April 2, 2013
Search

Private Equity Professional

Private Equity's News Leader

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

You are here: Home / 2013 / April / Archives for 2nd

Archives for April 2, 2013

Brazos and Princeton Invest in European Wax Center

by

Brazos Private Equity Partners has made an investment in European Wax Center, a provider of facial and body wax treatment services. Princeton Ventures invested alongside Brazos in this transaction.

European Wax Center (EWC) provides facial and body waxing services and related cosmetic and beauty products through its franchise network of more than 250 stores in 31 states. The company is based in Hallandale, FL (www.waxcenter.com).

Existing management, led by co-founders David and Josh Coba, who serve as CEO and COO, respectively, will continue to run the company and will retain a significant equity stake in the business. “I am tremendously excited about EWC’s future, and our new partnership with Brazos will be an extraordinary step in EWC’s development,” said David Coba. “My family has developed EWC into a market-leading company and we look forward to leveraging Brazos’s expertise and network of relationships as we look to further grow our business.”

Brazos Private Equity Partners makes equity investments of $25 million to $100 million in middle-market companies with enterprise values from $50 million to $500 million. Sectors of interest include consumer, healthcare, commercial & industrial, and business services. Brazos has approximately $1.4 billion of equity capital under management and is based in Dallas (www.brazospartners.com).

“The investment in EWC is an exciting opportunity for Brazos to invest in a category-leading consumer company with a strong business model and exceptional growth potential,” said Jeff Fronterhouse, Co-Chief Executive Officer and Co-Founding Partner of Brazos. “We look forward to working closely with the Coba family and other members of management to help EWC continue to execute its growth plan.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

Koch Invests in American Greetings

by

American Greetings Corporation, the nation’s second-largest greeting card maker, has agreed to be acquired by the members of the controlling Weiss family in a transaction valued at about $878 million. Koch AG Investment, a subsidiary of Koch Industries, has committed $240 million in equity capital to support the Weiss family purchase of the company.

“We are long-term, patient investors that run an entrepreneurial private company. We view these types of transactions as mutually beneficial opportunities, and we’re pleased to help facilitate them. We wish the Weiss family the best in this endeavor. They are excellent managers and innovators,” said Steve Feilmeier, chief financial officer for Koch Industries.

Subsidiaries of Koch Industries make substantial investments in companies that are typically not majority owned and operate independently of Koch. In December, the company made a substantial investment in Guardian Industries Corporation.

Koch Industries is one of the largest private companies in America with annual revenues of about $115 billion. It owns a diverse group of companies involved in refining, chemicals and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control equipment and technologies; commodity trading and services; minerals; ranching; and investments. In 2012, Koch companies employed nearly 50,000 people in the United States. The company is based in Wichita, KS (www.kochind.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

Med Opportunity Partners Acquires Pfanstiehl

by

Med Opportunity Partners has acquired Ferro Pfanstiehl Laboratories from Ferro Corporation. Upon closing of the transaction, Ferro Pfanstiehl Laboratories has been renamed Pfanstiehl, Inc.

Pfanstiehl is a provider of specialized products and services for niche pharmaceutical and biotechnological applications. The company was founded in 1919 and has approximately 80 employees. Pfanstiehl is based in Waukegan, IL (www.pfanstiehl.com).

“We are pleased to be backed by Med Opportunity Partners as we enter a very exciting stage of our company’s history with an unprecedented opportunity for growth in the biopharmaceutical and pharmaceutical market place. Our ability to deliver quality, high purity excipients and APIs including cytotoxics to our customers should be enhanced by Med Opportunity Partners and their strategic operating approach and financial resources,” said Cindy Kerker, President of Pfanstiehl.

Med Opportunity Partners invests in middle market healthcare companies with $20 million to $200 million of enterprise value. Sectors of interest include pharmaceuticals, medical devices, biologics, medical technology, and specialty health care services. The firm is based in Greenwich, CT (www.medopportunity.com).

“We are excited to invest in Pfanstiehl at this time,” said Jim Breckenridge, Med Opportunity Partners Founding Member and new Pfanstiehl Chairman. “The US global biopharmaceutical market is expected to exceed $100 billion by 2015 and requires high purity functional excipients to meet increasing quality, regulatory and service requirements. Pfanstiehl is well positioned to be a major beneficiary of this overall shift toward high purity CGMP excipients utilized in biopharmaceutical formulation and manufacturing processes. We plan to invest in Pfanstiehl to expand the company’s participation in these compelling sectors.” (Editor’s Note: Current Good Manufacturing Practices (CGMP) are followed by pharmaceutical and biotech firms to ensure that the products meet specific requirements for identity, strength, quality, and purity).

