Archives for January 10, 2013

Pfingsten Acquires Industrial Lighting Products

by

Pfingsten Partners has acquired Industrial Lighting Products, a specialty designer and manufacturer of energy efficient commercial lighting fixtures.  Pfingsten acquired the company in partnership the company’s President Jason Hendren on December 28, 2012, marking the eleventh platform investment for Pfingsten’s $525 million Fund IV.

“The Industrial Lighting Products team has built a tremendous business in the rapidly growing, high efficiency lighting sector,” said Scott Finegan, a managing director at Pfingsten. “The company is well positioned as commercial lighting transitions to LED and other high efficiency technologies.”

Industrial Lighting Products (ILP) is a manufacturer of a variety of high efficiency LED, fluorescent, and induction commercial lighting fixtures.  Products include high bay, wet location, stairwell, and outdoor fixtures, as well as retrofit kits.  The company was founded in 2003 and is based in Sanford, FL (www.ilp-inc.com).

“We are excited to partner with Pfingsten to continue to build a leading manufacturer of energy efficient lighting,” said Mr. Hendren. “Pfingsten will provide the operational expertise, global capabilities and financial support needed to accelerate our growth in the indoor and outdoor LED fixture market.”

Pfingsten Partners invests in middle market manufacturing, distribution and business services companies.  Since completing its first investment in 1991, Pfingsten Partners has acquired 87 manufacturing, distribution, and business service companies and has over $1 billion of capital under management.  The firm is based in Chicago and has offices in Changan, China and New Delhi, India (www.pfingsten.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

Kamylon Capital Exits Label World

by

Kamylon Capital has sold its portfolio company Label World, a digital and flexographic printing company, to WS Packaging Group.  Kamylon acquired the assets of Label World in January 2006.

Label World employs digital and flexographic printing technologies to manufacture custom labels and packaging products for end markets such as food, industrial, health and beauty, nutraceuticals, wine and specialty beverage. The company is based in Rochester, NY (www.labelworldusa.com).

During its ownership period, Kamylon Capital completed a complimentary add-on acquisition, invested managerial resources and capital to expand capabilities, and installed a world-class management system.

“The acquisition of Label World by the WS Packaging Group not only validates Kamylon’s original investment thesis but also demonstrates what an operationally focused managerial investing firm can accomplish,” said Richard Spencer, former Chairman of Label World and Partner of Kamylon Capital.  “I am proud of the many accomplishments at Label World. The team transformed the business to become an industry leader in lean manufacturing and digital printing, a pioneer of environmentally-friendly TLMI L.I.F.E certified label manufacturing, a many-times winner of PIA’s Best of the Best Workplace award and ultimately an industry profit leader amongst like-sized peers. I look forward to seeing what the team can now accomplish as part of the larger WS Packaging Group.”

Kamylon Capital makes control equity investments in lower middle market businesses. The firm is based in Wellesley Hills, MA (www.kamylon.com).

WS Packaging Group is one of the largest printing and label converting operations in North America. The company has more than 1,900 employees and offers an array of printing and flexible packaging across 22 manufacturing facilities in the US and Mexico. WS Packaging Group is based in Green Bay, WI (www.wspackaging.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

Providence Equity Partners Acquires Miller Heiman

by

Miller Heiman, a sales performance training and consulting firm, has been acquired by Providence Equity Partners.  Miller Heiman will continue to be led by its existing senior management team.

Miller Heiman is a sales performance training and consulting firm serving clients in over 35 countries. The company’s services assist businesses in implementing sales-execution best practices to increase close rates, reduce sales cycles and lower the cost of complex sales.  The company is based in Reno, NV (www.millerheiman.com).

“Miller Heiman has proven industry expertise and a long track record of success,” said Steven Alesio, Senior Advisor to Providence Equity Partners.  “We see compelling opportunities for them to grow their business around the world.  With its premier brand in the sales performance space and the ability to expand on its leadership position, Miller Heiman is an excellent platform to build on in the corporate education sector, and it complements our existing portfolio of education investments.  We look forward to working with CEO Sam Reese and the Miller Heiman team to add lasting value to the company in the years ahead.”

