Archives for January 28, 2013

TSG Invests in My Fit Foods

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TSG Consumer Partners has made a minority equity investment in My Fit Foods, a chain of retail outlets providing fresh, healthy foods at affordable prices. TSG’s investment in My Fit Foods will be used to fund the company’s expansion into new markets, enhance its brand and promote its further development.

My Fit Foods is a retail chain that provides healthy, balanced, pre-portioned meals and snacks. The staff at each My Fit Foods location weighs every single ounce of protein and carbohydrates to make sure the body is always getting the right amount of nutrients it needs in its fresh pre-portioned, gluten free meals to go. With over 60 meals to choose from, including breakfast, lunch, dinner and snacks items, My Fit Foods makes eating healthy convenient and affordable, allowing consumers the freedom of a self-directed diet. My Fit Foods operates 60 locations across the country.  The company was founded in 2006 by Mario Mendias and is now led by Mr. Mendias and Mr. Anthony Milton and is based in Houston (www.myfitfoods.com).

“Having TSG as partners in our company, in addition to capital, will avail us of their vast expertise in branded food and beverage, and especially in the health and wellness categories,” said Mr. Mendias.

TSG Consumer Partners makes control and non-control investments of $15 million to $100 million in companies with EBITDAs of $3 million to $50 million where there is an opportunity to enhance value by extending brand, expanding distribution and/or improving operations.  The firm is headquartered in San Francisco (www.tsgconsumer.com).

“We are delighted to partner with Mario and Anthony in what is an especially exciting and proven successful approach to bring good eating and nutrition to the tables of individuals, including those seeking to control their weight and those desirous of generally improving and maintaining their health,” said TSG Managing Director Blythe Jack.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-28-13

Armory Capital Invests in Jim’s Formal Wear

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Jim’s Formal Wear, a wholesale formal wear rental company, has received an investment from Armory Capital.

“One of the most important times for a family business comes when it’s time for one generation to help the next move into owning and leading the business, and it is now time for my son, Steve Davis, to lead this company into the future,” said Gary Davis, Chief Executive Officer. “Frequently, a transition like this involves new financing arrangements, and we are fortunate to have Armory Capital partner with us because they share our values. With the merger of these two family-owned companies, it’s ‘business as usual’ for Jim’s Formal Wear.”

The company has a history of growth by acquiring other companies or operations that are a good fit with Jim’s Formal Wear business. “This partnership with Armory Capital will ensure that the resources are available when those opportunities present themselves,” said Gary Davis.

Jim’s Formal Wear is a wholesale formal wear rental company that serves nearly 6,000 menswear stores, bridal shops and other formalwear-related retailers in the country.  The company has 600 employees and 9 regional service centers and operates a state-of-the-art 102,000-square-foot facility at its headquarters in Trenton, IL.  Jim’s Formal Wear was founded in 1922 (www.jimsformalwear.com).

The financial arrangement with Armory Capital enables the Davis family to continue to have a significant investment in Jim’s Formal Wear. Steve Davis will transition from the role of President and COO to CEO over the next 12 months. Gary Davis will work closely with Steve Davis during the transition and then enter into a long-term consulting contract to help with the transition and provide continuity.

Steve Davis, COO of Jim’s Formal Wear, said that the Davis family was very careful in interviewing and selecting Armory Capital as the new financial partner for Jim’s Formal Wear.  “One of the top priorities was to ensure that our new partner would maintain our culture and the high level of commitment to sharing the company’s success with our team members and providing quality merchandise and service to our customers.”

Armory Capital is a family investment office founded by Jacob Ambrose, Rusty Freeland and Greg Lykins to manage the investments of the Meyer family.  The firm invests from $5 million to $25 million in companies with revenue of at least $10 million and cash flow of at least $2 million.  Sectors of interest include agribusiness, business services, consumer products and retail, financial services, healthcare services, manufacturing, media, and transportation. Armory Capital is based in Champaign, IL. To visit the Armory Capital website click HERE. http://web01.kfmb.com/armory_capital/index.php

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-28-13

Here’s the Enabling and Disrupting Tech Trends of 2013

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Deloitte has published its 4th Annual Tech Trends Report “Elements of Post-digital,” highlighting the top 10 enabling and disrupting technology trends that are expected to be drivers for businesses as they move toward achieving the potential of the post-digital enterprise.  The report examines the convergence and controlled collision of five forces: analytics, mobile, social, cloud and cyber, where all five forces are mature, implemented, integrated and baked-in instead of bolted on.

“The post-digital era, like the post-industrial era, reflects a ‘new normal’ for business and a new basis for competition,” said Mark White, principal and CTO, Deloitte Consulting. “In post-industrial times, we didn’t forego industrialization, we embraced it. The post-digital era is similar, but with digitalization as its core. Our report outlines the core technology trends for which forward-thinking organizations should consider developing an explicit strategy. Whatever organizations may decide, they do not want to get caught unaware or unprepared.”

Deloitte’s annual report examines the top 10 topics that have the potential to impact businesses over the next 18 to 24 months. The trends are divided into two categories. “Disruptors” are opportunities that can create sustainable positive disruption in IT capabilities, business operations, and sometimes even business models. “Enablers” are technologies in which many CIOs have already invested time and effort, but which warrant another look because of new developments or opportunities.

