Archives for December 14, 2012

Blue Sage Closes Fund 2 at $150 Million Hard Cap

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Blue Sage Capital has held a first and final closing of its oversubscribed second fund, Blue Sage Capital II, L.P.  Capital commitments totaled $150 million, above the $100 million target size.

Blue Sage received support from existing investors as well as new limited partners.  Blue Sage Capital II’s limited partners include large financial institutions, private equity fund of funds, family offices, endowed trusts, government entities, and the partners of Blue Sage, who represent the largest commitment to the fund.  The new fund will continue Blue Sage’s strategy of investing in founder-owned businesses in Texas and the Southwest with $3 million to $10 million of cash flow.

Blue Sage is led by founding members, Peter Huff and Jim McBride, and has a team of five investment professionals including Adam Norris, Chris Petrini, and Ali Williford.  Eric Weiner, a former Berkshire Partners professional in Boston, will join the team this summer after he completes his MBA at Stanford.  The firm anticipates adding one or two additional investment professionals early next year.

Blue Sage Capital specializes in growth, recapitalization and buyout financings of smaller middle-market companies based in Texas and the Southwest.  Most of Blue Sage’s investments are in established, profitable companies with $10 million to $100 million of revenue and $3 million to $10 million of cash flow at the time of investment.  Blue Sage invests in a variety of industries, with each initial investment in a company ranging from $10 million to $15 million. The firm is based in Austin, TX (www.bluesage.com).

John Barnidge, a senior executive of R360 Environmental Solutions, a Blue Sage portfolio company that recently sold to Waste Connections for over $1.3 billion in cash said, “Blue Sage has been an active and supportive partner, helping us grow in spite of difficult economic times, and leading us through a very successful recent exit.  I look forward to continuing my partnership with the firm as an investor in Blue Sage Capital II.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-14-12

Salt Creek Capital Acquires Boyd Industries

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Salt Creek Capital has completed the acquisition of Boyd Industries, a manufacturer of dental examination and operatory equipment.

Boyd is a manufacturer of examination and operatory equipment to the orthodontic, oral surgery, pediatric dental, and other medical specialty markets.  Boyd’s product line includes treatment chairs, doctor/assistant seating, specialty cabinetry, sterilization centers, task lighting, delivery units and related accessories. The company is based in Clearwater, FL (www.boydindustries.com).

“We are excited about the Boyd acquisition, a company well known for its innovative products and strong reputation for quality within the dental industry,” said Dan Mytels, Managing Director with Salt Creek Capital. “We look forward to working closely with incoming President, Mr. Adrian LaTrace, to transition the company to new management and to guide the business through to its next phase of growth”.

Salt Creek Capital invests in lower middle market companies located anywhere in the US that have $3 million to $50 million in revenue.  Sectors of interest include business services, distribution, energy services, franchising, logistics and specialty finance.  The firm is based in Menlo Park, CA (www.saltcreekcap.com).

“I am delighted to have had the opportunity to partner with Salt Creek Capital on the acquisition of Boyd. The principals of Salt Creek have a strong track record of working with management teams to affect growth and their experience was instrumental in the completion of a successful acquisition,” said Mr. LaTrace.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-14-12

Audax Group Acquires Data Intensity

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The Audax Group has acquired Data Intensity, a provider of cloud services for enterprise applications, in partnership with the company’s management team.

Data Intensity is a provider of cloud services to medium and large enterprises for enterprise applications such as the Oracle E-Business Suite, as well as surrounding technologies from other vendors such as Microsoft. The company is headquartered in Bedford, MA (www.dataintensity.com).

“Data Intensity is a leading provider of outsourced application management services for Oracle’s ERP platform. We look forward to working with management to grow the business by implementing sales initiatives, expanding product offering, and making strategic add-on acquisitions,” said Geoffrey Rehnert, Co-CEO of Audax Group.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace and defense; business services; and direct marketing.  The firm was founded in 1999 and has offices in Boston, MA and New York, NY (www.audaxgroup.com).

