January 9, 2013
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Archives for January 9, 2013

Wind Point Partners Acquires La Dolce Vita

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Nonni’s, a producer of specialty cookies and a portfolio company of Wind Point Partners, has acquired La Dolce Vita, a producer of Italian biscotti and specialty cookies.

La Dolce Vita produces artisanal Italian biscotti and specialty cookies. The company produces over five million pounds of biscotti a year from its facility and headquarters in Glendale, AZ.   La Dolce Vita was founded in 1993 (www.ladolcevitabiscotti.com).

La Dolce Vita is Nonni’s second acquisition; it acquired THINaddictves, a producer of specialty thin biscotti cookies, in January 2012. “Two key components of our value creation plan at Nonni’s are to expand distribution and to acquire complementary product lines. La Dolce Vita is an excellent fit because it positions Nonni’s to expand into specialty retailers and other areas of the grocery store,” said Mark Burgett, a managing director at Wind Point.

Nonni’s produces premium, specialty cookies including Nonni’s biscotti, the leading brand of biscotti in the US.  Wind Point acquired Nonni’s in February 2011 in partnership with CEO Dave Beré, a seasoned food industry executive whose past leadership positions include Dollar General, Bakery Chef (a Wind Point portfolio company), McCain Foods and Quaker Oats.  Nonni’s is headquartered in Tulsa (www.nonnisfoods.com).

The La Dolce Vita acquisition gives Nonni’s the increased capability to innovate and support the growing demand for specialty cookies such as biscotti. “La Dolce Vita’s baking process allows the development of specialty items, seasonal and promotional products, and new flavors. The acquisition is a great opportunity to leverage Nonni’s operational experience to expand production of La Dolce Vita’s products, while maintaining the brand’s authentic, artisanal quality,” said Mr. Beré.

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 $2.5 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).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

Sterling Partners Acquires Spartan College of Aeronautics and Technology

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Sterling Partners has acquired Spartan College of Aeronautics and Technology from majority owners John Walker, Blaine Walker and Justin Walker.

Spartan College of Aeronautics and Technology is an aviation-maintenance school for training pilots, aviation technicians and nondestructive testing professionals.  The school is a bachelor’s degree-granting institution and has graduated approximately 90,000 alumni from all 50 states and 62 foreign nations since its founding in 1928.  Spartan is based in Tulsa, OK (www.spartan.edu).

Spartan president and CEO Jeremy Gibson will maintain an ownership stake in the business and will continue in his post.  “Although I was approached by several firms, we chose Sterling Partners because of its deep experience in building top-quality institutions,” said Mr. Gibson, who has been Spartan’s president and CEO since April 2007.  “Sterling will help us develop Spartan’s infrastructure more quickly and help us expand to new regions, while continuing to contribute to the increased global demand for aviation and nondestructive testing technicians.”

“We believe Spartan is a clear leader in the aviation and nondestructive testing higher education space, with a decades-long reputation for high-quality education and a very strong job placement record.  It exemplifies Sterling Partners’ focus on investing in education institutions that provide excellent outcomes for their students,” said Jason Rosenberg, a Sterling Partners principal.  “Spartan students get great jobs, and there will be a significant shortage of aviation technicians, pilots and nondestructive testing professionals in this country and abroad.  Spartan stands uniquely qualified to help meet the needs of the industry by continuing to produce skilled graduates. We look forward to partnering with Spartan CEO Jeremy Gibson to continue to build Spartan and help meet the growing needs of the industry.”

Sterling Partners invests growth capital in industries with positive, long-term trends and provides ongoing support to management through a dedicated team of industry veterans, operators, strategy experts and human capital professionals. Sectors of interest include education, healthcare and business services. The firm has offices in Chicago, Baltimore, and Miami (www.sterlingpartners.com).