The top 10 technology trends for 2013 include:

Disruptors

  • CIOs as the Postdigital Catalyst: Catalyzing value from the elements of mobile, social, analytics, cloud and cyber.
  • Mobile Only (and beyond): The enterprise potential of mobile is greater than today’s smartphone and tablet apps.
  • Social Reengineering by Design: How work gets done is no longer constrained by 19th century platforms.
  • Design as a Discipline: Inherent, pervasive and persistent design opens the path to enterprise value.
  • Internet Protocol Version 6 (IPv6 – the latest revision of the Internet Protocol, the communications protocol that routes traffic across the Internet). Ubiquitous connected computing is straining the underlying foundation of the Internet.

Enablers

  • Finding the Face of Your Data: Fuse people and technology to discover new answers in data – and new questions, too.
  • Gamification Goes to Work: Drive engagement by embedding game mechanics in day-to-day business processes.
  • Reinventing the ERP Engine: Revving up data, hardware, deployment and business model architectures at the core.
  • No Such Thing as Hacker-proof: If you build it, they will hack it. How do you deal with that?
  • The Business of IT: After reengineering the rest of the business, IT’s children deserve some shoes.

“What really stands out this year is the accelerated pace at which core trends like mobile, social, cloud, analytics and cyber are converging and being applied to create immediate, competitive impact,” said Bill Briggs, deputy CTO and global lead, Deloitte Digital. “All industries are affected and are taking advantage of these forces to incrementally improve their existing processes and offerings and fundamentally reshape their operating models, business models and marketplaces. Companies are not just doing the same things differently, but doing different things. Companies can no longer afford to sit on the sidelines.”

Each chapter of the report includes a “Lessons from the Frontlines” section that provides an in-depth overview of three examples of real-life implementation of each trend in the market today, representing a range of industries. Additionally, a “My Take” is provided by CIOs, academics and other luminaries to provide additional perspective about the utility of the trend in business.

“Postdigital’s potential can spur both offensive and defensive responses,” said Mr. Briggs. “On one side lies opportunity for innovation. On the other, the existential threat of disruption. Every industry may be affected by the underlying digital forces. Every market may be reshaped by their controlled collision.”

“The role of the CIO hangs in the balance,” concluded Mr. White. “These trends are ready to be put to use in the business. But who will lead the charge? The reports of IT’s demise may be exaggerated, but there is often truth behind the rhetoric. How will CIOs reimagine their roles in business strategy? What will the corresponding IT department look like? One thing is for certain: the elements of postdigital will play a role.”

To download the complete report and view videos that provide insightful perspectives for each chapter, click HERE.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-28-13

The Top 10 Largest Private Equity Deals of 2012

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PrivCo, a financial data provider has just published its annual rankings of the Top 10 Largest Private-Equity Deals of the Year.

“Noticeable in last year’s Top 10 Largest Private Equity Deals was the preponderance of secondary sales.  In addition, in 2012 we saw the return of the use of high debt levels in leveraged buyouts by private equity firms, as leveraged financing and high yield debt markets for private equity deals unfroze. 2012’s Top 10 Largest Private-Equity Deals made it clear that — after a several year lull during the recession — multi-billion-dollar private equity deals, as well as debt-heavy leveraged buyouts, are back,” said PrivCos’ CEO & Founder Sam Hamadeh.

The Top 10 Largest Private-Equity Deals for 2012:

1. $7.2 Billion – EP ENERGY CORP (Headquarters: Houston, TX) Acquired By P.E. Buyers: Apollo, Riverstone, Access Industries, Korea National Oil Corporation

2. $6.6 Billion – CEQUEL COMMUNICATIONS (St. Louis, MO) Acquired By BC Partners, Canada Pension Plan Investment Board

3. $4.9 Billion – DUPONT PERFORMANCE COATINGS (Wilmington, DE) Acquired By Carlyle

4. $3.7 Billion – FOCUS MEDIA (Shanghai, China) Acquired By Carlyle, Fountainvest, China Everbright, CITIC Capital, Jason Nanchun Jiang

5. $3.5 Billion – HAMILTON SUNDSTRAND INDUSTRIAL (Windsor Locks, CT) Acquired By Carlyle, BC Partners

6. $3.3 Billion – GETTY IMAGES (Seattle, WA) Acquired By Carlyle, Getty Images management, the Getty Family

7. $3.2 Billion – TRANSUNION (Chicago, IL) Acquired By Goldman Sachs Capital Partners, Advent International

8. $2.7 Billion – PARTY CITY (Elmsford, NY) Acquired By Thomas H. Lee Partners

9. $2.5 Billion – MCGRAW-HILL EDUCATION (New York, NY) Acquired By Apollo

10. $2.3 Billion – USI INSURANCE (Briarcliff Manor, NY) Acquired By Onex Corporation

To access detailed deal terms of each of PrivCo’s Top 10 Largest Private-Equity Deals for 2012 click HERE.

PrivCo is a provider of private company financial data and business research. PrivCo publishes financial data on over 164,000 private companies, as well as over 45,000 private company deal details, including private company M&A, private equity and venture capital investments, leveraged buyouts, pre-IPO activity, and restructurings.  The company is based in New York (www.privco.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-28-13