Archives for October 1, 2013

H.I.G. Capital Invests in Lexmark Carpet Mills

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H.I.G. Capital has made an investment in Lexmark Carpet Mills, a manufacturer of broadloom carpet for hospitality, residential and niche commercial applications.

“We are very excited about this next stage for Lexmark. Our partnership with H.I.G. will provide us with financial and operating resources that will enable us to further capitalize on our significant growth potential at an exciting time for our industry,” said Todd White, Founder and CEO of Lexmark.

Lexmark is a specialty carpet mill focused on supplying high-styled nylon and polyester carpet to customers in the hospitality, residential and niche commercial end markets. Lexmark was founded in 1993 and is based in Dalton, GA (www.lexmarkcarpet.com).

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $13 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Paris, and Rio de Janeiro (www.higcapital.com).

“Todd White and his team have established Lexmark as a leading manufacturer of high-styled broadloom carpet for hospitality, residential and niche commercial customers,” said Ricky Stokes, a Managing Director of H.I.G. “We look forward to working with the team to build upon their successful track record. We believe there are numerous opportunities, both in hospitality as well as new markets and applications, where Lexmark’s quality products and focus on customer service will enable continued, sustainable growth.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-1-13

Catterton Partners Invests in Bruxie

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Catterton Partners has made an investment in Bruxie, a gourmet waffle sandwich restaurant chain. The investment will be used to expand Bruxie’s presence in Southern California and in other geographies.

Bruxie offers gourmet waffle sandwiches for breakfast, lunch, dinner and dessert. The restaurant’s waffles are paired with seasonal ingredients and are offered which choices such as Buttermilk Fried Chicken, Prosciutto & Gruyere, Hot Pastrami, Crème Brulee, Nutella & Banana and S’Mores. In 2013, Bruxie was named one of Nation’s Restaurant News’ top 50 Breakout Brands. The company was founded by Dean Simon and Kelly Mullarney in 2010 and is based in Orange, CA (www.bruxie.com).

“With its unique gourmet waffle sandwich concept, fresh ingredients and expansive culinary creations that are ideal for any meal, Bruxie offers a truly special culinary experience across multiple eating occasions,” said Jon Owsley, a Partner at Catterton. “We are excited to leverage our experience in the fast-casual restaurant space as we partner with Dean, Kelly and the Bruxie team to help the company realize its full growth potential.”

Catterton Partners focuses exclusively on the consumer industry and invests in all major segments including food and beverage; retail and restaurants; consumer products and services; and media and marketing services. Catterton was founded in 1989 and has more than $4 billion in capital under management. The firm is located in Greenwich, CT (www.cpequity.com).

“Catterton is the perfect partner for Bruxie. Since opening our first store less than three years ago, we have been very fortunate to have several industry professionals join the Bruxie team and help guide us with our strategic growth. Partnering with Catterton is a natural fit given the extensive resources and expertise they bring to the table,” said Dean Simon. “Their track record is impressive and includes helping finance and guide market-leading restaurant concepts including P.F. Chang’s, Noodles & Company and Mendocino Farms. This partnership and collaboration will be invaluable to us as we look to expand our brand. Our creative concept has garnered an incredible response in Southern California and we are very excited to bring the Bruxie experience to new guests in new markets.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-1-13

Sorenson Capital Acquires Empathica

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Sorenson Capital and Peterson Partners have partnered to provide financing to Mindshare Technologies, a provider of voice of the customer (VoC) technologies and services. The new capital will be used to support Mindshare’s acquisition of Empathica, a provider of social customer experience management (CEM) solutions which was completed on September 19th.

Peterson Partners provided the majority of the new equity to finance the acquisition. Sorenson Capital, which had previously invested $20 million in Mindshare in June 2011, increased its investment in Mindshare and partnered with Mindshare’s management team to lead the negotiation and diligence process with Empathica.

“This acquisition gives the world’s leading brands access to the most comprehensive customer feedback solutions on the market, and we are thrilled to have the support of these two premier private equity firms,” said John Sperry, CEO of Mindshare. “Sorenson Capital invested in us two years ago and has over delivered on its promise to add value to our company, as evidenced by their commitment to this deal. Peterson Partners also played an integral part in making this purchase a reality, and we are delighted to welcome them on board as a strategic investment partner.”

Mindshare Technologies provides “Voice of the Customer” services, with a particular emphasis on servicing multi-unit restaurant chains, retail establishments, and call centers. Services consist of collecting end-customer feedback, analyzing that data, and delivering actionable insights to the appropriate client personnel. Clients can access their data and reports through an online interface at anytime and are additionally supported by a dedicated account manager. The company is based in Salt Lake City (www.mshare.net).

Empathica is a provider of social Customer Experience Management (CEM) programs to multi-unit brands in the retail, food services, automotive and hospitality sectors. The company’s analysis of survey data using state-of-the-art surveying and dashboard reporting software allows for performance-improvement solutions, evidence-based marketing insights, and customer experience management consulting. Empathica is headquartered in Toronto (www.empathica.com).

Sorenson Capital invests from $10 million to $25 million in small to middle-market buyout and growth equity opportunities with a particular focus on companies located in the Mountain and Western regions of the United States. Sorenson Capital has $650 million in capital under management and is headquartered in Salt Lake City (www.sorensoncapital.com).

