January 17, 2013
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Archives for January 17, 2013

Palladium Equity Partners Acquires Hy Cite

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Palladium Equity Partners has completed a recapitalization of Hy Cite Enterprises in partnership with Hy Cite’s founding family and management team.

Hy Cite is a direct selling and consumer finance company focused primarily on the Hispanic market in the US and Mexico.  Hy Cite’s products are sold under the Royal Prestige® and NutraEase™ brands and include cookware, china, crystal, flatware, cutlery, water and air filtration systems, and juice extractors.  The company’s products are sold in the US, Mexico and other international markets through a network of over 3,000 authorized distributors that personally demonstrate the products directly to consumers in their homes, as well as at national venues such as bridal, houseware, and consumer shows.  The company is headquartered in Madison, WI (www.hycite.com).

Hy Cite will continue to be led by members of its founding family, Erik Johnson, Chairman and Chief Executive Officer; and Peter Johnson, Jr., Chief Operating Officer; as well as by its current management team.  David Perez and Luis Zaldivar of Palladium will join Hy Cite’s Board of Directors.

“We are excited to be partnering with Palladium, a firm with substantial experience supporting companies in their continued growth.  Palladium is an ideal partner for Hy Cite given the firm’s deep knowledge of the Hispanic market, its significant experience with consumer finance companies and its successful history of working with family businesses.  By partnering with Palladium we are strongly positioned to continue executing our expansion plan,” said Mr. Johnson.

Palladium Equity Partners targets investments in business services companies as well as in financial services, consumer/retail, food/restaurants, healthcare, industrial, and media businesses. Palladium has a focus on companies that operate in the US Hispanic market. The principals of Palladium have invested over $1.5 billion of equity in 50 portfolio companies over the last two decades.  The firm was founded in 1997 and is based in New York (www.palladiumequity.com).

“We believe that Hy Cite has a terrific management team, an extraordinary growth trajectory and a tremendous opportunity to expand its footprint.  The Johnson family has built the highly regarded Royal Prestige® brand that stands for superior quality and innovation in cookware.  In our view, Hy Cite has significant growth potential domestically and internationally and we are thrilled to be working with management on a range of new initiatives to support the continued growth of the company in the years ahead,” said Luis Zaldivar, a Managing Director at Palladium.

McColl Partners, a mid-market investment bank, served as Hy Cite’s financial advisor. The firm is based in Charlotte, NC with additional offices in Dallas, Atlanta and Los Angeles (www.mccollpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13

Granite Partners Acquires Chair-Man Mills

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Granite Partners has acquired Chair-Man Mills, a provider of equipment used for special events.

Chair-man Mills is a provider of flooring, stages, dance floors, and tabletop rentals (specialty linens, china and tabletop accessories) to the special events industry.  Chair-man Mills was founded in 1911 by William Mills who became known as “Mills…the Chair-man” after providing chairs and tables to Canadian private homes, clubs and organizations.  Since founding, the business has grown to become Canada’s largest party rental firm. Chair-man Mills is based in Toronto (www.chairmanmills.com).

“We are very pleased with this platform investment and look forward to growing the Chair-man Mills business organically and through acquisition. We believe this will be the first of numerous acquisition opportunities in the fragmented event rental industry,” said Douglas Buchanan, Managing Director of Granite Partners.

Granite Partners is a Canadian private equity firm that acquires manufacturing and service companies with sales of $10 million to $100 million.  Granite Partners is led by Douglas Buchanan, a principal investor with over 20 years of banking, corporate finance and M&A experience. The firm is headquartered in Toronto and is currently investing out of its second private equity fund, Granite Partners II L.P. (www.granitepartners.ca).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13

3 Rivers Capital Exits Geo-Con

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3 Rivers Capital has sold its portfolio company Geo-Con, a provider of environmental remediation and geotechnical services, to Geo-Solutions, a portfolio company of RAF Industries.

Geo-Con is a provider of environmental remediation and geotechnical services.  Geo-Con offers a suite of technical capabilities in the environmental remediation and geotechnical services sectors including slurry walls, bio-polymer trenches, permeable reactive barriers, soil mixing, grouting, wetlands enhancement and site remediation.  In addition to its headquarters in Pittsburgh, Geo-Con has regional offices in Florida, Colorado and Philadelphia.  Since its founding in 1979 the company has completed over 1,500 projects throughout the US, Canada, Japan, Ireland and Australia (www.geocon.net).

