Archives for August 13, 2013

Industrial Growth Partners Exits Controls Southeast

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Industrial Growth Partners (IGP) has sold its portfolio company Controls Southeast, a provider of heating systems for industrial piping, to AMETEK for approximately $160 million. Industrial Growth Partners acquired Controls Southeast in June 2010.

Controls Southeast (CSI) provides bolt-on heating systems for piping, tanks, valves and instrumentation used in the oil refining, natural gas processing, petrochemical, and chemical industries. Other products and services include jacketed piping systems, system engineering and design, field consulting, and installation support. Controls Southeast has annual sales of approximately $50 million and is headquartered in Pineville, NC (www.csiheat.com).

During IGP’s ownership, the company increased its international revenue by a factor of five, strengthened its senior leadership team, more than doubled its direct sales force and global representative network, established production capabilities in the Middle East and launched several new proprietary products and services.

“IGP’s support of CSI as we transitioned from a family-owned business to an institutionally-backed enterprise was essential. They were an ideal partner as we went through the process of expanding aggressively overseas, particularly in the Middle East, and also in supporting new product initiatives,” said Fred Stubblefield, President of CSI. “Ultimately, these actions enabled us to further solidify our status as a global technology leader in our industry, accelerate expansion into underpenetrated market segments and geographies, and position the business to capitalize on the large, growing global market opportunity.”

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm is based in San Francisco (www.igpequity.com).

AMETEK is a global manufacturer of electronic instruments and electro-mechanical devices with headquarters in Berwyn, PA (near Philadelphia). The company has annual sales of approximately $3.5 billion and was founded in 1930 (www.ametek.com).

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

The Carlyle Group Exits ARINC

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Rockwell Collins has reached an agreement to acquire ARINC Incorporated, a portfolio company of The Carlyle Group, for $1.39 billion.

ARINC provides aviation related communications, engineering and integration services to commercial and government customers worldwide. The company’s products and services are used by pilots, operators, maintenance, passengers, controllers, regulators, security, and airport operations. In addition, ARINC provides communications and information processing for the rail, industrial security and public safety segments. The company is headquartered in Annapolis, MD (www.ARINC.com).

“Strategically, this acquisition is a natural fit for Rockwell Collins,” said Kelly Ortberg, Rockwell Collins Chief Executive Officer and President. “It accelerates our strategy to develop comprehensive information management solutions by building on our existing information-enabled products and systems and ARINC’s ground–based networks and services to further expand our opportunities beyond the aircraft.”

Rockwell Collins (NYSE: COL) provide communication and aviation electronics for both commercial and government applications. The company is headquartered in Cedar Rapids, IA (www.rockwellcollins.com).

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The Carlyle Group employs 1,400 people in 34 offices across six continents and is based in Washington, DC (www.carlyle.com).

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

CVC Capital to Buy Campbell’s European Businesses

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CVC Capital Partners has entered into exclusive final negotiations with the Campbell Soup Company to acquire certain European activities (excluding the UK, Ireland, Middle East and Africa activities) of Campbell’s.

Campbell Europe is a consumer food business active in Belgium, France, Germany, Sweden and Finland. Campbell Europe owns a portfolio of consumer brands primarily in soups, sauces and bouillons including Devos Lemmens, Royco, Liebig, Déli Soup, Erasco, Blå Band, Touch of Taste and Lacroix. In fiscal 2012, Campbell Europe generated annual net sales of approximately €400 million. Campbell Europe is headquartered in Puurs, Belgium and employs approximately 1,300 people (click HERE for the Campbell Europe website).

“CVC is delighted to have entered into exclusive final negotiations for the acquisition of Campbell Europe. Campbell Europe is a strong business with iconic brands, experienced management and dedicated employees. CVC is committed to successfully growing the business further and to supporting its leading brand portfolio,” said Steven Buyse, Senior Managing Director of CVC Capital Partners.

CVC has raised fully committed senior debt financing with Rabobank, ING and BNP Paribas Fortis as joint underwriters and bookrunners.

CVC invests in a range of industries with a specific interest in industrial and service businesses. To date, CVC has raised over $60 billion in capital completing over 300 investments with an aggregate transaction value of $150 billion. The firm, founded in 1981, is based in London and has a network of 21 offices and 280 employees throughout Europe, Asia and the United States (www.cvc.com).

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

Paulson Offer for Steinway Tops Kohlberg’s

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Steinway Musical Instruments has received a definitive offer to acquire all of the outstanding shares of the company’s common stock at a purchase price of $38 per share in cash from Paulson & Co. which exceeds the $35 per share proposal the company received last month from Kohlberg & Co.

According to published reports, Paulson & Co. has teamed with interim Steinway CEO Michael Sweeney on the $38 per share offer which equates to an equity value of $475 million. The Paulson offer also includes a fully negotiated merger agreement and financing commitments.

Steinway has announced, after consideration and consultation with its financial advisors, legal counsel, and the company’s board of directors, that the Paulson offer constitutes a superior proposal to the $438 million offer from Kohlberg. Kohlberg has until August 14, 2013 to make adjustments to the terms and conditions of its prior offer for Steinway.

Steinway Musical Instruments, through its Steinway and Conn-Selmer divisions, is a designer, manufacturer, marketer and distributor of musical instruments. These products include Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos. Through its online music retailer, ArkivMusic, the company also produces and distributes classical music recordings. Steinway is based in Waltham, MA (www.steinwaymusical.com).

Paulson & Co. is an investment management firm established by its founder and President, John Paulson in 1994. The firm has approximately $24 billion in assets under management. Paulson & Co. has approximately 120 employees in offices located in New York, London and Hong Kong (www.paulsonco.com).

Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on transactions with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company is currently investing its seventh private equity fund, Kohlberg Investors VII. The firm was founded in 1987 and is based in Mt. Kisco, NY (www.kohlberg.com).

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

Former P&G Executive Joins The Carlyle Group

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The Carlyle Group has added Susan Arnold, former Procter & Gamble President of Global Business Units, as an Operating Executive in the firm’s Global Consumer & Retail group.

As an Operating Executive, Ms. Arnold will provide strategic guidance to Carlyle professionals throughout the investment process, from sourcing to acquisition to exit and she will advise portfolio company executives on management, operational, branding and growth strategies.

“We are pleased to welcome Susan to the Carlyle team following a remarkable 29-year career at Procter & Gamble,” said Sandra Horbach, Carlyle Managing Director and Head of the Global Consumer & Retail group. “Susan’s depth and scope of strategic and operational experience in the consumer space will help us to create value in our existing portfolio and to make new promising investments.”

Ms. Arnold joined Proctor & Gamble in 1980 and retired in 2009. Prior to serving as President of Proctor & Gamble’s $50 billion Global Business Unit, Ms. Arnold held various positions within the firm, including Vice Chairman of Global Beauty Care and Health, and President of Global Personal Beauty and Global Feminine Care. She currently serves on the Board of Directors of Disney and McDonalds. Ms. Arnold earned her bachelor’s degree in psychology from the University of Pennsylvania and her MBA from the University of Pittsburgh.

“I am excited to become part of a firm that is committed to strengthening brands and creating value. Sandra and her team have a track record of success and I am eager to contribute to their efforts,” said Ms. Arnold.

The Consumer & Retail group has led Carlyle’s acquisition of numerous companies, including: Dunkin’ Brands, philosophy, NBTY and CVC. The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The Carlyle Group employs 1,400 people in 34 offices across six continents and is based in Washington, DC (www.carlyle.com).

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