January 25, 2013
Search

Private Equity Professional

Private Equity's News Leader

There is a right and a wrong in the universe, and that distinction is not hard to make.
Superman

You are here: Home / 2013 / January / Archives for 25th

Archives for January 25, 2013

Food and Beverage Pro Joins Altamont Capital Partners

by

Altamont Capital Partners, a San Francisco Bay based middle market private equity firm, has added Tim Bruer as a new Operating Partner. Mr. Bruer will focus primarily on investment opportunities in the food and beverage sectors.

“We are excited to welcome Tim to our team. We have known and worked with Tim over the years and we believe his extensive experience in the food and consumer sectors will present attractive investment opportunities that fit well with Altamont’s strategy,”  said Jesse Rogers, Managing Director of Altamont.  “Tim’s industry expertise and network of relationships, together with his track record of success as an operator, will make him a valuable partner as we grow our presence in these sectors.”

Mr. Bruer has operational and CEO experience with multiple food companies, including Genisoy Food Co. and Nonni’s Food Co., where he grew sales from $20 million to $155 million in four years. As Vice-President/General Manager for the Culinary Products Division of Nestle, Mr. Bruer led a turnaround from $17 million to $20 million of operating profit in two years. Mr. Bruer’s expertise extends to the infant products space, as his most recent role was CEO of ERGObaby Carrier, a designer of baby carriers and accessories. Early in his career, Mr. Bruer was a Vice-President at Bain & Co., focusing on business strategy for consumer product companies, corporate acquisitions, post-merger integration, and supply chain management. He served on the Board of Directors for Del Monte Foods and Authentic Specialty Foods. Mr. Bruer holds an MBA in Marketing and Finance from the University of Chicago, and a BA in Economics from Stanford University.

“I am excited to join the great team at Altamont, many of whom I worked with in the past at Bain and later when I was at Nestle. Altamont has an outstanding record in pursuing and adding value to middle market investments, and I feel fortunate to join them in extending this effort to the food/consumer product sector,” said Mr. Bruer.

Altamont Capital Partners invests in middle market businesses with specific interest in the financial services, consumer/retail, industrials, healthcare and business services sectors. Altamont was formed in 2010 by Jesse Rogers, Randall Eason and Keoni Schwartz who previously worked together at Golden Gate Capital and Bain & Company. The firm closed its first fund with $500 million of commitments in 2010. Altamont Capital Partners is based in San Francisco (www.altamontcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

Lee Rash Promoted to VP

by

Cotton Creek Capital has promoted Lee Rash to Vice President.  “Cotton Creek is excited to promote Lee to Vice President in recognition of his contributions to the firm, as well as the continued growth of Cotton Creek,” said Antonio DiGesualdo, Managing Director of Cotton Creek.

Mr. Rash joined Cotton Creek Capital in early 2012 and is responsible for evaluation and execution of investment opportunities, as well as post-closing and operational initiatives with several of Cotton Creek’s portfolio companies. Prior to joining Cotton Creek, Mr. Rash was an Associate in the Mergers and Acquisition Advisory Group at Blackstone.  Mr. Rash attended the University of Chicago Booth School of Business and earned a Master of Business Administration degree, with a concentration in economics and finance. Mr. Rash also earned a Bachelor of Science degree in Accounting and a Master of Science degree in Finance from Texas A&M University.

Cotton Creek Capital invests in lower middle market companies with enterprise values between $15 million and $200 million. Sectors of interest include manufacturing, value-added distribution, industrial services, energy, business services, healthcare services and consumer staples.  Cotton Creek Capital is affiliated with Brownlie & Braden, a provider of financial advisory services to high net worth families. The firm is based in Dallas (www.cottoncreekcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

Duane Morris Expands Corporate Practice Group

by

David Sussman has joined the Duane Morris’s Corporate Practice Group as a partner in its Newark office. Mr. Sussman strengthens Duane Morris’ corporate practice, particularly in the area of private equity transactions. He joins Duane Morris from Day Pitney where he was co-chair of that firm’s private equity and investment funds practice group.

