Archives for February 2013

Clearview Capital Promotes Three

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Clearview Capital has promoted Matthew Blevins and James Tucker to Principal, and John Cerra to Chief Financial Officer.

Mr. Blevins joined Clearview in 2007 as an Associate.  His primary responsibilities are portfolio management, new transaction execution and diligence. He currently serves on the Boards of Pyramid Healthcare, Child Health Holdings and Battenfeld Technologies.  Prior to joining Clearview, Mr. Blevins worked as a Senior Consultant in the corporate strategy group of Deloitte & Touche.  In that role, he assisted Fortune 500 clients in identifying and implementing strategic initiatives to maximize cash flow and enhance shareholder value.  Mr. Blevins holds a BS and BA in Accounting and Finance from Central Michigan University.

Mr. Tucker joined Clearview in 2007 as Vice President-Business Development. He is responsible for deal sourcing in the Midwest region.  Prior to joining Clearview, Mr. Tucker was with LaSalle Bank for 13 years as a Senior Vice President.  At LaSalle he was a Division Head and a member of the Leveraged Finance Group. Prior to joining LaSalle he was with American National Bank & Trust Company of Chicago (now part of JP Morgan Chase) for 18 years. While at American Mr. Tucker started their Corporate Finance Group and SBIC.  He holds a BS in Industrial Management from Purdue University and a MBA from the University of Chicago.

Mr. Cerra joined Clearview in 2010 as a Controller. He is responsible for accounting and SEC compliance. Prior to joining Clearview, Mr. Cerra worked as a Controller at BTS, a global consulting firm, where he managed the firm’s accounting, reporting and compliance functions. In addition to his experience in the private sector, Mr. Cerra spent seven years in the public sector as a tax and audit accountant managing business, individual and fiduciary client engagements.  He is a Certified Public Accountant and holds a BA in Accounting from the University of New Haven.

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).

Clearview’s holdings include Battenfeld Technologies, a  designer, developer and supplier of branded shooting and hunting accessories to the outdoor sporting goods industry; GCR, a professional services firm delivering consulting services and technology solutions to governmental and commercial clients; Child Health Holdings, an operator of prescribed pediatric extended care centers; Pyramid Healthcare, a provider of inpatient and out-patient behavioral health services; The Results Companies, a provider of outsourced customer management solutions; QualSpec Group, a provider of inspection and non-destructive testing services to the refining, petrochemical market and other industrial process industries; Rowmark, a manufacturer and marketer of specialty plastic sheet and related products for the awards/recognition, engraving and signage markets; Senior Care Centers of America, an operator of adult day care centers; and a minority interest in CPG International, an extruder of thick gauge polyolefin and PVC sheet.

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-15-13

Clayton, Dubilier & Rice and GS Capital Exit AssuraMed

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Cardinal Health today announced plans to acquire AssuraMed, a provider of direct-to-home medical supplies and a portfolio company of Clayton, Dubilier & Rice and GS Capital Partners, for $2.1 billion.  The transaction is expected to close by early April 2013.

Cardinal Health has obtained a commitment letter from BofA Merrill Lynch for a new $1.3 billion senior unsecured bridge term loan in connection with the planned acquisition.

AssuraMed, previously known as HGI Holding, is a mail-order, direct-to-consumer provider of disposable medical products to chronic disease patients. AssuraMed operates through its Edgepark Medical Supplies and Independence Medical divisions, offering its large and fragmented customer base more than 30,000 products addressing a diverse set of chronic disease market segments including ostomy, diabetes, urological, enteral, incontinence and wound care.  AssuraMed has annual sales of approximately $1 billion.  The company operates 12 distribution centers and is based in Twinsburg, OH (www.assuramed.com).

“AssuraMed is a natural extension of the Cardinal Health businesses and of our mission to be essential to care. The acquisition of this industry leader allows us to serve the growing number of Americans treated in home settings – particularly those patients recovering from acute episodes and those suffering with chronic diseases. This is a platform opportunity for Cardinal Health products and services which will be increasingly important as the delivery of care migrates to more cost-effective settings,” said George Barrett, chairman and chief executive officer of Cardinal Health.

Cardinal Health is a $108 billion health care services company that improves the cost-effectiveness of health care. Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is also a manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. The company supports the diagnostic industry by supplying medical products to clinical laboratories and operating the nation’s largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. The company is based in Dublin, OH (www.cardinalhealth.com).

Cardinal Health was advised by BofA Merrill Lynch and Wachtell Lipton Rosen and Katz. Clayton, Dubilier, & Rice and GS Capital Partners were advised by J.P. Morgan, Goldman, Sachs & Co., and Debevoise & Plimpton.

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-14-13

Littlejohn & Co. Acquires Imprints Wholesale

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Broder Bros., a portfolio company of Littlejohn & Co., has acquired Imprints Wholesale, a wholesale clothing distributor.

