Archives for September 2013

CI Capital Partners Acquires Roy Tailors Uniform

by

Galls, a portfolio company of CI Capital Partners, has acquired Roy Tailors Uniform Co. Galls was acquired by CI Capital Partners in September 2011, as a platform investment in the public safety products market and the buy of Roy Tailors is the second add-on acquisition for Galls under CI Capital’s ownership. The company also purchased Quartermaster in January 2012.

Roy Tailors provides uniforms and accessories to police, fire, EMS, postal, industrial, transit and hospitality employees. The company, family owned and operated for over 50 years, is headquartered in Cincinnati with a second operation in Columbus (www.roytailors.com).

“My father began Roy Tailors in 1958 by selling postal uniforms out of the trunk of his car. We have grown immensely since those humble beginnings, and it has been my greatest honor to serve the fine men and women in uniform. Joining the Galls family, with its broad product offerings, wide distribution capabilities, and advanced technology platform, enables us to take the next step forward and service our customers at an even greater level. We are thrilled with this partnership.”

Galls is a supplier of uniforms and equipment to public safety professionals. Galls markets under the brand names Galls and Quartermaster. The company serves more than one million customers per year through its websites, catalog, inside and outside sales forces and nine retail service center locations. The company was founded in 1968 and is based in Lexington, KY (www.galls.com).

“We are pleased to announce the acquisition of Roy Tailors Uniform Co. Roy Tailors is a leader in the Ohio market and has distinguished itself through excellent service in its stores. We are excited to build on the company’s success by pairing it with Galls’ breadth of product, national distribution capabilities, catalog and web presence, and premier information technology infrastructure,” said Michael Wessner, chief executive officer of Galls.

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since the firm’s inception in 1993, CI Capital and its portfolio companies have made more than 100 acquisitions representing over $6 billion in enterprise value. CI Capital’s existing portfolio consists of companies which collectively generate annual revenue of approximately $4 billion, EBITDA of approximately $350 million, and employ approximately 15,000 people. The firm is based in New York (www.cicapllc.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-26-13

AIP Acquires Flow International

by

Flow International Corporation, a developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, today announced that it has entered into an agreement to be acquired by American Industrial Partners in a transaction valued in excess of $200 million. Under the terms of the agreement, American Industrial Partners will acquire all of the outstanding shares of Flow common stock for $4.05 per share in cash. This value represents an 11.3 times multiple of trailing four quarter reported EBITDA, which was $17.8 million as of July 31, 2013. The transaction is expected to close in early 2014.

Flow International Corporation (Nasdaq:FLOW) is a developer and manufacturer of industrial waterjet machines for cutting and cleaning applications used in multiple industries including automotive, aerospace, job shop, surface preparation, and more. The company is based in Kent, WA (www.FlowWaterjet.com).

“I am pleased to announce this agreement, which maximizes value for all of our shareholders. This transaction represents a successful conclusion to our extensive ‘strategic alternatives’ investigation, during which the company contacted many strategic and financial partners,” said Charley Brown, President and CEO of Flow. “In AIP, we have a partner with a strong reputation and proven record of success, who understands the potential of Flow’s waterjet solutions and has the resources and expertise to help accelerate our growth plans. We believe this transaction appropriately recognizes the value of Flow’s technology and customer relationships, while providing our stockholders with a meaningful cash premium for their investment.”

American Industrial Partners invests in North American headquartered industrial companies with sales ranging from $100 million to $500 million. The firm was founded in 1989 and is currently managing more than $1.1 billion in equity capital. American Industrial Partners is based in New York (www.americanindustrial.com).

“We are excited about this agreement with Flow, which is known throughout its industry for its innovative waterjet technology. We have been impressed by the company’s capabilities and its strong relationships with its global customer base. We will work with the Flow management team to continue investing in the company’s technology to grow the waterjet share of the worldwide cutting market,” said Richard Hoffman, partner of AIP.

The transaction has fully committed financing and is not subject to any condition with regard to the financing.

UBS Investment Bank is serving as Flow’s financial advisor and K&L Gates is serving as legal counsel. Houlihan Lokey is serving as AIP’s financial advisor and Ropes & Gray and Baker Botts are serving as co-legal counsel.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-26-13

TVV Capital Acquires Pitonyak Machinery

by

Bigham Brothers, a portfolio company of TVV Capital, has acquired Pitonyak Machinery Corporation, a manufacturer of agricultural implements. TVV acquired Bigham Brothers in late 2012.

