Archives for November 28, 2012

Carrick Capital Partners Closes First Fund at $180 Million

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Carrick Capital Partners has held the final close of its first fund with $180 million in capital commitments.  The fund will invest in companies that focus on technology-enabled service offerings, business process outsourcing, transaction processing, software as a service and enterprise software.

Carrick Capital Partners was co-founded by Marc McMorris, a former General Atlantic managing director who led investments in business services and software, and Jim Madden, the previous founder and chief executive of Exult, a human resources business processing company that he grew from concept to more than $500 million in revenues.

Carrick Capital Partners takes an operational approach to growth equity investing, bringing to bear a combination of operational and investment expertise to help entrepreneurs and management successfully scale their businesses.  “We are very pleased by the response to this fund. It underscores the market’s appreciation of our investment strategy and approach – helping good companies scale and achieve even greater success,” said Mr. McMorris.

“Carrick Capital Partners seeks to invest in companies that possess the right fundamentals to significantly grow their operations,” said Mr. Madden.  “We will leverage our experience building and actively investing in fast growing businesses to work closely with CEOs and founders.”

Carrick Capital Partners invests in companies with revenues of $5 million to $ 50 million that serve large markets with business models that allow for increasing profitability as they gain scale.  The firm was founded in 2012 and is based in San Francisco (www.carrickcapitalpartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-28-12

L2 Capital Adds Two New Professionals

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L2 Capital Partners has added two new team members to its staff with the hiring of Matt Klein as an Operating Partner and Connor McMahan as an Associate.

“It is very exciting to have Matt and Connor join our team. Both are highly talented and greatly expand L2’s ability to enhance the performance of our existing portfolio as well as to execute acquisitions of new platform companies and add-on opportunities for our portfolio companies,” said Bob Levine, Managing Partner of L2 Capital.

Mr. Klein brings more than fifteen years of experience in strategy, finance and operations at lower middle market firms. His primary focus is to promote growth and value creation activities at L2 Capital’s portfolio companies. Prior to joining L2 Capital, Mr. Klein spent more than fifteen years as an entrepreneur, consultant and interim executive for client companies in the services, logistics, manufacturing, consumer goods, real estate and construction industries. He previously was a Director at both KPMG and Alvarez & Marsal, where he worked on performance improvement, transactions and restructuring engagements.  Mr. Klein holds a BS degree from California Polytechnic University and an MBA degree from the University of Texas.

Mr. McMahan joins L2 Capital from Boxwood Partners, a merchant bank in Richmond, VA, where he was an Associate. While at Boxwood, he executed lower middle market transactions in a variety of industries for both the firm’s private equity and investment banking divisions. His primary focus is to source, analyze and monitor new investment opportunities and to provide analytical support for L2 Capital’s portfolio companies. Mr. McMahan earned a BS degree in Business Administration from the University of Richmond.

L2 Capital Partners invests in privately-owned manufacturing, service and distribution companies with revenues of $10 million to $75 million and valuations of up to $50 million. L2 Capital has over $50 million in available capital and invests from $1 million to $10 million in each transaction. L2 Capital is headquartered in Radnor, PA (www.L2Capital.net).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-28-12

Oxford Provides Backs Nursing Facility Operator

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Oxford Finance has closed a $20 million senior secured term loan and a $1.5 million revolving line of credit with Pali Corporation, a nursing facility operator.  Proceeds of the loan are being used to refinance the company’s existing debt and for working capital to support its two nursing facilities in Hawaii.

“Oxford is very pleased to provide capital to support the ongoing operations of Pali’s facilities,” said Christopher Herr, managing director for Oxford Finance. “Pali has a committed and experienced management team that is highly regarded in the healthcare community and for more than 25 years its two Honolulu facilities have been providing excellent care to its patients.”

Pali Corporation operates two skilled nursing facilities in Honolulu, HI. They have been operating for more than 25 years, providing short-term rehab and long-term care for the elderly (no website found).

“I am very grateful for Oxford and the help they can provide us,” said Dr. Edison Miyawaki, president of Pali Corporation. “It has been a pleasure working with them and I’m sure we will continue to have an outstanding relationship in the coming years.”

Oxford Finance, a subsidiary of Sumitomo Corporation, is a specialty finance firm providing senior secured loans to public and private life science and healthcare services companies worldwide. In recent years, Oxford has originated over $1.5 billion in loans, with lines of credit ranging from $500,000 to $50 million. Oxford is headquartered in Alexandria, VA with additional offices in California, Massachusetts and North Carolina (www.oxfordfinance.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-28-12

Resilience Capital Partners Exits ChemDesign

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Resilience Capital Partners has sold its portfolio company ChemDesign, a provider of toll manufacturing services to the global chemical industry, to private equity firm Lubar & Co.  Resilience acquired ChemDesign in October 2006 in a Chapter 11 Section 363 bankruptcy sale.

The sale of ChemDesign generated a  3.8x net return on invested capital and a 25.9% net internal rate of return. “Our investment in ChemDesign is a great case study in corporate renewal. Through hard work, vision, and an operations oriented approach real value was created for the benefit of all the company’s stakeholders,” said Bassem Mansour, Co-CEO of Resilience.

ChemDesign is a provider of toll manufacturing services to the global chemical industry.  Toll manufacturers provide a processing or manufacturing service on a customer’s product for a fee or toll.  ChemDesign has expertise in low pressure hydrogenations, condensation chemistry, multi-step synthesis, methylations and serves the agricultural chemicals, consumer, energy, industrial and plastics industries. Many large chemical companies are increasingly turning to domestic toll processors, such as ChemDesign, to drive potential cost savings, reduce internal assets, and allow them to shift their focus toward research and development and away from non-core processes.  ChemDesign was founded in 1982 and is based in Marinette, WI (www.chemdesign.com).