Lincoln International acted as a financial advisor to Geo-Con and 3 Rivers, working closely with the management team and shareholders throughout the sale process.  This included providing advisory expertise and managing the marketing, negotiation and due diligence phases of the transaction.

“Lincoln International’s global marketing effort and unique insights into the potential buyer universe, drawn from several recent transactions in the environmental services space, created an exceptional outcome. Lincoln’s execution expertise, industry and buyer knowledge and process guidance proved invaluable throughout the sale process,” said Dale Buckwalter, a Managing Director at 3 Rivers.

3 Rivers Capital focuses primarily on equity recapitalizations and buyouts of companies with revenues of up to $50 million and EBITDAs of up to $7 million.  Sectors of interest include niche manufacturing and specialty service businesses. The firm was founded in 2005 and is based in Pittsburgh (www.3riverscap.com).

“Geo-Con is an outstanding business and niche market leader benefitting from numerous long-term growth dynamics in the environmental services sector. As a result of these dynamics, which include regulation-driven demand, heightened public awareness and a constantly growing emphasis on “green” solutions, among others, the environmental services space will continue to attract significant investment from both the private equity and strategic acquirer communities,” said Saurin Mehta, Managing Director at Lincoln International.

Geo-Solutions, a portfolio company of RAF Industries, provides contractors, owners, and engineers with construction solutions to environmental and civil engineering problems involving soil and groundwater. Geo-Solutions specialties include slurry cut-off walls, grouted barriers, in situ stabilization, in situ treatment, biopolymer drains, and permeable reactive barriers. Other specialties include ground improvement or soil stabilization technologies such as dynamic compaction and grouting. The company is based in Pittsburgh (www.geo-solutions.com).

RAF Industries was founded by Robert A. Fox in 1979 and is a privately-held investment company which owns and operates sixteen manufacturing companies, all located in the United States.  The company is headquartered in Jenkintown, PA (www.rafind.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13

Primus Capital Invests in Emmi Solutions

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Emmi Solutions, a provider of outcomes‐driven patient engagement services, has received a significant growth investment from Primus Capital Funds.

Emmi provides a suite of multi‐modal patient engagement and empowerment services designed to reduce costs, increase revenue, and improve clinical outcomes for healthcare providers and payers.  Emmi’s multi‐modal platform can be used on a stand‐alone basis or can be fully integrated into health information systems, electronic health records and patient portals.  The company is based in Chicago (www.emmisolutions.com).

“Emmi provides proven solutions that deliver a high return on investment to a healthcare industry seeking improved clinical outcomes at a reduced cost. We see significant continued growth opportunities for Emmi as changes in reimbursement and increasing patient volumes create new and powerful incentives to focus on clinical outcomes, efficiency, and patient satisfaction,” said Phil Molner, Manager Director of Primus.

Primus invests in companies within the healthcare, software and technology‐enabled services, and education industries.  Transaction types include management-led buyouts, control and non-control recapitalizations and growth equity investments. The firm was founded in 1983 and is based in Cleveland (www.primuscapital.com).

“Emmi’s historical growth profile, business model, and focus on providing efficiency to the healthcare market through technology solutions aligns extremely well with our investment strategy. We are excited about the opportunity to partner with the Emmi management team to continue to expand Emmi’s footprint and help the company build upon its industry leadership in patient engagement across the care continuum,” said Scott Seelbach, Director of Primus.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13

Capstone Partners’ Packaging Group Completes Sale of Plastic Container Manufacturer

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Mid-market investment bank Capstone Partners has advised the shareholders of CCW Products and its sister company, CCW Distributors, in its sale to Priority Plastics.

CCW is an extrusion blow-mold manufacturer of FDA approved food grade PVC and PET plastic containers in a variety of shapes, sizes and fluid capacities.  With over 100 employees, CCW specializes in wide mouth containers providing over 300 SKUs for more than 500 customers throughout the US. The company is based in Arvada, CO (www.ccwproducts.com).

The sale of CCW allows the second generation of the founder’s family to retire after a short transition period and assures the retention of CCW’s employees as Priority expects production of CCW’s products to continue in Colorado for many years to come.  “This ownership change is a win all the way around – for my clients, the sellers, as well as the buyer, the employees and the customers.  That makes for a very satisfying transaction,” said David Bench, a Capstone Managing Director and head of the firm’s packaging group.

