August 1, 2013
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Archives for August 1, 2013

Building Industry Partners Acquires Tru-Wood

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truwood nfUnited Cabinet Holdings, a portfolio company of Building Industry Partners, has acquired Tru-Wood Cabinet Co.

Tru-Wood was founded in 1990 and is an integrated manufacturer of stock- and semi-custom kitchen, bath and other home cabinetry. Tru-Wood employs over 130 people on a full-time basis and sells its products through independent kitchen dealers primarily throughout the Eastern US. The company has manufacturing facilities in Ashland (headquarters) and Lineville, AL with over 370,000 square feet of combined manufacturing space, and a distribution facility in Longwood, FL. (www.truwood.com).

Upon closing of the transaction, Tru-Wood’s CEO Buddy Sharpe retired from the company after twenty-three years with Tru-Wood, and Butch Reimer has joined Tru-Wood as its new President. Mr. Reimer previously worked for NorCraft Companies, where he served as Senior Vice President of Operations for UltraCraft Cabinetry for over six years. Prior to NorCraft, Mr. Reimer ran operations within MasterBrand Cabinets and Robert Bosch Corporation.

United Cabinet Holdings (UCH) is a holding company in the kitchen and bath cabinetry manufacturing segment. UCH was formed in February 2012 by Building Industry Partners in partnership with cabinet industry veterans including Michael Arnaud (formerly with NorCraft/UltraCraft Cabinetry). UCH invests in North American regional kitchen & bath cabinetry manufacturers. UCH currently owns Touchstone Fine Cabinetry, a full- and semi-custom cabinetry manufacturer based in Rutherfordton, NC, and with this acquisition, owns Tru-Wood Cabinet Co. (www.unitedcabinetholdings.com).

“The investment in Tru-Wood is an important step in UCH‟s long term strategy of being able to offer a breadth of cabinetry price points to our rep and dealer relationships throughout the US,” said Mr. Arnaud, EVP, Sales & Marketing for United Cabinet Holdings.

Building Industry Partners (BIP) makes investments in the US middle-market building products industry. The firm focuses its efforts primarily on investments involving privately-owned building product manufacturers, distributors and dealers as well as niche construction-related service companies, typically with revenues of $25 million to $500 million. BIP is led by Matt Ogden, a building products private equity investment professional, and a team of investment professionals and building products operating executives. BIP is affiliated with Chambers Interests, the investment office of the Chambers family which was formed in 1997 and is led by Tom Chambers, the former Chief Executive Officer of Chemical Lime Company. BIP is based in Fort Worth and has an office in Los Angeles (www.building-ip.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13

Riverside and Hicks Acquire iMech

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imech nfH-D Advanced Manufacturing Company, a portfolio company of Hicks Equity Partners and The Riverside Company, has acquired Innovative Mechanical Solutions and Leading Edge Heat Treatment (collectively, iMech).

iMech is a designer and manufacturer of bearings for the directional drilling motor industry. Customers include oilfield service companies and directional drilling companies. The company operates a manufacturing and heat-treatment plant in Edmonton (headquarters) and has a warehouse and distribution center in Houston (www.imech.ca). iMech will continue to be led by Founder and President Wayne Horley, and will be operated as an independent division within H-D.

“We are delighted to add a proven and promising company like iMech to H-D,” said Riverside Partner Tim Gosline. “H-D was established to partner with outstanding industrial companies like iMech, and we believe that iMech will be better positioned to serve its customers as part of the H-D family of companies.”

H-D Advanced Manufacturing is actively seeking add-on opportunities in gearing, bearings, and other heavy duty, precision-engineered component sectors.

Hicks Equity Partners and The Riverside Company partnered with Christopher DiSantis to form H-D Advanced Manufacturing Company in December 2012 to acquire heavy-duty, precision-engineered industrial components companies. HD’s first acquisition, also in December 2012, was the purchase of Overton Chicago Gear Corporation, a manufacturer and distributor of large, custom, mission-critical gears and gearboxes. Overton Chicago Gear was founded in 1888 and employs more than 200 people at three manufacturing facilities in the Chicago area (www.oc-gear.com).

“iMech is a great fit for H-D,” said H-D CEO Chris DiSantis. “We’re thrilled to be adding a new business line, exceptionally talented people and a tremendous customer base through this new partnership with iMech. iMech’s custom bearings are specifically designed and manufactured for the harsh environments in which they are used, resulting in a better bearing with a longer life.”