Ferro Corporation is a supplier of technology-based performance materials and chemicals for manufacturers. Ferro products are sold into the building and construction, automotive, appliances, electronics, household furnishings, and industrial products markets. Headquartered in Mayfield Heights, OH, the company has approximately 4,780 employees globally and reported 2012 sales of $1.8 billion (www.ferro.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

Vance Street Acquires Micronics

by

Vance Street Capital has acquired a majority interest in Micronics, a provider of aftermarket filtration products and OEM custom filter presses. The management team of Micronics invested alongside Vance Street and will have a significant ownership stake in the business.

“We look forward to working closely with Barry Hibble and the entire Micronics management team to help the company capitalize on the many growth opportunities it has before it, both here and abroad,” said Jake Blumenthal, principal at Vance Street Capital. “We focus on investing in companies that provide engineered solutions to blue chip customers and we feel that Micronics is perfectly positioned to continue to gain market share.”

Micronics provides filtration products to varied industries worldwide including mining, chemical, wastewater, metals, and food and beverage. The company was founded in 1983 and is headquartered in Portsmouth, NH with an additional facility in Stoke-on-Trent, UK (www.micronicsinc.com).

“In Vance Street, we could not have found a better partner as Micronics enters its next phase of growth,” said Micronics Chief Executive Officer Barry Hibble. “The firm has extensive experience working with manufacturers as well as a deep understanding of operations. This transaction is a positive development for our company and our hard-working employees as we look to the future with our new partners.”

Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include precision industrial manufacturing, aerospace and defense, medical components and devices, and business services. The firm is based in Los Angeles (www.vancestreetcapital.com).

The Micronics transaction represents Vance Street’s seventh platform acquisition in its current fund.

FS Investment Corporation provided debt financing to support the transaction. FS is based in Philadelphia (www.fsinvestmentcorp.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

North Castle Exits gloProfessional

by

North Castle Partners has completed the sale of Caleel + Hayden Holdings (dba gloProfessional), a cosmetics products company, to Swander Pace Capital. Mark Hayden, founder and CEO and Sean Butler, President, will continue to lead gloProfessional and remain significant minority shareholders.

gloProfessional is a developer and marketer of mineral-based cosmetics and other skin care products. Brand names include “glominerals” and “glotherapeutics”. The company serves over 5,000 dermatologists, cosmetic surgeons, aestheticians, spas, salons, and specialty retailers. gloProfessional is based in Denver (www.gloprofessional.com).

North Castle first invested in gloProfessional in 2006. “Our investment in glo was a successful exit for North Castle and represents another strong partnership within the personal care sector,” said North Castle Managing Director Jon Canarick. “During North Castle’s ownership, glo has been transformed from a distributor with only half of its sales being generated from proprietary brands to a company that realizes virtually all revenue from its suite of glo brands. We believe the company is well positioned for further growth.”

North Castle makes control investments in consumer-driven product and service companies located in North America with enterprise values ranging from $50 million to $500 million. Sectors of interest include: beauty & personal care; consumer health; fitness, recreation & sports; home & leisure; and nutrition. North Castle is headquartered in Greenwich, CT (www.northcastlepartners.com).

“We believe the way glo grew coming out of the recession illustrates the benefits our focused approach to partnering with management teams to build great companies. As the professional channel continues to pick up momentum, glo is well positioned to capitalize on that growth and achieve continued success,” said North Castle’s Managing Partner Chip Baird. “We continue to look for opportunities across the Healthy, Active and Sustainable Living markets to leverage our knowledge, network and experience in building market leaders like gloProfessional.”

Wells Fargo Securities served as exclusive financial advisor to gloProfessional in connection with the transaction. Morrison Cohen served as legal counsel to gloProfessional and Kirkland & Ellis served as legal counsel to Swander Pace Capital.

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

H.I.G. Adds Middle Market Team to San Francisco

by

H.I.G. Capital has relocated Managing Director Fraser Preston and Principal Brian McMullen from Miami to San Francisco in order to create a West Coast presence for the H.I.G. Middle Market fund.