Mr. Sussman regularly advises investment advisers and others in connection with launching investment partnerships, including hedge funds, private equity funds, venture capital funds and real estate funds. He regularly advises middle market investment banking firms in connection with private placement matters for middle market companies. He advises investors in secondary market purchases and sales of private equity fund interests. In addition, Mr. Sussman represents clients in transactional tax work. His corporate tax practice encompasses all aspects of corporate taxation, including tax-free spin-offs and taxable and tax-free mergers and acquisitions of subchapter C corporations and subchapter S corporations, including forward subsidiary mergers, reverse subsidiary mergers and taxable stock sales. Mr. Sussman represents partnerships in matters related to forming and negotiating sophisticated and complex joint ventures, including the preparation of partnership and limited liability company agreements and the purchase and sale of partnership and limited liability company interests. His clients include private equity funds and other public and private companies.

Mr. Sussman earned his JD in 1996 from the New England School of Law and earned his LLM in 2001 from New York University School of Law in Taxation. He graduated with a BA in Political Science in 1992 from the University of North Carolina.

Duane Morris is a global law firm with more than 700 attorneys in offices across the United States and around the world.  The firm was founded in 1904 and is headquartered in Philadelphia (www.duanemorris.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

Mason Wells Acquires A&R Logistics

by

Mason Wells has acquired A&R Logistics, a provider of dry bulk transportation services, from private equity firm FdG Associates.  Joining Mason Wells in the acquisition are industry executives and investors Mark Holden and Rich Mitchell, members of the existing A&R management team, and other investors.

“We are very excited about partnering with the A&R team,” said Mark Holden. “We view the investment in A&R as the first step in our long-term goal of building a diversified, global transportation and logistics company focused on bulk materials.”

A&R Logistics is a provider of dry bulk transportation, packaging, distribution, and logistics services to multinational companies within the chemical, plastics, and dry bulk food industries. Services include over-the-road transportation, transloading, packaging, warehousing, and end-to-end outsourced transportation management through a nationwide network of 25 facilities; a combination of company-owned equipment and owner operators; and a non-asset based transportation management division. A&R Logistics is headquartered in Morris, IL (www.artransport.com).

“We are excited about the opportunity to work with Mason Wells, Mark Holden, and Rich Mitchell,” said Jeff O’Connor, President & CEO of A&R Logistics.  “The industry resources Mark and Rich bring with them, coupled with the strong financial support of Mason Wells will enable us to continue serving our customers at a very high level while expanding our leading market position in the chemical, plastics, and bulk food industries.”

Mason Wells makes investments in Midwest-based companies with revenues of  $25 million to $300 million and EBITDAs of at least $5 million.  Sectors of interest include consumer packaged goods, packaging materials & converting, engineered products & services and outsourced business services.  The firm was founded in 1982 and is based in Milwaukee (www.masonwells.com).

FdG Associates invests from $15 million to $50 million in companies that have a minimum of $8 million in EBITDA.  Sectors of interest include business services; construction & industrial services; consumer products & services; value-added distribution; light manufacturing; retail; and transportation & logistics.  The firm was co-founded by David Gellman and Charles de Gunzburg in 1995 and is headquartered in New York (www.fdgassociates.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

O2 Investment Partners Acquires Mercury Manufacturing

by

O2 Investment Partners has acquired Mercury Manufacturing Company, a manufacturer of pressure relief valves.  The acquisition broadens O2’s portfolio of niche manufacturing companies and provides a new platform investment in the valve product segment.

Mercury Manufacturing Company is a manufacturer of pressure relief valves, check valves, precision machined components and assemblies serving the automotive, heavy duty truck, air conditioning and refrigeration markets.  The company was founded in 1964 and is based in Wyandotte, MI (www.mercurymfg.com).

