leaders, bringing tremendous value to advertisers and consumers in one of the largest online populations,” said John Kim, Managing Director for H.I.G. Growth Partners. “The depth of the companies’ content and relationships gives Escalate Media a unique ability to deliver customized solutions to advertisers and strengthens the quality of the offering for consumers. We are pleased to partner with an outstanding senior leadership team and look forward to the new company’s continued growth.”

Womensforum.com is an online destination and network of content for women, providing resources for its millions of unique monthly visitors. The company’s editorial and video content verticals include food, parenting, health, living, style and entertainment. In addition to womensforum.com, other sites in the womensforum.com network include: www.copykat.com, www.poshmom.com, andwww.educationworld.com. Womensforum.com is based in Chicago, IL (www.womensforum.com).

“As a pioneer in the online women’s category, it’s been rewarding to be a part of the growth and evolution over the past 16 years. We are excited about our partnership with H.I.G., which will help enable us to continue to expand in the ever-changing landscape that is the women’s online market,” said Jodi Luber, President and Co-Founder of womensforum.com.

Escalate Media creates and manages online social networks and communities. The company’s vertical communities are focused on a range of subjects, including shopping and savings, home and gardening, do-it-yourself and parenting. In addition, Escalate manages an affiliated advertising network where brands and targeted service providers can engage with millions of families. Escalate Media has a combined reach of over 25 million targeted users making it a leader in its vertical. Advertising customers include General Mills, Home Depot and Sara Lee, among others. The company is based in Houston (www.escalatemedia.com).

“The online advertising market continues to grow across all segments and this investment from H.I.G. will enable us to more aggressively pursue opportunities in the marketplace, positioning us for further success,” said Mark Kaufman, CEO of Escalate Media. “We plan to expand our content offering and provide more engaging resources for our expanding base of users allowing for more meaningful ways for marketers to interact with them. Womensforum.com has been a leading provider of online women’s content for over 16 years and this strategic alliance with Escalate will help position the combined entity for its next stage of growth.”

H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital. With $500 million of committed capital, Growth Partners seeks to make both majority and minority equity investments ranging from $5 million to $30 million in strong, growth-oriented businesses with between $10 million and $100 million in revenues. H.I.G. Growth Partners considers investments across all industries, but focuses on certain high-growth sectors where the team has extensive in-house expertise such as healthcare, technology, internet and media, consumer products and technology-enabled financial and business services (www.higgrowth.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-18-12

WL Ross Acquires Navigator

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WL Ross & Co. has completed the purchase of 4.4 million common shares of Navigator Holdings owned by Lehman Brothers for approximately $110 million. This transaction was approved by Bankruptcy Judge James Peck of the Bankruptcy Court in the Southern District of New York overseeing Lehman Brothers’ liquidation. The purchase brings WL Ross’ total stake in Navigator to over 50%.

“We see substantial opportunities in the global transportation industry, particularly rail and marine transport,” said Wilbur Ross, Jr., Chairman of WL Ross & Co. “Navigator is a leader in the handy-sized shipping segment, which has excellent fundamentals and a positive long-term outlook as global shifts in demand for liquefied petroleum gas and other petrochemicals increase opportunities for efficient, flexible marine transportation providers.”

Navigator Holdings provides international seaborne transportation services to producers, traders and consumers of liquefied petroleum gas (LPG), petrochemical gases and ammonia. The company is a leading participant in the handy-sized (up to 32,000 metric tons of deadweight) LPG ship sector, operating a fleet of 14 semi-refrigerated gas carriers, representing approximately 16% of the fleet capacity in its chosen sector. The company has offices in London and New York (www.navigatorgas.com).

WL Ross & Co. is an investment management company which has sponsored private equity funds, co-investment vehicles and hedge funds that have invested in the railcar, marine transportation, steel, textile, coal, automotive, financial and other industries in the U.S., Ireland, U.K., France, Germany, China, Japan, Korea, Vietnam, India, Brazil and Bermuda. WL Ross currently has approximately $10 billion under management. The firm is based in New York, NY (www.wlross.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-18-12

Onex Acquires SGS International

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Onex Corporation has completed the acquisition of  a provider of design-to-print graphics services to the consumer products packaging industry, from Court Square Capital Partners for $813 million.