Sun Life Assurance Company of Canada provided senior debt financing for the acquisition.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

BV Investment Partners Acquires INetU

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BV Investment Partners has completed the recapitalization of INetU, a provider of managed hosting and cloud services to enterprise customers.  The investment in INetU will make BV the majority shareholder and is being made in partnership with INetU’s founder and CEO, Dev Chanchani, who will continue as President and CEO and remain a significant shareholder in the company.

“Our new partnership with BV will help accelerate our growth initiatives and we look forward to continuing to provide our customers with world class services and new innovative business cloud solutions,” said Mr. Chanchani.  “BV has a long history of successfully partnering with and growing founder-owned companies, and my senior management team and I look forward to working with them.”

INetU is a managed hosting and cloud services provider delivering secure, high performance and reliable hosting for businesses worldwide.  The company supports many mission critical websites and applications globally across numerous sectors, including eCommerce, healthcare, financial services, software as a service, education, and government.  INetU was founded in 1996 and is headquartered in Allentown, PA (www.inetu.net).

“INetU provides a comprehensive suite of complex hosting services including a number of compliance, security and other specialized solutions.  We believe the rapid growth in data generation and the proliferation of web-based applications and services are changing the way companies address their IT infrastructure needs,” said Louis Bertocci, a Managing Director at BV.  “INetU is truly a value added partner providing mission critical IT services to a large and growing customer base.”

INetU will be the first investment in BV’s latest investment vehicle, BV Fund VIII.  “We are delighted to start the investment program of Fund VIII with INetU,” said Vik Raina, a Managing Partner of BV.  “This investment is consistent with our strategy of partnering with fast growing, founder-owned businesses in the communications and information and business services industries and helping them to achieve their growth plans.”

BV Investment Partners makes investments in US based companies active in the information and business services, communications and media industries. The firm is currently investing its eighth private equity fund and since its founding in 1983, the firm has invested $2.6 billion in 75 companies. BV Investment Partners has offices in Boston and New York (www.bvlp.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

Palm Beach Capital Exits Cruise Planners

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Palm Beach Capital has sold Cruise Planners, a home-based cruise focused travel agent franchise network, to the company’s management team, CEO Michelle Fee, CFO Tom Kruszewski, and Executive Vice President of Sales and Marketing Vicky Garcia. Palm Beach Capital acquired Cruise Planners in 2005.

Cruise Planners is a travel agency franchisor focused on utilizing predominately skilled travel agents to sell cruises from multiple cruise lines to the public. The company is based in Coral Springs, FL (www.cruiseplanners.com).

Cruise Planners was created by Ms. Fee along with industry veterans Lynn Korn and Marvin Davis in 1994.  Just prior to the retirement of Ms. Korn and Mr. Davis in 2007, their shares in the company were purchased by Palm Beach Capital.  Ms. Fee, who has owned the company since she co-founded it 19 years ago, said she’s thrilled about this partnership and the strength the team gives to the company with their strong commitment to agents as well as the industry.  “I am honored to say that I now have two of the best partners in the business,” said Ms. Fee. “Cruise Planners has come a long way since its inception and much of our success comes as a result of the dedication and innovation of Tom and Vicky. We believe in this industry, its potential for growth and together this partnership will strengthen the company’s efforts to support our incredible agents.”

Palm Beach Capital makes control and non-control investments of $3 million to $20 million in companies with enterprise values from $10 million to $100 million and that have a minimum EBITDA of $3 million.  The firm is both industry and location agnostic.  Since founding in 2001, Palm Beach Capital has made investments in 34 companies and has approximately $325 million in total assets under management. The firm has offices in West Palm Beach and Tampa (www.pbcap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

BlackEagle Partners Acquires H&H Lumber Company

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US LBM Holdings, a building products platform of BlackEagle Partners, has acquired H & H Lumber Company from second generation owner, Tim Heytens.

H & H Lumber Company (H&H) serves the northern Wisconsin and greater Duluth, Minnesota markets providing homebuilders, specialty contractors and professional remodelers with a full-suite of building materials and services. The company is based in Superior, WI (www.hhlumber.com).