Providence Equity Partners invests in the media, entertainment, communications and information industries and has approximately $27 billion of equity capital under management. The firm was founded in 1989 and is based in Providence, RI with additional offices in New York, Los Angeles, London, Hong Kong, and New Delhi (www.provequity.com).

“We have always shown a consistent pattern of growth and innovation, including our two recent acquisitions of Channel Enablers and Impact Learning Systems, the addition of the Miller Heiman Research Institute, and the phase-one rollout of our mobile strategy in just the last 13 months.  We are poised for our next chapter of growth,” said Sam Reese, Chief Executive Officer of Miller Heiman.  “Providence shares our excitement about the company’s strengths and future prospects, and they have an excellent record of supporting innovative companies like Miller Heiman.  Partnering with Providence is a launching pad for more significant and rapid growth.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

Merit Acquires ATI Black Diamond Granules

by

US Minerals, a portfolio company of Merit Capital Partners, has acquired ATI Black Diamond Granules.

Black Diamond is a recycler and processor of roofing shingle granules and sandblasting abrasives. The primary ingredient of the company’s products is coal slag, which is a nonhazardous recycled byproduct of coal burning power plants that hardens and crystallizes when cooled. The company’s primary customer base includes shingle manufacturers, fabrication and painting companies, and commercial construction contractors. Black Diamond’s geographic reach includes markets in Minnesota, Southern Canada, Iowa, Wisconsin, Indiana, North and South Dakota, Kansas, Illinois, and Missouri. The company was founded in 1979 and is based in Woodbury, MN (www.ati-blackdiamond.com).

US Minerals is a recycler and processor of coal slag. The company processes coal slag from the bottom of power-plant boilers into two beneficial re-use products: roofing granules and surface-blasting abrasives. Roofing customers utilize coal slag to produce asphalt shingles. Abrasives customers, including industrial, petrochemical, oil, shipping, and railroad companies, use coal slag to remove particles, like rust and paint, from metal and wood surfaces. The company is headquartered in Dyer, IN (www.us-minerals.com).

D.A. Davidson & Co. (www.davidsoncompanies.com) served as the sole financial advisor to Black Diamond on the transaction. “I am very pleased with the outcome of the process and the invaluable services the D.A. Davidson team provided,” said Mr. Haslerud, President of Black Diamond. “D.A. Davidson’s technical expertise, negotiating savvy, professionalism, and responsiveness were extremely helpful in closing this very complex transaction. I highly recommend the D.A. Davidson team to anyone needing M&A advisory services in the future.”

Merit Capital Partners invests mezzanine and equity capital of $20 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. The firm was founded in 1993 and is based in Chicago (www.meritcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

Lineage Capital Acquires Halco Lighting Technologies

by

Lineage Capital has acquired ARN Industries (dba Halco Lighting Technologies), a manufacturer and distributor of lamps, ballasts and landscape lighting fixtures.

Halco Lighting Technologies is a branded manufacturer and distributor of lamps, ballasts and landscape lighting fixtures for the commercial and industrial markets.  The company has distribution centers in Norcross, GA (headquarters) Cleveland, Houston and Phoenix (www.halcolighting.com).

Lineage Capital is a private equity firm that has an exclusive focus on owner-managed and family-controlled businesses with EBITDAs of $4 million or greater and enterprise values of $20 million to $150 million. The firm is based in Boston (www.lineagecapital.com).

Investment bank Greene Holcomb & Fisher (GH&F) served as the exclusive financial advisor to Halco in the transaction and introduced Lineage to the company.  “The team at GH&F did an outstanding job of helping us communicate Halco’s unique position in the commercial and industrial lighting market.  We are excited about having our new partner, Lineage, on board to help us accelerate the growth of Halco,” said Allan Nelkin, Chief Executive Officer and majority owner of Halco.

“Lineage should be a tremendous partner for Halco.  The company has a number of very interesting growth opportunities to pursue, and we know Lineage will be very helpful to Allan and his team to take the business to the next level,” said GH&F Managing Director Steve Hunter.