O2 Investment Partners makes control investments in companies with EBITDAs from $2 million to $8 million located anywhere in the US and Canada but has a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $5 million to $50 million. Industries of interest include manufacturing, niche distribution, select service and technology businesses. O2 Investment Partners is based in Bloomfield Hills, MI (www.o2investment.com).

Amherst Partners acted as the exclusive investment banker to Mercury Manufacturing Company.  After 48 years of ownership, Mercury’s sole shareholder desired a liquidity event for estate planning purposes.  Mercury engaged Amherst to lead a sale process focused on maximizing value and identifying a buyer with the capital and resources to grow Mercury’s current platform.  Founded in 1994, Amherst Partners is a middle market investment bank with offices in Birmingham and Ann Arbor, MI; and Chicago (www.amherstpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

Larsen MacColl Exits S&S Worldwide

by

Larsen MacColl Partners has sold a majority stake in its portfolio company, S&S Worldwide, a designer and manufacturer of roller coasters, to Sansei Yusoki Co.

Larsen MacColl made its original investment in S&S in 2009 and supported S&S’s subsequent growth with additional financial resources and strategic guidance as S&S expanded its customer base and product offering in Europe and Asia.

S&S Worldwide is a designer and manufacturer of roller coasters, tower rides and other thrill rides for the global amusement park industry. S&S has installed over 150 amusement rides and coasters in 27 countries.  The company is based in Logan, UT (www.engineeringexcitement.com).

Larsen MacColl invests in companies with $5 million to $40 million in revenue.  Sectors of interest include transportation and logistics, specialty manufacturing and distribution, consumer products and business services. Larsen MacColl is investing out of its second committed fund. The firm is headquartered in Radnor, PA (www.larsenmaccoll.com).

Brookwood Associates acted as the lead financial advisor to Larsen MacColl and S&S.  “Brookwood was a tenacious partner in this process. Their senior attention was evident in positioning S&S to attract the right interest from a global buyer universe, and navigating extremely complex issues in a cross-border context,” said Tim MacColl, Managing Partner of Larsen MacColl.  “Brookwood was more than a banker…they were a trusted advisor critical to the success of this transaction.”  Brookwood Associates was founded in 1989 and has offices in Atlanta, GA and Charlotte, NC.  The firm has 24 professionals and offers merger, acquisition, corporate financing, restructuring, fairness opinions and other related advisory services (www.brookwoodassociates.com).

Sansei Yusoki is a manufacturer of elevation equipment, stage equipment and amusement rides. Products include elevators, escalators, parking devices and revolving restaurants, as well as stage machinery, hanging devices, roller coasters, and fast slides. The company is headquartered in Osaka, Japan (www.sanseiyusoki.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

DFW Capital Partners and PineBridge Acquire Covenant Surgical Partners

by

DFW Capital Partners and PineBridge Investments have acquired Covenant Surgical Partners, an acquirer and operator of single and limited-specialty ambulatory surgical centers. Iroquois Capital, a founding investor in Covenant, also invested alongside DFW and PineBridge.

DFW sourced and led the transaction, partnering with PineBridge Investments and Iroquois Capital to acquire a majority interest in Covenant via a $35 million senior preferred equity investment, the proceeds of which were used to facilitate the acquisition of five new ambulatory surgical centers and an increase in its senior credit facilities to support future acquisitions.  Concurrent with the equity funding, SunTrust Bank led a $76.5 million senior credit and acquisition facility for Covenant.

Covenant Surgical Partners operates 19 ambulatory surgical centers (ASCs) focused on certain core medical specialties that are driven by both managed care cost containment and the ageing of the population – principally gastroenterology, ophthalmology and interventional pain management.  Covenant’s recent model has been to acquire majority interests in single or limited specialty ASCs across a broad geography, with a significant minority investment retained by the center’s affiliated physicians or physician groups. Covenant seeks to bring new systems and procedures to bear in such acquired centers, and also consolidates financial, administrative, regulatory, contracting and human resources management functions – allowing its affiliated physicians to concentrate on the practice of medicine and efficient scheduling and utilization of the centers. Covenant Surgical Partners is headquartered in Nashville (www.covenantsurgicalpartners.com).

