Archives for November 26, 2012

Doug Lawson Joins Lazard Middle Market as New Packaging Head

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Lazard Middle Market has hired Doug Lawson as a new Managing Director and head of Packaging within the firm’s Industrials Group. He will be based in Lazard’s Chicago office.

“Doug has established a national reputation in the packaging sector, having advised on many of the most notable middle market transactions in the sector in recent years,” said Bob Frost, head of the Industrial Group for Lazard Middle Market.

Mr. Lawson’s investment banking experience include numerous sale and buy-side advisory mandates, leveraged buyouts, and fairness opinions for a wide variety of clients, including private equity groups, public companies, and privately owned businesses.  Prior to joining Lazard, Mr. Lawson was a Managing Director and head of the Packaging Group at BMO Capital Markets in Chicago, where he established and led the firm’s M&A and financing practice in the packaging sector.

Prior to BMO Capital Markets, he was a Principal at Piper Jaffray, where he built an M&A business in the packaging sector. Mr. Lawson previously held senior positions at ABN AMRO, Duff & Phelps Credit Rating Company, where he built and headed the project finance group. Early in his career, Mr. Lawson worked at the law firm of McCarthy Tétrault and as an accountant with Ernst & Young in Toronto.

Lazard Middle Market provides strategic advice on mergers and acquisitions, restructuring, and public and private capital raising to the middle market, serving a diverse set of clients, including private equity, venture capital, entrepreneurs, and public and private companies.  Lazard Middle Market has offices in New York, Chicago, Minneapolis, and Charlotte (www.lazardmm.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

Castanea Partners Exits Urban Decay

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Castanea Partners has signed an agreement to sell Urban Decay, a women’s cosmetics company, to L’Oréal.

Urban Decay is a women’s cosmetics company with products that emphasize femininity and irreverence. The company markets its products through domestic and international specialty beauty retailers, department stores, and its website. The company is based in Newport Beach, CA (www.urbandecay.com).

“The entire Urban Decay team has done a great job of rapidly growing the company while remaining true to their brand and its values. We very much enjoyed working with the Urban Decay team and are confident they will thrive with their new partners.” said Steve Berg, Partner from Castanea.

Urban Decay was founded in 1996 by Wende Zomnir and was bought by Moet-Hennessy Louis Vuitton in 2000, before being sold again in 2002 to the Falic Group.  In 2009 it was acquired by Castanea Partners.  Urban Decay had revenues of $140 million over the past 12 months, more than three times its revenue at the time of Castanea’s investment in 2009.

“Castanea has been a great partner for Urban Decay as they truly understand who we are and appreciate what it takes to grow a successful brand, said Ms. Zomnir, Chief Creative Officer.

Castanea Partners invests from $15 million to $75 million in small and middle market companies in publishing, education, training, consumer brands, specialty retail, and marketing services.  Castanea participates in leveraged buyouts, growth and acquisition equity investments, and operationally challenging situations.  The firm is currently investing from its third fund, a $500 million fund that targets companies with enterprise values up to $250 million. The firm is located in Newton, MA (www.castaneapartners.com).

“Castanea was incredibly supportive of our team and encouraged us to invest in our vision of becoming one of the top cosmetics brands in the world,” said Urban Decay CEO Tim Warner

L’Oréal is one of the world’s leading beauty companies. The company has built a portfolio of 27 international, diverse and complementary brands. With sales amounting to 20.3 billion euros in 2011, L’Oréal employs 68,900 people worldwide.  The company is based in Paris, France (www.loreal.com).

Castanea Partners was advised by Deutsche Bank, Piper Jaffray, and Deloitte.  L’Oréal was advised by Lazard and Weil, Gotshal and Manges.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

Baird Capital Partners Acquires GoConfigure

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Backyard Discovery, a provider of outdoor recreation products and a portfolio company of Baird Capital Partners, has acquired GoConfigure, a provider of delivery, installation and maintenance services.

GoConfigure (GCI) provides delivery, installation and maintenance services to retailers and OEMs nationwide, with a particular focus on fitness equipment, wooden swing sets, wooden sheds, basketball goals, game tables, trampolines and gun safes. The company is base in Lisle, IL (www.gciteam.com).

“This acquisition combines GCI’s nationwide installation network and robust customer service platform with BYD’s proprietary consumer product offering,” said Gordon Liao, Vice President at Baird Capital Partners. ”We see this as unique in the consumer products world and as a major strategic advantage for the company.”

Backyard Discovery (BYD) is a global consumer products company with nationwide installation capabilities. BYD was established in 2007 through the Baird Capital Partners-backed merger of Backyard Adventures and Leisure Time Products, two outdoor recreation product providers. In the past two years, BYD acquired SHEDS USA and Classic Manor Builders to become a leader in the wooden sheds category. The company’s products are marketed under the following brand names: Create-N-Adventure, Adventure Playsets, Backyard Adventure, Leisure Time Products and Backyard Builders. BYD products are sold through nationwide retailers including Wal-Mart, Sam’s Club, Toys-R-Us, BJ’s and through independent dealers across the country. Backyard Discovery is based in Pittsburg, KS (www.swingsetsonline.com).