Imprints Wholesale is a wholesale clothing distributor serving the West Coast, Central and Midwest United States. The company distributes a portfolio of blank imprintable apparel and products, including T-shirts, fleece, sport shirts, golf shirts and related items.  The company was founded in 1987 and operates five distribution centers with its headquarters in Denver (www.imprintswholesale.com).

Broder Bros. is a distributor of imprintable sportswear and accessories.  With revenues of approximately $850 million the company sources undecorated T-shirts and imprintable sportswear and distributes them to apparel screen printers who decorate them for a wide variety of purposes. Broder Bros. operates eight distribution facilities and ten “express” facilities offering pickup services to customers. The company was founded in 1919 and is based in Trevose, PA (www.broderbros.com).

“This acquisition is important to us and we are committed to the expansion of Broder Bros. to serve our growing market.  We are pleased to have Scott Lynes and his Imprints team join us at Broder,” said Norm Hullinger, CEO of Broder Bros. “They have built a well deserved reputation for strong customer service in the regions they serve and we plan to maintain the best of their business and integrate it across our national platform where appropriate.”

Littlejohn & Co. makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth. The firm is currently investing from Littlejohn Fund IV which has over $1.3 billion in capital commitments. Littlejohn & Co. is based in Greenwich, CT (www.littlejohnllc.com).

Investment bank Green Manning & Bunch (GMB) served as the exclusive financial advisor to Imprints Wholesale in the transaction, managing all aspects of the transaction process.  “The GMB team did an outstanding job creating a competitive process,” said Scott Lynes, the founder of Imprints Wholesale.  “They were instrumental in structuring, negotiating and closing the transaction. GMB provided the senior-level attention promised from the onset and helped guide me through what can be a challenging time in selling your business.”

Green Manning & Bunch specializes in mergers and acquisitions, private placements of equity and debt, and strategic financial advisory services for middle market companies and has closed transactions totaling more than $17 billion. The firm is based in Denver (www.gmbltd.com).

“Imprints Wholesale, founded and led by Scott Lynes, was one the largest wholesale clothing distributors in the country. The company’s marquis reputation and outstanding customer service made it an attractive acquisition candidate in a highly concentrated industry.  We were pleased that we were able to assist Scott and his team achieve their objectives in this transaction,” said Warren Henson, senior managing director of GMB.

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-14-13

Private Equity Activity Reaches Highest Level Since 2008

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During the same quarter that economic growth slowed in the United States, private equity expanded to a level not seen since before the financial crisis.  The Private Equity Growth Capital Council’s Private Equity Index (PE Index), which measures overall private equity activity in the U.S., increased 23 percent to 123.9 during the fourth quarter of 2012.  This is the index’s highest level since the third quarter of 2008. A link to a free copy of the Private Equity Index is available at the end of this article.

“Private equity activity was a bright light in the United States economy during the fourth quarter, increasing investments in promising companies poised for growth and in need of a turnaround,” said Bronwyn Bailey, PEGCC Vice President of Research. “In the fourth quarter, economic activity receded, yet private equity investment topped $102 billion and returned more than $55 billion in the fourth quarter to its investors which include pension funds, charitable foundations and university endowments.”

Key findings about the private equity activity in the fourth quarter of 2012 include:

  • Quarterly U.S. private equity investment deal volume increased from $66 billion in the third quarter of 2012 to $102 billion in the fourth quarter.
  • Average equity contributions increased from 36 percent in the third quarter to 37 percent in the fourth quarter.
  • Fundraising volume increased from $30 billion in the third quarter to $33 billion in the fourth quarter.
  • Exit volume increased from $29 billion in the third quarter to $55 billion in the fourth quarter.

Designed to provide an accurate snapshot of the state of the private equity market at any given point in time, the PE Index is a composite measure of global private equity activity based on three key factors: the dollar value of total private equity-backed investment, fundraising, and exits (portfolio company IPOs or sales to corporations or other investors). The Index measures 100 when all three components are at their ten-year moving average. These three factors collectively capture the most fundamental elements of the private equity market.

The Private Equity Index is calculated using data provided by Thomson Reuters, Pitchbook and Preqin. The Council updates the PE Index at the end of each quarter.

The private equity industry in the U.S. comprises nearly 2,600 investment firms. They operate nearly 15,300 U.S.-based businesses in all 50 states and all Congressional districts. These companies employ approximately 8.1 million people. In 2011 alone, U.S. private equity firms invested nearly $144 billion in over 1,700 U.S.-based companies. The private equity industry has distributed over $1 trillion to its limited partner investors over the past three decades.

The Private Equity Growth Capital Council is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy. Established in 2007, the PEGCC is based in Washington, D.C. (www.pegcc.org).

A free copy of the Private Equity Growth Capital Council’s Private Equity Index can be found HERE.

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-14-13

Grant Thornton Expands Transaction Advisory Team

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Grant Thornton Transaction Advisory Services (TAS) practice in Houston has added two new team members with the hiring of Edward Kleinguetl and Traci Twardowski, who join as managing director and director, respectively.  Mr. Kleinguetl will also lead Grant Thornton’s national Transaction Integration offering within the TAS practice.