“We’re delighted to be working with the SGS team to build on the company’s market leadership position,” said David Mansell, an Onex Managing Director. “SGS has tremendous growth potential through international expansion, complementary services and add-on acquisitions.”

SGS is a vertically-integrated provider of packaging graphics services to branded consumer products companies, retailers and the printers that service them. The company has over 2,400 employees spanning a network of 38 production facilities and at more than 100 customer locations across 17 countries. The company is based in Louisville, KT (www.sgsintl.com).

Onex Corporation makes private equity investments through the Onex Partners and the ONCAP families of funds. The firm invests in small and mid-sized North American businesses with enterprise values from $50 million to $500 million. Onex has more than $15 billion of assets under management and is based in Toronto (www.onex.com).

Court Square Capital Partners was established as an independent private equity firm by the former members of Citigroup Venture Capital Equity Partners. Court Square is focused primarily on leveraged buyout transactions in the middle market. Sectors of interest include business services, general industrial, healthcare and technology/telecommunications. Court Square currently manages approximately $5.5 billion of capital and is based in New York (www.courtsquare.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-18-12

The Pritzker Group Adds Two Investment Professionals

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The Pritzker Group has added two investment professionals as part of its plan to deploy additional capital in its private equity investing activities which target middle-market companies in manufactured products, healthcare and services.

“The Pritzker Group is scaling its investment team to execute our growth plans in the years ahead,” said Paul Carbone, Managing Partner of Private Equity for The Pritzker Group. “To do that, we’re looking to add to our team talented investment and operations professionals who share our focus on long-term growth and value creation.”

Matt Bowman, 36, has joined The Pritzker Group as a vice president, with responsibility to source and acquire middle-market services companies. Mr. Bowman was previously a principal at Austin Ventures, where he spent nine years focused on growth and equity buyout transactions in a range of business services industries and he served on the boards of five of the firm’s portfolio companies. He holds a BS degree in Accounting from Brigham Young University. Mr. Bowman will work closely with David Rosen, who oversees the Services investment team.

The Pritzker Group has also added Jeff Verde, 24, to its team as an associate and he will help evaluate and execute investments across each of The Pritzker Group’s investment sectors. Mr. Verde was previously an investment banking analyst at Robert W. Baird & Co. and holds a BBA from the University of Iowa.

The Pritzker Group’s middle-market investment team acquires North American-based companies with enterprise values between $75 million and $400 million, focusing on businesses with leading positions in the manufactured products, healthcare and services sectors. The firm’s middle-market and venture capital teams have acquired or invested in more than 80 companies over the past decade. T The Pritzker Group is based in Chicago, IL (www.pritzkergroup.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

Prospect Capital Backs Leeds Acquisition of Evanta and Sports Leadership Institute

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Prospect Capital Corporation has provided a $10 million credit facility to support the acquisition of Evanta Ventures and Sports Leadership Institute by Leeds Equity. “Prospect delivered a customized financing solution for the transaction that addressed our needs under an accelerated closing timeframe,” said Jacques Galante, a Managing Director at Leeds Equity Partners.

Prospect has closed more than $1.5 billion of originations so far in 2012 and its investment pipeline currently has more than $600 million of potential opportunities.

Evanta is a producer of 80 leadership forums and provides educational services for executives in the functional areas of technology, security, human resources, finance, and healthcare. Evanta provides leadership development programs in partnership with MIT Sloan School of Management, University of Texas McCombs School of Business, University of Chicago Booth School of Business and UC Berkeley Haas School of Business. The company was founded in 2003 and is based in Portland, OR (www.evanta.com).

The Sports Leadership Institute is a producer of forums for professional and collegiate sports team executives. The Global Sports Summit, Global Sports Management Invitational and Collegiate Sports Summit bring together owners, managers, athletic directors and other stakeholders within the professional and collegiate sports sectors. The company was founded in 2011 and is based in Portland, OR (www.globalsportssummit.com) (www.gsminvitational.com).

Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in wide array of industries and is effectively industry agnostic. The firm is located in New York (www.prospectstreet.com).