“We are excited to be working with Audax Group. Their experience working with middle market companies will be a valuable resource as we continue to grow our business,” said Kevin Kennefick, CEO of Data Intensity.

Goldman Sachs Specialty Lending Group provided financing to support the transaction and Stifel Nicolaus Weisel acted as financial advisor to Data Intensity.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-14-12

Irving Place Capital Acquires Weatherchem

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Mold-Rite Plastics, a portfolio company of Irving Place Capital, has acquired Weatherchem Corporation, a manufacturer of plastic dispensing closures.

Weatherchem Corporation is a manufacturer of plastic dispensing closures.  The company’s closures are use for chemicals, confectionary & sweeteners, creamers and specialty milks, grated cheese, healthcare, liquid condiments, dry foods, personal care, pet food & care, and spices & seasonings.  Brand names include Flapper, LiquiFlapper, NutraFlapper, NutraGen II, FlapMate and Grinder. The company was founded in 1971 and is based in Twinsburg, OH  (www.weatherchem.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 the exclusive financial advisor to Weatherchem Corporation. John Hart of P&M’s Plastics & Packaging Group led the transaction.  P&M Corporate Finance (PMCF) is a middle market investment bank providing merger and acquisition advisory services to companies in North America and Europe. PMCF has offices in Chicago and Detroit and around the globe via its Corporate Finance International affiliates (www.pmcf.com).

“P&M’s highly structured process created interest from a broad and attractive range of financial and strategic buyers which allowed us to both maximize shareholder value while selecting the best partner for our organization to grow,” said Jennifer Altstadt, President of Weatherchem.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-14-12

Ferrer Freeman & Company Exits Amerita

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Ferrer Freeman & Company has sold its portfolio company Amerita, a provider of home and specialty infusion services, to PharMerica Corporation.

Amerita was formed in 2006 with capital from Ferrer Freeman & Company (FFC) and the Amerita management team.  Through de novo development, acquisitions, and organic growth, the company is now one of the nation’s largest independent providers of complex pharmaceutical products and clinical services to patients outside of the hospital, with 12 branches in Colorado, Oklahoma, Tennessee, Texas and Utah. The company is based in Irvine, CA (www.ameritaiv.com).

“FFC is very proud to have been associated with Amerita throughout its growth and development,” said David Freeman, a Founding Member at FFC. “Jim Glynn and the Amerita management team have built an organization with a patient centric approach that has achieved industry leading clinical outcomes and high levels of customer service. This outstanding service record is well recognized in the communities where Amerita operates and has been the driver of the company’s impressive growth.”

Ferrer Freeman & Company makes growth capital investments in the healthcare industry.  Since its founding in 1995, the firm has invested over $900 million in 36 portfolio companies. Ferrer Freeman is based in Greenwich, CT (www.ffandco.com).  The sale of Amerita to PharMerica represents the 11th exit for FFC since August 2010 and its 25th exit since inception.

“Amerita is representative of our core strategy of partnering with experienced management teams to take advantage of significant growth opportunities,” said Mr. Freeman. “When we invested, demand for home infusion services was high as cost-containment pressures were shifting care from the institutional setting to the home. Amerita has taken full advantage of these market dynamics. We wish Jim and the rest of the Amerita team much success as they continue to grow the business.”

As part of the transaction, Amerita CEO Jim Glynn will become the President of Amerita, a wholly owned subsidiary of PharMerica.  “FFC’s experience in building market leading companies and its relationships in the healthcare industry have been instrumental in helping us achieve the scale and success we have to date. We are very excited about the next stage of growth for Amerita as part of the PharMerica organization,” said Mr. Glynn.

CIT Capital Securities acted as the exclusive financial advisor to Amerita.  The transaction for CIT was led by Wesley Smith, Chris Schaefer and Robyn Friedman from CIT Healthcare.  “CIT drove a sale process that yielded a great outcome for Ferrer Freeman & Company and Amerita’s equity holders,” said Mr. Freeman.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-14-12