H&H joins Lyman Lumber Company, a US LBM division that is one of the largest building material suppliers in Minnesota and Wisconsin.

“Since my father founded the business in 1969, H&H has dedicated itself to serving the construction communities of Superior and Duluth with high quality materials and first-class service. Partnering with US LBM and Lyman brings the added resources ensuring that our customers receive the same quality and service that they have grown to expect and deserve,” said Mr. Heytens.

“H&H’s excellent reputation and leading presence in its market made it an attractive fit for Lyman,” said Dale Carlson, President of Lyman Lumber Company. “We are excited to partner with the H&H team, customers and vendors as we continue to grow as the leading supplier in Wisconsin and Minnesota.”

US LBM is a collection of building material distributors serving the Midwest, Northeast, and Mid-Atlantic in eight states with more than 40 locations. US LBM is owned by private equity firm BlackEagle Partners and is recognized as one of the fastest growing suppliers of building products in the US.  The company is headquartered in Green Bay, WI (www.uslbm.com).

“As a longstanding leader in its local market, the H&H acquisition is a great fit for US LBM. Through acquisition and new locations, we continue on our journey of building a better company, not just a bigger one,” said L.T. Gibson, President & CEO of US LBM.

BlackEagle Partners is an operations focused, middle market private equity firm that seeks to acquire underperforming and distressed businesses, non-core subsidiaries, and companies in out-of-favor industries. The firm invests between $5 million and $25 million in businesses in a variety of industries and in situations ranging from companies with current operational losses, in or near bankruptcy, to profitable situations where a change in ownership can revitalize the outlook.  The firm has offices in Bloomfield Hills, MI and New York, NY (www.blackeaglepartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

Behrman Acquires Tresys Technology

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Behrman Capital has acquired Tresys Technology, a provider of cybersecurity products, services and solutions to government and commercial customers.

Tresys offers services and products that address computer network defense. The company currently focuses on information sharing, cross domain solutions, content filtering and file sanitization.  Tresys is based in Columbia, MD (www.tresys.com).

General Peter Pace, an Operating Partner at Behrman Capital, will serve as the Chairman of the Tresys Board of Directors.  General Pace served as the 16th Chairman of the Joint Chiefs of Staff, the most senior position in the United States Armed Forces, from September 2005 to October 2007.  As the principal military advisor to the President, the Secretary of Defense, the National Security Council and the Homeland Security Council, General Pace was a principal architect of the nation’s cybersecurity strategy. General Pace is currently the Chairman of Pelican Products and a Director of ILC Industries

“The acquisition of Tresys represents the culmination of our search for a high quality asset in the cybersecurity sector while also building on the firm’s significant expertise in defense and intelligence operations.  A longtime leader in cybersecurity, Tresys has successfully bridged the gap between the high-assurance government and critical infrastructure markets,” said Grant Behrman, Managing Partner of Behrman Capital.  “We are confident that its current capabilities and infrastructure, product portfolio and outstanding customer relationships will provide a strong foundation for substantial operational and financial growth. We are excited to partner with Tresys’ CEO Gary Latham and his team to accelerate the company’s development.”

“Today marks the beginning of an exciting new chapter for our company. Tresys has made great strides in developing the infrastructure and product offering we need to take the company to the next level. Under Behrman’s ownership, we will be able to more fully develop our sales and marketing organization, continue to expand our technology portfolio and achieve the scale to compete as a prime contractor for critical cybersecurity initiatives in government and critical infrastructure,”  said Tresys CEO Gary Latham.  “I want to thank our entire team for everything they have done to get us to this point.  As the company has evolved and expanded over the years, we have worked together to build and maintain a unique culture that serves our customers well and makes Tresys a special place to work.”

Behrman Capital invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses.  The firm’s investments are primarily focused in five industries: health care, specialty manufacturing, business to business outsourcing, defense and information technology. Behrman Capital currently has in excess of $3 billion in assets under management. The firm was founded in 1991 and has offices in New York and San Francisco (www.behrmancap.com).

