Archives for March 2013

Overall Capital Partners Acquires Honeycomb

by

Overall Capital Partners has acquired Honeycomb Company of America, a manufacturer of military aircraft parts.

Honeycomb Company of America is a manufacturer of complex, flight critical, bonded, composite assemblies for U.S. military aircraft platforms. The company provides design, engineering, fabrication, and quality assurance services for multiple aircraft platforms. Honeycomb was founded in 1948 and is based in a Sarasota, FL (no website found).

Overall Capital Partners invests in businesses with annual sales ranging between $5 and $50 million. The firm is based in Boston (www.overallcapital.com).

BB&T Capital Markets | Windsor Group (BBTW) served as the exclusive financial advisor to Honeycomb. BBTW serves middle-market clients in the defense and government services industry, providing merger and acquisition advisory support, corporate finance and valuation services. Click HERE to visit BBTW’s website.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-28-13

 

Arsenal Capital Partners Acquires Fournier

by

Source Refrigeration & HVAC, a portfolio company of Arsenal Capital Partners, has acquired Fournier Air Conditioning and Refrigeration.

Fournier is a provider of refrigeration and HVAC service solutions to grocery, commercial, industrial, and retail clients throughout Florida and South Carolina. Services including maintenance programs, emergency repairs, new installations and remodels of refrigeration and HVAC systems. The company is based in Jacksonville, FL (www.fournierair.com).

Source Refrigeration & HVAC was acquired by Arsenal in 2006 and is a provider of commercial refrigeration and HVAC services to supermarket chains, convenience store chains and telecom and industrial companies. The company has approximately 1,100 employees and is based in Anaheim, CA (www.sourcerefrigeration.com).

“Fournier is well-established in the Florida and South Carolina core markets for mission critical refrigeration and HVAC services and provides Source with complementary capabilities and expanded market coverage in the southeast,” said Sal Gagliardo, an Operating Partner at Arsenal Capital Partners.

Earlier this month, Source Refrigeration & HVAC completed the add-on acquisition of TP Electrical, a provider of electrical and energy management system contracting services to grocery, commercial, industrial, and retail clients located in the Southeastern United States.

“The recent acquisition of TP Electrical and now Fournier demonstrates our commitment to expand Source into the leading service provider in the Southeast and to better serve our valuable national and local customer base,” said Mr. Gagliardo. “We will continue to review opportunities for further expansion of Source’s national presence and service offering.”

Arsenal Capital Partners makes investments in middle-market specialty industrial, healthcare and financial services companies with $50 million to $400 million in enterprise value. The firm invests in niche industry sectors where it has prior experience and where its operating resources can help facilitate incremental growth and margin improvement. Industries of specific interest include: specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; process industry components and services; and financial services. Arsenal currently has $1.6 billion of committed equity capital and is based in New York (www.arsenalcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-28-13

TA Associates and Updata Partners Invest in Nintex

by

TA Associates and Updata Partners have made a significant investment in the Nintex Group, a provider of workflow software solutions. The new investment by TA Associates and Updata Partners will add to an existing investment in Nintex by Macquarie Capital, which will retain a minority ownership position in Nintex.

“Nintex is an attractive investment for a number of reasons, including strong organic growth and momentum, a successful global partner distribution network, exceptional customer satisfaction and a deep management team,” said Harry Taylor, a Director at TA Associates who will join the company’s Board of Directors.

Nintex is a workflow software company with more than 4,000 customers in 90 countries. Nintex Workflow software enables organizations to automate business processes quickly and easily using intuitive drag and drop tools. Through its Nintex Live product, Nintex enables organizations to utilize cloud services to extend workflow functionality outside of the firewall to remote users, customers and suppliers. Nintex has global headquarters in Melbourne, Australia, US headquarters in Bellevue, WA, and offices in Kuala Lumpur and London (www.nintex.com).

“We chose TA and Updata for their extensive experience and proven track record helping established software companies become standout market leaders,” said Brett Campbell, co-Founder and Global VP of Alliances of the Nintex Group.

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 425 companies globally and has raised more than $18 billion in capital. The firm was founded in 1968 and has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

Updata Partners is a technology-focused growth equity firm with nearly $500 million of capital under management. Updata invests in software, internet, and technology-enabled services companies. The firm is headquartered in Washington, DC (www.updatapartners.com).

“We have been aware of Nintex for several years, watching the company continuously outperform and establish a leadership position in workflow solutions on the Microsoft SharePoint platform,” said John Burton, a General Partner at Updata Partners, who will join the company’s Board of Directors as Lead Director. Jon Seeber, a Principal at Updata Partners, will also join the Nintex Board of Directors.

