Archives for July 31, 2013

Kinderhook Acquires Allstate Power Vac

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The Environmental Quality Company, a portfolio company of Kinderhook Industries, has acquired Allstate Power Vac, a provider of industrial and environmental services.

Allstate Power Vac provides industrial and environmental services including industrial cleaning services, tank & oil processing, sewer lining and maintenance services, and related industrial and hazardous waste services such as transport, storage and emergency response. The company is based in Rahway, NJ (www.aspvac.com).

Environmental Quality Company (EQ) is a fully integrated environmental services and waste management organization. The company owns treatment, disposal and recycling facilities and also offers a line of remediation, industrial cleaning and waste management services throughout the United States. EQ is based in Wayne, MI (www.eqonline.com).

“The acquisition of Allstate will further expand EQ’s market presence in the Northeast with the addition of seven strategically located facilities,” said Dave Lusk, CEO of EQ. “Allstate is recognized as a market leader with diverse service offerings and a versatile fixed asset base. Since its founding, Allstate has maintained a reputation for delivering extraordinary customer service with a focus on quality and safety. We look forward to partnering with Lou Galasso and the Allstate management team.”

Kinderhook Industries makes control investments in companies with transaction values of $25 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).

The acquisition of Allstate represents the 14th environmental services transaction completed by Kinderhook in the last five years.

Financing for the transaction was provided by Comerica Bank.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13

Baird Capital Partners Acquires Thunderbird Sanctuary

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Eckler’s, a portfolio company of Baird Capital Partners, has acquired T-Bird Sanctuary, a provider of classic Thunderbird restoration parts and accessories.

T-Bird Sanctuary (www.tbirdsanctuary.com) was founded in 1966 and is the oldest source for Thunderbird parts in the industry. T-Bird will be combined with the classic Thunderbird parts currently offered by the MAC’s Auto Parts (MACS) division of Eckler’s, which was acquired by the company in November 2012. MAC is the largest supplier of Ford restoration parts and accessories and the newly combined MAC’s Thunderbird business will have the most comprehensive selection of Thunderbird parts in the industry, covering all production years from 1955 through 1979.

“T-Bird is in good hands. Eckler’s resources and capability to stock more parts, invest in more tooling, and offer improved service will be a great asset for our customers,” said Bob Peters, President of T-Bird Sanctuary.

Eckler’s, acquired by Baird in July 2012, is a multi-channel marketer of restoration parts and accessories for classic and enthusiast cars and trucks. Eckler’s products are primarily marketed to consumer enthusiasts and small business classic car restorers. The company is based in Titusville, FL (www.ecklers.com).

“With the acquisition of T-Bird Sanctuary, we can now ensure that Thunderbird enthusiasts have one place to go for the broadest selection and the best on-hand inventory and technical support. We want to make it easy to find and obtain the parts they need so they can focus on enjoying these incredible cars,” said Matt Jordan, Eckler’s CEO.

Baird Capital Partners invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 million to $125 million and EBITDAs greater than $5 million. Baird Capital Partners was founded in 1989 and is based in Chicago (www.bairdcapitalpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13

J.F. Lehman Acquires OP-TECH Environmental Services

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National Response Corporation, a portfolio company of J.F. Lehman & Company, has acquired OP-TECH Environmental Services.

OP-TECH is a provider of specialty environmental remediation and industrial services in the Northeast and Mid-Atlantic regions of the United States. The company is headquartered in Syracuse with additional branch offices located throughout New York State ((www.op-tech.us).

NRC, acquired by J.F. Lehman in March 2012, is a provider of United States Oil Pollution Act of 1990 regulatory compliance and emergency response services, and a provider of other diversified environmental, industrial, and emergency response services. The company has approximately 625 employees and is headquartered in Great River, NY with regional offices throughout the US and internationally (www.nrcc.com).

“NRC continues to execute its strategy of expanding its service offerings in environmental, industrial, and emergency response services both domestically and abroad,” said Alex Harman, Partner at J.F. Lehman. “OP-TECH demonstrates many of the qualities we seek in acquisition candidates and we are excited to have them as a part of NRC.”

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has made investments in companies with an aggregate transaction value of approximately $1.6 billion. The firm was founded in 1992 and is headquartered in New York with additional offices in Washington, DC and London (www.jflpartners.com).

Senior debt financing for the acquisition of OP-TECH was arranged by BNP Paribas Securities as sole lead arranger.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13

Industrial Opportunity Partners Invests in Betty Machine

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Industrial Opportunity Partners (IOP) has made an investment in Betty Machine Company to support the recapitalization of the business.