White Peak Capital, a merchant banking firm with offices in McLean, VA and Columbia, MD (www.wpcap.com) acted as financial advisor to Tresys.  White Peak Capital provides mid-market and large corporate transaction advisory services, and also makes control equity investments in smaller middle market companies with positive operating income.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

Aterian Acquires Southwest Heat Treat And Texas Energy Labs

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Bluewater Thermal Solutions, a provider of commercial heat treating and brazing services and a portfolio company of Aterian Investment Partners, has acquired Southwest Heat Treat and Texas Energy Labs, a provider of heat treating and laboratory analytical services.  Aterian Investment Partners acquired Bluewater Thermal Solutions in October 2012.

Southwest Heat Treat and Texas Energy Labs (“Southwest”) provides open atmosphere and vacuum heat treating, and laboratory analytical services to customers in the energy exploration and production end market.  The company was founded in 1978 and is based in Houston, TX (www.swheattreat.com).

“Acquiring Southwest further demonstrates Aterian’s differentiated focus on close collaboration with our management teams to optimize value across our portfolio.  During 2012, Aterian supported our portfolio companies as they launched new, environmentally friendly chemical product innovations, completed multiple add-on investments, invested in international growth initiatives and refined operational best practices,” said Brandon Bethea, Partner of Aterian.  “Aterian prides itself on being a nimble and strategic partner to our executive teams.  The Southwest add-on was completed approximately 60 days after investing in the Bluewater platform itself.  We look forward to working closely with the Bluewater management team in 2013 as they pursue additional key strategic priorities for the company.”

Bluewater Thermal Solutions owns a multi-state network of commercial heat treating and brazing plants.  The company provides a range of heat-treating processes designed to improve the mechanical properties, durability, and wear resistance of its customers’ metal component inputs.  Bluewater serves customers in the auto, truck, aerospace, construction and agriculture equipment end markets.  Headquartered in Greenville, SC, Bluewater has eleven heat treating facilities located in Michigan, Illinois, Indiana, Pennsylvania, Texas and Ontario, Canada and has approximately 450 employees (www.bluewaterthermal.com).

“The acquisition of Southwest Heat Treat and Texas Energy Labs is an important milestone for the company and provides significant end market diversification and additional geographic reach, both of which are key strategic drivers for our business. The businesses are customer-focused organizations that provide high levels of service to their customers and are well positioned in their key end markets,” said Mike Wellham, Chief Executive Officer of Bluewater.  “We are very happy with the addition of our new team members who have shown they are dedicated and driven by customer service. We are pleased with this recent development and look forward to furthering our core values of customer service, quality, technical expertise, and providing solutions to our customers.”

Aterian Investment Partners invests in small-to-middle market businesses with $25 million to $500 million in revenues that are underperforming, turnarounds or otherwise unique situations. Industries of interest include consumer products; food and beverage; retail; restaurants; health care services; manufacturing; distribution; metals and mining; industrials; and chemicals & commodities. The firm will consider both control and non-control investments. Aterian is based in New York (www.aterianpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

Castle Harlan Exits IDQ

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Castle Harlan has completed the sale of IDQ Acquisition Corp., a manufacturer of do-it-yourself automotive aftermarket air conditioning recharge products, to Kinderhook Industries.  The sale resulted in a 3.3X gross multiple on Castle Harlan’s original investment.

“Castle Harlan specializes in partnering with management teams to help them accelerate the growth of their businesses by adding capital and strategic guidance,” said Marcel Fournier, senior managing director of Castle Harlan. “Throughout our investment in IDQ, we helped the company through a number of important strategic and operational initiatives, including building consumer awareness of the category, launching a new product line and expanding the company internationally.  As a result, the company is well positioned to continue its ongoing and anticipated growth, and we were able to reward our investors with a very satisfactory return.”