Pitonyak Machinery Corporation (PMC) is a branded manufacturer of agricultural implements, including grain carts, Hipper Rollers®, Hipper Choppers®, land levelers, field rollers and quick hitches, each designed and manufactured to be the heaviest, most durable equipment of its kind. The company also manufactures a variety of construction equipment and accessories, including loader forks, box scrapers and utility levelers for landscaping and lot maintenance. PMC’s products are available via its dealer network. PMC was founded in 1913 and is based in Carlisle, AR (c).

Bigham Brothers manufactures agricultural tillage and cultivating equipment for the sustainable agricultural market. The company’s products are marketed through the Bigham and Lilliston brands and available via a network of approximately 1,400 independent dealers and co-operatives. The company was founded in 1933 and is based in Lubbock, TX (www.bighamag.com).

A benefit of the add-on acquisition includes giving Bigham access to an additional, centrally located manufacturing facility. Together, the two Bigham factories will be able to supply a nationwide network of dealers, servicing the major agricultural regions of the United States. All products, which are designed for commercial farm operators, will be marketed under the Bigham brand. PMC’s products, such as its Hipper Chopper and GCX Grain Carts, which have historically been sold primarily in the Mid-South region, are complementary and counter-seasonal to Bigham’s existing product lines.

“The acquisition of PMC is a reflection of TVV’s continued expertise in directly sourcing and closing deals in the niche manufacturing industry,” said Andrew Byrd, President of TVV Capital. “In the particular case of PMC, it highlights our ability to scout deals that also aid in the rapid expansion of an existing portfolio company. Bigham is currently benefiting from growth that’s driven by superior products and the implementation of lean manufacturing practices. When combined with favorable market conditions, such as expanding farm incomes and increasing crop demand, the addition of PMC fully supports Bigham’s growth-through-acquisition strategy.”

TVV Capital is a lower middle-market buyout firm focused on acquiring market-leading niche manufacturers in defensive, recession-resistant sectors with strong succession management in place and identifiable growth prospects. TVV targets companies with enterprise values from $10 million to $100 million, EBITDA margins of 10 to 25 percent, and which are characterized by positive and stable cash flows, consistent profitability, and leverageable assets. TVV Capital was founded in 1997 and is headquartered in Nashville (www.tvvcapital.com).

Legal advisors on this transaction for TVV Capital were Bass, Berry & Sims of Nashville and accounting services were provided by DGLF CPAs and Business Advisors of Nashville.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-26-13

Brynwood Has Final Close of Fund 7 at Hard Cap

by

Brynwood Partners, a private equity firm active in the lower middle market consumer sector, has completed the first and final close of its latest fund, Brynwood Partners VII LP with $400 million of committed capital.

“We are both pleased and proud to announce the first and final close of Brynwood VII with $400 million of committed capital, the largest fund in our 29 year history,” said Hendrik Hartong III, Senior Managing Partner. “We are fortunate to have been able to reach our hard cap target with one close. The high level of interest in our new fund from the investment community validates our belief that returns in the lower middle market are primarily driven by operational improvements at the portfolio company level.”

“We received strong support from our existing limited partner base and appreciate their continued commitment to Brynwood Partners. We will continue to evaluate add-on acquisition opportunities for our five portfolio companies in Brynwood Partners VI LP and will be seeking new platform investment opportunities for Brynwood VII,” said Ian MacTaggart, Managing Partner.

Just this month the firm closed on the last portfolio company for Fund 6 with the acquisition of Lightlife Foods, one of ConAgra Foods’ brands with product lines that include vegetarian-based burgers, hotdogs and other meatless frozen and refrigerated items (www.lightlife.com). Other Fund 6 portfolio companies include Back to Nature, seller and marketer of cookies, crackers, granola, nuts/trail mix and juices under the Back to Nature brand (www.backtonaturefoods.com); High Ridge Brands, seller and marketer of Zest and Coast soap brands, and Alberto VO5 and Rave hair care brands and White Rain hair care and body wash brand (www.highridgebrands.com); New Hall Laboratories, seller and marketer of the la bella, L.A. Looks, Dep Sport, Soft & Dri, Pure & Natural, Thicker Fuller Hair and Zero Frizz hair and personal care brands (www.newhalllabs.com); and Pearson’s, manufacturer and marketer of Pearsons Salted Nut Roll, Pearsons Mint Patties, Pearsons Nut Goodies, Pearsons Bun and Bit-O-Honey confectionery brands (www.pearsonscandy.com).