Betty Machine represents IOP’s second platform investment in Industrial Opportunity Partners II, LP, the firm’s $275 million second fund which closed in April 2012. IOP is partnering in this investment with John Zobl, the current owner and operator of Betty Machine. Mr. Zobl will remain as President and CEO of Betty Machine and will continue to serve on the Board of Directors. In addition, Nick Galambos, an IOP Operating Principal, will assume the position of Chairman.

Betty Machine is a precision machining manufacturer of close tolerance parts primarily for automotive applications. The company supplies products, through its Tier 1 customers, to auto original equipment manufacturers (Ford, GM, Chrysler, Honda, and Toyota) as well as other manufacturers. Volumes range from low volume prototypes to high volume production parts. Most of the company’s products are used in assemblies that span multiple vehicle platforms and run for several years. Betty Machine operates out of a 75,000 sq. ft. facility in Hendersonville, TN (near Nashville) (www.bettymachine.com).

“The management team and I are excited to partner with IOP. IOP brings both capital and the experience of Nick Galambos and the rest of the IOP team which should permit the company to continue to grow and capitalize on opportunities,” said Mr. Zobl.

IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. IOP targets businesses with strong product, customer, and market positions and provides management and operational resources to support sales growth and operational improvements. The firm has $460 million of committed capital and was founded in 2005. IOP is headquartered in Evanston, IL (www.iopfund.com).

“We are very excited to partner with John Zobl. We believe Betty Machine is an established business with an excellent reputation for quality and customer service and strong relationships with high-quality customers,” said Kenneth Tallering, Senior Managing Director of IOP.

The opportunity to invest in Betty Machine Company was sourced by IOP through Focus Capital Advisors (www.fcateam.com).

Cole Taylor Bank provided financing for the acquisition.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13

Svoboda Capital Partners Acquires TVC Label

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MEI Labels, a portfolio company of Svoboda Capital Partners, has acquired the assets of TVC Label, Inc. and TVC One, Inc. (TVC). The management of TVC will continue to operate and own a significant portion of the business.

TVC is a manufacturer and provider of print, label and packaging products for customers in the health & beauty, consumer goods and pet care markets. The company was founded in 1993 and is headquartered in Lewisville, TX (www.tvcone.com).

MEI, acquired by Svoboda Capital in December 2012, is a provider of pressure sensitive label products, inserts, tags, banners, and other products, including silk screening and embroidery. The company was founded in 1996 and is based in Catoosa, OK (www.meilabels.com).

“MEI is very excited about the prospect of partnering with TVC. TVC’s management team and their employees have built an impressive enterprise focused on client service and top quality products, aligning well with MEI’s philosophy,” said Lynn Higgs, MEI Labels’ CEO. “This strategic transaction will undoubtedly accelerate the company’s expansion into new products and new end markets.”

Svoboda Capital Partners has over $300 million of capital under management and invests from $10 million to $25 million in value-added distribution and business services companies that have revenues from $10 million to $100 million and EBITDAs from $3 million to $15 million. The firm was founded in 1998 and is based in Chicago (www.svoco.com).

“The combination of MEI and TVC is very compelling given their complementary attributes,” said Jeff Piper, Principal at Svoboda Capital Partners. “We look forward to continue working with the company to execute on its organic and acquisitive growth objectives.”

The Commercial Banking Group of Wintrust Financial Corporation provided senior debt to complete the transaction. The Investment Banking division of Mesirow Financial acted as the exclusive financial advisor to TVC.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13

NXT Capital Closes $783 Million Leveraged Loan Fund

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NXT Capital has closed NXT Capital Senior Loan Fund II, LP (Fund II), a $783 million leveraged loan fund that will invest in senior debt transactions originated and underwritten by NXT Capital’s Corporate Finance Group. Loan types include senior secured, stretch senior, unitranche, 2nd lien, term over revolver and last-out term loans made primarily to private equity-sponsored middle market companies across a range of industries.

Fund II represents a substantial expansion of the Corporate Finance Group’s existing $1.5 billion asset management platform and further extends the company’s ability to serve its middle market client base. Fund II received equity commitments from nine institutional investors, including pension plans, insurance companies and foundations. In addition, Wells Fargo Bank has provided a $500 million term loan commitment to Fund II.

“The successful close of this fund represents a strong endorsement of NXT Capital’s expertise in middle market leveraged lending and our track record as an asset manager,” said Robert Radway, NXT’s Chairman and CEO. “We appreciate investors’ vote of confidence in our team and the attractiveness of this investment opportunity.”

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, Charlotte, Dallas, Phoenix, San Francisco and Silicon Valley (www.nxtcapital.com).

“The addition of Fund II to our existing asset management platform further solidifies NXT’s position as a leader in the middle market space,” said John Finnerty, Head of NXT Capital’s Corporate Finance Group.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13