“Prospect’s value-added solutions and high level of responsiveness helped drive the consummation of this transaction,” said Scott VanHoy, a Principal at Leeds Equity Partners.

Leeds Equity Partners manages the largest private equity fund in the United States focused on investments in the education, training and business services industries. Founded in 1993, the firm has raised and managed over $1 billion of committed capital and invested in more than 20 companies. The firm is located in New York, NY (www.leedsequity.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

Luis Gonzalez Promoted to Managing Director

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MBF Healthcare Partners, a private equity firm specializing in the healthcare sector, has promoted Luis Gonzalez to Managing Director.

Mr. Gonzalez joined MBF Healthcare Partners (MBF) in 2006 as an Associate and was promoted to Director in 2008. He is responsible for leading the execution and oversight of new and existing MBF investments and has more than ten years of middle market private equity and M&A experience. He currently serves on the boards of several MBF portfolio companies.

“We are pleased to announce Luis’s promotion. He has been an outstanding contributor to the firm during his tenure with MBF, and he has played a key role in both sourcing and executing investment opportunities and working with the management teams of our portfolio companies,” said Miguel “Mike” Fernandez, Chairman.

MBF Healthcare Partners is an industry-focused private equity firm dedicated to the healthcare sector that invests in leveraged buyouts, growth capital investments and recapitalizations. The Principals of MBF have substantial operating experience in healthcare and have held senior management positions in both private and publicly-traded healthcare companies. The firm is headquartered in Coral Gables, FL (www.mbfhp.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

Sterling Investment Partners Acquires Service Logic

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Sterling Investment Partners has closed on the acquisition of Service Logic, a provider of preventive and predictive maintenance services for HVAC systems.

“Service Logic is a leader in its industry. We believe that in an environment of rising energy costs, Service Logic’s strong capabilities to improve clients’ energy efficiency through increasingly sophisticated solutions, such as remote monitoring technology, positions the Company for future growth,” said William Macey, a Managing Partner of Sterling. “We believe that Service Logic has an outstanding management team, who we greatly look forward to working with. Sterling is committed to providing the necessary resources to grow Service Logic through internal initiatives as well as add-on acquisitions.”

Service Logic is a provider of preventive and predictive maintenance services and related energy sustainability services for heating, ventilation and air conditioning systems. The company services over 6,000 commercial, industrial and institutional clients for HVAC systems, chilled water systems and building automation and controls. Operating through its co-branded business unit Engineered Cooling Systems, FacilitTech, Midwest Mechanical, Piedmont Service Group, PSR Mechanical and Tolin Mechanical, the company provides services in Arizona, Colorado, Illinois, North Carolina, South Carolina, Florida, Alabama, Virginia and Washington, and employs approximately 600 field technicians, engineers and project managers. The company is based in Denver, CO (www.servicelogic.com).

“We are very impressed with Sterling’s history of building businesses, and philosophy of working as partners with management. Our team is excited to be working with Sterling, and our business units will continue to provide the same high level of service our customers. Sterling intends to support the growth of both the services we provide to our customers and the geographies we cover,” said Stephen O’Donnell, Chief Executive Officer of Service Logic.

Credit Suisse’s Customized Fund Investment Group (“CFIG”) co-invested with Sterling, GE Capital led the senior credit facility, and Babson Capital and PNC Erieview Capital (formerly National City Equity Partners) provided subordinated debt for the transaction. These lenders, together with CFIG, co-invested alongside Sterling in the transaction.

Sterling Investment Partners invests in companies with revenues of $50 million to $300 million and EBITDAs of $10 million to $40 million. Sectors of interest include business services, industrial and consumer value-added distribution, niche manufacturing, and transportation and logistics. Sterling has approximately $1 billion of equity capital under management and was founded in 1991. The firm is based in Westport, CT (www.sterlinglp.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

Cortec Group Exits Performance Health & Wellness

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Cortec Group has sold Performance Health & Wellness, a designer, manufacturer, and marketer of products sold to therapy, rehabilitation, and wellness professionals, to Gridiron Capital. Cortec Group acquired Performance Health & Wellness in April 2007.

