Archives for June 5, 2013

Promus Equity Acquires Auto Meter

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Promus Equity has acquired Auto Meter Enterprises, a manufacturer of aftermarket automotive gauges.

“The combination of strong engineering capabilities, leading brand name and deep, diverse customer relationships makes Auto Meter a very attractive business,” said Steve Brown, a partner at Promus. “Jeff King, Auto Meter’s President and CEO, has built a very talented team that operates at the forefront of the industry. We look forward to partnering with this team to grow the company, both organically and through strategic acquisitions,”

Auto Meter is a manufacturer of aftermarket automotive gauges as well as battery test and charging equipment. The company distributes its products to over 600 customers within the specialty warehouse distributor, retailer and OEM channels. Auto Meter is headquartered in Sycamore, IL (www.autometer.com).

Promus Equity Partners is a private equity investment firm affiliated with Promus Holdings, a multi-family asset management firm with approximately $500 million of capital under management. Promus targets lower-middle market companies with EBITDA of $15 million or less. The firm is based in Chicago (www.promusequity.com).

Avante Mezzanine Partners (www.avantemezzanine.com) provided mezzanine debt and participated in the equity investment. Cole Taylor (www.coletaylor.com) provided a senior credit facility.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-5-13

Graham Partners Exits Mitten

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Mitten, a manufacturer and distributor of vinyl siding and a portfolio company of Graham Partners, has been sold to Ply Gem Industries, a portfolio company of CI Partners.

Mitten is a manufacturer and distributor of vinyl siding, vinyl siding accessories, and other exterior building products. The company is based in Brantford, ON (www.mittenbp.com).

Graham Partners acquired Mitten in October 2011. During the term of ownership Graham Partners contributed support to Mitten’s development through its operations team. After acquiring Mitten, Graham Partners worked with the company to improve its cost structure and margins. Lean manufacturing initiatives and operational improvements were implemented in Mitten’s main manufacturing facility, and leveraged procurement initiatives provided additional cost savings. As a result of these operating improvements Mitten’s EBITDA increased over 65%.

“We partnered with Mitten’s strong management team to successfully execute a development plan. We focused on broadening end markets and developing new product categories, while increasing profitability through procurement and operational improvements,” said Adam Piatkowski, Managing Principal at Graham Partners.

Graham Partners seeks to acquire industrial companies with revenues between $30 million and $500 million that participate in manufacturing niches where it can leverage its combination of operating resources and financial expertise. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).

The buyer of Mitten, Ply Gem Industries, was acquired by CI Partners in 2004, and is a manufacturer of exterior building products for new home construction, remodeling, and repair. Products include vinyl siding; fencing; stone veneer; and vinyl, wood, and aluminum windows and doors. The company is based in Cary, NC (www.plygem.com).

BB&T Capital Markets served as the exclusive financial advisor to Mitten and Graham Partners.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-5-13

Riverside Partners Invests in BioAgilytix Labs

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Riverside Partners has made an investment in BioAgilytix Labs, a contract bioanalytical laboratory specializing in large molecule biologic drugs.

BioAgilytix provides outsourced laboratory services to customers within the pharmaceutical, biotechnology, and agriculture industries. The company is headquartered in Durham, NC (www.bioagilytix.com).

“Co-Founders Jim Petrilla and Dr. Afshin Safavi have built a terrific business focused on supporting large molecule drug development, a very exciting area within the pharmaceutical and biotechnology industries. Riverside Partners is looking forward to utilizing our deep healthcare experience to help accelerate the company’s growth,” said Philip Borden, General Partner at Riverside Partners.

Riverside Partners invests in established and growing middle market healthcare and technology-oriented companies that have revenues from $20 million to $200 million and EBITDA’s from $5 million to $25 million. Riverside Partners is currently investing its fifth fund, Riverside Partners Fund V, L.P., with $561 million of capital commitments. The firm was founded in 1989 and is based in Boston (www.riversidepartners.com).

“The BioAgilytix team is very excited work with Riverside Partners. The Riverside team has a great understanding of how to scale a pharmaceutical services business and the two organizations have a very strong cultural fit,” said Jim Petrilla, Co-Founder and CEO of BioAgilytix.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-5-13

Clearlake Capital Acquires Agilysys Retail Solutions Group

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Clearlake Capital Group has signed an agreement to acquire the Retail Solutions Group of Agilysys, through a newly-formed company, Kyrus Solutions. The transaction is expected to close in the early summer.

Agilysys’ Retail Solutions Group (“RSG”), which will be renamed Kyrus Solutions following the close of the transaction, is a provider of technology and IT managed services to retailers. The company offers retail point-of-sale, self-service and wireless mobility services, business consulting, implementation and maintenance support, and other managed services. RSG is based in Greenville, SC (www.agilysys.com).

