Nova Capital Management has completed the previously announced acquisition of five industrial businesses that comprised all of the operating subsidiaries of Latshaw Enterprises, a US based industrial group.
“We are delighted to have completed this portfolio acquisition. It fits perfectly with our strategy of buying groups of companies in a single transaction, which are well managed and have strong market positions but where we feel we can accelerate their growth through the deep operational and international experience which we can bring to bear. This is our third deal in the US and we believe that this will open up other opportunities for us,” said Tom Leader of Nova.
Equity financing for the acquisition was provided by a syndicate comprising Nova Capital Management and Caledonia Investments. GSO Capital Partners (part of the Blackstone Group) and PNC Bank provided the debt financing.
The five acquired businesses have aggregate sales of approximately $90 million and employ more than 450 people in 5 operating facilities across the USA. The businesses acquired are: Wescon Products Company, an OEM manufacturer of mechanical controls, cable assemblies and screw machined components primarily for the lawn & garden sector, based in Wichita, KS (www.wesconproducts.com); Wescon Plastics, a manufacturer of custom plastic injection molded parts using highly-engineered resins primarily for the battery and heavy duty truck industries, based in Wichita, KS (www.wesconproducts.com); MC Electronics, an assembler of custom electronic cables, harnesses, electro-mechanical assemblies and full system integration, based in Hollister, CA (www.mcelectronics.com); Coast Wire & Plastic Tech, a manufacturer of custom electronic wire and cable products, for the medical, instrumentation and commercial electronic industries, based in Carson, CA (www.coastwire.com); and Anderson & Forrester, a manufacturer of orifices, fittings and gauging tools for the natural gas and propane industries, based in Wheat Ridge, CO (www.andersonforrester.com).
Following the acquisition, three of Nova’s partners, Jan Kreminski (Operating Partner), Tom Leader (Investment Partner) and Mike Nevin (Investment Partner) will join the boards of each business to support the executive management teams of the acquired businesses.
Debt advisory services were provided to Nova by Alvarez & Marsal and Lincoln International. Nova was advised on the acquisition by Goodwin Procter.
Nova Capital Management was established in 2002 and has acquired or taken over the management of portfolios representing a total transactional value of over €1 billion. Nova currently manages investments in over 25 businesses primarily operating in Western Europe and North America across a range of sectors. The firm is based in London, UK (www.nova-cap.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 11-14-12