“As we demonstrated last year with the addition of Brandon Cradeur, who has deep energy and private equity experience to lead our TAS practice locally and our Transaction Advisory Energy Team nationally, the additions of Ed and Traci highlight our firm’s commitment to bringing to our client base talented TAS professionals in Houston and across the country,” said Michael Bennett, managing partner of Grant Thornton’s Houston office.

“Ed’s integration consulting expertise will aid those companies seeking to grow through acquisitions, while Traci’s deep chemical and resin sector knowledge will be integral as we continue to see a considerable amount of consolidation and transactions in that segment within the energy industry,” said Mr. Cradeur. “They bring a wealth of international experience and unique perspectives, given their previous industry roles, and their remarkable skill sets add to our already impressive bench strength of 20 dedicated transaction professionals within our National Energy TAS team.”

Mr. Kleinguetl and Ms. Twardowski will be members of the National Energy TAS team, which offers M&A advisory; buy-side and sell-side due diligence in the areas of financial and tax, human resources, information technology and operations; tax structuring; lender services; post-close transaction support; and merger integration.

Mr. Kleinguetl is an experienced executive and transaction investment advisor, and has provided strategic investment advisory services to grassroots refineries, petrochemical and LNG facilities, transaction integration, transaction carve-out and performance improvement projects.  He has served clients across a number of sectors such as energy, downstream refining and petrochemical, mining and minerals, oilfield services, construction and engineering, healthcare, quick-service food, technology and banking.

Prior to joining Grant Thornton, Mr. Kleinguetl spent four years with KBC Advanced Technologies, a London-based engineering consultancy focused on the global and petrochemical sectors, where he served as executive vice president of consulting. He focused on refinery and petrochemical investment support projects, including greenfield, acquisitions and joint venture investments, in China, Southeast Asia, the Middle East and Brazil.

Previously, Mr. Kleinguetl was a partner and founding member of the Transaction Integration practice of a Big Four firm, handling multi-national, multi-cultural transactions. He also served as chief financial officer of a private equity portfolio company and a senior vice president of sales and marketing for an industrial services firm focusing on the refining, petrochemical and other processing industry sectors. He received a bachelor’s in business administration from The Ohio State University.

Ms. Twardowski has broad-based global expertise in mergers and acquisitions, business development, strategic planning and forecasting, investor relations, pricing and process optimization, as well as operational and functional integration activities.

Prior to joining Grant Thornton, Ms. Twardowski held a number of management roles at Celanese Corporation, a global chemical and specialty materials company, most recently serving as the global product strategy manager for the ultra-high density polyethylene business. In that role, she managed a diversified end-use product offering, ranging from medical implants to water filtration applications; optimized the global product portfolio and manufacturing assets for growth opportunities; and oversaw the global supply/demand dynamics to ensure effective production capacity utilization and regional balance. Previously, she served as a manager in the Transaction Services group of a Big Four firm, where she planned, coordinated and directed multidiscipline teams in the execution of financial, operational, information technology and tax due diligence investigations for both financial and strategic buyers. Ms. Twardowski received a bachelor’s in business administration from Texas Christian University.

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-14-13

High Street Capital Acquires ShoreMaster

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Otter Tail Corporation has sold substantially all of the assets of ShoreMaster, its waterfront equipment manufacturing business, to High Street Capital.

ShoreMaster is a manufacturer of boat lifts, docks, and accessories for residential and marina use in the waterfront equipment industry. The company was founded in 1972 and is based in Fergus Falls, MN (www.ShoreMaster.com).

“This transaction will enable us to leverage High Street Capital’s experience in growing middle market companies with the knowledge of ShoreMaster’s management team in the waterfront equipment industry,” said Joseph Katcha, a Principal at High Street Capital.

High Street Capital acquires, recapitalizes and provides growth capital to outsourced business services, niche manufacturing and value-added distribution and logistics companies in the central US with revenues of $10 million to $100 million. The firm is based in Chicago (www.HighStreetCapital.com).

Otter Tail was established in 1907 as an electric utility but has pursued a diversification strategy since the late 1980’s to acquire interests in the health services, manufacturing, plastics, construction, transportation, telecommunications, energy services, and entertainment industries. The company has over $1.2 billion in annual revenues and more than 4,000 employees.  Otter Tail’s stock trades on the NASDAQ under the symbol OTTR. The company has offices in Fergus Falls, MN and Fargo, ND (www.ottertail.com).

“This is a good outcome for Otter Tail Corporation, High Street Capital and ShoreMaster,” said Otter Tail Corporation president and CEO Edward J. “Jim” McIntyre. “It fits with our ongoing strategy of business portfolio alignment, while also adding a great opportunity for High Street Capital to acquire an experienced leader in the production of waterfront equipment.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-13-13