December 17, 2012
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Archives for December 17, 2012

CIT Healthcare Backs Vestar Portfolio Company

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CIT Healthcare has served as Sole Lead Arranger in a $15.5 million senior secured credit facility to DeVilbiss Healthcare, a medical device company and a portfolio company of Vestar Capital Partners. Proceeds of the facility will be used to refinance debt, bolster working capital and for new equipment purchases.

“This transaction highlights our expertise and experience in working with private equity firms to meet the financing needs of their middle market healthcare portfolio companies,” said Michael Coiley, Managing Director of CIT Healthcare. “We are pleased to have provided this financing, which will allow DeVilbiss Healthcare to grow their business.”

DeVilbiss Healthcare designs, develops, manufactures and markets medical products that address the respiratory needs of patients in institutional and homecare settings.  Primary product lines include sleep therapy, pulmonary drug delivery, stationary and portable supplemental oxygen, homecare suction devices, and ENT (ear, nose and throat) professional instruments.  DeVilbiss products are manufactured in the United States, Europe and Asia and are distributed in more than 100 countries around the world.  The company is headquartered in Somerset, PA in a 152,000,000-square-foot facility which houses manufacturing, distribution and warehouse space (www.devilbisshealthcare.com).

“CIT presented a tailored financing structure that met our goals and will allow us to continue to invest in manufacturing and product development. This deal positions us well for future growth and will help create 20 new jobs in Pennsylvania. We look forward to building on our relationship with CIT,” said Ed Murphy, CEO of DeVilbiss Healthcare.

Vestar specializes in management buyouts and growth capital investments. The firm targets companies in the US and Europe with valuations of $150 million to $1.5 billion and operations in four industry sectors: consumer; diversified industries; healthcare; and financial services.  Since the firm’s founding in 1988, the Vestar funds have completed more than 69 investments in companies with a total value of more than $30 billion.  Vestar, with $8 billion in capital under management, has offices in New York, Boston, and Denver (www.vestarcapital.com).

“For more than two decades, we have worked with talented management teams to grow their businesses. This financing will allow DeVilbiss Healthcare to continue to grow as it develops products that meet the respiratory needs of patients in institutional and homecare settings throughout the world,” said Chris Durbin, Managing Director at Vestar Capital Partners.

CIT is a bank holding company with more than $33 billion in assets. Sectors of interest include small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and vendor finance. CIT was founded in 1908 and is based in New York (www.cit.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-17-12

BackBay Selected by Edwards Wildman to Lead Private Equity Effort

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BackBay Communications, a public relations, branding and marketing firm with a specialty in private equity, has been retained by Edwards Wildman Palmer, an international law firm, to raise its profile in the private equity and venture capital communities in Europe.

“BackBay’s experience in the private equity sector made them an obvious choice for us in communicating our practice’s offering.  Given the complexities of the work we do and the markets we operate in, it was vital that the PR partner we chose had a good understanding of the mechanics of M&A and the broader private capital markets. We’re confident that BackBay is well-equipped and we very much look forward to working with them,” said Ted Cominos, Partner and Chair of Edwards Wildman’s International Private Equity Practice.

With over 600 lawyers, Edwards Wildman operates across the US, Europe and Asia, providing strategic, collaborative and client-focused counsel to firms across a range of industries.  BackBay will work with the firm’s London-based partners to communicate the strength of its offering to the private equity and venture capital industries. Earlier this year, Edwards Wildman placed ninth globally in Dow Jones’ ranking of private equity and venture capital deals closed in 2011.

“Edwards Wildman boasts a fantastic team in the private equity and venture capital space and its track record is very strong. We look forward to sharing their many successes with the financial media.  Edwards Wildman is a market leader with a compelling story and deep insight into private equity and VC deal-making around the globe,” said Toby Mitchenall, London-based Director, BackBay Communications.

BackBay Communications is a public relations, branding and marketing firm focused on the financial and professional services sectors.  The firm serves a number of clients in the private equity and venture capital space, such as The Riverside Company, TA Associates, Globalturk Capital, Ridgemont Equity Partners and Bregal Sagemount.  Clients in the wider financial and professional services space include Grant Thornton, AFEX and TD Bank.  BackBay offers a unique combination of content and creativity and is highly regarded for thought leadership initiatives and relationships with the major print, broadcast and online business media.  BackBay has offices in Boston, London and New York (www.BackBayCommunications.com).

Edwards Wildman Palmer is an Am Law 100 firm with 625 lawyers in the US, UK and Asia. Its lawyers are known internationally for their work in private equity, venture capital, corporate and finance, complex litigation, insurance and reinsurance and intellectual property.  The firm is based in London, UK (www.edwardswildman.com).

“We are pleased to be retained by a law firm with the stature of Edwards Wildman. Their leadership in private equity and venture capital law is a good match with BackBay’s financial and professional services focus.  Edwards Wildman is a great addition to our London office’s growing client roster,” said Bill Haynes, President of BackBay Communications.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-17-12

Prospect Capital Acquires CCPI

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Prospect Capital Corporation has funded a recapitalization of CCPI, a manufacturer of refractory materials, with an investment of $33.9 million in combined debt and equity financing.  As a result of the recapitalization, Prospect is now the controlling shareholder of CCPI.

“The senior managers of CCPI, who have invested alongside Prospect in the recapitalization, look forward to growing CCPI with Prospect,” said Mike Williams, President and CEO of CCPI. “Prospect has extensive experience as a supportive, long-term investor in US-based mid-sized industrial and other businesses.”