Greene Holcomb & Fisher maintains offices in Minneapolis, Phoenix, Seattle and Atlanta and specializes in mergers and acquisitions, private placements and financial advisory services for the middle market (www.ghf.net).  “This transaction out of our new Atlanta office highlights the strategic importance to us as a firm of middle market, closely-held companies across the U.S., including the Southeast,” said GH&F Managing Director Kent Adams.  “Under Steve Hunter’s leadership of both our Atlanta office and our national private equity effort, this was a great way to end 2012.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

Sterling Partners Acquires PlattForm Advertising

by

Sterling Partners has acquired PlattForm Advertising, a provider of marketing and enrollment-management services to colleges and universities, from Arlington Capital Partners.  Michael Platt, founder and chairman of PlattForm, is partnering with Sterling in this transaction and will retain an equity interest in the company.

PlattForm Advertising is a provider of search engine marketing; interactive lead generation; online marketing; traditional media placement and creative services to support the marketing and enrollment-management efforts of colleges and universities.  The company was founded in 1989 and is based in Lenexa, KS (www.plattformad.com).

“Sterling Partners is thrilled to partner with Michael Platt and his management team to further enhance and grow the business by offering comprehensive marketing solutions to its college and university client base,” said Rick Elfman, a Sterling Partners senior managing director.  “Today, more traditional universities need integrated marketing services as they bring programs online, and PlattForm’s innovative digital marketing expertise is uniquely suited to help them.”

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 was founded in 1983 and has offices in Chicago, Baltimore, and Miami (www.sterlingpartners.com).

“Sterling Partners has such tremendous knowledge in the education sector, which will bring value to our partnership,” said Mr. Platt, who founded PlattForm in the basement of his home 23 years ago. “We could not have found a more perfect partner and we are excited to continue to grow PlattForm together.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

PNC Riverarch Capital Acquires LawLogix

by

PNC Riverarch Capital has acquired a controlling interest in LawLogix Group, a provider of software as a service solutions and data migration services to law firms, employers and non-profit organizations.

The transaction included equity investments by PNC Riverarch Capital, Akoya Capital and the LawLogix management team.  Dan Siciliano and Brian Taylor, the co-founders of LawLogix, will maintain significant ownership in the company and will remain actively involved in supporting its continued growth.

LawLogix provides electronic I-9 compliance (employee’s identity and legal authorization to accept employment in the United States), E-Verify (an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States) and immigration case management software to law firms, non-profit organizations, corporations, and universities.  LawLogix was founded in 2000 and is headquartered in Phoenix (www.lawlogix.com).

The transaction for PNC Riverarch Capital was led by Michael Hand, managing director; Michael Rost, managing director; Robert Dolan, senior associate; Brian Blake, analyst; and Kyle Baer, analyst.  Messrs. Hand, Rost and Dolan will represent PNC Riverarch Capital on the LawLogix Board of Directors.

PNC Riverarch Capital is a middle-market private equity group that invests in privately-held companies headquartered throughout North America.  It seeks to invest from $10 million to $50 million per transaction in support of recapitalizations, leveraged and management buyouts, corporate divestitures, and growth financings.  Sectors of interest include outsourced services, specialized manufacturing, and value-added distribution.  Since 1982, PNC Riverarch and its predecessors have provided over $1 billion in capital to more than 100 companies. The firm is based in Pittsburg (www.riverarchcapital.com).  PNC Riverarch Capital is a division of PNC Capital Finance, which is a wholly owned indirect subsidiary of The PNC Financial Services Group (www.pnc.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

Michael Nelson Joins the Pritzker Group, Will Lead Manufactured Products Team

by

The Pritzker Group today has hired Michael Nelson, former managing director of Wind Point Partners, to lead its investments in manufactured products.

Mr. Nelson, 41, focused on specialty manufacturing at Wind Point Partners, where he served on the boards of several portfolio companies during his 10-year tenure with the firm. In his new role at The Pritzker Group, his investment responsibilities range from deal sourcing to working with operating partners on post-investment value creation. Other key members of The Pritzker Group manufactured products team include Michael Barzyk, vice-president, and Richard Griffin, operating partner.

