Archives for December 19, 2012

Wind Point Partners Continues Build of Pet Platform

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Wind Point Partners’ portfolio company Petmate has acquired JW Pet Company and Canine Hardware.   These two acquisitions represent Petmate’s fourth and fifth acquisitions.  Petmate previously acquired Muchkin Inc’s Fat Cat and Bamboo product lines, Kennel-Aire and WetNoz Inc.

Wind Point acquired Petmate in 2011 in partnership with CEO Joe Messner. Wind Point previously partnered with Mr. Messner in 1999 to acquire Bushnell Performance Optics, which it successfully divested in 2007.

“The JW Pet Company and Canine Hardware acquisitions are an excellent fit for our strategy to grow Petmate organically and through acquisitions.  The Petmate value creation plan is focused on growing through new product development and driving innovation; the toy category provides an attractive opportunity to innovate and build strong consumer brands.  Joe has an excellent track record of driving growth in acquired businesses, and we are excited about the potential for these acquisitions,” said Paul Peterson, a principal at Wind Point.

JW Pet Company produces and markets pet toys and related accessories including balls, squeakers and other accessories for dogs, cats, birds, fish and small animals. The company was founded in 1998 by Jon Willinger and is based in Teterboro, NJ (www.jwpet.com).

“This is an exciting transition and I look forward to leading Petmate’s expanded pet toy and accessory category into the future,” said Mr. Willinger, who will be joining Petmate as the company’s vice president of toys and accessories.

Canine Hardware produces and markets a line of fetch pet toys including  balls, launchers, and other pet accessories.  The company was founded in 1998 and is based in Seattle (www.caninehardware.com).

Cascadia Capital, a mid-market investment bank based in Seattle (www.cascadiacapital.com), served as an advisor to Canine Hardware on the transaction.

Petmate manufactures and markets pet products including carriers, shelters, collars & leashes, feeding & watering systems, toys and pet beds under brands such as Petmate, Aspen Pet, Doskocil, Booda, Dogzilla, Fat Cat and LeBistro. The company is based in Arlington, TX (www.petmate.com).

“JW Pet Company and Canine Hardware bring some exciting names to our toys and accessories category, such as JW Hol-ee Roller Toys and Chuck It balls and launchers,” said Mr. Messner. “We are excited to bring these brands into our portfolio and continue expanding their lines of innovative, high-quality toys.”

Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million.  Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.8 billion in capital under management and has completed more than 90 investments and 160 add-on acquisitions across its seven private equity funds. Wind Point Partners is based in Chicago (www.wppartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-19-12

Babson Capital Backs Latest One Rock Acquisition

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Babson Capital Management has provided subordinated debt and equity to support One Rock Capital Partners’ acquisition of Petroplex Acidizing.

Petroplex is a provider of acidizing services to oil and gas exploration and production customers in the Permian Basin.  Founded in 1981, the company provides acidizing and chemical treatments for oil, gas and injection wells.  The company is headquartered in Midland, TX (www.petroplex.com).

“One Rock Capital Partners is pleased to partner with Babson Capital on our investment in Petroplex,” said Tony Lee, Managing Partner at One Rock. “Babson Capital’s Mezzanine & Private Equity Group has a well-deserved reputation for its responsiveness, flexibility and partner-like approach, and we look forward to working together on this and many future transactions.”

One Rock makes equity investments of $10 million to $50 million in companies operating in the chemicals, industrial and consumer durables, business services, environmental services, healthcare products, and automotive retail sectors. The firm is based in New York (www.onerockcapital.com).

“Babson Capital is excited to work with One Rock on its investment in Petroplex,” said Robert Shettle, Managing Director of Babson Capital’s Mezzanine & Private Equity Group. “With One Rock’s operational and strategic support, Petroplex is well-positioned for growth as new drilling technologies enhance the ability of oil and gas producers to tap the Permian Basin’s vast potential, and we look forward to participating in its success.”

Babson Capital had $154 billion in assets under management as of September 30, 2012 and is a member of the MassMutual Financial Group. The firm is based in Boston and Springfield, MA and Charlotte, NC and has six additional offices in the US and one in Sydney, Australia, with subsidiaries in London and Tokyo (www.BabsonCapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-19-12

Champlain Capital Partners Exits JSI Store Fixtures

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Champlain Capital Partners has sold its portfolio company JSI Store Fixtures, a manufacturer of refrigerated wood merchandising displays, to RFE Investment Partners.

JSI Store Fixtures is a designer and manufacturer of refrigerated and non-refrigerated wood merchandising displays for the supermarket industry.  JSI’s products are designed to showcase “fresh” merchandise in the produce, bakery, floral, wine and other high-traffic sections of the store perimeter. The company is based in Milo, ME (www.jsistorefixtures.com).

Prestwick Partners acted as the exclusive advisor to JSI and Champlain Capital Partners.  Prestwick Partners is an investment banking firm that provides lower middle-market companies with merger and acquisition advisory services.  The firm focuses on sales of entrepreneur-owned businesses; private equity divestitures; corporate divestitures; private placements of debt and equity; and strategic and financial advisory assignments.  The firm was founded in 2003 and is located in Minneapolis (www.prestwickpartners.net).

