Archives for June 24, 2013

Pine Tree Equity Acquires Bradley-Morris

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Pine Tree Equity has acquired Bradley-Morris, a provider of hiring services for military personnel. This acquisition was made through the firm’s second fund, Pine Tree Equity II, LP.

Bradley-Morris is a military-focused recruiting firm that assists Fortune 1000 companies in hiring military personnel for their civilian positions, primarily through hiring conferences and job fairs hosted by the company throughout the country. The company’s focus is on placing junior military officers as well as engineers and other technical candidates that are transitioning out of the military. Bradley-Morris was founded in 1991 and is headquartered in Kennesaw, GA (www.bradley-morris.com).

Pine Tree Equity partnered with Mrs. Sandy Morris, Founder and Chief Executive Officer, as well as Tim Best, Chief Operating Officer, and Craig Griffin, Chief Business Development Officer, on this acquisition. Pine Tree plans to accelerate the company’s geographic expansion and pursue complementary add-on acquisitions.

Pine Tree Equity invests in companies with revenues of $10 million to $50 million and EBITDAs of $2 million to $6 million. Sectors of interest include business, consumer and financial services; consumer products; franchisors and franchisees; and niche manufacturing. Since its founding in January 2007, Pine Tree Equity has completed 21 acquisitions. The firm is based in Miami (www.pinetreeequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-24-13

KKR Acquires PRA International from Genstar

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PRA International, a clinical research organization and a portfolio company of Genstar Capital, has been acquired by KKR. The transaction is expected to close in the third quarter of 2013.

PRA International is an international clinical research organization (CRO) that provides services on a contract basis to the pharmaceutical and biotechnology industries. Services include the filing of Investigational New Drug and similar regulatory applications, management and implementation of Phase I through IV clinical trials, preparation and submission of New Drug Applications, and post-marketing surveillance on an international basis. PRA has more than 5,300 employees located in over 50 offices worldwide. Since 2000, PRA has performed approximately 2,000 clinical trials in over 80 countries on behalf of over 300 clients. The company is headquartered in Raleigh, NC (www.praintl.com).

“PRA is a well-positioned global CRO platform led by a talented management team with a long track record of success. As one of the fastest growing companies in the CRO sector, PRA is known for its strong client relationships and differentiated therapeutic expertise. PRA management and KKR share the common ambition of building on this platform by continually improving service offerings to clients and providing compelling career opportunities for employees,” said Jim Momtazee, Member of KKR and Head of KKR’s Health Care investing team.

Fully committed debt financing for the acquisition will be provided by Credit Suisse, Jefferies, UBS Investment Bank, and KKR Capital Markets.

KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $78 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).

Genstar acquired PRA in a take-private transaction in 2007 for $797 million. During the term of ownership Genstar invested additional capital in PRA and completed several add-on acquisitions, strengthened the company’s European operations, enhanced its technology, and developed its infrastructure to support continued expansion in emerging markets. As a result, the company generated significant revenue and EBITDA growth compared to the industry.

“The Genstar team has extensive experience building businesses in the life sciences industry and with their help we have grown PRA into a first class global CRO. Their support enabled us to better serve our clients in the U.S. and internationally. Targeted investments, particularly in Eastern Europe and Asia, expanded our geographic coverage and, as a result of this strong infrastructure, we have a growing list of new business opportunities,” said Colin Shannon, President and CEO of PRA. “We have been very fortunate with our partnership with Genstar and believe our company is positioned for continued growth as a KKR portfolio company.”

Genstar Capital invests in middle-market companies within the life sciences, healthcare services, financial & business services, software & software services, and industrial technology industries. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-24-13

AEA Acquires Aramsco

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AEA Investors has acquired Aramsco, a distributor of asbestos and lead related environmental safety equipment.

Aramsco is a distributor of safety products, equipment and supplies to customers engaged in asbestos and lead abatement, commercial and residential building restoration, and surface preparation. Customers include small and medium-sized specialty contractors. The company has a national network of 19 branches and employs more than 200 employees. The company was founded in 1966 and is based in Paulsboro, NJ (www.aramsco.com).

AEA manages approximately $6 billion of invested and committed capital in funds dedicated to three purposes: buyouts of middle market companies operating in the industrial, specialty chemical, consumer products and consumer services sectors; buyouts of smaller middle market companies in these same sectors; and mezzanine and senior debt investments. AEA was founded in 1968 and is based in New York with offices in London, Munich, Hong Kong, and Shanghai (www.aeainvestors.com).

Babson Capital Management (www.BabsonCapital.com).provided subordinated debt and made an equity co-investment to support the acquisition. Babson was the lead provider of subordinated debt on the transaction, with the balance provided by AEA Mezzanine Fund III LP.

“AEA Investors is pleased to work together again with Babson Capital on the investment in Aramsco Holdings,” said Tim Whelan, Vice President for AEA Investors. “The middle-market experience and expertise of the firm’s Mezzanine & Private Equity Group, combined with its commitment to client service, make Babson Capital an ideal partner for AEA Investors.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-24-13

TA Associates Invests in Fractal Analytics

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TA Associates has made a $25 million minority investment in Fractal Analytics, a provider of advanced analytics to Fortune 500 companies.

Fractal Analytics is a provider of advanced analytics to Fortune 500 companies. The company’s services are used to understand, predict and influence consumer behavior; improve marketing, pricing, supply chain, risk and claims management; and to improve business forecasting. The company has offices in San Francisco, New York, London, Mumbai, New Delhi, Singapore and Dubai (www.fractalanalytics.com).

