Archives for April 11, 2013

Abacus Backs Harren Equity Portfolio Company

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Abacus Finance Group served as Administrative Agent and Sole Lead Arranger for senior secured credit facilities to support the refinancing of Persante Health Care, a portfolio company of Harren Equity Partners.

In March 2012, Harren Equity Partners acquired three companies – SleepCare Centers, SleepTech, and Blackwood Medical – and merged them to form Persante Health Care, a provider of sleep disorder diagnostic and therapeutic services. The company offers outsourced sleep care programs to hospitals and physician practices through 68 facilities in ten states with a strong presence in the Northeast region of the United States. Persante is based in Mt. Laurel, NJ (www.persante.com).

“We have known the Abacus team for a number of years,” said Harren Managing Partner Thomas Carver, “but this was our first transaction with them, and it was highly successful from our point of view. They proved to be flexible in their approach, and most importantly, they were able to provide certainty of close at a relatively early stage in the negotiations.”

Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million. The companies Abacus finances generally have EBITDAs between $3 million and $15 million. Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $10 billion in assets. Abacus is based in New York (www.abacusfinance.com).

Harren Equity Partners invests in companies with revenues of $20 million to $150 million and EBITDAs of at least $5 million. Sectors of interest include aerospace & defense; automotive aftermarket products and repair services; business services; building products; food & industrial machinery and equipment; medical products; natural resources and energy; preventative health services and products; restaurants and foodservice; retailing services; and scrap metal recycling. The firm has more than $250 million of capital under management. Harren Equity Partners was founded by Thomas Carver in 2000 and is based in Charlottesville, VA (www.harrenequity.com).

“Harren’s lower-middle market focus and their investment criteria are a perfect match for us,” said Tim Clifford, President and CEO of Abacus. “Tom Carver, Garrick Brown and the entire Harren team are knowledgeable investment professionals and great to work with. As in other recent transactions, factors critical to success included our healthcare expertise, our strong working relationships with company management, and, as Tom mentioned, providing certainty of close early in the process – important aspects of what we call our Total Partnership Approach.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-11-13

Tom Racciatti Joins West Monroe Partners’ Minneapolis Office

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West Monroe Partners has added Tom Racciatti to its team as a senior manager in its Mergers and Acquisitions practice. Mr. Racciatti will be based in the firm’s new office in Minneapolis.

West Monroe’s Mergers and Acquisitions practice advises strategic and financial buyers on all operational and technology aspects of the merger and acquisition process, from acquisition readiness and due diligence to post-close execution and operational improvement.

Mr. Racciatti’s areas of expertise include manufacturing and distribution strategy, merger and acquisition planning, operational improvement throughout the supply chain, customer profitability and market expansion analysis.

“Tom Racciatti’s combination of strategic, operational, industry and international experience is a tremendous asset to clients involved in mergers and acquisitions,” said Tom Ewers, West Monroe Partners’ Minneapolis office leader. “He adds unique capabilities for navigating complex transactional challenges and delivering synergies from these opportunities.”

Mr. Racciatti joins West Monroe Partners from Deloitte Consulting, where he was part of the Strategy & Operations practice for more than five years. In previous roles, he worked in the business architecture group of Stockback.com, an online retail portal/mutual fund manager in New York; as an account manager at Kaiser Permanente in San Francisco; and as director of procurement and pricing for a food manufacturer in Minneapolis.

“West Monroe Partners has developed truly distinctive capabilities and an unparalleled reputation for supporting financial and strategic buyers at all phases of the transaction process,” said Mr. Racciatti. “I’m delighted to have the opportunity to contribute my experience to a firm that has established itself as a ‘go to’ resource in this market.”

West Monroe Partners opened its Minneapolis office in 2012 with a primary focus on merger and acquisition-related services for local industries—particularly private equity, manufacturing and distribution, and healthcare—throughout Minnesota and the upper Midwest.

West Monroe Partners is a North American, business and technology consulting firm focused on guiding organizations through projects that fundamentally transform their business. The firm has more than 350 consulting professionals in its offices in Chicago, Seattle, New York, Columbus, Dallas, Minneapolis, Montreal, and Toronto (www.westmonroepartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-11-13