The Pritzker Group, led by Tony and J.B. Pritzker, has a 10-year history of making middle-market buyouts and investments. The firm intends to increase its investing activities, which remain focused on family- or entrepreneur-owned companies that lead their markets or sub-sectors. Other recent hires include Managing Partner of Private Equity Paul Carbone, who formerly built and led the Private Equity Group for Robert W. Baird and Co.

“The Pritzker Group is scaling its investment team to execute our growth plans in the years ahead,” said Mr. Carbone.  “Michael’s demonstrated track record of success in originating and leading investments in manufactured products strongly aligns with The Pritzker Group’s long-term goals for growth and value creation.  We are pleased to welcome him to our leadership team.”

Mr. Nelson earned an MBA from Harvard Business School and a BA in Finance from the University of Michigan.

The Pritzker Group’s middle-market investment team acquires North American-based companies with enterprise values between $75 million and $400 million, focusing on businesses with leading positions in the manufactured products, healthcare and services sectors. The firm’s middle-market and venture capital teams have acquired or invested in more than 80 companies over the past decade. The Pritzker Group is based in Chicago (www.pritzkergroup.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13

Berkery Noyes Releases Online And Mobile Industry M&A Report For Full Year 2012

by

Media investment bank Berkery Noyes has just published its full year 2012 mergers and acquisitions trend report for the Online and Mobile Industry. The report analyzes M&A activity in the Online and Mobile Industry during 2012 and compares it with data covering 2010 and 2011.  A link for a free copy of this report is available at the end of this article.

According to Berkery Noyes’ research, transaction volume increased four percent on a year-to-year basis and37 percent relative to 2010. Total transaction value decreased 16 percent, from $76.7 billion in 2011 to $64.4 billion in 2012. However, this remained 49 percent above the industry’s aggregate deal value compared to 2010. The median revenue multiple improved slightly from 2.1x in 2011 to 2.3x in 2012, while the median EBITDA multiple declined from 11.9x to 10.8x. Oracle was responsible for two of the report’s top ten highest value deals in 2012. This included the acquisition of Taleo, a cloud based talent management provider, for $1.8 billion and the acquisition of Eloqua, a creator of marketing automation software, for $871 million.

In the mobile application subsector, the number of transactions increased 18 percent over the past year. Transactions involving mobile consumer applications increased 34 percent, from 121 to 162, whereas those pertaining to mobile business applications rose seven percent, from 158 to 169.

Meanwhile, volume in the E-Marketing & Search segment increased 44 percent from 2010 to 2011 and eight percent between 2011 and 2012. Much of this activity over the past two years highlights an interest in analytics and interactive marketing, as advertisers and others seek measurable results within targeted demographics. Accordingly, deal flow in the social media marketing subsector more than doubled since 2011.

“Businesses recognize that their content and customer feedback is being shared through social media with minimal corporate oversight,” said Evan Klein, Managing Director at Berkery Noyes. “Since many consumers have a desire to instantaneously share opinions and recommendations, companies that analyze online social engagement have the potential to alter the current market landscape.  This is also true within the B2B marketplace, as companies consider making acquisitions to leverage their social marketing efforts targeting both large and small organizations alike.”

In addition, M&A in the Online and Mobile Industry was positively impacted by acquirer interest in enterprise collaboration. Such solutions include file sharing and email application tools, many of which contain a social component. Along these lines, Microsoft acquired Yammer for $1.2 billion, LinkedIn acquired SlideShare for $72 million, and Salesforce.com acquired GoInstant for $70 million.

M&A in the Communications segment, after rising 15 percent from 2010 to 2011, declined nine percent in 2012. The segment nonetheless saw strength in the mobile device management (MDM) subsector. MDM transactions nearly doubled over the past year, as a greater number of organizations begin to support personal devices in the workplace. “Given an increasingly mobile workforce, employees are clamoring for technology that will allow them to complete their jobs from any location while remaining connected with their colleagues,” said Mary Jo Zandy, Managing Director at Berkery Noyes. “Mobile security also remains a concern when discussing bring your own device (BYOD) policies, which was highlighted by Citrix’s acquisition of Zenprise.

A free copy of the Online and Mobile Industry M&A Report for Full Year 2012 is available by clicking HERE.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-10-13