Brynwood Partners is an operationally-focused private equity firm that makes control investments in consumer focused lower middle market companies. With the closing of Fund 7, Brynwood Partners now has $900 million of capital under management. The firm was founded in 1984 and is based in Greenwich, CT (www.brynwoodpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-25-13

GTCR Partners Up to Pursue Financial Technology Acquisitions

by

GTCR has entered into a partnership with Douglas Bergeron to form Opus Global Holdings. Opus will focus on investing in companies across certain segments of the financial technology industry. GTCR plans to invest up to $450 million of equity capital to support the strategy. Mr. Bergeron will serve as CEO of Opus Global and plans to invest up to $50 million. This is the second partnership between Mr. Bergeron and GTCR.

“The existing financial technology and payments ecosystems are rapidly evolving, but remain highly fragmented with limited interoperability and little opportunity to leverage enterprise-wide data,” said Mr. Bergeron. “We see an opportunity to successfully consolidate and globalize best-in-breed products for worldwide deployment while leveraging data across applications. We intend to assemble a leading, global financial technology company, and to develop a worldwide distribution network of partners, distributors and employees.”

Mr. Bergeron, a 23-year veteran of the financial technology industry, served as CEO of global payments technology company VeriFone (NYSE: PAY) from 2001 through 2013. Mr. Bergeron previously led the acquisition of VeriFone from Hewlett-Packard in 2001 and, together with backing from GTCR in 2002, built VeriFone into a multinational payments company with operations in over one hundred countries and 2012 revenue of nearly $1.9 billion.

“We are excited to once again partner with Doug,” said GTCR Managing Director Collin Roche. “As a result of our previous partnership with Doug, we have tremendous respect for his capabilities in identifying sectors for strategic growth and building successful businesses in those sectors. We believe that Doug’s technology, software, and recurring services experience and his expertise in international channel development will contribute to the success of Opus Global.”

Opus Global will invest in companies ranging from smaller, entrepreneurial businesses to multibillion-dollar enterprises. The company is headquartered in Palo Alto (www.opusglobal.com).

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $7 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. GTCR is currently investing its tenth fund, a private equity fund with $3.25 billion of committed capital. The firm is based in Chicago (www.gtcr.com).

“GTCR has deep sector expertise in the financial technology and payments industries,” said GTCR Managing Director Aaron Cohen. “Drawing on our track-record and continued focus in this sector, we believe there are a number of compelling industry trends that we are excited to capitalize on with Mr. Bergeron. Moreover, the amount of equity capital allocated to Opus Global will enable GTCR, alongside Doug Bergeron, to consider and pursue a wide array of acquisitions, including the ability to undertake more sizeable transactions.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-25-13

Blue Point Hires Two Associates

by

Blue Point Capital Partners has added to its team with the hiring’s of Matthew Beesley and Ralph Isenrich. Both join the firm as associates. Mr. Beesley will be based in Cleveland and Mr. Isenrich in Charlotte.

Prior to joining Blue Point, Mr. Beesley was an investment banking associate at Brown Gibbons Lang & Company where he focused on M&A transactions in the metals, industrials and business services sectors. He previously worked as an associate vice president in the Equity Research group at Morgan Keegan & Company. He earned a Bachelor of Arts in business administration and economics from Rhodes College.

Mr. Isenrich was formerly an investment banking analyst at Wells Fargo Securities, most recently in the Middle Market M&A group. At Wells Fargo, he was involved in merger, acquisition, debt and equity transactions for public and private companies in multiple sectors, including food and beverage, healthcare, retail and consumer. Prior to Wells Fargo, he worked as a private equity analyst at Ferro Management Group. Mr. Isenrich graduated from the University of North Carolina with a Bachelor of Arts in economics.

Blue Point Capital Partners is a lower-middle-market private equity firm that invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has over $800 million in committed capital and has offices in Charlotte, Cleveland, Seattle, and Shanghai (www.bluepointcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-25-13

Stonebridge Partners Invests in BrandFX

by

Stonebridge Partners has completed the recapitalization of BrandFX Body Company, a manufacturer of composite utility truck bodies.

BrandFX manufactures and sells composite utility truck bodies. Products include service bodies designed for smaller utility trucks, line bodies designed for medium sized utility trucks as well as toppers and inserts designed primarily for compact utility trucks. Composite truck bodies offer advantages over more traditional steel bodies including weight reduction, which results in reduced fuel and maintenance costs. The company has revenues of approximately $80 million and is based in Ft. Worth, TX (www.brandfxbody.com).