Priority Plastics is a national plastics manufacturer of custom and stock plastic containers.  The company has six US manufacturing plants and is headquartered in Portland, IN (www.priorityplastics.com).

“Our specialty is in blow molding, which is one of the most technical areas in plastics manufacturing.  With the combination of CCW’s PVC and PET containers and Priority’s products, our customers will have more options available to them,” said Gary Turner, Chief Operating Officer of Priority Plastics.

Capstone is a middle market investment banking firm that provides mergers & acquisitions, private placements, corporate restructuring, valuation advisory, and merchant banking services. In addition to these transaction and financial advisory services, Capstone offers private equity firms, commercial lenders and private businesses with a range of strategic advisory services that are typically utilized for either pre-planning or assessment purposes. The firm is headquartered in Boston with additional offices in Chicago, Philadelphia, Los Angeles, San Diego and Silicon Valley (www.capstonellc.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13

Gavin Slader Joins JMP Group’s Investment Banking Division

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JMP Group, an investment banking and alternative asset management firm, has added Gavin Slader as a new managing director in its investment banking division.  Mr. Slader, who is based in the firm’s San Francisco headquarters, is a mergers and acquisitions specialist focused on the technology sector.

“Gavin is a seasoned M&A banker who enhances JMP’s strategic advisory practice in the technology sector,” said Kent Ledbetter, JMP Securities’ director of investment banking. “Over the past few years, JMP has established itself as a leading underwriter of technology stock offerings, with a notable record of public and private capital markets transactions. Gavin’s arrival provides added advisory expertise to JMP’s corporate clients in a key area of growth for the firm.”

Prior to joining JMP Securities, Mr. Slader was a senior banker in the technology, media and telecommunications investment banking group at UBS Investment Bank, sharing oversight of the west coast technology mergers and acquisitions practice. Mr. Slader previously held investment banking roles at Credit Suisse First Boston and its predecessor, Donaldson, Lufkin & Jenrette, concentrating on technology mergers and acquisitions throughout. He began his Wall Street career in Deutsche Bank’s leveraged finance group. Mr. Slader holds a BA from Claremont McKenna College, graduating with dual degrees in economics and accounting.

JMP Group is an investment banking and asset management firm that provides investment banking, sales and trading, and equity research services to corporate and institutional clients as well as alternative asset management products to institutional and high-net-worth investors. JMP Group operates through three subsidiaries: JMP Securities, Harvest Capital Strategies and JMP Credit Advisors.  The firm is based in San Francisco, CA (www.jmpg.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13

CSG Partners Advises on ESOP Buyout for EVY of California

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CSG Partners served as financial advisor to Evy of California, a girls’ apparel company, in its recent sale of a minority equity interest to a newly formed Employee Stock Ownership Plan.

Evy of California owns and operates apparel and accessory brands for juniors and girls. It offers tops and dresses, tee shirts, sportswear, scents, tunic tops and legging sets, woven shirts, screen printed tees, denims, sweaters, bottoms, hoodies, related separates. The company also provides special occasion dresses, party attires, whimsical tutu dresses, fun and playful skirts, and fashion tops; and electronics, toys, stationery, and collectibles.  It offers its products through retailers, department stores, and specialty stores in the US. The company was founded in 1948 and is based in Los Angeles with additional offices in New York, Seattle; Puebla, Mexico; and Shanghai, China (www.Evy.com).

CSG Partners is a boutique investment bank specializing in ESOPs, mergers and acquisitions, and capital advisory services for middle-market companies.  The firm has closed  over 100 ESOP transactions for companies with an aggregate value exceeding $7 Billion. CSG Partners has offices in New York and San Francisco (www.csgpartners.com).

Eitan Milstein, the Managing Director of CSG Partners’ San Francisco office, led the CSG transaction team.  “The ESOP buyout was an ideal solution for everyone involved.  ESOPs provide an attractive and tax efficient liquidity strategy for the selling owners, tax incentives for the company, and exceptional benefits for the employees, who will now become owners of EVY.  CSG Partners was privileged to have advised EVY on this exciting transaction,” said Mr. Milstein.

“The ESOP buyout is a thrilling opportunity for the company and its employees. We were very fortunate to have Eitan and the CSG team lead us through the ESOP process. Their level of expertise, professionalism, and responsiveness to our needs was outstanding. We were continually impressed with their ability to navigate complex issues and to deliver everything they promised and more,” said Kurt Krieser, EVY’s CEO.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13

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