Archives for November 8, 2012

LLM Capital Partners Acquires Best Practice Disease Management

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LLM Capital Partners has acquired Best Practice Disease Management, a provider of in-home health risk assessments, in partnership with Hickory Ridge Capital and John Shermyen, founder and former CEO of LogistiCare.  Certain former shareholders of Best Practice Disease Management were also co-investors.

Best Practice Disease Management is a provider of in-home health risk assessments for Medicare Advantage Plans.  The investment was made through a newly formed holding company, Ingenios Health Holdings.  The company will be operated as Ingenios Health (www.ingenioshealth.com) and is based in Boston, MA.

Concurrent with the closing of the investment, Mr. Shermyen was named chairman and chief executive officer of Ingenios Health.  Mr. Shermyen founded LogistiCare, a provider of non-emergency transportation management solutions for state government and commercial payers, and served as its president and CEO from 1994 to 2009.

“LLM’s principals are excited to once again partner with John Shermyen and assist in the building of a company that effectively contributes to lowering the rising cost of healthcare,” said Rick Moseley, managing director at LLM.

LLM Capital Partners makes growth equity investments of $5 million to $15 million in companies with enterprise values of $15 million to $250 million.  Sectors of interest include healthcare services, business services and niche manufacturing.  The firm is based in Boston, MA (www.llmcapital.com).

Hickory Ridge Capital invests in technology-enabled, early-growth stage healthcare services companies.  The firm was formed in 2011 by John McDaniel, former chairman and chief executive officer of MedStar Health, a $4 billion not-for-profit regional healthcare system, and Jeffrey Harvey. Hickory Ridge Capital is based in Washington, DC (www.hickoryridgecapital.com).

“Ingenios is ideally positioned to offer transitional care and chronic care management services to help payors manage their members more efficiently, which is particularly important amid today’s changing healthcare models,” said Mr. McDaniel.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-8-12

Warburg Pincus Acquires Turbine Technologies Group

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Consolidated Precision Products (CPP), a portfolio company of Warburg Pincus, has reached an agreement to acquire the Turbine Technologies Group of ESCO Corporation.

Warburg Pincus, which acquired CPP in October 2011 and is CPP’s largest shareholder, plans to invest additional capital into the company to assist in financing the transaction.  “We are pleased to continue supporting the company and its growth plans, including through acquisitions,” said Dan Zamlong, Managing Director, Warburg Pincus.

A division of ESCO Corporation, the Turbine Technologies Group manufactures superalloy precision investment cast components used in the aerospace, power generation and other industrial markets. Products include blades, vanes and complex structural parts used in aircraft engines and industrial gas turbines. The group had revenues of $157 million last year and is based in Syracuse, NY (www.escocorp.com).

Consolidated Precision Products is a manufacturer of highly-engineered components and sub-assemblies for the commercial aerospace and defense markets. Founded in 1991, the company is one of the world’s largest investment and precision sand casting companies, producing complex super alloy, aluminum, magnesium and steel components for a wide variety of commercial and military aircraft, weapon systems, regional/business jets and helicopters. The company serves a range of global, blue chip customers including, Boeing, Airbus, Hamilton Sundstrand, General Electric, Honeywell, Pratt and Whitney, and Lockheed Martin on platforms such as the 737, 777, 787, A320, A340, F-35 Joint Strike Fighter, F-22 Raptor, Apache, V-22.  CPP is headquartered in Pomona, CA (www.cppcorp.com).

“We are excited about adding Turbine Technologies Group to the CPP family and plan to build on Turbine Technologies Group’s long-standing customer relationships, exceptional technical capabilities and superior customer service to position CPP for continued growth,” said Jim Riley, Chief Executive Officer and President, CPP.

Warburg Pincus has more than $30 billion in assets under management and has raised 13 private equity funds which have invested more than $40 billion in approximately 650 companies in 30 countries. The firm was founded in 1966 and is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, Sao Paulo and Shanghai (www.warburgpincus.com).

ESCO Corporation is a designer, manufacturer and provider of highly engineered wear parts and replacement products used in mining, oil and gas resources, infrastructure development, power generation, aerospace and industrial applications. The company employs more than 6,000 people and operates in 28 countries on six continents, including a network of 36 manufacturing facilities and more than 50 sales and distribution offices.  The company is headquartered in Portland, OR (www.escocorp.com).

Lazard acted as financial advisor and Sheppard Mullin Richter & Hampton LLP and Cleary Gottlieb Steen & Hamilton acted as legal advisors to CPP.  Goldman, Sachs & Co. acted as financial advisor and Stoel Rives LPP acted as legal advisor to ESCO.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-8-12

The Peakstone Group as New Managing Director

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Brad Curtis has joined investment bank The Peakstone Group as a new Managing Director. He will primarily focus on transactions in the consumer sector.

Mr. Curtis has spent most of his career working with privately held, middle market businesses in a wide range of consumer segments including consumer healthcare, personal care, OTC pharmaceuticals, pet products, juvenile products, food and beverage, private label, and apparel.

Prior to joining Peakstone, Mr. Curtis worked with Allegiance Capital Corporation where he opened the firm’s Chicago office in 2010.  Earlier in his career, he was a senior operating executive for two Jordan Industries’ portfolio healthcare companies where he led organic growth initiatives and completed strategic acquisitions prior to their successful sale to a strategic buyer.  Mr. Curtis has also worked for Hilco, a financial advisory, business valuation and specialty finance company based in Northbrook, IL.  He received his AB from Brown University and holds an MBA in Finance from DePaul University.

The Peakstone Group is an investment bank focused on middle market and family-owned businesses, with a targeted transaction size of $10 to $100 million.  Peakstone provides investment banking advisory services and also makes select private equity investments through its affiliate, PAG Capital.  The firm is based in Chicago, IL (www.peakstonegroup.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-8-12