Stonebridge conservatively capitalized the transaction with substantial equity to provide for continued growth and accelerated capital expenditures. Lee Finley, the founder of the business, retained the largest individual share of the recapitalized BrandFX. Other members of the BrandFX management team also invested in the common stock of the company. The balance of the equity was provided by Stonebridge in combination with a few of its long term co-investors including BB&T Capital Markets (www.bbtcapitalmarkets.com) and Private Advisors (www.privateadvisors.com). The PrivateBank led the senior financing and there was no mezzanine debt used for this transaction.

At Mr. Finley’s request, Stonebridge recruited a Chief Executive Officer, Art de St. Aubin, well-known to the firm prior to the close of the acquisition and who is working closely with Mr. Finley to develop the company which is experiencing significant demand for BrandFX’s products in the utility marketplace. BrandFX is also looking to add executives in manufacturing and finance and is investing in capital equipment to increase capacity and to further enhance manufacturing efficiencies.

Stonebridge Partners invests in companies with purchase prices between $30 million and $200 million. Sectors of interest include niche manufacturing industries, including building products, infrastructure, specialty packaging and specialty manufacturing. The firm was founded in 1986 and is based in White Plains, NY (www.stonebridgepartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-25-13

Peak Rock Closes First Fund at Hard Cap

by

Peak Rock Capital has held a final closing of Peak Rock Capital Fund LP and its parallel fund (collectively, the “Fund”) at its hard cap with committed capital of $700 million.

Given significant investor interest, the Fund was oversubscribed and greatly exceeded its initial target of $400 million. The Fund’s limited partners include private pension, public pension, sovereign wealth, foundation and endowment, fund of funds, and other institutional investors.

“We are enormously appreciative of and humbled by the overwhelming response to our inaugural fund. We see this successful milestone as a reflection of our team’s ability, through hundreds of transactions and various economic conditions, to identify and add outstanding value to businesses in the middle market,” said Anthony DiSimone, Chief Executive Officer of Peak Rock. “We look forward to identifying attractive investment opportunities that are consistent with our strategy and pursuing value for all stakeholders.”

The new fund will make debt and equity investments in middle market companies where it can support management in driving rapid growth and profit improvement through operational and strategic changes. The investment period for the Fund has already commenced and the Fund has made multiple investments.

Peak Rock Capital makes debt and equity investments of $20 million to $150 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $25 million to $500 million. Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing, metals, and media. The firm is based in Austin, TX (www.peakrockcapital.com).

“We would also like to thank our friends in the investment banking, financial advisory, legal and lending communities for their tremendous support. We look forward to continuing and expanding our relationships as we build Peak Rock’s portfolio,” said Steve Martinez, Managing Director of Peak Rock.

Bruce Ettelson and John Muno from Kirkland & Ellis served as legal counsel in the formation of the Fund.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13

Strategics Overtake Individuals and Private Equity Firms in Buying Private Businesses

by

According to the latest Q2 2013 Market Pulse Quarterly Survey from Pepperdine University, existing companies dominated acquisitions this quarter, showing up as the number one buyer type in every category except the smallest Main Street businesses.

Compared to Q2 2012, existing companies appear to be edging out private equity firms for deals valued between $5 million and $50 million. In the $2 million to $5 million segment, individual buyers (including past business owners) lost half their market share. They accounted for 50 percent of the deals in that section in Q2 2012, but only 26 percent in Q2 2013.

“Buyer trends tie back to the idea that there is a limited quantity of quality businesses available,” says IBBA director Scott Bushkie, president of Cornerstone Business Services. “Some existing companies were forced to buy smaller businesses in order to meet their growth mandates. They’re outbidding the individual buyers due to the synergies they can achieve that individual buyers typically cannot.”

Sixty-one percent of the respondents said that baby boomers are beginning to exit their businesses in larger numbers than the previous five years. Retirement was the number one reason driving business sales across almost every sector except for the smallest businesses. Advisors predict deal volume will grow, versus stay the same, by a nearly 2 to 1 margin.

“As 10,000 baby boomers turn 65 every day, it comes down to a simple numbers game,” said Dr. Craig Everett, director of the Pepperdine Private Capital Markets Project. “The boomer exits are finally letting this demand be satisfied, which could boost deal flow dramatically.”

The report also found that for businesses valued at $500,000 or less, burnout was the primary reason for sale, followed closely by retirement. “Prolonged stress and uncertainty in the economy has resulted in an increased number of Main Street business owners selling their company,” said Dora Lanza, principal of Plethora Businesses.