Messrs. Preston and McMullen will focus on making investments in middle market businesses with enterprise values from $200 million to $1 billion that are located throughout North America with a particular emphasis on companies in the Western United States. Targeted businesses will usually have EBITDA’s greater than $30 million. Sectors of interest include technology, media and telecom, consumer and retail, business services, education, healthcare and specialty manufacturing.

Mr. Preston is a Managing Director of H.I.G. Capital with over fifteen years of private equity and investing experience. Since joining H.I.G. in 2008, he has been involved in all aspects of the investment process; and currently serves on the boards of several H.I.G. Capital portfolio companies. Mr. Preston has worked with companies in a variety of industries, with a focus on business services, consumer products, and technology, media and telecommunications. Prior to joining H.I.G., he was a principal at Nautic Partners where he focused on late stage buyouts and recapitalizations. Mr. Preston received his undergraduate degree from Yale University and earned a JD from Stanford Law School and an MBA from Stanford Graduate School of Business.

Mr. McMullen is a Principal of H.I.G. Capital and is responsible for all aspects of the investment process, including sourcing, transaction structuring, financing and execution of post-closing growth and operational strategies. He has worked with companies in a variety of industries, with a focus on technology, media and telecommunications, consumer products, education and business services. Prior to joining H.I.G. in 2002, he was with the investment banking division of Credit Suisse First Boston. Mr. McMullen received his undergraduate degree from the University of Notre Dame. He earned his MBA from The Wharton School and his MSEd from the Graduate School of Education at the University of Pennsylvania.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. Since its founding, H.I.G. has invested in and managed more than 200 companies and the firm’s current portfolio includes companies with combined revenues in excess of $8 billion. H.I.G. Capital has more than $11 billion of equity capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Paris, and Rio de Janeiro (www.higcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

Sterling Group Hires New Business Development Pro

by

The Sterling Group has hired Jim Apple as a Senior Vice President, Business Development. In his new role at Sterling, Mr. Apple will lead the firm’s transaction sourcing efforts with an immediate focus on family businesses and corporate carve-outs in the basic manufacturing, distribution and industrial services sectors.

“Jim’s depth of knowledge of industrial businesses in the middle market will be a great asset to Sterling,” said Greg Elliott, Partner of The Sterling Group. “Jim’s addition will help ensure that Sterling continues to identify and partner with exceptional management teams to grow industrial businesses.”

Prior to joining Sterling, Mr. Apple spent nine years with Morgan Keegan and Raymond James in financial sponsor coverage and managing the investment bank’s relationship with Regions Bank and its private client group. He spent 15 years as an economic development practitioner prior to his time in investment banking. Mr. Apple has a BA in economics and international studies from Rhodes College.

The Sterling Group targets controlling interests in basic manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million. Sterling has sponsored the buyout of 42 platform companies and numerous add-on acquisitions for a total transaction value greater than $9.9 billion. The firm was founded in 1982 and is headquartered in Houston (www.sterling-group.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

NXT Capital Launches Equipment Finance Business

by

NXT Capital has launched NXT Capital Equipment Finance. This new business will be led by Michael Gay, an equipment finance industry veteran. Launching Equipment Finance is another step in NXT Capital’s development as a diversified commercial finance company. The new group complements NXT Capital’s existing Corporate Finance, Real Estate Finance and Venture Finance groups.

“We’re delighted to welcome Michael Gay and a talented team of equipment financing professionals to NXT Capital,” said Robert Radway, Chairman and CEO. “Equipment finance is a business we’re very familiar with and one that is a logical, attractive expansion of the NXT platform.”

NXT Capital Equipment Finance offers loans and leases from $2 million to $20 million to finance new and used equipment for companies with revenues of $50 million and above across most industries. Products include secured term loans, tax-oriented leases, finance leases, operating leases, TRAC leases and sale-leaseback transactions.

“Many middle-market companies continue to suffer from a lack of access to capital to obtain essential equipment,” said Mr. Gay. “NXT Capital Equipment Finance is ideally positioned to serve these companies, providing the creative, reliable financing solutions they need.”

NXT Capital provides structured financing to middle-market and growth companies through its Corporate Finance, Equipment Finance, Real Estate Finance and Venture Finance groups, originating transactions directly on a national basis. NXT Capital is led by former principals of Merrill Lynch Capital and was formed in 2010 by Stone Point Capital and the founding management team. The firm is based in Chicago with offices in New York, Atlanta, Boston, Dallas, Newport Beach, San Francisco and Silicon Valley (www.nxtcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-2-13

To search in site, type your keyword and hit enter