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Archives for January 2013

JLL Partners to Acquire BioClinica and CoreLab Partners

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BioClinica, a provider of clinical trial management services, has entered into an agreement to be acquired by JLL Partners.  Simultaneously, JLL Partners has also reached an agreement to acquire CoreLab Partners, a provider of medical imaging services.  The proposed acquisition of CoreLab Partners is contingent on the closing of the BioClinica transaction. Both acquisitions are expected to close concurrently.

Following the proposed acquisitions, BioClinica and CoreLab Partners will be merged to create a single provider of medical imaging services and eClinical solutions for clinical trials.  Ampersand Capital Partners, which is the majority owner of CoreLab Partners, will also be a significant investor in the combined company.  Mark Weinstein, currently President and CEO of BioClinica, will lead the combined company.

“We are excited about the tremendous promise of this business combination given the strong fundamentals of each company and the overall industry. We will conservatively capitalize the combined business and look forward to supporting its continued growth,” said Dan Agroskin, Managing Director of JLL Partners. 

CoreLab Partners’ services include medical image management, interpretation, and response assessment for clinical trials, with a particular focus on the oncology therapeutic area. CoreLab Partners provides regulatory support and digital image submission, as well as cardiac safety assessments for development programs, support for clinical studies, and equipment rental. The company also offers worldwide ambulatory blood pressure monitoring services, digital ECG services, and cardiac safety services. CoreLab Partners is based in Princeton, NJ (www.corelabpartners.com).

BioClinica is a provider of integrated, technology-enhanced clinical trial management solutions. BioClinica supports pharmaceutical and medical device innovation with imaging core lab, internet image transport, electronic data capture, interactive voice and web response, clinical trial management, and clinical supply chain forecasting and optimization solutions.  The company operates state-of-the-art, regulatory body-compliant imaging core labs on two continents, and supports worldwide eClinical and data management services from offices in the United States, Europe and Asia. The company is based in Newtown, PA (www.bioclinica.com).

JLL Partners invests in manufacturing and service industries with a particular interest in healthcare services, financial services and business services.  The firm has approximately $4 billion of capital under management and is based in New York (www.jllpartners.com).

Ampersand Capital Partners is a private equity firm that focuses on middle market growth equity investments in the healthcare sector. The firm is based in Boston (www.ampersandcapital.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13

General Catalyst Partners Acquires Oceans Healthcare

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General Catalyst Partners has acquired Oceans Healthcare, a provider of behavioral health services. 

Oceans Healthcare is currently the largest behavioral health provider in Louisiana. The company focuses on providing gero-psychiatric treatment services to patients age 55 and older, and is focused on treating dementia-related or other progressive mental illness.  Oceans currently owns and operates 10 inpatient behavioral health hospitals in Louisiana as well as 10 intensive outpatient programs. The company was founded in 2004 and is based in Lake Charles, LA (www.ohcg.info). 

MCG Capital Corporation supported the acquisition of Oceans Healthcare by providing a $23.7 million senior secured unitranche credit facility and revolving line of credit.  MCG Capital is a commercial finance company providing capital and advisory services to middle-market companies throughout the United States. The firm typically invests in companies with $20 million to $200 million in revenue and $3 million to $25 million in EBITDA. MCG Capital is based in Arlington, VA (www.mcgcapital.com). 

General Catalyst Partners makes growth equity investments of $10 million to $50 million in companies that have from $3 million to $30 million of EBITDA.  Sectors of interest include clean energy; new media and internet; software, systems and services; consumer products; healthcare; and financial & business services. General Catalyst Partners has offices in Cambridge, MA and Palo Alto, CA (www.generalcatalyst.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13

Investment Arm of Robert W. Baird & Co. Rebrands

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The direct private investment arm of Robert W. Baird & Co. has unveiled an updated strategic brand that includes a new name, Baird Capital. Previously, the firm operated under the umbrella brand “Baird Private Equity,” with “Baird Capital Partners,” “Baird Venture Partners,” “Baird Capital Partners Europe” and “Baird Capital Partners Asia” representing its global investment strategies. Going forward, Baird Capital is now the group’s single, unified brand.