“This purchase underscores our commitment to partnering with our portfolio companies to build value,” said Mark Ludwig, managing director at Sorenson Capital. “This acquisition primes Mindshare to lead the fast-growing customer feedback industry, and bolsters its strong value proposition for major brands to ensure exceptional customer satisfaction. We anticipate this acquisition will significantly accelerate Mindshare’s growth trajectory.”

Peterson Partners invests from $2 million to $15 million in companies with revenues from $10 million to $50 million. The firm was founded in 1995 and has managed over $500 million in committed capital through eight funds. Peterson Partners is based in Salt Lake City (www.petersonpartnerslp.com).

“As a new investor in Mindshare, we are thrilled to have played an integral part in elevating their market position in the customer feedback industry,” said Brandon Cope, partner at Peterson Partners. “Mindshare represented a compelling investment opportunity because of its ability to drive operational improvement and convert customer insights into actionable, real-time intelligence. With the acquisition of Empathica, we look forward to helping Mindshare dominate the Voice of the Customer market.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-1-13

Platte River Equity Acquires Wildcat Minerals

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Platte River Equity has acquired a controlling stake in Wildcat Minerals, an oilfield consumables distributor.

Wildcat is a provider of transloading, distribution and logistics for oilfield consumables, primarily proppant (sand), used in the hydraulic fracturing process. The company operates 18 transloading terminals and storage sites. Wildcat’s customer base consists of oil and gas exploration and production companies, oil and gas service companies and sand suppliers. The company was founded in 2007 and is headquartered in Golden, CO and Cheyenne, WY (www.wildcatminerals.com).

“Wildcat is benefiting as the use of proppant per well continues to increase. In addition, as transportation represents a growing portion of the delivered cost of proppant, Wildcat serves a critical niche in efficiently managing the logistics of the material from mine to well,” said Platte River Managing Director Peter Calamari.

Platte River Equity makes equity investments of $10 million to $50 million in lower middle market companies with enterprise values generally between $20 million and $250 million. The firm focuses on investing in the aerospace and transportation; energy and industrial services; and chemicals, metals and industrial minerals sectors. Platte River Equity manages funds with committed capital of approximately $700 million and is based in Denver (www.platteriverequity.com).

“We are excited to partner with Platte River Equity during this period of high growth for Wildcat,” said Steve Herron, co-founder and CEO of the company. “The additional capital, along with the significant operating and financial experience of the Platte River team, will help us invest in new locations while continuing to provide the highest level of service for our customers.”

KeyBanc Capital Markets served as financial advisor to Wildcat. Fifth Third Bank provided senior debt financing for the transaction.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-1-13

CVC Signs Agreement to Acquire Campbell’s European Simple Meals Business

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CVC Capital Partners has signed an agreement to acquire the European simple meals business of Campbell Soup Company.  CVC and Campbell entered into negotiations on this transaction in August 2013.

CVC will acquire Campbell’s national brands of soups, sauces and simple meals, including Liebig and Royco in France, Erasco in Germany, Blå Band in Sweden and Devos Lemmens and Royco in Belgium, for a purchase price of €400 million. The transaction also includes four plants in Puurs, Belgium; Le Pontet, France; Lubeck, Germany; and Karpalund, Sweden. In fiscal 2013, the Campbell businesses included in the proposed transaction generated annual net sales of approximately $530 million. The acquired brands are headquartered in Puurs, Belgium and employ approximately 1,300 people.

CVC is being advised by Leopold Capital Partners; Barclays, Cleary Gottlieb Steen & Hamilton; and Ernst & Young.

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 • 10-1-13

Morgan Joseph and Karis Capital Join Forces

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Morgan Joseph TriArtisan and Karis Capital Partners (KCP) have announced that KCP, a placement agent providing advisory and capital raising services for alternative asset managers, has affiliated with Morgan Joseph.

The affiliation between the two firms is designed to benefit from synergies between Morgan Joseph’s investment banking and private equity investing capabilities, and Karis Capital’s relationships with private equity and hedge fund general partners and with over 2,000 pension plans, endowments, foundations, family offices and insurance companies.

“Karis Capital is led by extraordinarily experienced financial professionals, who have built a strong reputation in the placement business with general partners and Institutional investors alike, said Rohit Manocha, Co-President of Morgan Joseph.  “This affiliation, we anticipate, will provide opportunities for both our firms to benefit from these relationships and build a strong platform for future growth.”

Karis Capital is headed by Carter Harris, Kevin Keady and Gregory Neumann, whose past experience includes capital raising, asset management, investment banking and capital markets at such firms as Bankers Trust, Credit Suisse, Deutsche Asset Management, Merrill Lynch, Morgan Stanley and Nomura.  Since January 2006, when it was founded, KCP has been associated with over $3 billion of capital raised for 18 general partners.  KCP previously was part of Knight Capital Group, the global trading firm.  KCP is based in Stamford, CT (www.kariscp.com).

“We are delighted for this opportunity to join with Morgan Joseph in an affiliation that will provide significant benefit for both firms and their constituent bases,” said Carter Harris, Managing Director of KCP.  “Our institutional relationships will benefit from increased deal flow particularly on the direct side as we partner with Morgan Joseph in their direct investing activity alongside large, established buyout firms.  We see this as an unusually favorable match of talent and people, and we are very excited to be working with this highly regarded team of professionals.”

Morgan Joseph TriArtisan is an investment and merchant bank engaged in providing financial advice, capital raising and private equity investing. The firm’s services include mergers, acquisitions and restructuring advice, in addition to private placements and public offerings of equity and debt. Morgan Joseph TriArtisan is based in New York (www.mjta.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-1-13