“The management team of Performance Health & Wellness, led by Marshall Dahneke, who we brought in over four years ago, did a fantastic job building the business and executing on its growth strategy,” said Jeffrey Lipsitz, a Managing Partner at Cortec. “During the course of our ownership, we were able to make significant investments in key management personnel and marketing resources, which have helped deliver consistent revenue growth across numerous markets and clearly positioned the company for continued future growth. We wish Performance Health’s management team and Gridiron our very best.”

Performance Health & Wellness is a designer, manufacturer, and marketer of branded, consumable products sold to therapy, rehabilitation, and wellness professionals under the Thera-Band, Bio-Freeze, and Pedigenix brand names and to retailers under the Perform brand. The company’s products include resistance bands and tubing, topical analgesics, and foot care products, as well as a range of therapy and exercise products used by physical therapists, chiropractors, podiatrists, physical trainers, and massage therapists to promote strength and flexibility, and to provide pain relief for their patients. Performance Health is headquartered in Akron, OH and maintains manufacturing and sales operations globally (www.performancehealth.com).

“We are extremely pleased with our investment in Performance Health,” said David Schnadig, a Managing Partner at Cortec. “Following the sale of 180 Medical, which closed on September 28, 2012, Cortec Fund IV has already returned about 110% of called capital and we continue to own five other portfolio companies. We look forward to building on these successes to continue to generate attractive returns for our limited partners in Cortec Fund IV and V.”

Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $30 million to $300 million. Cortec currently manages over $1 billion in its two active funds. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).

Performance Health was co-advised on the transaction by Robert W. Baird & Co. and Piper Jaffray & Co., with Paul Hastings serving as counsel.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

The Riverside Company Acquires Premier Medical

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Specialized Medical Services, a portfolio company of The Riverside Company, has acquired Premier Medical Corporation, a provider of rental respiratory equipment and related services. This is the fourth add-on to Specialized Medical Services completed by Riverside.

“Premier is an organization that Specialized Medical Services has known for a long time and that shares our focus on delivering a high level of customer service,” said Riverside Managing Partner Loren Schlachet. “That should make for a smooth transition while it continues to expand the leadership position of Specialized Medical Services nationally.”

Premier Medical Corporation is a provider of rental respiratory equipment, liquid oxygen, durable medical equipment and related services to skilled nursing facilities and hospices in Colorado, New Mexico and Wyoming. The company is based in Denver, CO (www.premiermedicalcorp.com).

Specialized Medical Services (SMS) provides respiratory equipment, oxygen and related products and services to nursing homes and hospices throughout the U.S. Services provided include respiratory equipment, comprehensive oxygen services, disposable supplies, along with clinical, billing and consulting services. The company’s client base covers more than 40 states and 2,000 facilities, including 12 of the 20 largest nursing home chains in the country. The company is based in Milwaukee, WI (www.specializedmed.com).

“SMS is clearly the leading provider of oxygen, equipment and related services to nursing homes and hospice providers in the country,” said Riverside Principal Jack Nestor. “Our size and scale combined with our focus on customer service and experience allow us to meet the critical needs of our customers all across the U.S.”

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $200 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 295 transactions with a total enterprise value of more than $6 billion. The firm is headquartered New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

 Working with Mr. Schlachet and Mr. Nestor on the transaction for Riverside were Operating Partner Dave Logan, Assistant Vice President Dan Haynes, Associate Grady McConnell, and Finance Director Dave Pecore.

 PNC and Medley Capital provided financing for the transaction, Jones Day was Riverside’s legal counsel, and Deloitte & Touche advised Riverside on financial due diligence.

 © 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

Breakwater Acquires Open Road Entertainment

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Breakwater Investment Management has made a follow-on investment in its portfolio company Happy Hour Creative, to support its acquisition of Open Road Entertainment.

“We are thrilled that our capital has allowed Happy Hour to pursue targeted opportunistic acquisitions in its sector,” said Saif Mansour, Managing Partner at Breakwater. “The addition of the talented professionals at Open Road Entertainment, under the leadership of founder Jeffrey Smith, will help our platform company further its mission of providing best-in-class creative marketing services to a growing, global client base in the entertainment industry.”

Open Road Entertainment is an advertising agency specializing in creating audio-visual motion picture advertising for theatrical and home entertainment releases, along with broadcast promo and branding, video game advertising, and web/interactive. The company is based in Los Angeles, CA (www.openroadent.com).