Gilbert + Tobin and Goodwin Procter are providing legal counsel and KPMG is providing accounting advisory services to TA Associates. Proskauer Rose is serving as legal counsel to Updata Partners. Allens is serving as legal counsel and Spurrier Capital Partners and Macquarie Capital are providing advisory services to Nintex.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-28-13

Prospect Capital Backs Littlejohn Recap

by

Prospect Capital has provided $100 million of senior secured debt financing to support the recapitalization of Broder Bros., a portfolio company of Littlejohn & Co.

“Prospect impressed us with its diligent and efficient underwriting process, helping to recapitalize Broder to position the company for long-term success,” said David Simon, a Managing Director of Littlejohn.

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).

Last month, Broder Bros. acquired Imprints Wholesale, 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).

“With our scale team, one of the largest and most experienced in the middle-market, coupled with our deep credit expertise, we are pleased with completing the Broder transaction to support Littlejohn and Broder’s experienced management team,” said Richard Carratu, a Managing Director of Prospect Capital.

Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in an array of industries and is effectively industry agnostic. Prospect Capital is headquartered in New York (www.prospectstreet.com).

Prospect has closed approximately $800 million of new originations during the current March 2013 quarter, bringing trailing-twelve-month originations to nearly $3 billion.

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).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-28-13

Carrick Capital Chooses DealCloud CRM to Support Operations

by

Carrick Capital Partners has selected DealCloud’s Private Equity SaaS platform to support its fund operations, manage its origination efforts, and organize operational initiatives for its investments.

“DealCloud’s built-in functionality that supports industry-focused private equity efforts was a key differentiator,” said Carrick Managing Director Jim Madden. “We understood that with the number of solutions on the market, the decision would be difficult. Ultimately, we chose DealCloud because their platform was purpose-built for our industry and will seamlessly support our operations.”

Private equity groups, venture capital firms, corporate M&A departments, and family offices use DealCloud systems to support daily operations in real time. DealCloud’s suite of product offerings includes the DealCloud CRM, DealCloud DataRoom powered by SmartRoom, and the DealCloud.com interactive networking and deal execution platform. The company was formed in 2010 and is based in Charlotte, NC (www.dealcloud.com).

Carrick Director Alex Mason noted that the DealCloud team had been particularly engaged and hands-on in populating the new system with historical data and making it useful from day one. “The system’s functionality is exceptionally robust. The ultra-responsive DealCloud support team allowed us to quickly integrate legacy data into the new system and become operational more quickly than we anticipated,” said Mr. Mason.

Since deployment, the DealCloud and Carrick teams have continued to customize the SaaS platform — built from the ground up to suit the needs of private equity investors and other dealmakers — to fit Carrick’s specific business processes. “Every implementation we do is another reminder of how important it is to be able to customize a CRM — not just to the needs of a specific industry, but to how each firm within that industry conducts its business,” said DealCloud President Ben Harrison. “Too many CRM platforms expect clients to adapt to a one-size-fits-all solution, when the need is for uniquely tailored solutions like what DealCloud provides.”

The Carrick team is already benefiting from the communication, organization, and updating tools the DealCloud platform provides. “Carrick is a great addition to our user base,” Mr. Harrison said. “They’ve got a strong, experienced team that continues to provide us feedback and make our platform better. We look forward to the months and years ahead as our relationship grows and they become DealCloud power users.”

Carrick Capital Partners invests in companies with revenues of $5 million to $50 million that serve large markets with business models that allow for increasing profitability as they gain scale. Carrick focuses on investing in companies that provide technology-enabled service offerings, business process outsourcing, transaction processing, software as a service and enterprise software. The firm was co-founded in 2012 by Marc McMorris, a former General Atlantic managing director who led investments in business services and software, and Jim Madden, the previous founder and chief executive of Exult, a human resources business processing company. Carrick Capital Partners is based in San Francisco (www.carrickcapitalpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-27-13

Sorenson Capital Promotes Three and Adds New Vice President

by

Sorenson Capital Partners has promoted Mark Ludwig to managing director, Don Blohm to performance group operating partner and Peter Sturgeon to principal. In addition, Bert Roberts has joined the team full-time as vice president.

