Archives for October 15, 2013

Kinderhook Acquires Applied Products

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Tectum Holdings, a portfolio company of Kinderhook Industries, has acquired Applied Products, a manufacturer of retractable truck bed covers. The acquisition of Retrax represents the sixth add-on acquisition by Kinderhook on the Tectum Holdings (THI) platform.

Applied Products (DBA Retrax) is a manufacturer of retractable, low-profile truck bed covers featuring polycarbonate or aluminum covers, which retract on ball-bearing rollers into a storage canister and can be locked in any position. The company was founded in 1996 and is based in Grand Forks, ND (www.retrax.com).

“Retrax provides THI with a footprint in the retractable tonneau market,” said Paul Cifelli, Managing Director at Kinderhook. “Retrax’s explosive growth, brand recognition, innovative design and unmatched quality in the retractable cover market are a perfect complement and expansion of THI’s comprehensive line-up of tonneau covers. Further, THI’s national distribution network will accelerate Retrax’s growth initiatives as well as enhance Retrax’s brand awareness.”

Tectum Holdings is the holding company for Extang (www.extang.com), TruXedo (www.truxedo.com), UnderCover (www.undercoverinfo.com) and Advantage Truck Accessories (www.advantagetruckaccessories.com) – all manufacturers of tonneau covers for light duty trucks, and BedRug (www.bedrug.com) – a manufacturer of bed liners for light duty trucks. The company is headquartered in Ann Arbor, MI.

“THI’s acquisition of Retrax is another important step in THI’s long-term growth strategy. Kinderhook and THI have employed an aggressive organic and acquisition led growth strategy and the acquisition of Retrax represents the sixth acquisition on the THI platform. The acquisition of Retrax positions both businesses for continued growth and success,” said Tom Tuttle, Managing Director at Kinderhook.

Kinderhook Industries makes control investments in companies with transaction values of $25 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).

Financing for the transaction was provided by Madison Capital Funding. Kirkland & Ellis served as legal counsel to Kinderhook and THI. Capstone Financial Group served as an M&A advisor to THI.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-15-13

Baird Capital Acquires Orthoplastics

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MedPlast, a portfolio company of Baird Capital, has acquired Orthoplastics, a manufacturer of polyethylene products used in the orthopedic implant market. JZ Capital Partners and River Cities Capital Funds are co-investors in this transaction alongside Baird.

Orthoplastics is a manufacturer of ultra-high-molecular-weight-polyethylene (UHMWPE). The company supplies its UHMWPE products in sheet and rod formats and shaped or cut to any size. Customers include orthopedic device OEMs. The company is based in Bacup, UK (www.orthoplastics.com).

“Implantable medical devices occupy a highly complex and regulated market space with high barriers to entry,” said MedPlast CEO Harold Faig. “The acquisition of Orthoplastics gives us a leading position in that market while enhancing our global capabilities.”

MedPlast is a manufacturer of molded plastic and rubber components used in the healthcare and commercial markets. MedPlast operates five plants across the United States with approximately 800 employees. The company is based in Tempe, AZ (www.medplastgroup.com).

“This transaction strategically positions MedPlast for future growth,” said Andrew Brickman, Partner in Baird Capital’s U.S. Private Equity group. “With continued improvements in global healthcare, MedPlast’s robust product line addresses a need for effective orthopedic solutions for an increasingly aging population.”

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).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-15-13

Great Point Partners Acquires Professional Data Services

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iVantage Health Analytics, a portfolio company of Great Point Partners, has acquired Professional Data Services, a provider of managed care analytics.

Professional Data Services (PDS) provides SaaS based analytic tools used for managed care analytics, internal/external payment benchmarking to support payor negotiations, and strategic planning/execution. The company was founded in 2006 and is based in Los Angeles (www.pds-data.com).

iVantage is a provider of health care informatics and business analytics that are used to transform complex data into actionable business intelligence. The company currently does business with over 500 hospitals, providers, and institutions as well as a range of government entities and rural health networks. iVantage is headquartered in Portland, ME (www.ivantagehealth.com).

Great Point Partners is a health care investment firm with approximately $450 million of equity capital under management. Great Point has provided growth equity, recapitalization and management buyout financing to more than 100 health care companies. Currently the firm manages capital in both public equity and private equity funds. Both the private and public funds invest across all sectors of the health care industry including biotechnology and life sciences, consumer health, generic drugs, health care services, information technology, insurance, medical devices, specialty pharmaceuticals and workers compensation. The firm is located in Greenwich, CT (www.gppfunds.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-15-13

Z Capital Appoints Chief Operating Officer

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Z Capital Partners has named William Monagle, Jr. as the firm’s Chief Operating Officer. Mr. Monagle has served as Managing Director at Z Capital and been a member of the Investment/Operational Team since November 2012.

“Bill brings to this role more than two decades of leadership and investment experience in analyzing private markets as well as proven expertise in tax and accounting related issues,” said James Zenni, President and Chief Executive Officer of Z Capital. “Bill is a seasoned operations professional and I have the utmost confidence he will transition seamlessly to our executive leadership team while continuing to successfully execute on our distressed for control private equity strategy.”

Z Capital makes control investments in middle-market distressed companies, operational turnarounds and special situations. The firm targets companies with an enterprise value of less than $1 billion or EBITDA of less than $100 million. Sectors of interest include consumer products, steel, steel processors, agricultural, gaming, leisure, real estate, manufacturing, specialty services and automotive. Z Capital Partners was formed by Mr. Zenni, the former President, co-owner and co-founder of Black Diamond Capital Management. Mr. Zenni co-managed the portfolios of Black Diamond from its inception in 1995 to approximately $9 billion in assets under management and divested his fifty percent equity ownership interest in Black Diamond in October 2006. Z Capital is based in Lake Forest, IL (near Chicago) and has an additional office in New York (www.zcap.net).

Prior to joining Z Capital, Mr. Monagle was a Partner and Senior Strategist with investment consulting firm NEPC and had responsibility for its private markets research, manager search – due diligence activities and performance monitoring efforts. Mr. Monagle was also a member of the Partners Research Committee, Alternative Due Diligence Committee and the Real Assets-Infrastructure practice. Mr. Monagle received an MS degree in Taxation from Bentley College and received a BS/BA degree in Accounting from Northeastern.

“I am thrilled to be taking on this new role at Z Capital,” said Mr. Monagle. “I look forward to continuing to build on the firm’s strong track record and stellar reputation of delivering superior returns to investors.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-15-13