Archives for September 16, 2013

Baird Capital Acquires U.S. Chemical Storage

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Justrite Manufacturing Company, a portfolio company of Baird Capital, has acquired U.S. Chemical Storage, a manufacture and customizer of hazardous material outdoor storage buildings.

Justrite, acquired by Baird in July 2011, is a designer and manufacturer of safety products for the handling and storage of flammable and hazardous liquids. Justrite’s range of products includes safety cabinets, safety cans, spill containment systems, and related accessories, sold to end users worldwide through a network of more than 1,700 North American and international distributors. Justrite was founded in 1906 and is based near Chicago in Des Plaines, IL (www.justritemfg.com).

U.S. Chemical Storage was founded in 1983 and is based in Boone, NC (www.uschemicalstorage.com).  U.S. Chemical Storage’s products will be combined with Justrite’s current offerings, resulting in an expanded storage solution product line.  “Through the acquisition of U.S. Chemical Storage, we are now able to provide a wider selection of innovative storage products,” said Justrite CEO Mark McElhinny.

Baird Capital, the direct private investment arm of Robert W. Baird & Co., 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 was founded in 1989 and is based in Chicago (www.bairdcapital.com).

“The acquisition of U.S. Chemical Storage further solidifies Justrite as a leader in the safety storage sector,” said Andrew Brickman, Partner in Baird Capital’s U.S. Private Equity group. “Given the continued focus on creating safe and efficient workplaces both domestically and abroad, we believe Justrite answers a critical market demand.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-16-13

Central Valley Exits Ultra Gro Plant Foods

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The Central Valley Fund (CVF) has exited its investment in Ultra Gro Plant Food.  CVF supported a management led buy-out of Ultra Gro in 2008 by investing $3.35 million in mezzanine debt and equity to assist management in financing the purchase from the company founders.

Ultra Gro is a full-service provider of custom-blended fertilizers that can be tailored to a variety of crop, soil and microclimate conditions. The company is based in Madera, CA (www.ultragroplantfood.com).

“The 2008 management buy-out gave Ultra Gro the opportunity to take full advantage of the expanded demand for fertilizer products in a strong commodity market. Thanks to continued internal and external investment in the product range, Ultra Gro has captured new market share and continues to expand its customer base domestically, and in Mexico”,  according to President, Don Parreira.

The Central Valley Fund typically invests from $2 million to $10 million in subordinated debt and preferred stock instruments. Target companies will have revenues from $10 million to $100 million. The fund has offices in Davis and Fresno, CA (www.centralvalleyfund.com).

“Ultra Gro has become a market leader in specialty fertilizer in the Central Valley. The transformation of the business demonstrates our partnership with the management team and their hard work in creating a diversified business in a competitive market. We wish the business all the best in the future as it embarks on its next stage of growth,” said Ed McNulty, Partner at CVF.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-16-13

Golden Equity Acquires IMDS

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Golden Equity Investments has acquired Innovative Medical Device Solutions (IMDS), a contract manufacturer of medical implants and instruments for the orthopedic market.

As part of this transaction, IMDS will become part of CoorsTek Medical LLC, a newly formed affiliate of the technical ceramics supplier CoorsTek, Inc.

“We are very excited to have IMDS and its talented employees join the team,” said Jonathan Coors, a Manager at Golden Equity Investments and now the new CEO of IMDS.   “We believe this acquisition allows for expansion into a key market and we bring significant experience and expertise to IMDS, particularly around operational excellence in manufacturing and materials.”

IMDS has seven locations across the US specializing in outsource product development and manufacturing to medical device OEMs, as well as innovation partnerships with surgeon inventors. The company is headquartered in Ft. Worth, TX (www.imds.net).

“The combination of IMDS and CoorsTek Medical will bring a unique portfolio offering to its customers. The acquisition also demonstrates CoorsTek Medical’s commitment to become a leading orthopedic implant and instrumentation supplier globally, while maintaining its lead in innovative orthopedic product development,” said Brady Shirley, President of IMDS.

Golden Equity Investments seeks to acquire middle market manufacturing companies who can benefit from the firm’s competencies in global manufacturing, operations, logistics and managing complex supply chains.   The firm was founded in 2011 and is based in Golden, CO (www.goldenequityinvestments.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-16-13

NXT Capital Expands Direct Originations Team

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NXT Capital has expanded its Direct Originations Team with the hiring’s of David Gozdecki, James Clifton and Jeffrey Kurtzweil.

NXT Capital’s Direct Originations Team, led by Managing Director Richard Rodgers, sources senior secured, stretch, unitranche and 2nd lien cash flow solutions for non-sponsored middle market companies across the United States that have $5 million to $75 million of EBITDA.

“I’m very pleased to bring such talented professionals into NXT Capital’s Direct Originations Team,” said John Finnerty, Group Head, Corporate Finance. “David Gozdecki, James Clifton and Jeffrey Kurtzweil offer a wealth of experience and relationships to help NXT Capital deliver the responsive service, creative structures and significant hold sizes middle market companies need.”

Mr. Gozdecki was most recently a Managing Director in the GE Capital’s Corporate Finance Group, where he structured a range of credit facilities for middle market companies.  Mr. Clifton was previously a Vice President at GE Capital with responsibilities for originating senior secured financing for middle market companies.  Mr. Kurtzweil was most recently a Vice President in GE Capital’s Senior Secured Loan Program.

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 targets senior financing opportunities up to $150 million with a hold size up to $50 million. 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).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-16-13

Huntington Capital Expands Team

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Huntington Capital has added two new members to its investment team with the additions of Frank Mora as Principal and Nicolas Lopez as Senior Associate.

Mr. Mora is active with Huntington’s portfolio companies and sourcing and structuring new investment opportunities for Huntington’s latest fund, Huntington Capital Fund III.  Mr. Mora joined Huntington from DBI Capital, a Southern California based lower middle market private equity buyout group where he was responsible for sourcing and structuring investment transactions, including co-investments into two Huntington portfolio companies.

“Frank has been working with the team at Huntington for several years through common co-investments and we are delighted to have him become part of our firm,” said Huntington’s founding partner Morgan Miller.

Mr. Mora holds a BS in Economics from the Wharton School of the University of Pennsylvania with a dual concentration in Accounting and Finance and an MBA from Columbia Business School.

Nicolas Lopez joins Huntington from Best Buy Capital where he served as an associate.  While at Best Buy Capital, he helped identify, evaluate and underwrite investment opportunities in partnership with cross-functional business groups within the organization. Mr. Lopez attended San Diego State University, earning a BS in Business Administration, and the University of Southern California, earning an MBA.

“Nick’s background in investment banking, strategic investing and corporate development adds additional attributes to our team and the value creation contributions we strive to bring to our portfolio companies,” said Managing Partner Tim Bubnack.

Huntington Capital is a mezzanine capital provider to lower middle market companies throughout California and the Southwestern United States. Huntington is operating three limited partnerships and is currently seeking new investments for its recently formed Huntington Capital Fund III.  Huntington invests in businesses generating between $10 million and $75 million in revenues across a range of industries. Investments are typically structured in the form of growth capital, buyout or acquisition financing ranging between $2 million and $7 million. The firm was founded in 2000 and is based in San Diego (www.huntingtoncapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-16-13