In the lower middle market, for businesses valued between $2 million and $5 million, manufacturing led at 27 percent of completed deals over the last three months, followed by consumer goods/retail and wholesale/distribution, both at 13 percent. Manufacturing also led the $5 million to $50 million sector at 38 percent, followed by healthcare at 15 percent. This is a significant increase in manufacturing activity versus the same time period last year when it accounted for 7 percent and 23 percent of activity by sector, respectively.

Other key findings:

  • Advisors agree, by a 3 to 1 ratio, that this is the best time for sellers to maximize the value of their business since the market peak in 2007-2008. In the lower middle market, less than two percent of respondents anticipate that values will decrease in the next quarter. Most respondents (75% or more) predict multiples will stay the same, with another 10%-24% predicting increases.
  • For deals valued at less than $500,000, 68 percent of respondents said supply is in the buyer’s favor. Advisors characterize the market as neutral for deals valued at $500,000 to $5 million and 68 percent of respondents say it’s a seller’s market for businesses in the $5 million to $50 million segment.
  • The Q2 2013 study continues to confirm earlier findings that larger businesses take longer to close. In the smallest Main Street sectors (businesses valued at $1 million or less), the majority of companies (54% or better) sold in six months. For businesses in the lower middle market, the majority (54%-56%) closed between six months and a year.

The second quarter 2013 Market Pulse Quarterly Survey Report is available by clicking HERE.

The Q2 Market Pulse Quarterly Survey Report is published by the Pepperdine Private Capital Markets Project at Pepperdine University’s Graziadio School of Business and Management, International Business Brokers Association (IBBA) and M&A Source, and evaluates market conditions for businesses being sold in Main Street (values $0-$2 million) and lower middle market (values $2 million to $50 million).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13

Dover Saddlery Looks to Strategic Alternatives

by

Dover Saddlery, a multi-channel retailer of equestrian products, has initiated a process to identify and consider a range of operational, financial and strategic alternatives to better pursue its growth strategy and to enhance the value of the company for the benefit of its stockholders.

At the direction of the Dover’s Board, the company has engaged Duff & Phelps as its exclusive financial advisor in connection with the review process. While the Board has previously received unsolicited expressions of interest in relation to various potential strategic transactions from time to time, it is not currently in discussions with any particular party.

Dover Saddlery (NASDAQ: DOVR) is a multi-channel retailer of equestrian products. Dover offers competitively priced, brand-name products for horse and rider through catalogs, the Internet and company-owned retail stores. The company was founded in 1975 and is based in
Littleton, MA (www.doversaddlery.com).

Duff & Phelps advises clients in the areas of valuation, M&A and transactions, restructuring, alternative assets, disputes and taxation and has more than 1,000 employees serving clients from offices in North America, Europe and Asia (www.duffandphelps.com).

While undertaking this process, the company will remain focused on executing the company’s long-term operational plan, which includes among other initiatives the continued rollout of its retail store expansion plan and the integration and realization of the strategic and financial benefits of the new retail stores opened over the past several years.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13

Investcorp Acquires Paper Source from Brentwood

by

Investcorp has acquired Paper Source, a multi-channel retailer of gifts, stationery and crafting supplies, from Brentwood Associates which acquired Paper Source in 2007.

In May 2013, Brentwood completed a dividend recapitalization of Paper Source which was financed through a new $50 million credit facility, and provided a return that exceeded Brentwood’s original investment in the company. Brentwood’s ownership stake in company remained unchanged.

Paper Source sells a selection of fine and artisanal papers, invitations and announcements, personalized and distinctive gifts, gift wrap, greeting cards, custom stamps, and a custom collection of envelope and cards through its company-owned retail stores, direct-to-consumer (Internet and catalog), and wholesale. The company operates 73 stores across 23 states. Paper Source is headquartered in Chicago (www.paper-source.com).

“Paper Source is a market-leading retailer with a differentiated product offering and exceptional customer service. We look forward to working with Sally Pofcher, CEO of Paper Source, and the rest of the Paper Source team as they seek to continue to grow the company’s store base and e-commerce presence,” said Kevin Nickelberry, a Managing Director at Investcorp.

Investcorp invests in mid-size companies operating in an array of industry sectors that have total enterprise values of between $200 million and $1 billion and are located in North America or Western Europe. As at June 30, 2013, Investcorp had $10.5 billion in total assets under management. The group has offices in New York, London, Bahrain and Saudi Arabia (www.investcorp.com).

Brentwood Associates is a consumer-focused private equity investment firm with over $850 million of capital under management. Sectors of interest include branded consumer products; consumer and business services; direct marketing, including direct mail and e-commerce; education; health and wellness; restaurants; and specialty retail. The firm was founded in 1972 and is based in Los Angeles, CA (www.brentwood.com).