Baird Capital will continue to take an integrated multi-strategy approach to making venture capital, growth equity and private equity investments in targeted sectors in the United States, United Kingdom and China. The new brand better conveys the strength of the group’s global, integrated platform.

“Rebranding to Baird Capital allows us to articulate our strengths and simplify our message,” said Gordon Pan, Managing Partner of Baird Capital.  “Our new brand builds on our incredibly strong foundation and conveys to our investors and to the market that we are a global, integrated, experienced team focused on driving great outcomes.”

Baird Capital will continue to operate four distinct funds – U.S. Private Equity, U.K. Private Equity, China Growth Equity, and Venture Capital – and will continue to invest in smaller, high-potential companies within the services, healthcare, industrial and consumer products industries.  The team will also continue to be thesis-driven, operationally intensive, and hands-on with portfolio companies, working very closely and creatively to collaborate and share ideas, relationships and best practices across the platform.

“This team has a long history of working together to create value on a consistent basis,” said Paul Purcell, Baird Chairman, President and CEO. “This updated brand reinforces Baird Capital’s vision for the future and its dedicated commitment to continued success.”

During 2012, Baird Capital deployed over $140 million in 33 new or follow-on investments and realized nearly $130 million principally through three exits.  “As evidenced by our year-end results, our brand attributes are strengths we’ve demonstrated throughout our nearly 25-year history,” said Mr. Pan. “We are experienced investors, who strive to create value through identifying great opportunities which we develop to build exceptional companies.”

Baird Capital makes venture capital, growth equity and private equity investments in strategically targeted sectors in the U.S., U.K. and China. Having invested in more than 260 companies over its history, Baird Capital partners with entrepreneurs and leverages its executive networks to build exceptional companies. Baird Capital provides operational support to its portfolio companies through teams on the ground in Asia, a proactive portfolio operations team and a deep network of relationships which together deliver enhanced shareholder value. Baird Capital is the direct private investment arm of Robert W. Baird & Co. (www.bairdcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

Morgan Joseph TriArtisan Advises on Sale of Potomac Supply

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The Financial Restructuring Group of Morgan Joseph TriArtisan served as exclusive investment banker on the recent sale of the operating assets of Potomac Supply Corporation, a softwood mill operator and provider of wood treatment services, to Potomac Supply, LLC, a new company formed by American Industrial Partners.

Founded in 1948, Potomac Supply Corporation manufactures a range of wood products, including treated lumber, wood pellets, decking, fencing and pallets, in its wood-processing and production facilities.  Potomac Supply is based in Kinsale, VA which is located 70 miles northeast of Richmond, VA (www.potomacsupply.com).

Following liquidity constraints due to abnormally weak lumber markets resulting from the U.S. economic crisis and other internal factors, Potomac Supply Corporation filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the Eastern District of Virginia on January 20, 2012.  Morgan Joseph assisted the company in exploring strategic alternatives that resulted in the sale of substantially all of the company’s operating assets to Potomac Supply, LLC.  The sale was made pursuant to Section 363 of the U.S. Bankruptcy Code.

Morgan Joseph was involved in all aspects of the transaction, including preparation of all marketing materials, due diligence, financial modeling, and negotiation of the purchase agreement.

“Our group was retained in April 2012 to assist the company in exploring strategic alternatives, ultimately leading to the transaction with American Industrial Partners, which will allow for a new well financed future for Potomac,” said James Decker, Head of Morgan Joseph’s Financial Restructuring Group. “This transaction places the company in the highly capable hands of an experienced partner in the building products industry and allows Potomac to expand its capabilities for its customers.”

In addition to Mr. Decker, the Morgan Joseph team members involved in implementing the transaction included Stephen Clarke, Managing Director in the Industrials Group; and Alex Fisch, Director, and Si Li, Analyst from the firm’s Financial Restructuring Group.

Morgan Joseph TriArtisan is an investment and merchant bank engaged in providing financial advice, capital raising and private equity investing. The firm’s services include mergers, acquisitions and restructuring advice, in addition to private placements and public offerings of equity and debt. Morgan Joseph TriArtisan is based in New York (www.mjta.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

Monroe Capital Backs Webster Recap of MooreCo

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Monroe Capital has provided a $37.9 million unitranche credit facility to support the recapitalization of MooreCo, a portfolio company of Webster Capital.