“We believe that the big data space represents a very significant opportunity as companies have understood the power of data driven decision making but are struggling to operationalize and institutionalize analytics inside their organizations,” said Naveen Wadhera, Director and Country Head, TA Associates Advisory. “Fractal is one of the most respected players globally in this space and has been experiencing accelerated growth, making it the ideal company with which to partner. We look forward to working with the company’s management team to further build value in Fractal.”

“Over the last two years, Fractal has seen revenues almost triple in size, making us one of the fastest growing companies in the industry,” said Pranay Agrawal, Co-Founder and EVP, Fractal Analytics. “We are excited about how this partnership will help us expand our footprint and meet the growing client demand for analytics solutions. We are confident this collaboration with TA will prove beneficial to our clients and employees.”

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).

“We chose to partner with TA Associates because of their excellent track record in helping profitable companies become outstanding businesses,” said Srikanth Velamakanni, Co-Founder & CEO of Fractal Analytics. “We are passionate about helping companies leverage advanced analytics to better understand consumers, optimize pricing & marketing and compete more effectively in the marketplace. Our partnership with TA will help us fuel this passion further.”

Investment bank Avendus Capital (www.avendus.com) served as the exclusive financial advisor to Fractal Analytics.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-24-13

Norwest Equity Partners Exits Savage Sports

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Alliant Techsystems (ATK) Has completed the acquisition of Caliber Company, the parent company of Savage Sports Corporation and a portfolio company of Norwest Equity Partners. Savage is a manufacturer of hunting rifles and shotguns. Savage’s BowTech Archery brand was not part of this transaction. Norwest Equity Partners acquired Savage Sports in January 2012.

Savage Sports Corporation designs, manufactures and markets centerfire and rimfire rifles, shotguns and shooting range systems used for hunting as well as competitive and recreational target shooting. Brand names include Savage Arms, Stevens, and Savage Range Systems. Savage’s revenues for the trailing twelve months ended March 31, 2013, were approximately $200 million. The company was founded in 1894 and is based in Westfield, MA (www.savagearms.com).

“Savage has an outstanding reputation in the hunting and shooting sports industry, and we are pleased we can now include Savage as one of ATK’s highly recognized sporting brands,” said Mark DeYoung, ATK President and CEO. “ATK is committed to delivering affordable innovation to its customers, and this acquisition offers a great opportunity to expand our world leadership in sporting and security ammunition and accessories into the long guns market.”

Norwest Equity Partners is a middle-market private equity firm. The firm makes equity investments of $30 million to $150 million in companies operating in the agriculture, applied technology, business services, consumer products and services, distribution, diversified industrials, and healthcare sectors. The firm manages $5 billion of capital through a series of equity and mezzanine limited partnerships and is currently investing NEP IX with $1.2 billion in capital. Norwest Equity Partners is headquartered in Minneapolis (www.nep.com).

“Savage has been delivering customers high-quality firearms for more than 100 years,” said Al Kasper, Savage President and Chief Operating Officer. “We’re proud to continue that legacy under the ATK Sporting Group umbrella, and we know Savage’s products will be a natural complement to ATK’s existing hunting and shooting sports ammunition and accessories business.”

Alliant Techsystems (NYSE: ATK) is an aerospace, defense, and commercial products company with approximately 14,000 employees and operations in 21 states, Puerto Rico, and internationally. ATK’s Sporting Group is a provider of sporting and law enforcement ammunition and shooting accessories. ATK’s ammunition brands include Federal Premium, CCI, Fusion, Speer, Estate Cartridge and Blazer. ATK’s accessories brands include BLACKHAWK!, Alliant Power, RCBS, Champion targets and shooting equipment, Gunslick Pro and Outers gun-care products, and Weaver optics and mounting systems. ATK is headquartered in Arlington, VA (www.atk.com).

Alliant Techsystems financed the acquisition of Savage Sports with cash on hand and funds available under its existing credit facility.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-24-13

Cerberus Exits North American Bus Industries

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Cerberus Capital Management has completed the sale of North American Bus Industries to New Flyer, a manufacturer of heavy-duty buses, for $80 million. Cerberus acquired North American Bus Industries in 2006.

North American Bus Industries (NABI) is a manufacturer of transit buses and a provider of aftermarket parts. NABI has manufacturing operations in Anniston, AL, a centralized parts distribution center in Delaware, OH and a service center in Jurupa Valley, CA (www.nabusind.com).

New Flyer (TSX:NFI) is a manufacturer of heavy-duty transit buses in Canada and the United States. The company’s product line includes drive systems powered by: clean diesel, natural gas and electric trolley as well as energy-efficient diesel-electric hybrid vehicles. Together New Flyer and NABI have over 3,000 employees with manufacturing, fabrication, parts distribution and service centers in both Canada and the United States. New Flyer is headquartered in Winnipeg (www.newflyer.com).

Cerberus Capital Management has approximately $20 billion of capital under management and invests in four primary strategies: distressed securities & assets; control and non-control private equity; commercial mid-market lending and real estate-related investments. The firm was founded in 1992 and is headquartered in New York (www.cerberuscapital.com).

“We are proud to have supported NABI’s successful operational and financial turnaround led by its President and CEO, Jim Marcotuli, and the talented NABI management team,” said Dev Kapadia, a Cerberus Managing Director. “NABI has made great strides under Cerberus ownership, developing and successfully marketing a variety of innovative new vehicles. Under our stewardship, the company has been transformed into a sustainably profitable enterprise. New Flyer is a world-class company, and this combined entity will be positioned to provide customers with an enhanced product offering and superior customer service.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-24-13