“With the team we have in place, Sorenson Capital has the talent and expertise required to deliver exceptional value for our portfolio companies,” said Fraser Bullock, managing director of Sorenson Capital. “Mark, Don, Peter and Bert have continually proven their value to our firm’s portfolio companies and shareholders. We have every confidence in our team’s ability to partner and grow with the complex, compelling businesses we invest in, and look forward to gearing up for new investment opportunities in the coming year.”

In less than a decade at Sorenson Capital, Mr. Ludwig has ascended from analyst to managing director. He was the chairman of NCS Energy Services, and proved instrumental in the sourcing, growth and exit of the company, one of Sorenson Capital’s most successful investments. He currently sits on the board of Custom Control Concepts. Prior to joining Sorenson Capital, Mr. Ludwig was an associate consultant with Bain and Company.

After joining Sorenson Capital in 2010 as performance group vice president, Mr. Blohm was instrumental in the operational transformation of Mity-Lite, which resulted in the company being named 2011 Manufacturer of the Year by the Utah Manufacturers Association. He also assisted NCS Energy Services in building an efficient and effective supply chain to help facilitate substantial growth. In addition, Mr. Blohm acted as the interim chief operating officer for Re-Bath and interim vice president of operations at Goal Zero. Prior to joining the firm, he was vice president of worldwide operations for Flowserve Corporation, a manufacturers of pumps, valves, seals and components to the process industries.

As vice president at Sorenson Capital, Mr. Sturgeon has played a key role in the recent exits of Southeast Directional Drilling, M&M Pipeline Services and RWI Construction while serving on their respective boards of directors. He also assisted in the recent acquisition of Custom Control Concepts. Previously, Mr. Sturgeon was an associate with the Boston Consulting Group.

Prior to joining Sorenson Capital in his new role as vice president, Mr. Roberts was a contributor to the firm’s deal sourcing efforts as a consultant. He played a key role in sourcing two recent investments for the firm – Health Catalyst and AccessData Group. Previously, he was a vice president of institutional client services at Wasatch Advisors.

Sorenson Capital invests from $10 million to $25 million in small to middle-market buyout and growth equity opportunities with a particular focus on companies located in the Mountain and Western regions of the United States. Sorenson Capital has $650 million in capital under management and is headquartered in Salt Lake City (www.sorensoncapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-27-13

Ridgemont and Post Oak Invest in Titan River

by

Ridgemont Equity Partners and Post Oak Energy Capital have made a $100 million capital commitment to Titan River Energy. Titan River’s management team will be co-investing alongside Ridgemont and Post Oak.

Titan River is a newly formed oil and gas company headquartered in Fort Worth. Titan River will initially focus on oil-prone shale resources via joint ventures, farm-ins and organic leasing opportunities in Texas (www.titanriverenergy.com).

The company’s management team includes Chip Simmons, CEO; Lee Matthews, President and COO; Don Pearce, EVP of drilling operations; Kent Bowker, EVP of Geology; and Brennan Potts, VP of Land and Business Development. The management team has experience in the geologic assessment, drilling and completion of over 400 horizontal wells in several shale plays, with a recent focus on the Eagle Ford Shale.

“The Titan River team is privileged to have access to the financial support and industry knowledge of Ridgemont and Post Oak,” said Mr. Simmons. “I also feel fortunate to be partnered with such a high-caliber management team. We are anxious to pursue our business model of converting acreage into reserves via drilling joint ventures, farm-ins and organic leasing opportunities.”

Ridgemont Equity Partners (formerly Banc of America Capital Investors) focuses on middle market buyout and growth equity investments of $25 million to $75 million. The firm invests in the following sectors: basic industries and services; energy; healthcare; and telecommunications/media/technology. Ridgemont Equity Partners is headquartered in Charlotte, NC (www.ridgemontep.com).

“The principals of Ridgemont have known Chip Simmons for many years. We have great appreciation for his abilities and much respect for Titan River’s technical team, led by Lee Matthews,” said John Shimp, Partner at Ridgemont. “We look forward to working with Chip, Lee and our partners at Post Oak.”

Post Oak Energy Capital pursues private equity investments primarily in the upstream sector of the oil and gas industry in North America and, to a lesser extent, in oil field services and related infrastructure. The firm which was founded in 2006 and is based in Houston (www.postoakenergy.com).

“We are pleased to be involved with Ridgemont, as well as Chip and Lee, in creating Titan River,” said Frost Cochran, Managing Director at Post Oak. “We believe that the combination of management talent at Titan is optimal for creating a successful company in the current domestic oil and gas market.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-27-13

ILPA Reveals Private Markets Benchmark Results

by

The Institutional Limited Partners Association (“ILPA”) has released the ILPA Private Markets Benchmark, a proprietary performance benchmark in partnership with Cambridge Associates.