“Investcorp is a highly complementary partner for Paper Source, with a track record of growing strong retail brands,” said Sally Pofcher, CEO of Paper Source. “This transaction provides us with a deep capital base to expand our domestic footprint and pursue direct marketing opportunities, as well as a partner that has an established reputation for working effectively with management teams.”

Morgan Joseph TriArtisan acted as financial advisor to Paper Source.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13

Turnbridge Capital Acquires Pipe Pros

by

Turnbridge Capital, together with the management founders and current investors of Pipe Pros, have completed an equity recapitalization of Pipe Pros and also expanded the company credit facilities.

Pipe Pros is an installer of casing and tubing for new oil and natural gas well construction and a provider of tubing maintenance services for producing oil and natural gas wells. The company was founded in 2009 and is headquartered in Corpus Christi, TX (www.pipe-pros.com).

“Partnering with Turnbridge is an important next step for Pipe Pros, its employees, customers and suppliers,” said Gary Edwards, President and Founder of the company. “With additional capital, we have an opportunity to invest in new equipment and to expand our service offering to customers in our current markets; and, to accelerate our growth into new markets and service lines over time. We look forward to working with the Turnbridge team.”

“Gary Edwards and the rest of the management and employee team have worked together for many years and built Pipe Pros into a highly respected provider of mission-critical well completion services, and we are very pleased to have the chance to be their partner during this next phase of the company’s growth,” said John Clarke, Partner at Turnbridge who will also serve as Chairman of the Board of Managers of Pipe Pros.

Turnbridge Capital is a private equity investment firm with a focus on opportunities primarily in the energy and infrastructure sectors. Typical transactions involve companies which range in enterprise value from $25 million to $250 million. The firm has offices in Dallas and Houston (www.turnbridgecapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13

Versa Sells Parts of Allen-Vanguard, Repays Acquisition Debt

by

Versa Capital Management portfolio company Allen-Vanguard has sold two of its operating units to Safariland Group, a provider of law enforcement and security products. The sale retired 100% of Allen-Vanguard’s outstanding bank debt and funded significant payments to Versa affiliates.

Allen-Vanguard was acquired by Versa in December 2009 and provides services for defeating terrorist and extremist threats. The sale included Allen-Vanguard’s “Med-Eng” bomb disposal suit and related equipment units (EOD), and its Crew Survivability group (CS), which provides products for blast attenuation and thermal management.

“We are pleased that Allen-Vanguard has completed this successful sale, enabling the company to deleverage and generate an attractive distribution for our fund investors while advancing Allen-Vanguard’s strategy to deleverage and focus on its remaining high-growth business units,” said Gregory Segall, CEO of Versa Capital.

Allen-Vanguard will now focus on its two retained businesses: Electronic Systems and Countermeasures (ES/ECM) and Counter-Threat Solutions (CTS), both of which will continue to operate under the Allen-Vanguard name. Allen-Vanguard’s ES business provides jamming and electronic sensing solutions that protect soldiers, law enforcement personnel and dignitaries. The company’s CTS business provides specialized intelligence services, tools and training in the fight against extremist network operations. Allen-Vanguard is headquartered in Arlington, VA (www.allenvanguard.com).

Safariland, the acquirer of the two operating units from Allen-Vanguard, is a designer and manufacturer of equipment for sporting, military, law enforcement, investigation and public safety personnel. The company was formerly a division of BAE Systems and was acquired by affiliates of Kanders and Company in July 2012 for $124 million. Safariland has offices in Ontario, CA and Jacksonville, FL (www.safariland.com).

“In the past few years, and in the face of dramatic changes in the US and global defense landscape, much has been accomplished in repositioning Allen-Vanguard from the inside out,” said Mr. Segall. “As part of the company’s strategic review of its portfolio of businesses, it was determined that the mature EOD and CS businesses would be attractive to the marketplace, resulting in today’s successful divestiture. “Going forward, Allen-Vanguard will pursue its mission of providing high value-add solutions in support of global counter-terrorism efforts through its ES/ECM and CTS business units.”

Versa Capital Management invests in special situations involving middle market companies with revenues in the $50 million to $1 billion range or assets of $25 million to $500 million. The firm has $1.3 billion of capital under management and is based in Philadelphia (www.versa.com).

Versa Capital and Allen-Vanguard were represented by Houlihan Lokey as financial advisor.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13

Brazos Acquires Modern Medical

by

Healthcare Solutions, a portfolio company of Brazos Private Equity Partners, has acquired Modern Medical, a pharmacy management company. The investment is Healthcare Solutions’ is the third add-on acquisition for Healthcare Solutions since being acquired by Brazos in November of 2006.