“We are very excited to be part of this expanded platform of production, and look forward to growing Open Road Entertainment further,” said Jeff Smith, founder and CEO at Open Road Entertainment. “We are also very pleased about our partnership with Breakwater, given the firm’s extensive resources and capabilities.”

Happy Hour Creative is a full-service provider of creative marketing services to clients in the film, television, home entertainment, and video game industries. The company specializes in creating trailers, teasers, and television spots through its many platforms of production.  The company is headquartered in Los Angeles, CA (www.happyhourcreative.com).

“We are delighted to announce Happy Hour’s acquisition of Open Road Entertainment, a leading provider of creative marketing services in the film, television, home entertainment, video game, and digital media industries,” said Greg Golden, CFO at Happy Hour. “The follow-on growth capital investment from Breakwater was critical in allowing us to successfully execute on this strategic opportunity in a timely manner.”

Breakwater Investment Management makes investments in small to lower middle market growth businesses with annual sales ranging between $5 million and $100 million. Sectors of interest include healthcare / medical device; consumer products/specialty retail; information technology/telecom; business and financial services; energy/alternative energy; and industrial/manufacturing. The firm serves as general partner of Breakwater Structured Growth Opportunities Fund, a $100 million open-ended private investment partnership organized in August 2008. Breakwater Investment Management is based in Los Angeles, CA (www.breakwaterfund.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

Olympus Acquires Centerplate

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Olympus Partners has acquired Centerplate, an event hospitality provider, in partnership with Centerplate’s management team. The investment in Centerplate is Olympus’ tenth investment out of its $1.5 billion fifth fund.

“We are investing resources into Centerplate for one simple reason: this is a best in class company, led by an outstanding management team, poised for even greater growth in their industry,” said David Cardenas, Partner with Olympus Partners. “We are joining with this talented team in support of their industry-leading “Event Hospitality” approach, which we’re confident will continue to drive the company’s growth.”

Centerplate is an event hospitality provider to sports venues, convention centers and entertainment venues. The company serves approximately 250 unique venues and 100 million guests annually. Centerplate has provided event hospitality services to 15 official U.S. Presidential Inaugural Balls, 13 Super Bowls, 20 World Series, and the 2010 Winter Olympic Games. The company is based in Stamford, CT (www.centerplate.com).

“We were thrilled to announce we had come to terms with Olympus Partners last month and we are even more energized today now that we have consummated the transaction,” said Centerplate’s President and CEO Des Hague. “With the new ownership structure in place, we have the leadership, strategy and resources to continue to fuel our success and our ability to grow our clients’ business. This management led buyout will also provide continuity of key leadership, including our current, and invaluable, Chairman, Joe O’Donnell. Ultimately, we are in a really good place to drive meaningful growth in the months and years ahead.”

Olympus Partners, with $3 billion of capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion. Sectors of interest include: business services; transportation and logistics services; healthcare manufacturing and services; financial services; consumer and restaurant; and software and IT services. The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com).

The Olympus team for this transaction included Mr. Cardenas, David Haddad, Chase Ormond, and Matt Boyd.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-17-12

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

Prospect Capital Backs Latest Altus Acquisition

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Prospect Capital has provided a $42 million senior secured loan to support the acquisition of Gulf Coast Machine and Supply Company, a provider of large format forgings used in the energy and industrial end markets, by Altus Capital Partners.

“Prospect’s responsiveness and flexible capital solution helped to ensure a successful closing,” said Dale Cheney, a Principal at Altus. “We look forward to working with Prospect, a reliable capital source, on future transactions.”

Gulf Coast Machine and Supply Company (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).

Prospect has closed more than $1.5 billion of originations to date in the current 2012 calendar year, including approximately $750 million in the September 2012 quarter. Prospect’s advanced investment pipeline aggregates more than $600 million of potential opportunities.

Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in wide array of industries and is effectively industry agnostic. Prospect is based in New York (www.prospectstreet.com).

