Archives for July 8, 2013

CounterPoint Acquires Bradshaw Group

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Parts Now, a portfolio company of CounterPoint Capital Partners, has acquired The Bradshaw Group, a distributor of printer parts and supplies. CounterPoint acquired Parts Now in September 2012.

The Bradshaw Group is a distributor of desktop laser and production printer parts and supplies. The company was founded in 1990 and is based in Richardson, TX (www.bradshawgroup.com).

“The addition of production printer parts and supplies along with a strong regional and international customer base make Bradshaw a perfect addition to Parts Now and the CounterPoint portfolio of companies,” said Matthias Heilmann, CounterPoint partner and CEO of Parts Now.

Parts Now is a distributor of OEM and refurbished consumable printer parts and related accessories. The company sells more than 6,000 products to a range of customers across the US. The company is based in Madison, WI (www.PartsNow.com).

“Parts Now is one of our most inspiring investments. In the short time since our acquisition, the management team has implemented a number of substantial changes to the business. We have been very impressed with the team’s success and look forward to helping them extend that success into new geographies and business lines through integration of The Bradshaw Group,” said Chris Iorillo, Managing Partner.

CounterPoint Capital Partners invest in lower-middle market companies headquartered throughout the United States and Canada with $10 million to $200 million in annual revenues. CounterPoint looks for complex situations caused by operational, succession, or financial challenges within a company or industry. The firm is based in Los Angeles (www.counterpointcp.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-8-13

Irving Place and Oaktree Sell Chesapeake to Carlyle

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Irving Place Capital and Oaktree Capital Management have entered into an agreement to sell their portfolio company, Chesapeake Corp., a supplier of specialty paperboard packaging, to The Carlyle Group.

Chesapeake is a supplier of value-added specialty paperboard packaging, including folding cartons, leaflets and labels, for the pharmaceutical, confectionary, and premium drinks markets. Founded in 1918, Chesapeake is headquartered in Nottingham, UK and has 38 facilities located throughout the UK, continental Europe, the United States and Asia (www.chesapeakecorp.com).

Irving Place Capital and Oaktree Capital completed the acquisition and recapitalization of Chesapeake in May 2009. Since acquisition, Chesapeake executed a strategic and operational plan that included a capital investment program to expand capacity and enhance manufacturing capabilities. The company also completed three add-on acquisitions during this period to expand its technical capabilities and geographic presence.

“We were excited about Chesapeake’s potential when we first identified the company and are appreciative of having the opportunity to support the company through an important stage in its evolution,” said Phil Carpenter, a Senior Managing Director at Irving Place Capital. “The business is well positioned for continued success, and we wish our management partners and the employees the very best as they lead Chesapeake on to its next phase of growth.”

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).

“It has been a pleasure to have been a part of helping Chesapeake reshape its capital structure, strategic plan and operations throughout the past four years. We would like to thank Mike Cheetham and his outstanding team for all of their hard work in transforming this business during our ownership,” said Jordon Kruse, Managing Director at Oaktree Capital Management. “We believe the company is now set to continue along a strong growth trajectory, and we wish the company and management team continued success as they enter this next phase.”
Oaktree Capital Management makes investments in distressed debt, real estate, high yield and convertible bonds, specialized private equity, emerging market and Japanese securities and mezzanine finance. The firm has over 700 employees and $79 billion in assets under management and is headquartered in Los Angeles (www.oaktreecapital.com).

Irving Place Capital and Oaktree Capital were advised on the sale of Chesapeake Corp. by Barclays.

013 PEPD • Private Equity’s Leading News Magazine • 7-8-13

Behrman Acquires National Hybrid

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Data Device Corporation, a portfolio company of Behrman Capital, has acquired National Hybrid from API Technologies Corp. in a transaction valued at $32.5 million.

National Hybrid is a designer and manufacturer of military standard data networking technology, specializing in components for the defense and aerospace sectors. The company is headquartered in Ronkonkoma, NY (www.nationalhybrid.com).

Data Device Corporation (DDC) is a designer and manufacturer of data networking, motion control, and solid-state power controller products for aerospace, defense, and industrial applications. The company was founded in 1964 and is headquartered in Bohemia, NY (www.ddc-web.com).

“National Hybrid is an ideal strategic acquisition for DDC. This addition of National Hybrid’s product line will greatly enhance DDC’s offering to its customers and also provide access to new strategic markets. We look forward to building upon National Hybrid’s leadership in military specification data bus products,” said Vincent Buffa, President of DDC.

Behrman Capital invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The firm’s investments are primarily focused in five industries: health care, specialty manufacturing, business to business outsourcing, defense and information technology. Behrman Capital currently has in excess of $3 billion in assets under management. The firm was founded in 1991 and has offices in New York and San Francisco (www.behrmancap.com).

“We are excited about incorporating National Hybrid into the DDC platform. The combination will strengthen DDC’s access to additional sales channels, customers and locations. We are proud to support Vincent Buffa and his team, who have done an exceptional job of building DDC, as they continue to drive industry-leading innovation and customer service,” said Grant Behrman, Managing Partner of Behrman Capital.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-8-13

Intervale Acquires Milam Tool and K&M Machine Works

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Intervale Capital has acquired Milam Tool Company, a manufacturer of products used in oil and gas applications. In conjunction with the Milam transaction, Intervale also acquired K&M Machine Works, a manufacturer of casing accessories. The assets of both Milam and K&M will be held under a newly-formed holding company called Benchmark Completions LLC.