CCPI develops, manufactures, and sells a range of proprietary refractory materials, temperature sensing devices, and other consumable products. The company’s products are used in multiple industrial applications including steel production, aluminum production, and industrial heat treating. Brand names include COMAT and TunTemp.  CCPI was founded in 1957 and is headquartered in Blanchester, OH (www.ccpi-inc.com).

“We are impressed with the company’s technical excellence and expansive product offering as a global leader in its market,” said Bart de Bie, a Managing Director of Prospect Capital Management.  “This recapitalization of CCPI demonstrates Prospect’s ability to make combined debt and equity investments to generate compelling yield and total return for our shareholders.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-17-12

Charlesbank Capital Partners Acquires United Road Services

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Charlesbank Capital Partners has acquired United Road Services, a vehicle transportation company and a portfolio company of The Gores Group.

United Road is a provider of vehicle transport and logistics to more than 10,000 customers including OEM suppliers, rental agencies, auctions, web-based logistics firms and individuals – transporting nearly 2 million new, remarketed and specialty vehicles each year.  The company has 1,000 employees and more than 1,200 vehicle carriers and is headquartered in Romulus, MI (www.unitedroad.com).

Kathleen McCann, president and CEO of United Road, will continue to lead the company in the same roles.   Ms. McCann joined United Road as president in January 2011.

“We are enthusiastic about our future with this innovative and successful team,” said Jon Biotti, a Charlesbank Managing Director. “The industry is experiencing strong tailwinds as auto sales in all sectors continue to recover, and United Road’s chosen strategies have positioned it well to capture that growth.”

Charlesbank Capital Partners invests in management-led buyouts and growth capital financings, typically investing from $50 million to $150 million per transaction in companies with enterprise values of $100 million to $750 million.  The firm has $2 billion of capital under management and has offices in Boston and New York (www.charlesbank.com).

“Charlesbank is a great fit with United Road’s vision of being the supplier of choice for vehicle logistics in North America,” said Ms. McCann. “We were in great hands with Gores, and in partnering with Charlesbank, we will be able to continue our market expansion and grow our service offerings. United Road’s deep team of professionals, from our drivers to our technology wizards, is poised to begin a new chapter in this exciting journey.”

The Gores Group acquired United Road in 2007, providing the capital and operational resources necessary to grow the company to nearly $300 million in revenues during one of the greatest automotive downturns in history. “United Road delivered on the investment thesis we developed five years ago. The company is the clear leader in its space and I know that it will continue to succeed under Charlesbank’s ownership and direction,” said Jordan Katz, a Gores Managing Director.

The Gores Group makes control investments in non-core, underperforming or undervalued businesses in the United States and Europe.  The firm maintains an in-house team of over 60 M&A and operations professionals in the US and Europe.  The Gores Group was founded in 1987 and has offices in Los Angeles, CA; Boulder, CO and London, UK (www.gores.com).

United Road and The Gores Group were represented by Weil, Gotshal & Manges in this transaction and Houlihan Lokey served as their financial advisor.  Charlesbank was represented by Goodwin Procter.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-17-12

TA Associates Acquires DigiCert

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TA Associates has completed a majority investment in DigiCert, a provider of online authentication and encryption services.

“We have known the professionals at TA Associates for many years and are pleased to welcome the firm as an investor in DigiCert,” said Nicholas Hales, CEO, DigiCert.  “DigiCert has grown through strategic product development, key partnerships, an unrelenting focus on customer success and attracting strong talent to strengthen DigiCert’s corporate infrastructure.  A partnership with a deeply experienced firm like TA fits squarely within that focus and we are confident this will prove to be a highly beneficial and productive relationship for DigiCert.”

DigiCert provides online authentication and encryption services primarily through Secure Socket Layer (SSL) certificates to companies, government agencies, financial institutions, and educational and medical institutions worldwide.  DigiCert is the world’s third largest issuer of high-assurance certificates, serving more than 60,000 clients in 176 countries. The company was founded in 2003 and is headquartered in Lindon, UT (www.digicert.com).

“DigiCert offers a compelling value proposition to its customers,” said Jason Werlin, a Principal at TA Associates who will join the company’s Board of Directors. “The company’s differentiators include excellent customer service, best in class security and user-friendly tools, all offered at an affordable price. As a result, DigiCert has seen very strong growth over the past several years. We look forward to working closely with the company’s talented management team to continue that growth.”

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 425 companies globally and has raised more than $18 billion in capital. The firm was founded in 1968 and has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

“We chose to partner with TA Associates because of their demonstrated experience in adding value to profitable, growing businesses such as DigiCert,” said Ryan Woodley, DigiCert’s CFO and COO. “Over the past several years, we have substantially grown revenues and increased market share primarily through earned trust and client referrals. With TA’s added support and strategic guidance we will strive to accelerate that growth.”

O’Melveny & Myers provided legal counsel to TA Associates. Goodwin Procter LLP served as legal counsel and William Blair served as a financial advisor to DigiCert.

“Growth in the SSL certificate market is the result of several trends, including the need for web pages handling sensitive information to have secure lines for data transfer, as well as new security challenges posed by cloud computing,” said A. Bruce Johnston, a Managing Director at TA Associates who will also join the company’s Board of Directors. “In addition, the continued growth in e-commerce and the attendant need to establish secure vendor websites will foster ongoing demand for SSL certificates. DigiCert is well positioned to capitalize on these trends.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-17-12

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