“I am proud of our many accomplishments”, said David Mielke, ChemDesign’s CEO. “Resilience, as a partner, has been critical to our success by providing the capital structure at the onset and supporting the management team through a dynamic transition in an unpredictable economic climate. I have found the working relationship and support between the management team and Resilience unique and refreshing. They balance high standards of performance with a true understanding of the business and its capabilities.”

Resilience Capital Partners specializes in investing in lower middle market companies across a range of industries.  Resilience’s investment strategy is to acquire companies in a variety of special situations including underperformers, corporate divestitures, turnarounds, and orphan public companies. Since its inception in 2001, Resilience has acquired 27 companies under 19 platforms with over $2.5 billion in revenue. The firm is based in Cleveland, OH (www.resiliencecapital.com).

Lubar & Co. invests in middle market companies located from the Great Lakes to Texas that have revenues of $30 million or more and EBITDA of $5 million to $30 million. Sectors of interest include niche manufacturing; business services; energy; food; architecture, engineering and construction; finance and asset management; healthcare; and banking. The firm is based in Milwaukee, WI (www.lubar.com).

“This is an exceptionally talented, knowledgeable and experienced organization and we look forward to a rewarding relationship with CEO Dave Mielke and the rest of the ChemDesign team,” said David Lubar. “The company is well positioned to grow and create long-term partnerships with current and new customers who are well suited to their capabilities.”

Jones Day served as legal counsel and Dresner Partners acted as exclusive financial advisor to ChemDesign and Resilience.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-28-12

Teachers’ Private Capital Acquires Plano Molding

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Ontario Teachers’ Pension Plan (Teachers’) has signed an agreement to acquire Plano Molding Company, a supplier of outdoor sports storage systems.  Teachers’ is making the acquisition through its private equity investment division, Teachers’ Private Capital.

“The Plano management team and I are extremely excited to be partnering with Teachers’,” said Tom Hurt, the company’s President and CEO. “Together we look forward to growing Plano’s heritage brands to their full potential and continuing our dedication to exceeding our customer expectations in product innovation, market leadership and world-class customer service.  An exciting new journey has just begun for Plano, our valued associates and the many market leading brands under our umbrella.  The Teachers’ partnership in Plano promises to yield more exciting opportunities than ever before.”

Plano manufactures tackle boxes, bait storage, gun cases, archery cases, and ice fishing products. It also produces cases for cosmetics, tools and crafts, as well as storage containers and shelving for home and office. The company was founded in 1932 and is based in Plano, IL (www.planomolding.com).

“Plano has exceptionally strong brands and product categories supported by attractive market characteristics. It also benefits from its long-standing relationships with top North American retailers,” said Jane Rowe, Senior Vice-President of Teachers’ Private Capital.  “Plano’s proven management team has a record of solid organic growth and has strongly positioned the company to benefit from acquisition opportunities. We look forward to supporting their success.”

Teachers’ Private Capital is one of the world’s largest private equity investors, having participated as a long-term investor in numerous management buyouts in Canada, the United States and Europe. It is the private investment department of the Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada. Teachers’ Private Capital is based in Toronto with offices in New York and London (www.teachersprivatecapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-28-12

Leading Ridge Capital Partners Acquires F.W. Honerkamp

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Rugby Architectural Building Products, a portfolio company of Leading Ridge Capital Partners, has acquired F.W. Honerkamp Co., a distributor of architectural building products.

F.W. Honerkamp Co. distributes a full line of architectural wood products, decorative surfacing and cabinet hardware. The company was founded in 1871 and is based in New York (www.honerkamp.com).

The acquisition of F.W. Honerkamp Co. is Rugby’s tenth acquisition since 2010, through which the company has doubled its revenue and customer base and grown to 21 distribution centers across the country. “F.W. Honerkamp is an iconic franchise in one of the largest US markets for our products,” said David Hughes, Rugby President and CEO. “We are extremely excited to have the outstanding Honerkamp team become part of the Rugby organization.”

With the addition of Honerkamp’s Bronx, NY distribution center, Rugby will service the greater New York City metropolitan region from three locations situated in Northern New Jersey, Long Island and New York City. “New York City is the largest metropolitan area in the United States with a population base of 20 million,” said Drew Dickinson, Rugby COO.  “Metro New York has a particularly high density of companies in the woodworking industry, and having such strong distribution in this market will allow us to provide the highest levels of service to our customers.”

Rugby Architectural Building Products is a full-line wholesale distributor of specialty building products. Its primary business is the wholesale distribution of non-structural architectural grade building products sold principally to customers who supply end-products for the commercial, industrial, retail, residential and institutional markets. The company’s product offerings include hardwood plywood, composite panel products, solid surface countertops, high-pressure laminate, doors and millwork, hardwood lumber, cabinet hardware, moldings, Rugby brand sinks and faucets, and industrial wood coatings. Value-added services include custom color matching, laminated panels, cut-to-size panels, edge-banding, custom hardwood molding, hardwood lumber ripping and facing, and interior and exterior door pre-hanging. The company serves over 17,000 customers in the largest metro centers in the U.S. with a geographic footprint covering 30 states from 21 distribution facilities around the country. Rugby Architectural Building Products is headquartered in Concord, NH (www.rugbyabp.com).

Leading Ridge Capital Partners is a private equity firm specializing in acquisitions, recapitalizations, and investments in lower-middle market distribution, logistics, and light manufacturing companies with revenues between $10 million and $100 million. Target companies will have an EBITDA from $1 million to $5 million and will be located, generally, in the Mid-Atlantic region of the US. The firm has offices in Rockville, MD and New York, NY (www.leadingridge.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-28-12