Milam Tool Company is a manufacturer of solid-body centralizers, stabilizers, and stop collars. The company was founded in 1985 and is headquartered in Oklahoma City, OK (www.milamtool.com). K&M Machine Works is a manufacturer of casing accessories including threaded couplings, joints, crossovers, stop collars and sub-assemblies. The company is based in Spring, TX (www.kmmachineworks.com). Milam and K&M both participate in the approximately $1.5 billion casing and cementation hardware market, which has grown at a 12% compounded annual growth rate since 2005, according to Spears & Associates.

Clayton Plucheck has been named President and Chief Executive Officer of Benchmark. Mr. Plucheck joins Benchmark after a career in casing hardware, having previously served as R&D Manager in Weatherford International’s casing hardware division. He also co-founded Ferro-Tube Oil Tools and Liner Shoes, two businesses in the casing and cementation hardware segment.

“I’m thrilled to partner with Milam, K&M and Intervale Capital to build a best-in-class casing hardware and accessories company,” said Mr. Plucheck. “Benchmark is committed to delivering to the market cutting-edge casing hardware products. We will build on Milam and K&M’s track records of superior quality, customer service and on-time delivery.”

Intervale Capital invests exclusively in middle-market oilfield services and manufacturing companies and related technologies. The firm has more than $650 million under management and is currently investing from its second fund. Intervale was founded in 2006 and is headquartered in Cambridge, MA with an additional office in Houston, TX (www.intervalecapital.com).

“We are excited to partner with Clayton to accelerate Milam and K&M’s growth. Milam’s solid-body centralizers allow Benchmark to participate in the rapidly growing horizontal centralization market in the U.S. K&M expands Benchmark’s manufacturing capacity, particularly for customers’ threaded coupling requirements in demanding onshore and offshore applications,” said Tuan Tran, a Vice President at Intervale.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-8-13

Irving Place Capital Exits Multi Packaging Solutions

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Madison Dearborn Partners has agreed to buy Multi Packaging Solutions, a supplier of print-based specialty packaging, from Irving Place Capital.

Multi Packaging Solutions (MPS) is a manufacturer of print-based specialty packaging for the healthcare, consumer, and media end markets. MPS has 16 manufacturing locations with approximately 2,600 employees in the United States and Europe. The company is headquartered in New York (www.multipkg.com).

“In 2005 we backed entrepreneur Marc Shore with the shared vision of creating a packaging company that didn’t exist in the marketplace,” said Phil Carpenter, a Senior Managing Director at Irving Place Capital. “Over the past eight years, Marc and the MPS management team have seized that opportunity – completing seven add-on acquisitions, entering new end markets, and investing aggressively to establish a global business to reach new customers. We have enjoyed supporting the team in building MPS and extend our best wishes for their continued success.”

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).

Madison Dearborn Partners has more than $18 billion of capital under management and makes new investments through its most recent funds, Madison Dearborn Capital Partners V and Madison Dearborn Capital Partners VI. Sectors of interest include basic industries, where packaging is a core focus area; business and government services; consumer; health care; financial and transaction services; and telecom, media and technology services. Madison Dearborn Partners was founded in 1992 and is based in Chicago (www.mdcp.com).

“Marc Shore and his team have created a unique company with an unmatched global platform and significant potential for future growth. We believe our experience in supporting packaging businesses will be a real asset to the company as it enters into its next growth phase. We are excited to support the senior team and the company’s employees to build on their track record of success and to help the company reach new heights in its capabilities to service global customers,” said Tom Souleles, a Managing Director at Madison Dearborn Partners.

Multi Packaging Solutions was advised on the transaction by Bank of America Merrill Lynch and Barclays. Madison Dearborn Partners was advised by Moelis & Company.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-8-13

Actis Exits Vesta Catering

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Actis has sold its portfolio company, Vesta Catering Co., a kitchen equipment manufacturer in China, to Illinois Tool Works.

Vesta’s product portfolio is composed of Western cooking/warming equipment including fryers, griddles, convection ovens, modular cooking equipment, and combi ovens, sold under the brand name Justa. Key customers include four and five star hotels and chain restaurants. The company is headquartered in Guangzhou, China and operates two manufacturing facilities there, employing approximately 900 people (www.vesta-china.com.cn).

Actis is a private equity investor in emerging markets with a portfolio of investments in Asia, Africa and Latin America. Actis provides equity capital for buyout, growth capital and project finance transactions, typically investing between $50 million and $250 million. The firm will take a controlling or a minority stake depending on the particular needs of the business. The firm is based in London (www.act.is).

Illinois Tool Works is a diversified industrial manufacturer of value-added consumables and specialty equipment with related service businesses. ITW is based in Glenview, IL (www.itw.com).

“We are pleased to add Vesta to our global food equipment business,” said ITW Executive Vice President Chris O’Herlihy. “This acquisition gives us entry to the fast-growing Chinese Western cooking industry with a differentiated product offering, attractive end market presence, and a well-established national distribution sales and service network.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-8-13