“We have had a long-standing relationship with GCI and are excited about the opportunity to broaden our reach,” said Ron Scripsick, CEO of BYD. “We look forward to building upon the significant opportunities between us and providing the best customer service for both the retail channel and end consumer.”

Baird Capital Partners invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 to $125 million and EBITDAs greater than $5 million. Baird Capital Partners was founded in 1989 and is based in Chicago, IL (www.bairdcapitalpartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

KKR Acquires Alliant Insurance Services

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Kohlberg Kravis Roberts & Co. has signed an agreement to acquire Alliant Insurance Services, a specialty insurance brokerage firm, from Blackstone.  The management team and employees of Alliant own approximately 45% of the company and will roll over a substantial portion of their investment in the company.  The transaction is expected to close in the fourth quarter.

Alliant Insurance Services is one of the largest insurance brokerage firms in the United States and has a history dating back to 1925. Alliant provides property and casualty, workers’ compensation, employee benefits, surety, and financial products and services to some 20,000 clients nationwide, including public entities, tribal nations, healthcare, energy, law firms, real estate, construction, and other industry groups. The company is headquartered in Newport Beach, CA (www.alliantinsurance.com).

“This transaction marks the next phase of Alliant’s growth and offers us an exciting opportunity to continue to build the business and offer best in class products and services to our clients.  We are pleased to be partnering with KKR and appreciate the positive role that private capital can play in helping us manage our business and execute a growth strategy.  This transaction will enable Alliant to remain independent and maintain its market leading position,” said Tom Corbett, Chairman and CEO of Alliant.

KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $66 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).

“Alliant’s leadership team has built a unique insurance distribution franchise that is differentiated in its expertise, product offerings and client relationships.  We are excited to partner with the Alliant team as it builds on the successful track record of product innovation, platform expansion and accretive acquisition activity in the specialty insurance marketplace,” said Tagar Olson, Member of KKR.

Blackstone’s private equity group comprises 129 professionals in New York, London, Germany, Mumbai, Singapore, Hong Kong, Shanghai and Beijing. The group currently has $47 billion in assets under management.  Blackstone Capital Partners VI, Blackstone’s latest private equity fund, closed in January of this year with over $16 billion in commitments (www.blackstone.com).

JP Morgan Chase and Blackstone Advisory Partners served as advisers to Blackstone and Alliant on the transaction.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

Onex Acquires USI Insurance Services

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Onex Corporation has agreed to acquire USI Insurance Services from GS Capital Partners in a transaction valued at approximately $2.3 billion.  The transaction is anticipated to close by the end of 2012.

USI is a distributor of property and casualty insurance and employee benefits products to businesses throughout the United States. USI is ranked as one of the ten largest insurance brokers in the United States.  The firm was founded in 1994 and is headquartered in Briarcliff Manor, NY, and operates out of 100 offices in 26 states (www.usi.biz).

“USI has established a strong national insurance brokerage with a very impressive management team led by Mike Sicard,” said Robert Le Blanc, an Onex Managing Director. “The company is well positioned to continue to grow both organically and by building on its track record of successful acquisitions.”

Employees of USI invested alongside GS Capital Partners in a take-private of the company in 2007, and will remain significant investors in USI going forward.

GS Capital Partners is the private equity vehicle through which Goldman Sachs conducts its large, privately negotiated, corporate equity investment activities and is currently investing through its sixth fund. GS Capital Partners focuses on large, sophisticated business opportunities in which value can be created through leveraging the resources of Goldman Sachs (www.gs.com/pia).

“USI’s management team and employees have demonstrated a commitment to growing and improving the business, and we are pleased with the company’s performance over the last several years. Since our take-private in 2007, USI has successfully integrated operations and developed a common operating platform with industry-leading margins, differentiated acquisition capabilities, and a strong platform for organic growth,” said Sumit Rajpal, a Managing Director at GS Capital Partners.

Onex Corporation makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $14 billion of assets under management and is based in Toronto (www.onex.com).

Onex was advised by Morgan Stanley, with Morgan Stanley, BofA Merrill Lynch, Citigroup, Goldman Sachs, RBC Capital Markets LLC and UBS Securities providing bank and bridge financing commitments.  GS Capital Partners was advised by Goldman, Sachs & Co. and RBC Capital Markets.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

Brynwood Partners Exits Balance Bar

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Brynwood Partners has sold its portfolio company, Balance Bar Company, to NBTY, a portfolio company of The Carlyle Group.  Brynwood acquired Balance Bar from Kraft Foods in 2009.

Balance Bar Company is a maker of nutrition and energy bars.  The company was founded in 1992 and is headquartered in Valhalla, NY (www.balancebar.com).

“We are delighted to announce the divestiture of Balance Bar, which was our first investment in our most recent fund, Brynwood VI,” said Hendrik Hartong III, the Chairman of Balance Bar and a Senior Managing Partner with Brynwood Partners. “We are grateful to all of the Balance Bar employees for their hard work and dedication to the business. We wish NBTY continued success with this great brand.”