IDQ Holdings is a manufacturer of do-it-yourself automotive aftermarket air conditioning recharge products used for servicing and repairing automotive air conditioners.  IDQ products, such as air conditioning recharge and retrofit kits, premium refrigerant blends, specialty chemicals, straight refrigerants, and a wide range of complementary DIY and professional-use items, include brand names such as Arctic Freeze, Sub Zero and Super Seal Stop Leak. These products are sold to consumers through approximately 25,000 retail stores including national chains such as AutoZone, Advance Auto Parts, Wal-Mart, O’Reilly, NAPA, Pep Boys, and others. The company also sells a full range of commercial air conditioning products designed for automotive repair shops. IDQ is based in Garland, TX (www.idqusa.com).

Castle Harlan supported IDQ’s programs to build consumer awareness of the category, increase penetration of the do-it-yourself air conditioning market, and convert consumers from commodity products to higher value-added offerings. Under Castle Harlan’s ownership, IDQ developed, tested and launched the A/C PRO product line and rolled out an advertising and awareness campaign that included nationwide television and radio ads, various social media elements and interactive merchandising displays. These efforts were well received by customers and consumers, and the A/C PRO product line is emerging as a leading brand in the category.

“The Castle Harlan team worked closely with CEO Michael Klein, CFO Gerry Rooney and the entire management team,” said Heather Faust, vice president of Castle Harlan and a member of the IDQ Board of Directors during Castle Harlan’s ownership.  “We know these executives well and have great confidence that under their leadership the company will continue to grow.”

Castle Harlan invests in controlling interests in the buyout and development of middle-market companies in North America, Europe and, together with CHAMP Private Equity, in Australia. Since its inception, Castle Harlan has invested in more than 53 companies representing more than $11 billion in enterprise value. Castle Harlan currently manages investment funds with equity commitments of $3.5 billion. The firm was founded in 1987 and is based in New York (www.castleharlan.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

CIT Backs Latest Odyssey Add-on

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CIT Group has arranged and syndicated a $199 million senior secured credit facility to support the recapitalization of BarrierSafe Solutions International in conjunction with its acquisition of ONGUARD Industries.  BarrierSafe is a portfolio company of Odyssey Investment Partners.

“CIT proactively presented us opportunities to enhance our financing structure and continues to be a reliable lending relationship for Odyssey and BarrierSafe,” said Brian Zaumeyer, a Principal of Odyssey Investment Partners.

CIT Healthcare served as Joint Lead Arranger, Administrative Agent and Co-Bookrunner for the transaction. Financing was provided by CIT Bank, the US commercial bank subsidiary of CIT.

“We are delighted to continue our support of Odyssey and BarrierSafe in this successful recapitalization,” said Steve Warden, President of CIT Healthcare. “As we extend beyond the five-year anniversary of our relationship, BarrierSafe has consistently delivered on their growth objectives and built a best-in-class global platform.”

ONGUARD Industries engages in the manufacture and supply of protective footwear and clothing products.  Products include plain and steel toe boots for poultry and seafood processing markets, agricultural and decontamination applications, general purpose cold weather, and waterproof protection in cold weather industries; chemical, rubber, and PVC overshoes; chest waders; children’s boots; hazmat boot covers; kneeboots; and strappers. ONGUARD Industries was founded in 1939 and is based in Havre de Grace, MD (www.onguardindustries.com).

BarrierSafe designs, develops and markets disposable gloves, protective footwear, and other safety related products.  Brands include Microflex, High Five, and Onguard. The company is based in Lake Forest, IL (www.barriersafe.com).

“CIT has continued to support our financing needs as we expand and diversify. By ensuring we were equipped with a growth-friendly capital structure, CIT enabled us to execute upon our strategic objectives with confidence,” said Mike Mattos, CEO of BarrierSafe.

Odyssey Investment Partners is a middle-market private equity fund with more than $2 billion under management. Odyssey makes control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing, business, financial and healthcare services, aerospace products, and localized and route-based service businesses. The firm is headquartered in New York (www.odysseyinvestment.com).

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).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-9-13

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