“We are excited to partner with the talented management team of RSG as we make a significant investment in the company and create a strong and focused standalone entity, Kyrus Solutions,” said Behdad Eghbali of Clearlake. “With its long-standing reputation for exceptional technology solutions, service delivery, customer focus, and innovative managed services solutions, coupled with Clearlake’s capital resources and operational capabilities, we believe the company is ideally positioned to benefit from significant market trends, including the continuing investment in technology solutions by retailers.”

Keith Bradley, a Clearlake Executive Operating Advisor, will become the company’s Executive Chairman upon the close of the transaction. Mr. Bradley was most recently the President of Ingram Micro North America, a wholesale technology distributor and a provider of IT supply-chain, mobile device lifecycle services and logistics.

“Kyrus Solutions is a strong platform that is extremely well-positioned for future growth,” said Mr. Bradley. “I look forward to working with Paul and the rest of the management team to drive the company’s growth strategy of providing our customers with cutting edge solutions, innovation, and industry leading service and support.”

Clearlake invests in special situations such as corporate divestitures, recapitalizations, buyouts, restructurings, turnarounds and minority equity investments. Sectors of interest include business services; communication; consumer products and retail; defense and public safety; energy and power; healthcare; industrials; media; and technology. Clearlake was founded in 2006 and is headquartered in New York (www.clearlakecapital.com).

Atlas Technology Group (www.atlastechgroup.com), an investment bank headquartered in San Francisco, advised Agilysys on the sale of RSG to Clearlake.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-5-13

Golden Gate Acquires Springs Window Fashions

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Golden Gate Capital has completed its previously announced acquisition of Springs Window Fashions, a provider of custom window covering products, from Heartland Industrial Partners and the Close Family. Springs’ management will remain with the company and will continue to maintain a minority ownership position.

Springs Window Fashions manufactures and sells custom and stock window coverings and drapery hardware to retail and commercial customers, as well as independent designers, franchisors and decorators. The company was founded in 1939 and has over 4,800 employees located at nine facilities located throughout North America. The company is headquartered in Middleton, WI (www.springswindowfashions.com).

“Springs represents a terrific opportunity to invest in a market leader with proven competitive advantages and significant growth potential,” said Rajeev Amara, a Managing Director of Golden Gate Capital. “Our decision to partner with Springs was driven by the strength of the management team and their long history of delivering world-class products and services. We are fully committed to further investing in the company to support and accelerate its continued growth, both organically and through add-on acquisitions.”

Golden Gate Capital targets companies across a range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing. The firm has approximately $12 billion of capital under management and is based in San Francisco (www.goldengatecap.com).

Heartland Industrial Partners invests in middle market manufacturing and consumer products companies. The firm is based in Stamford, CT (www.heartlandpartners.com).

“Springs Window Fashions has proven to be a successful investment for Heartland and the Close Family,” said Daniel Tredwell, Managing Partner of Heartland Industrial Partners. “The company has strengthened its relationships with retail customers and significantly built its business in the designer channel, ensuring that it is well-positioned for future growth. We wish the company continued success for years to come.”

BofA Merrill Lynch served as financial advisor to Golden Gate Capital on this transaction. J.P. Morgan served as financial advisor to Springs. Financing for the transaction was led by J.P. Morgan Securities and BofA Merrill Lynch, with GE Capital providing a new ABL facility.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-5-13

Alden Global Capital Acquires Journal Register Company

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Alden Global Capital has acquired substantially all of its assets of Journal Register Company through a Chapter 11 Section 363 process. This transaction was approved by the Bankruptcy Court in March 2013 and closed in April 2013.

Alden, which acquired substantially all of the senior debt and equity of Journal Register in mid-2011, was the stalking horse bidder during the bankruptcy process. Alden’s bid was ultimately the highest and best price for Journal Register and the sale closed in early April.

Journal Register is an online and print provider of local news, sports, business and lifestyle information. The company owns and operates 18 daily newspapers, 127 non-daily newspapers, 237 websites, 38 smart phone and digital applications and 19 mobile sites. Journal Register serves customers in Philadelphia, Detroit, Cleveland, and the Saratoga and Mid-Hudson regions of New York State. The company maintains corporate headquarters in New York and Fairless Hills, PA (www.journalregister.com).

Alden Global Capital invests in US and foreign distressed securities as well as emerging market economies. The firm was founded in 2007 and has offices in New York, London, Dubai, Mumbai, New Jersey and Texas (www.aldenglobal.com).

SSG Capital Advisors (www.ssgca.com), a Philadelphia-based investment bank, acted as the exclusive investment banker and financial advisor to Journal Register Company.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-5-13