MooreCo is a manufacturer, designer and distributor of educational and commercial furniture products.  The company markets its products primarily through its Best-Right and Balt divisions. Originally a manufacturer of printer stands, MooreCo has expanded its commercial furniture product line and acquired several proprietary brands to give the company a sizeable position in the educational furniture and equipment market as well as a growing presence in the commercial furniture markets.  MooreCo is based in Temple, TX (www.moorecoinc.com).

Monroe Capital is a specialty finance company providing senior and junior debt to middle-market companies. The firm specializes in originating, structuring and providing one-stop financings. Investment types include senior and junior secured debt as well as bridge loans, acquisition facilities, mezzanine or last-out secured loans and equity co-investments. Monroe Capital is based in Chicago (www.monroecap.com).

Webster Capital invests in branded consumer, business- to-business, and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values less than $100 million. The firm is currently investing Webster Capital II, a $205 million fund which closed in 2007.  Webster was founded in 2003 and is based in Waltham, MA (www.webstercapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

Mohammed Khalil Joins Ropart

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The Ropart Asset Management Funds has added Mohammed Khalil as a new Associate.

Prior to joining Ropart, Mr. Khalil worked in the mergers and acquisitions investment banking group of Jefferies & Company.  While at Jefferies & Company, he focused on transactions in the healthcare, industrial, consumer & retail, and business services industries.  Mr. Khalil’s past experience has entailed both buy-side and sell-side engagements as well as distressed and special situations transactions. He received a BBA with a concentration in Finance from the Stephen M. Ross School of Business at the University of Michigan.

The Ropart Asset Management Funds is a private equity firm that invests from $3 million to $10 million of equity or mezzanine debt in small to midsize companies.  Sectors of interest include business services, software and technology, consumer products, financial services, and healthcare services. The firm is based in Greenwich, CT (www.ropart.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

Linx Partners Acquires Gullett and Associates

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Gullett and Associates, a provider of pipeline surveying services, has been acquired by Linx Partners. 

Gullett and Associates is a provider of pipeline surveying, right-of-way acquisition and drafting services to the oil and gas industry and municipal governments.  The company is based in Houston (www.gulonline.com). 

TCF Capital Funding provided $13.5 million in senior secured credit facilities to support the acquisition of Gullett and Associates.  “We have developed a great relationship with the Linx team,” said Joe Gaffigan, President of TCF Capital Funding. “The Linx team has a proven track record and we are excited to be the senior debt provider for their acquisition of Gullett.”

TCF Capital Funding provides asset-based loans and private equity sponsor-backed cash flow loans to companies with less than $100 million in revenue and between $2 million and $10 million in EBITDA.  The firm is based in Burr Ridge, IL (www.tcfcapitalfunding.com). 

Linx Partners is a lower middle market private equity firm that partners with family and entrepreneur-led, industrial businesses.  The firm focuses primarily on light industrial manufacturers, industrial services and specialty distributor companies with annual revenues between $20 million and $200 million.  Linx Partners has offices in Atlanta and New York (www.linxpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

Post Capital Partners Acquires Invo HealthCare

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Post Capital Partners has recapitalized Invo HealthCare Associates, a provider of outsourced clinical services for special needs children.  In making the investment, Post Capital is partnering with Invo HealthCare’s Co-Founder, CEO and President, Mary McClain, and Jason Ralph, COO. 

“After a long search, we chose Post Capital as our partner for two reasons.  First, for their commitment to making investments in our staff and infrastructure so that Invo can continue to provide best-in-class services to our ultimate clients – our children.  Second, for their demonstrated ability to work with management teams like ours to develop and implement appropriate growth strategies,” said Ms McClain. 