Modern Medical is a pharmacy management and specialty health services company serving the workers’ compensation market. The company is based in Lewis Center, OH (www.modernmedical.com).

“The acquisition of Modern Medical further strengthens Healthcare Solutions’ capabilities in the management and delivery of pharmacy and specialty healthcare services to an increasingly broad array of customer segments,” said David George, CEO of Healthcare Solutions. “The addition of Modern Medical, with its strong cultural values and long-standing reputation for superior customer service, enhances the company’s capabilities to develop and expand its innovative solutions within both the workers’ compensation and auto markets and reinforces the company’s unique position as the premier technology-based platform company serving these markets.”

Healthcare Solutions is the parent company of Cypress Care, Procura Management, ScripNet and Modern Medical. Through its subsidiary companies, Healthcare Solutions delivers medical cost management services to over 800 customers in workers’ compensation and auto/PIP (personal Injury protection) markets. The company’s services include pharmacy benefit management, specialty healthcare services, PPO networks, medical bill review, case management and Medicare Set-Aside services. The company is headquartered in Duluth, GA (www.healthcaresolutions.com).

“We are excited about completing this strategic add-on acquisition,” said Jeff Fronterhouse, Co-Founding Partner and Co-CEO of Brazos. “Consistent with our initial investment thesis, the containment of medical costs within the workers’ compensation and auto liability markets is of critical importance to payors. Healthcare Solutions is uniquely positioned to serve this growing need and the addition of Modern Medical further strengthens the company’s pharmacy and specialty product offerings, which will further contribute to the strong growth of the company going forward. We look forward to working with David George and his team to continue to grow and strengthen Healthcare Solutions.”

Brazos Private Equity Partners makes equity investments of $25 million to $100 million in middle-market companies with enterprise values from $50 million to $500 million. Sectors of interest include consumer, healthcare, commercial & industrial, and business services. Brazos has approximately $1.4 billion of equity capital under management and is based in Dallas (www.brazospartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13

LLR Bulks Up Team to Invest in Security, Defense & Government Services

by

LLR Partners has hired two security, defense & government services professionals as the firm continues to expand its investment activities in this sector. Joining LLR as a Principal is Jason Rigoli and Michael Levenberg joins as an Associate. Both Mr. Rigoli and Mr. Levenberg will be based in LLR’s recently opened office in Arlington, VA.

“The security, defense & government services sector is an increasingly important area for us,” said David Stienes, partner at LLR. “Our strength is in supporting innovative business services and technology companies requiring specialized domain knowledge. Having worked with Jason and Michael on previous investments, we knew they had the right skills and cultural fit to help enhance the LLR team and build on our momentum in Washington, DC.”

LLR’s security, defense & government services practice partners with growth companies that have between $25 million and $250 million in annual revenue, including technology and service businesses serving commercial and government clients in the physical and cyber security markets, as well as government contractors to the US homeland security, defense, intelligence and healthcare agencies.

“There are few private equity sponsors with this level of expertise and capital dedicated to the security, defense & government services sector,” said Mr. Rigoli. “Furthermore, few firms with LLR’s scale also provide a flexible investment approach, with the ability to execute both minority and majority investments. This degree of flexibility and LLR’s long history of partnering with management teams appeals to business owners seeking capital and strategic guidance.”

Mr. Rigoli most recently served as Managing Director at Monument Capital Group, investing in defense, security and government services. Previously, he was a Principal at The White Oak Group, focused on aerospace and defense. Earlier in his career, he was Senior Vice President in charge of the aerospace, defense, security and government services industry practice at FBR Capital Markets. Mr. Rigoli also has more than 10 years of experience as an operational executive in the defense consulting industry, running businesses as large as $190 million in annual revenue.

Joining LLR as a senior associate, Michael Levenberg has worked with Mr. Rigoli for the past two years. Prior to that, he was in the aerospace and defense investment banking practice at Jefferies as well as the transaction services group at PricewaterhouseCoopers.

LLR Partners makes both minority and control investments in middle market growth companies with revenues from $10 million to $150 million. Industries of interest include business services, consumer, education, financial services, healthcare services, security & government, software, and IT services. LLR is currently investing out of its third fund with $800 million of capital commitments. The firm has over $2 billion of assets under management and has offices in Philadelphia, PA and Arlington, VA (www.llrpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-20-13

CD&R Adds PepsiCo President as Operating Advisor

by

Clayton, Dubilier & Rice has appointed John Compton, former President of PepsiCo., as it newest CD&R Operating Advisor.