In February 2012, the ILPA announced a partnership with Cambridge Associates, an institutional advisor, to jointly construct a branded private markets benchmark, which includes over 1,800 institutional funds. The goal of the benchmark is to accurately and consistently represent the global investible universe and asset class performance for institutional investors.

As of September 30, 2012, the most recent quarter available, the ILPA Private Markets Benchmark for U.S. Private Equity reported a 13.55% ten-year return. Performance for international funds, excluding U.S. private equity and venture capital funds, was 13.95% over the same ten year period.

“The need for improved benchmarks for institutional investors has been a priority for the ILPA, so I am pleased to announce the release of these results,” said Mike Mazzola, Chairman of the ILPA. “Working with Cambridge to continuously enhance the coverage of funds within the benchmark will serve to provide members with a reliable and robust industry performance measure.”

The benchmark will be issued to members on a quarterly basis and performance statistics will initially include internal rates of return (IRR) and investment multiples (DPI, RVPI & TVPI) for Vintage Years from 1981 to the present.

“The ILPA Benchmark is a representation of all contributing members’ portfolios and does not reflect the portfolio of any single member” said Mike Elio, Managing Director, Industry Affairs at the ILPA. “The difference between the new ILPA benchmark and other benchmarks currently in the market, is that it is applicable to the members of the ILPA.”

The Institutional Limited Partners Association is a member-driven organization dedicated to advancing the interests of private equity Limited Partners through education programs, independent research, best practices, networking opportunities and global collaborations. It is a not-for-profit association that has over 275 institutional member organizations that collectively have over $1 trillion of assets under management. The ILPA is based in Toronto (www.ilpa.org).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13

Jeffrey Porphy Joins JMP, Will Head Financial Sponsors Coverage

by

Investment bank and alternative asset management firm JMP Group has added Jeffrey Porphy to its team as a managing director in its investment banking division. Mr. Porphy will focus on mergers and acquisitions and will serve as head of financial sponsors coverage. He will be based in New York.

“We’re very happy to welcome Jeff to JMP,” said Kent Ledbetter, JMP Securities’ director of investment banking. “Jeff has decades of experience as an M&A banker at top-tier investment banks. His experience and relationships will further enhance our strategic advisory practice and will expand our reach within the private equity and venture capital communities.”

Prior to joining JMP Securities, Mr. Porphy was a managing director serving as head of mergers and acquisitions and head of financial sponsors coverage at Cowen & Co. He was previously a managing director at Barclays Capital, where he served as head of corporate advisory mergers and acquisitions and financial sponsor idea generation. Mr. Porphy also spent 14 years in various capacities at Credit Suisse, most recently as a managing director and co-head of middle-market mergers and acquisitions as well as head of financial sponsors mergers and acquisitions. During his tenure there, he also served as chief operating officer of the global mergers and acquisitions group and the global industrial and services group, the investment banking department’s largest industry group, and as chief operating officer of the European mergers and acquisitions group. Mr. Porphy began his Wall Street career at Lazard Frères & Co.

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 headquartered in San Francisco (www.jmpg.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13

Salient Expands Investments Team With Two Additions

by

Salient Partners, an asset management firm, has appointed Rusty Guinn and Todd Centurino as Directors of Investments. They previously worked for the Teacher Retirement System of Texas.

Mr. Guinn and Mr. Centurino will collaborate with the investments team of Salient Partners to oversee and manage Salient’s funds and separately managed accounts. Mr. Guinn will lead the Portfolio Management group, which is responsible for managing Salient’s multi-asset relationships and private investment funds. Within that effort, Mr. Centurino will leverage his experience at the Teacher Retirement System of Texas (TRS) to lead the management of Salient’s public fund mandates.

“Rusty and Todd possess extensive portfolio management expertise and experience covering many asset classes, implementation styles and legal structures, which will position our investments platform for further strategic growth,” said Lee Partridge, Salient Chief Investment Officer. “Their addition to the Salient team is part of our ongoing effort to offer a wide range of comprehensive, risk-managed and cost-effective investment strategies that can diversify portfolios away from traditional market risk factors.”

Mr. Guinn previously served as Director of Strategic Partnerships and Opportunistic Investments at TRS, where he was head of the team responsible for more than $11 billion in capital and commitments across a multi-asset portfolio. Earlier in his career, he worked with Credit Suisse’s Asset Management Finance group, where he sourced and underwrote minority equity investments in asset management companies. Mr. Guinn earned a Bachelor of Science degree in Economics from the Wharton School at the University of Pennsylvania.