“Gulfco is a leading quick-turn supplier of large format forgings to the expanding offshore oil and gas and industrial markets,” said Robert Melman, a Vice President with Prospect Capital Management. “Prospect appreciates the opportunity to support the Altus acquisition of this growing company.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-15-12

Deloitte Consumer Spending Index Turns Upward

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The Deloitte Consumer Spending Index rose in September, primarily due to a nearly 11 percent increase in home prices, which offset weakness in other areas of the Index. The Index tracks consumer cash flow as an indicator of future consumer spending.

“The sizable increase in home prices may overstate the strength of the real estate market, though on a positive note, the declines may be over and the market stabilizing,” said Carl Steidtmann, Deloitte’s chief economist and author of the monthly Index. “The increase may also provide a much-needed boost to consumer confidence as other hurdles lie ahead. Consumer spending growth has slowed, and the primary reason that it is flat but not declining is that households are putting less into their savings. Energy prices remain a drag on household incomes and rising prices account for the largest month-to-month drop in real wages since September 2005.”

Deloitte’s analysis of factors influencing consumer spending further indicate:

  • Personal income and spending data for August were disappointing. Real incomes dropped 0.3 percent while spending was up just 0.1 percent from the previous month. While overall spending is up 2 percent from a year ago, growth in the past three months has been tepid, falling 0.1 percent in June, rising 0.37 percent in July and increasing just .08 percent in August. The savings rate also fell from 4.1 to 3.7 percent in the most recent month.
  • Energy prices remain an important factor. Gas prices usually decline in autumn as the summer driving season ends, but in a highly unusual turn, they have continued upward this fall.
  • The labor market remains a drag on the Index and the broader economy. Claims have moved up and down and hiring seems limited. Job gains over the summer were very weak.

The Index, which comprises four components — tax burden, initial unemployment claims, real wages and real home prices — rose to 3.53 from a reading of 3.27 the previous month.

“The ups and downs in housing, employment and energy costs may have given consumers pause this past month,” said Alison Paul, vice chairman, Deloitte LLP and retail & distribution sector leader. “As the holidays get into full swing, however, we anticipate shopper enthusiasm will be renewed. Turning their attention away from politics after the election, consumers can get back to the business of shopping. Retailers should benefit from a predicted 3.5 to 4 percent increase in November through January holiday sales over last year, and non-store channels such as online, catalogs and interactive TV, are expected to increase 15 to 17 percent. In addition to generating non-store sales, retailers can lift brick-and-mortar performance by using digital channels’ influence to drive in-store traffic and conversion.”

Highlights of the index include:

  • Tax burden: The tax burden rose slightly in the most recent month to 11.05 percent. A rising tax burden is often a sign of healthy income growth.
  • Initial unemployment claims: Jobless claims moved higher this month to 371,000, and were 2 percent higher than this time last year.
  • Real wages: Rising energy prices sent real wages tumbling to $8.71 — the largest month-to-month drop since September 2005.
  • Real home prices: In a thin market, housing prices can be volatile as the mix of homes sold becomes more significant. Real home prices soared 10.5 percent in the latest month accounting for all of the gain in the Index.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-15-12

Huron Capital Partners Acquires IM Solutions

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LeadingResponse, a portfolio company of Huron Capital Partners, has acquired IM Solutions, a provider of online lead generation services to legal professionals.

IM Solutions is a provider of online lead generation services to legal professionals through its proprietary lead management software and service solutions. The company is based in Dallas, TX (www.newclient.us).

LeadingResponse provides lead generation marketing services for clients in the financial services, legal, insurance, healthcare and other vertical markets. Products include online leads, direct mail, radio, and seminars. The company is based in Stamford, CT (www.leadingresponse.com).

This is the second add-on acquisition completed by Huron for LeadingResponse.  In July 2008, the company acquired Response Mail Express, a provider of direct marketing services for customers in the financial services, insurance, and mortgage sectors based in Tampa.

Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $300 million and EBITDAs of $5 million or more. Typical transaction values are from $20 million to $200 million. Sectors of interest include niche manufacturing, distribution and business services. Since its founding in 1999, Huron has acquired or invested in 60 companies with aggregate revenues in excess of $1 billion. Huron Capital currently manages over $600 million in committed equity through three private equity funds, and has offices in Detroit and Toronto (www.huroncapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-15-12