NBTY is a vertically integrated manufacturer, marketer, distributor and retailer of vitamins, nutritional supplements and related products.  NBTY currently markets over 25,000 SKUs under many brands, including Nature’s Bounty, Sundown, American Health, Ester-C, Solgar, MET-Rx, Osteo Bi-Flex, SISU, Rexall, Pure Protein, Body Fortress, Puritan’s Pride, Vitamin World, Holland & Barrett, GNC (UK), Physiologics, and De Tuinen. The company is headquartered in Ronkonkoma, NY (www.nbty.com).

Brynwood Partners is an operationally-focused private equity fund that makes control investments in lower middle market companies. Sectors of interest include consumer products, light manufacturing with low capital intensity, and business services. Brynwood Partners has $500 million of capital under management. The firm was founded in 1984 and is based in Greenwich, CT (www.brynwoodpartners.com).

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The Carlyle Group employs 1,300 people in 32 offices across six continents and is based in Washington, DC (www.carlyle.com).

Houlihan Lokey Capital served as the investment banking advisor to Balance Bar.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

SeaFort Capital Acquires A.W. Leil Cranes

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SeaFort Capital has partnered with senior managers Larry MacDonald and Robert Fraser to acquire A.W. Leil Holdings Limited, a crane rental and lift services business.

“We are excited to invest in an established Nova Scotia business alongside experienced and dedicated operating partners.  A.W. Leil boasts a committed group of skilled employees and a modern fleet of cranes.  We intend to continue the legacy that Allison Leil Sr. and his family have established through decades of reliable performance,” said Rob Normandeau, President of SeaFort.

A.W. Leil is a crane rental and lift services business.  The company operates a fleet of over fifty cranes under the trade names A.W. Leil, Sagadore Cranes and Cape Breton Cranes, and has five offices and over sixty employees. The company was founded in 1958 and is based in Dartmouth, Nova Scotia (www.awleil.com).

SeaFort Capital makes control investments in small and medium sized Canadian businesses that have earnings from $2 million to $10 million and have a strong tangible asset base.  Sectors of interest include “old economy” industries such as manufacturing, distribution or equipment services.  The firm is based in Halifax, Nova Scotia (www.seafortcapital.com).

“Over the last 54 years, I have taken great pride in my business, developing a personal connection to each employee and a deep familiarity with every piece of equipment.  I am pleased to see SeaFort partner with Larry and Robert to acquire the company.  I am confident that they will treat our people fairly and uphold our values as they work to grow and develop the business,” said Allison Leil Sr.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

Kilmer Capital Partners and TerraNova Partners Acquire Compact Power Equipment Centers

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Kilmer Capital Partners and TerraNova Partners have acquired Compact Power Equipment Centers, a rental supplier of compact and medium-heavy equipment.

Compact Power Equipment Centers provides towable rental equipment such as mini-skids, excavators, skid steers, trenchers and chipper shredders through Home Depot Tool Rental Centers. To date, Home Depot has Compact Power Equipment Centers within its Home Depot Tools Rental departments in some 400 stores. The company also sells new and used equipment for the construction and landscaping industries including utility loaders, backhoe loaders, trenchers, excavators, or skid steers through its online sales function at www.CPECdirect.com.  Compact Power Equipment Centers was founded in 2009 and is based in Fort Mill, SC (www.cpiequipment.com).

Kilmer Capital Partners makes control and minority investments of $5 million to $50 million in companies that have revenues from $20 million to $200 million. The firm is industry agnostic but has a specific interest in the electronics, communications, technology, food, apparel, healthcare, consumer products, media and entertainment sectors. Kilmer Capital is based in Toronto (www.kilmercapital.com).

TerraNova Partners is a multi-disciplined and diversified investment fund focused primarily on private equity investments.  The firm is headquartered in Toronto and also has an office in New York (www.terranovapartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12

Irving Place Capital Acquires Stull Technologies

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Mold-Rite Plastics, a manufacturer of rigid plastic packaging products and a portfolio company of Irving Place Capital, has acquired Stull Technologies, a manufacturer of dispensing closures, caps, lids, and packaging components.

The acquisition will broaden Mold-Rite Plastics’ product line, geographic reach and manufacturing capabilities. “Combining Stull Technologies with the Mold-Rite Plastics family is another example of our commitment to superior service, flexibility and overall customer-focused value,” said Brian Bauerbach, President and CEO of Mold-Rite Plastics. “We are very excited to work with the outstanding people at Stull to continue our mission of enhancing our customers’ products through superior packaging solutions.”

Stull Technologies is a designer, developer, and manufacturer of dispensing closures, caps, lids, and packaging components. The company is based in Somerset, NJ (www.stulltech.com).

Mold-Rite Plastics is a manufacturer of rigid plastic packaging products, serving a variety of markets around the world. The company’s product lines include a variety of caps and closures, a full line of jars and a variety of specialty items. The company was founded in 1976 and is headquartered in Plattsburgh, NY (www.moldriteplastics.com).

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

P&M Corporate Finance served as financial advisor to Stull Technologies.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12