Mr. Centurino was most recently Senior Investment Manager for External Public Markets and Hedge Funds at TRS, where he was responsible for $2.9 billion in multi-manager equity portfolios. Prior to his six years at TRS, he spent seven years at Fidelity Investments. Mr. Centurino holds a Master of Business Administration from Rice University.

“Rusty, Todd and I had the privilege of working closely with TRS Chief Investment Officer Britt Harris, who is one of the foremost thought leaders in our industry,” said Mr. Partridge. “The innovative portfolio management techniques Britt has used to benefit the teachers of Texas will undoubtedly benefit the broad community of institutional and retail investors that we serve.”

Salient Partners is a $17.4 billion investment management serving both institutional and retail investors. The firm is based in Houston (www.salientpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13

Torque Capital Group Acquires Brake Parts

by

Torque Capital Group and other investors have acquired Brake Parts, a manufacturer and supplier of brake system products.

“Now that the transaction has been completed, the Brake Parts team along with our strategic partners are eager to move forward,” said President and CEO David Overbeeke. “Brake Parts has a strong heritage of leading the category in product quality and innovation, first to market applications and superior customer service.”

Brake Parts (BPI) is a global brake system products manufacturer and supplier to the transportation industry. Products include brake pads, shoes, rotors, drums, calipers, hydraulic parts and wheel hubs. The company is headquartered in McHenry, IL (www.BrakePartsInc.com) (www.Raybestos.com).

“Torque and our investors were particularly attracted to BPI’s strong management team and their leading market position in the North American brake parts aftermarket. We are excited by the prospect of leveraging the Raybestos brand of brake products to drive international sales growth, particularly in Asia,” said Joseph Parzick, Managing Partner of Torque Capital Group.

Torque Capital Group invest from $2 million to $15 million of equity in companies with revenue up to $100 million and EBITDA of less than $10 million. Sectors of interest include manufacturing and industrials with a specific interest in automotive, building products, aerospace & defense and consumer & retail. The firm is based in New York (www.torquecap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13

American Capital Acquires Service Experts

by

American Capital’s Special Situations Group has acquired Service Experts, a provider of sales, installation, maintenance and repair of HVAC systems for the residential and light commercial markets. American Capital’s investment took the form of preferred and common equity and a revolving credit facility.

In tandem with the acquisition, American Capital has appointed Scott Boxer as the President and CEO of Service Experts. Mr. Boxer is a recognized leader in the HVAC industry with a track record of leading businesses through transformations and growth initiatives. After 40 years in the industry, Mr. Boxer retired from Lennox International in 2010, where he had spent a decade-long tenure in various executive positions, including President and Chief Operating Officer of Service Experts from 2003 to 2010.

“American Capital’s complete financing package and operational support make them an ideal owner for Service Experts,” said Mr. Boxer. “We look forward to a strong relationship with American Capital as we look to continue to service and grow our large national customer base, expand our product offering, and grow revenue both organically and through add-on acquisitions.”

Service Experts owns and operates 108 branch locations in the United States and Canada with approximately $385 million in annual sales. The company offers complete HVAC services, including inspections, maintenance, sales and equipment installation of heating and air conditioning and cooling systems. In addition, the company offers a line of indoor air quality solutions and energy-saving green solutions. Service Experts is headquartered in Richardson, TX (www.serviceexperts.com).

“The American Capital Special Situations Group’s experience in identifying value-oriented investment opportunities and arranging appropriate one-stop financing enabled us to complete successfully the buyout of Service Experts, providing the company with new capital to solidify further its leading market position,” said Gordon O’Brien, President, Specialty Finance and Operations. “Our Operations Team will support our Special Situations Group in providing Service Experts with enhanced operational and marketing skills, lean management implementation and comprehensive business planning expertise.”

American Capital is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $117 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda, MD (www.AmericanCapital.com).

“The investment in Service Experts represents a solid opportunity to partner with an industry veteran to strengthen a company with a large installed infrastructure ready for growth,” said Myung Yi, American Capital Managing Director, Special Situations Group. “We have assembled a highly talented management team with tremendous industry expertise that will be focused on driving value creation.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13

Dubin Clark & Company Exits Signature Systems Group

by

Dubin Clark & Company has sold its portfolio company Signature Systems Group to Linsalata Capital Partners.