“John is a seasoned executive with 30 years of marketing, sales, manufacturing and general management experience within all of PepsiCo’s businesses,” said Donald Gogel, Chairman and Chief Executive Officer of CD&R. “He is an inspirational and results-oriented leader, well rounded in all business functions with deep experience managing complexity and consumer oriented enterprises.”

Mr. Compton’s career at PepsiCo started at Frito-Lay in 1983. In 2002, after serving in positions of increasing responsibility in a variety of operational and sales capacities, he was appointed Vice Chairman and President of Frito-Lay North America. Mr. Compton went on to serve as CEO of PepsiCo Americas Foods, which included Frito-Lay North America, Quaker Oats brands, and all of PepsiCo’s Latin American food and snack businesses. He became President of PepsiCo in 2011. Mr. Compton is also the former Chief Executive Officer of Pilot Flying J Corporation. He currently serves on the board of First Horizon National Corporation and was previously on the board of Pepsi Bottling Group. Mr. Compton received a Bachelor of Science degree in finance from the University of Tennessee.

“I’ve learned a great deal from my career at PepsiCo and other business experiences which I very much look forward to applying at CD&R, a firm that has distinguished itself as the pioneer of adding operating value and insight to private equity investing,” said Mr. Compton.

Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $18 billion in 56 businesses representing a range of industries with an aggregate transaction value of approximately $90 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York and London (www.cdr-inc.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-20-13

Amazon Corporate Counsel Joins Goodwin’s PE Practice

by

Goodwin Procter has added Jared Jensen to the firm’s San Francisco office as a partner in its Private Equity Practice. Mr. Jensen joins Goodwin from Amazon.com where he was Senior Corporate Counsel.

“Jared’s private equity market knowledge and insight, coupled with his experience in taking technology companies private, make him an exceptional addition to our team,” said John LeClaire, chair of Goodwin’s Private Equity Practice. “Jared will play a vital role in delivering valuable client service, particularly as we continue advising clients in the growing middle-market investment and growth equity sectors.”

At Goodwin, Mr. Jensen will represent private equity firms, companies and management teams in leveraged buyout, growth equity and merger and acquisition transactions in a variety of industries, with a strong emphasis on the technology sector. This work will include take-private transactions, leveraged acquisitions of private and public companies, cross-border acquisitions, equity restructurings and minority investments in growth companies.

Prior to Amazon, Mr. Jensen was a partner with Kirkland & Ellis, and previously was an attorney with Davis Polk & Wardwell. He received his JD from Harvard Law School where he was senior editor of the International Law Journal; he received his BA from Brigham Young University.

Goodwin Procter’s Private Equity Practice has a team of more than 100 attorneys and focuses on buyouts, recapitalizations, growth equity investments and portfolio company transactions. The firm has offices in Boston, Hong Kong, London, Los Angeles, New York, San Diego, San Francisco, Silicon Valley and Washington, DC (www.goodwinprocter.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-20-13

Prospect Capital Acquires Mity Enterprises

by

Prospect Capital has made a $48 million investment in Mity Enterprises, a furniture and specialty healthcare seating products company. The investment in Mity is in the form of senior secured floating rate debt and equity.

“We look forward to supporting Mity’s impressive management team, which has co-invested in the recapitalization,” said Bart de Bie, a Managing Director of Prospect Capital. “Our investment demonstrates Prospect’s ability to make one-stop combined debt and equity investments as one of Prospect’s strategies to drive yield and total return for our shareholders.”

Mity designs, manufactures, and sells multipurpose room furniture and specialty healthcare seating products. The company has two operating units Mity-Lite and Broda. Mity-Lite is a manufacturer of branded, lightweight chairs and tables sold primarily by Mity’s direct sales force to the hospitality, education, public assembly, government, and office end markets. Broda produces a line of branded specialty chairs for disabled individuals that are sold to long-term care facilities and other customers in the healthcare market. Mity was founded in 1987 and has operations in Orem, UT (headquarters) and Kitchener, Ontario (www.mitylite.com) (www.seatingisbelieving.com).

“We are excited to work with Prospect as we continue building industry-leading products for an expanding base of long-term customers,” said John Dudash, CEO of Mity. “We look forward to benefiting from Prospect’s substantial resources as we grow Mity-Lite and Broda.”

Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in an array of industries and is effectively industry agnostic. Prospect Capital is headquartered in New York (www.prospectstreet.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-20-13