Covenant Surgical Partners is led by Rick Jacques, its founder and CEO. He formerly was SVP of Corporate Development at Amsurg (NASDAQ:AMSG), the nation’s largest consolidator and operator of ASCs. “We are excited to work with DFW and PineBridge to fulfill our long-term vision of building the leading single and limited-specialty ASC operator in the industry. With our increased equity capital base and senior credit capacity, as well as critical scale achieved with the concurrent center acquisitions, we have developed a formidable platform for further growth,”  said Mr. Jacques.

DFW was attracted to the Covenant Surgical Partners opportunity based on its long-term view that lower-dollar surgical procedures (like colonoscopies, cataract surgeries, etc.) will continue to move toward lower-cost, non-hospital settings given their superior cost profile for payers, convenience of experience for patients, and clinical and logistical benefits to providers. Covenant has proven its ability to improve revenues at its acquired centers by providing patient marketing resources and programs as well as providing access to improved ancillary services. Further, DFW believes that the increasing complexity and regulatory environment facing smaller operators creates a compelling consolidation opportunity over the coming several years where Covenant can alleviate financial and operating pressures on physicians by acquiring a majority interest.

“We are delighted to partner with Rick Jacques and the Covenant team in this exciting investment opportunity. We have been students of the surgery center space for several years, and were fortunate to uncover Covenant – a company with a superior integration and business model and focused on a segment of the procedure market that stands to benefit from demographic and economic forces currently at work within the overall healthcare market” said Keith Pennell, DFW’s Managing Partner.

DFW Capital Partners invests in lower middle market companies. Sectors of interest include outsourced healthcare and business services, including clinical services, specialty distribution, automated dispensing and pharmacy technology.  DFW is headquartered in Teaneck, NJ, and maintains an office in Chevy Chase, MD (www.dfwcapital.com).

PineBridge Investments manages $69 billion in assets for institutional and individual clients in listed equity, fixed income, private equity and hedge fund markets. The firm has approximately 800 employees in 32 countries and is based in New York (www.pinebridge.com).

Iroquois Capital Group is a merchant banking company led by business executives who have been CEOs and have extensive finance and M&A experience. Using this experience, Iroquois identifies and works with companies in the healthcare and financial services industries, sometimes investing its own capital and the capital of its more than 500 investing clients. The firm is based in Nashville (www.iroquoiscapitalgroup.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

Clearview Capital Exits Hillsdale Furniture

by

Clearview Capital has exited its investment in Hillsdale Furniture with the sale of the company to an investor group led by Brookside Equity Partners and management.

Hillsdale Furniture is a designer, importer and marketer of residential furniture.  Hillsdale Furniture was created when Clearview, in partnership with management, acquired Hillsdale House and Hillstreet Furniture in October 2003. The transaction facilitated the combination of the two companies which had had a cooperative arrangement since the founding of Hillstreet in 1997.  Hillsdale Furniture is based in Louisville, KY (www.hillsdalefurniture.com).

“Despite an extraordinarily difficult environment for furniture companies that resulted in wrenching change throughout the industry, Hillsdale’s terrific management team achieved market share gains and consistent profitability during the course of our investment”, said Calvin Neider, Co-Managing Partner of Clearview Capital. “We part with Hillsdale knowing the company will continue to thrive with its new equity partners.”

Green, Holcomb & Fisher served as financial advisor and Loeb & Loeb served as legal advisor to Hillsdale Furniture.

Clearview Capital invests in mid-sized manufacturing and service companies that have cash flow between $4 million and $20 million. Clearview has in excess of $250 million under management and is currently making investments through its committed fund, Clearview Capital Fund II, LP. The firm is headquartered in Old Greenwich, CT (www.ClearviewCap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-25-13

To search in site, type your keyword and hit enter