Signature is a designer, manufacturer and distributor of specialty ground surfaces and coverings such as temporary flooring, event turf and carpet, permanent specialty flooring and industrial matting. The company sells to a range of domestic and international end markets including oil, gas, mining and construction, special events, stadiums and arenas, sporting and athletic facilities, convention and conference centers and general commercial. Signature sells to over 3,000 customers and ships approximately 10,000 orders a year. The company is headquartered in New York (www.eventdeck.com).

“We were delighted to enter into a partnership with Signature in 2007 in order to position the company for continued growth and prosperity,” said Tom Caracciolo. “Together with management, we were successful in launching numerous new products, opening an international location and closing on two add-on acquisitions. Having exceeded our growth objectives with revenue and EBITDA increases of more than 6.0x, we felt the time had come to find another partner for Signature, one that would continue to finance the significant future growth of the business.”

Dubin Clark & Company is a private equity investment firm whose sole activity is buying and building businesses in partnership with their management teams. The firm was founded in 1984 and is based in Greenwich, CT (www.dubinclark.com).

“Dubin Clark was everything they said they would be – supportive, engaged, and able to back our team up and help us grow our business,” said Arnon Rosan, founder and President of Signature. “Most importantly, the team at Dubin cared about the entire management team and we truly felt a part of the Dubin Clark family.”

Linsalata Capital Partners invests from $10 million to $50 million of equity in middle market companies in an array of industries that have $7 million to $50 million of EBITDA and at least $300 million in enterprise value. The firm is currently investing from its seventh fund with $427 million in committed equity capital. The firm was founded in 1984 and is based in Mayfield Heights, OH (www.linsalatacapital.com).

“Signature is a great opportunity for Linsalata Capital Partners. Arnon Rosan and his team have done a wonderful job building a platform that leverages strong product development, a unique sales and marketing driven culture and exceptional service capabilities. We believe the growth prospects for Signature are very strong,” said Daniel DeSantis, Managing Director at Linsalata Capital Partners.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13

Platinum Equity Acquires CheckView

by

Checkpoint Systems has entered into an agreement to sell its U.S. and Canadian CheckView business to Platinum Equity. The transaction is expected to close by the end of April 2013.

CheckView provides digital video, intrusion and fire/life safety services to retailers and customizes products and programs to address specific sources of shrink and operational concerns. The company’s products and services are used to aid in the protection of retailers’ assets and improve safety for employees and customers. Services provided include consulting and system design, installation, service and support. Click HERE to view CheckView’s webpage.

“We are excited about the prospects for CheckView under our ownership,” said Platinum Equity Principal Jason Leach. “Platinum has an extensive track record of acquiring corporate divestitures and maximizing their potential as standalone businesses. CheckView will act as a platform acquisition and allow us to focus on the core business while pursuing organic growth initiatives and strategic add-ons in a highly fragmented space.”

Platinum Equity invests in a range of industries including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Platinum Equity has completed nearly 145 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. The firm is based in Beverly Hills and also has offices in New York and London (www.platinumequity.com).

“We are pleased to have reached an agreement. Platinum Equity is a global investment firm with a unique focus on business operations and a strong track record helping companies reach their full potential. The firm’s financial resources and operational expertise will present the CheckView business with tremendous new opportunities. We are committed to support CheckView throughout the sale process to ensure an orderly transition with full continuity of service to customers,” said Checkpoint Systems’ President and Chief Executive Officer, George Babich.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-25-13

RoundTable Healthcare Partners Acquires Interventional Products Business

by

Angiotech Pharmaceuticals has entered into an agreement to sell its Angiotech’s Interventional Products Business to Argon Medical Devices, a portfolio company of RoundTable Healthcare Partners, for $362.5 million in cash. $347.5 million will be paid upon the close of the transaction and $15 million will be retained in escrow for a period of 12 months to secure indemnification obligations. The transaction is expected to close by the end of April 2013.

The businesses being acquired by Argon include all manufacturing, commercial and administrative operations relating to Angiotech’s Interventional Products Business. Key product lines include Angiotech’s BioPince full core biopsy devices, Tru-Core II (fully automatic) and SuperCore (semi-automatic) disposable biopsy instruments, T-Lok bone marrow biopsy devices, and Skater drainage catheters. The business had $101.6 million in revenue last fiscal year. Angiotech’s Interventional Products Business operates manufacturing facilities in Wheeling, IL; Gainesville, FL; and Stenlose, Denmark. Click HERE to view Angiotech’s Interventional Products Business webpage.