RFE Investment Partners makes control equity investments of $10 million to $25 million in North American small market companies with at least $5 million in EBITDA and enterprise values of $20 million to $100 million.  Sectors of interest include business services, niche manufacturing and healthcare services.  Since its founding in 1979, RFE has made investments in more than 135 companies. RFE’s investment capital has spanned eight partnerships, collectively amounting to more than $1 billion of invested and available capital, and is currently investing from RFE Investment Partners VIII. RFE is based in New Canaan, CT (www.rfeip.com).

Champlain Capital Partners invests in middle-market companies with revenues of $20 million to $100 million and EBITDA of at least $3 million.  Since 1992, the partners of Champlain have invested over $750 million in more than 45 companies.  The firm has offices in San Francisco and Boston (www.champlaincapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-19-12

Oaktree Capital Management Acquires Shermco

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The GFI Energy Group of Oaktree Capital Management has acquired Shermco Industries, a provider of testing, maintenance, repair, engineering, training and commissioning services for low, medium and high voltage electrical equipment, motors and generators.  Oaktree acquired Shermco in partnership with its existing management team which will continue to serve in the same capacity.

“Since Shermco’s founding, our team has worked tirelessly to deliver best in class service and uncompromising safety to our customers. We are excited to be partnering with Oaktree to continue this strong tradition and welcome the additional resources they bring to pursue our strategic growth plans and targeted acquisitions,” said Ron Widup, CEO of Shermco.

Shermco Industries is a provider of testing, maintenance, repair and commissioning services for electrical infrastructure including substations, switchgear, transformers, motors and generators. The company has over 450 full-time employees and serves commercial, industrial, municipal and utility customers throughout North America.  Shermco was founded by Peter Sherman in 1974 and is based in Irving, TX (www.shermco.com).

“We are very proud of the company we have built since its founding in 1974. I am pleased to be passing the reigns to Ron Widup and Oaktree and our entire team is looking forward to the next chapter for Shermco,” said Mr. Sherman.

Oaktree Capital Management makes investments in distressed debt, real estate, high yield and convertible bonds, specialized private equity, emerging market and Japanese securities and mezzanine finance.  The  firm has over 600 employees and $81 billion in assets under management and is headquartered in Los Angeles (www.oaktreecapital.com).

“We have long viewed Shermco to be a leader in the electrical equipment testing, maintenance, repair and commissioning industry and are thrilled to be partnering with Ron and his team. We are particularly excited to bring additional resources and capital to support Shermco’s growth plans and help expand its capacity to serve current and future customers,” said Michael Cardito, Senior Vice President of Oaktree’s GFI Energy Group.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-19-12

Frontier Capital Exits Azaleos

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Frontier Capital has sold its portfolio company Azaleos Corporation, a provider of managed email, collaboration and unified communications services, to Avanade, a business technology solutions and managed services provider, and subsidiary of Microsoft Corporation.

Azaleos provides remotely managed services for Microsoft Exchange, SharePoint and Lync, using software to remotely monitor and manage email, collaboration, and unified communications systems. Azaleos is headquartered in Seattle (www.azaleos.com).

“We have truly enjoyed our partnership with Frontier and want to thank them for their support and confidence in us,” said Phil Van Etten, CEO of Azaleos.

Frontier first invested in Charlotte-based M3 Technology Group, Inc. in September 2007 which later merged with Azaleos in March 2009 to create the market leader for remotely managed Microsoft Exchange services.

Frontier Capital invests from $5 million to $25 million in growth equity to technology enabled business services companies with revenues from $5 million to $30 million. The success of the Azaleos transaction highlights Frontier’s expertise in the managed services industry, which accounts for approximately one-third of the firm’s portfolio and includes successful investments in Peak 10 and SecureWorks.  Frontier Capital was founded in 1999 and is based in Charlotte, NC (www.frontiercapital.com).

“It has been a pleasure to work with Phil and the company’s exceptional management team,” said Joel Lanik, Partner of Frontier Capital. “The growth at Azaleos has been remarkable and we’re proud to be a part of it.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-19-12

Baird Capital Partners Asia Invests in Boston Plastics

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Baird Capital Partners Asia, the Greater China-focused investment group of Baird Private Equity, has invested in Boston Plastics (Shanghai) Pte. Ltd., a high precision plastic injection molding company.

“We are excited about the partnership with Boston Plastics,” said Huaming Gu, Partner, Baird Capital Partners Asia. “Our global experience and relationship network in the plastic injection mold industry are nice complements to the strong leadership skills of the Boston Plastics team.” Mr. Gu will join the Boston Plastics board of directors as part of this transaction.

Boston Plastics is a high precision plastic injection molding company and sub-assemblies company.  The company manufactures products for the automotive, consumer electronics, imaging and industrial markets, serving an international customer base that is seeking to tap into the growing demands of the Chinese consumer.  The company was founded in 2005 and is headquartered in Singapore with manufacturing facilities in the Chinese cities of Shanghai, Changchun and Taicang (www.boston-plastics.com).

“We look forward to leveraging Baird’s expertise through this partnership,” said Eddie Chia Eng Kay, General Manager of Boston Plastics. “Their global relationships, operating resources and plastics industry experience will enable us to accelerate company growth and further expand our business.”

Baird Capital Partners Asia provides growth equity capital to smaller, high-potential companies in China or with substantial operations and growth opportunities in China.  Sectors of interest include manufacturing, business services and healthcare. The group has offices in Shanghai and Hong Kong  (www.bairdcapitalpartnersasia.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-19-12