Invo HealthCare is a provider of outsourced clinical services for special needs children in 23 states. It operates through two divisions that serve the needs of preschool children (3-5) and school age children (K-12).  In addition, Invo’s early intervention division provides service delivery to children from birth to 3 years.  Founded in 1993 by Patrick McClain, an occupational therapist and Mary McClain, an educator, Invo HealthCare now operates in 23 states. The company is based in Jamison, PA (www.invohealthcare.com). 

“For 20 years, Invo HealthCare has successfully addressed the acute shortage of qualified therapists – particularly speech-language pathologists, occupational therapists, physical therapists, special instructors and school psychologists.  With its superior recruiting and staffing capabilities, Invo meets the needs of school districts and municipal agencies to reduce cost and to improve flexibility while providing parents with access to high quality services for their special needs children,” said Post Capital Managing Director Mitch Davidson. 

Post Capital was introduced to the investment opportunity by investment bank Capstone Partners (www.capstonellc.com), which advised Invo throughout the transaction.  Susquehanna Bank provided the senior debt financing. 

Post Capital invests from $5 million to $15 million of equity in companies with $10 million to $150 million of revenue and a minimum EBITDA of $2 million.  Industries of interest include business services; financial/insurance services; consumer products and services; healthcare services; media and publishing; niche manufacturing and industrial; and transportation and logistics.  The firm is making investments out of its second investment fund. Post Capital is based in New York (www.postcp.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

Audax Group Acquires Rough Country Suspension Systems

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Audax Group has completed a recapitalization of Heckethorn Products (dba Rough Country Suspension Systems), a provider of off-road SUV and truck suspension systems.

“We are excited to have Audax as our new partner.  Its operational expertise and successful track record of sourcing and integrating add-on acquisitions will enhance our ability to grow while continuing to build on our brand’s reputation of market-leading value and customer service,” said Ken Dunn, CEO of Rough Country. 

Rough Country is a provider of suspension systems to the off-road SUV and truck market. Rough Country’s systems raise the ride height of vehicles to enable steeper approach, higher ground clearance, accommodate larger wheels and tires, and create a more aggressive appearance for the vehicle.  The company is headquartered in Dyersburg, TN (www.roughcountry.com). 

“Rough Country is a leading supplier of suspension systems to the fragmented SUV and truck enthusiast market. It has excellent brand awareness and customer service. We look forward to working with Ken Dunn and his team to build the business by developing new products and executing strategic add-on acquisitions,” said Geoffrey Rehnert, Co-CEO of Audax Group. 

Hilliard Lyons Investment Banking (www.hlinvestmentbanking.com) advised Rough Country. GE Capital Corporation and BMO Capital Markets provided senior debt financing and Arrowhead Mezzanine provided junior debt financing to support the transaction. 

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace and defense; business services; and direct marketing.  The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

Boathouse Capital Acquires Direct Impressions

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Colortree Group, a portfolio company of Boathouse Capital and a supplier of high definition color envelopes and direct marketing materials, has acquired Direct Impressions, a specialty printing company. 

Direct Impressions is a specialty printing company that specializes in direct mail and commercial products, such as continuous forms, folded inserts and cut sheets. The company maintains a full-service prepress department that offers a variety of printed pieces on coated and uncoated papers. Founded in 1997, Direct Impressions has 75 employees and is based in Richmond, VA (www.directimpressionsinc.com). 

Direct Impressions was represented by Dominion Partners, a mid-market investment bank located in Glen Allen, VA (www.dominionpartners.com). 

Colortree is a manufacturer of full-color direct mail envelopes, fliers, brochures, letters, newsletters, self-mailers, business reply cards, and other printed products, primarily for the direct mail industry.  In September 2011, Boathouse Capital invested $5.5 million in subordinated debt and equity along with capital from Colortree CEO Pat Patterson in support of a management buyout from Colortree’s founders. Colortree was founded in 1988 and is based in Richmond, VA (www.colortree.com). 

Boathouse Capital invests mezzanine debt and equity in lower middle market companies in partnership with management teams and private equity funds. Boathouse will consider investments from $3 million to $10 million in either mezzanine debt or equity capital in companies with revenues of at least $10 million, EBITDAs of $2 million or greater and EBITDA margins of at least 10%. The firm is based in Wayne, PA (www.boathousecapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13

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