Argon Medical Devices is a manufacturer and supplier of specialty single-use vascular interventional and pressure monitoring devices utilized in the cardiology, radiology and critical care market segments. Argon supplies hospital cardiac catheterization laboratories, interventional radiology suites and critical care units and maintains over 2,000 direct hospital accounts. Argon’s other customers include medical supply distributors, custom procedure kit packers and OEM customers. Argon is based in Athens, TX (www.argonmedical.com).

RoundTable Healthcare Partners is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable manages $1.9 billion in capital, including three equity funds totaling $1.5 billion and two subordinated debt funds totaling of $400 million. The firm is based in Lake Forest, IL (www.roundtablehp.com).

Angiotech’s financial advisors for this transaction were Moelis & Company and Houlihan Lokey.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-25-13

Ernst & Young Adds Entire Team from P & L Consulting

by

Shawn Pride, the founder and chief executive officer of P & L Consulting Group, along with her former team, have joined Ernst & Young’s Financial Services Group. In her new role, Ms. Pride will lead the US advisory services for private equity firms.

P & L Consulting Group was a boutique advisory company focused on fund administration system selection, implementation and design for private equity firms, as well as other alternative investment managers.

Ms. Pride has 15 years’ consulting experience, including 13 years’ advisory experience working with private equity fund managers. She began her career at Accenture and will now be a principal in Ernst & Young’s FSO Advisory practice. She will be based in Ernst & Young’s New York offices.

“Joining Ernst & Young offers us a better platform to effectively address the changing and complex needs of private equity fund managers,” said Ms. Pride. “This is a great opportunity to be with an organization that has a similar perspective and commitment to the market.”

In addition, Steven Boydstun, who was most recently P & L Consulting Group’s president, will also join Ernst & Young’s FSO practice. He has more than 20 years of technology strategy and system implementation experience. Mr. Boydstun will serve as an executive director based in Dallas.

“The P & L Consulting Group’s arrival at Ernst & Young comes at a pivotal time in the industry − a point where asset management operating models, including private equity, must adapt to fast-changing business, investor and regulatory demands,” said Carmine DiSibio, Vice Chair and Managing Partner, Financial Services, Ernst & Young. “Shawn’s leadership, and the collective talent of the team, will enhance our ability to assist clients in improving the production, management and deployment of information across their enterprise.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-25-13

Equity Funds Continue to Buy Restaurants in 2012

by

The J.H. Chapman Group, an investment banking firm specializing in mergers and acquisitions in the food and restaurant industries, has published its 2012 Chain Restaurant Merger & Acquisition Census, an annual guide to acquisition activity in the retail foodservice industry. The report was developed and analyzed by Chapman Principal David Epstein and provides perspectives on restaurant industry trends. A link to a free copy of the 2012 Chain Restaurant Merger & Acquisition Census is available at the end of this article.

The Census-captured 96 announcements in 2012, slightly less than the 100 reported in 2011 and 8% more than the 89 recorded in 2010. “Chain restaurant M&A transactions have leveled off over the past three years as IPO and other growth financing methods increase in frequency,” said Mr. Epstein. “In 2012 there were eight announced chain initial public offering announcements and six public chains going private. At the same time chain franchisees announced acquisitions of franchised units in 36 % of all non public transactions. Equity fund purchases again contributed significantly to this year’s activity.”

Equity funds continued to buy restaurant chain brands, accounting for 27% of all announced transactions. Equity funds have contributed significantly to the robust chain restaurant M&A market, representing 31% of all non-public chain restaurant transactions in the six years since 2007. The Census has captured 171 equity fund announced transactions during this time period. Equity funds investing in new concepts in 2012 included Bruckman, Rosser Sherill’s investment in 17 unit Not Your Average Joes; Fidelity National’s acquisition of upscale casual J. Alexander’s, Thomas H. Lee Partners acquisition of international Fogo de Chao and Sentinel Capital’s acquisition of 393 unit Huddle House.

Franchise unit transactions, while significant this year, were down from 46% of all 2011 Census-captured transactions. Acquisitions within the buyer’s own brand represented 90% of all franchised unit acquisitions, which reflect the easing of bank financing extended to proven operators. Major contributors to this year’s franchise purchase activity were all of the Yum! Brand concepts and several transactions in the Burger King system. “It is now more common for franchisee organizations to consider synergistic acquisitions as a key component to their growth strategy,” said Mr. Epstein.