Working with Mr. Gosline on the transaction for Riverside were Vice President Rob Langley, Senior Associate Spencer Moore, and Associate Conner Harris. Origination Principal Erik Holmsen sourced the opportunity and Partner Anne Hayes worked on financing the transaction for the Riverside.

PNC Business Credit, GE Antares Capital and Babson Capital provided the financing, and KPMG, Jones Day and Gowling Lafleur Henderson advised Riverside on the investment.

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 310 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 75 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Hicks Equity Partners is the private equity arm for Hicks Holdings, a holding company for the Thomas O. Hicks family’s assets. The firm invests in established companies with enterprise values of less than $200 million. Hicks Equity Partners is based in Dallas (no website found).

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13

Rock Hill Closes Fund 2

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rockhill nfRock Hill Capital Group has held a final closing of Rock Hill Capital II, LP (Fund II) with $87.7 million in capital commitments.

“We are pleased to report a successful close to our second fund,” said Randy Hale, Rock Hill’s Founder and Managing Director. “We appreciate the confidence of our Fund I investors who recommitted to invest with us and are pleased by the significant number of new investors who joined us as limited partners for Fund II. We look forward to building another portfolio of investments in partnership with entrepreneurial business owners.”

Fund II will continue the same investment strategy as Rock Hill’s first fund which was raised in 2007. To date, Rock Hill has invested in three companies through Fund II.

Rock Hill Capital Group invests in small-to-lower middle market companies with enterprise values up to $75 million and EBITDA of less than $10 million that are located in the South and Southeast regions of the US. Sectors of interest include industrial and energy services and value-added distribution. The firm was founded in 2007 and is based in Houston (www.rockhillcap.com).

“When we invest in a company, we get very involved,” said Mr. Hale. “We believe in bringing more to the table than just money. We seek to help our portfolio companies improve efficiencies in operations, expand customer relationships and increase market depth of product lines and services.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13

RCP Closes Fund 2 Way Above Target

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rcp nfRCP Advisors has held a final closing of RCP Secondary Opportunity Fund II, LP (RCP SOF II). The new fund closed with $425 million in commitments, exceeding its target of $300 million.

“Secondary funds are the focus of many investors’ attention these days. The positive market reaction to RCP Secondary Opportunity Fund II shows that our differentiated focus on the small buyout fund market resonates with investors,” said Charles Huebner, Managing Principal and Chief Investment Officer at RCP Advisors. “They see great opportunity in this market despite increased competition in secondaries overall. The strong performance to date of our earlier secondary fund as well as the unique market opportunity allowed us to retain a majority of our existing limited partners and attract a high quality roster of new investors. We are pleased with this success during the fundraising phase and look forward to a successful investment period for our new fund.”

RCP SOF II will acquire interests in established private equity funds through secondary market purchases that offer the potential for capital appreciation and investment returns and that focus on leveraged buyout transactions. Investment sizes range from $3 million to $30 million which match the natural commitment sizes commonly seen in lower middle market funds.

RCP Advisors currently manages over $3 billion in committed capital in over 150 private equity investments across the firm’s funds-of-funds as well as its secondary funds and co-investment fund.  RCP Advisors is one of the largest funds-of-funds managers exclusively focused on the lower middle market buyout segment of the private equity market. The firm was founded in 2001 and is headquartered in Chicago with an additional office in Newport Beach, CA (www.rcpadvisors.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13

Saw Mill Adds a Vice President

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sawmill nf2Scott VandeKerkhoff has rejoined Saw Mill Capital after earning his MBA from Columbia Business School. In his new role as a Vice President he will be responsible for sourcing and executing new investments and working with portfolio companies.

“Scott was a valuable team member prior to graduate school, and we are excited that he has returned,” said Howard Unger, Managing Partner at Saw Mill Capital. “As the market has rebounded, we have seen a greater volume of new opportunities. However, finding those that our competitors overlook, where Saw Mill can differentiate itself to create value, requires an experienced and proven investor like Scott,”

scott vande nfPrior to attending business school, Mr. VandeKerkhoff worked for Saw Mill Capital as an Associate and Senior Associate, where he supported both new investment activity and portfolio management. He began his career as an investment banking analyst at KeyBanc Capital Markets, where he supported acquisitions and corporate finance transactions of industrial technology businesses. In addition to his MBA from Columbia, Mr. VandeKerkhoff has a BA in Finance from Michigan State.

Saw Mill Capital invests in manufacturing and service companies with enterprise values of $25 million to $200 million. Platform investments typically have at least $5 million of EBITDA and revenues of $40 million to $150 million. The firm is located in Briarcliff Manor, NY (www.sawmillcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13

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