International chain acquisitions by domestic operators was down significantly from last year; however five foreign companies announced acquisitions of domestic chains, including the merger of Justice Holdings with Burger King Worldwide, European Quilvest’s acquisition of Anthony’s Coal Fired Pizza, Canada-based Fran Work Group purchase of Elephant & Castle and German-based John A. Benckiser Group acquisition of Caribou Coffee.

Initial public offering plans announced in 2012 included Dave & Busters, Bloomin Brands, Chuy’s Tex Mex, CKE Restaurants and Del Frisco. Going private transactions included Teavana by Starbucks, J. Alexander’s by Fidelity National, Benihana by Angelo, Gordon & Co and P.F. Changs by Centerbridge Partners.

Financially troubled restaurant chains were purchased less often in 2012 than in the last two years. The availability of bankrupt restaurant chains has fallen as chains work with lenders and landlords to find alternative structuring solutions. Since 2007, acquisitions of chains in financial trouble, including bankruptcy sales, averaged 16 transactions per year. For 2012 twelve troubled company transactions were captured.

Operators looking for new growth opportunities contributed 24% of this year’s activity. “Operating multiple restaurant brands seemed to make good strategic sense in 2011, although buyers didn’t venture far from their core operating style,” said Mr. Epstein. This category included Luby’s acquisition of 23 unit Cheeseburger In Paradise, Darden’s acquisition of Yard House and Ruby Tuesday’s acquisition of Lime fresh Mexican Grill.

What’s the outlook for M&A activity in the chain restaurant industry for 2013? “The biggest challenge to a robust chain restaurant M&A market is the uncertain policy coming out of Washington. Yet to be determined rules on the Affordable Health Care Act could have a chilling effect on restaurant M&A as operators raise prices to cover the increased cost of employee insurance. This all leads to more uncertainty in determining values, which may cause both buyers and sellers to watch from the sidelines in 2013,” said Mr. Epstein.

Since 1989, the Chain Restaurant Merger and Acquisition Census has reported changes of ownership activity for chain restaurants in the United States. Over 2,640 transactions have been captured. In order to be counted in the Census, a meaningful change of ownership must have been announced. The Census does not include routine trades of restaurant securities on a formal exchange, but does include initial public offerings, subsequent stock offerings, significant investments and traditional mergers and acquisitions. Restaurant chains qualify for the Census if either the acquirer or the target is headquartered in the United States and has at least four separate foodservice establishments of the same or different concept. Qualifying candidates include quick service, fast casual, full service, food service management and cafeteria/buffet firms.

The J.H. Chapman Group is an investment banking firm that specializes in mergers and acquisitions in the food and restaurant industries. The firm has offices in Chicago and Paris (www.jhchapman.com).

For a free copy of the 2012 Chain Restaurant Merger & Acquisition Census click HERE.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-22-13

Fortress Leads American Internet Services Refinancing

by

American Internet Services, a provider of data center and cloud services, has received a $43.5 million senior secured credit facility from Fortress Credit Corp., an affiliate of Fortress Investment Group.  American Internet Services is a portfolio company of Seaport Capital, Viridian Investments, and DuPont Capital Management.

“This financing illustrates Fortress’s continuing support for middle market companies in the data center and cloud service sector,” said Ken Sands, a Managing Director of the Credit Funds, Fortress Investment Group. “AIS is a recognized regional leader in tailored data center and cloud service solutions and we are pleased to have arranged this financing that will support their future growth.”

American Internet Services (AIS) provides data center and cloud services including co-location, network connectivity, disaster recovery, high availability, and IT security. AIS operates SSAE 16-compliant, SOC 1-, 2-, and 3-audited, redundant facilities in San Diego (headquarters), Los Angeles and Phoenix. The company was founded in 1989 (www.americanis.net).

“Refinancing AIS’ debt enables us to take advantage of historically low interest rates while providing resources for additional investment in new products and services, continuing our market expansion, and meeting the developing needs of our customers,” said Tim Caulfield, Chief Executive Officer at AIS. “We look forward to working with Fortress, a knowledgeable and experienced lender to the internet infrastructure sector.”

Investment bank DH Capital served as advisor to AIS on the financing. DH Capital is headquartered in New York with an additional office in Boulder, CO (www.dhcapital.com).

Fortress Investment Group is a global investment firm with over $53 billion in assets under management. Fortress manages assets on behalf of over 1,400 institutional clients and private investors worldwide across a range of investment strategies — private equity, credit, liquid hedge funds and traditional fixed income. The firm was founded in 1998 and is based in New York (www.fortress.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-22-13