Archives for November 25, 2013

Fireman Capital Partners Acquires Skip Hop

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Fireman Capital Partners has acquired a majority stake in Skip Hop, a provider of infant and toddler products and accessories. Skip Hop founders Michael and Ellen Diamant will retain a meaningful ownership stake, and will continue to lead the company.

Skip Hop is a cross-category lifestyle brand serving the infant and toddler industry with both soft and hard line products. Products include diaper bags, on-the-go accessories, soft & wooden toys, bedding, bath time, feeding, and the ZOO line of toddler products. The company’s products are sold at over 4,000 retail locations in the US and in over 60 countries worldwide. Skip Hop was founded in 2003 by husband and wife team Michael and Ellen Diamant and is headquartered in New York (www.skiphop.com).

“Ellen and I – and the rest of the Skip Hop team – are thrilled to be partnering with Fireman Capital Partners,” said Mr. Diamant. “FCP has a proven track record in the consumer space, and their vision for Skip Hop is perfectly aligned with ours. We are very excited to have the resources and added experience to help take Skip Hop to the next level – all while retaining our focus on making great product.”

“We look forward to collaborating with Michael and Ellen to support the further development and growth of Skip Hop. The company has tremendous momentum. We plan to leverage our resources and operational expertise to assist Skip Hop in accelerating the build of the company’s product platform and distribution,” said Marla Sabo, Partner at Fireman Capital.

Fireman Capital Partners (FCP) was established in 2008 under Chairman Paul Fireman and Managing Partner Dan Fireman. The firm invests in consumer products companies with revenues between $20 million and $150 million. The firm is based in Boston (www.firemancapital.com).

“Skip Hop creates truly innovative products that are original, fresh and with a contemporary aesthetic. While successfully expanding its product suite and distribution channels, Skip Hop has proven the strength of its brand and the authenticity of its products. We are delighted to be partnering with this dynamic company,” said Dan Fireman, Managing Partner of FCP.

McDermott Will & Emery acted as legal advisor to Fireman Capital Partners. ROTH Capital Partners provided financial advice to Skip Hop, and Goodwin Procter acted as legal advisor.

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-25-13

Aurora Capital Group Exits Porex Corporation

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Aurora Capital Group has completed the sale of Porex Corporation, a developer of porous polymer materials, to Filtration Group. Aurora first invested in Porex in October 2009.

Porex is a developer of porous polymer materials used in the healthcare and bioscience end markets, and also in the consumer and industrial sectors. Porex products serve filtration, venting, wicking, diffusion, and media support functions in applications such as blood filters, catheter vents, fuel filters, writing instrument tips, and consumable diagnostic tests. The company has more than 1,300 customers across 65 countries. Porex was founded in 1961 and has operations in North America, Europe and Asia. The company is headquartered in Fairburn, GA (www.porex.com).

Under Aurora’s ownership, Porex made a number of strategic acquisitions and divestitures, including the sale of Porex’s surgical division to Stryker Corporation in November 2010.

“Aurora’s investment in Porex exemplifies our investment strategy and the spirit of partnership we bring to our work,” said Michael Marino, Partner of Aurora Capital Group. “The seamless collaboration between Aurora, Porex and the company’s independent board underpinned the success of an ambitious set of investment initiatives designed to grow Porex’s capabilities and its unique materials technology. As a result of these initiatives and several strategic transactions, Porex has evolved to become a larger, stronger and more innovative company. The entire Porex organization, led by President and CEO Bill Midgette, has done a tremendous job building this business, and we believe the company is very well-positioned to continue on its exciting trajectory with Filtration Group.”

The buyer of Porex, Filtration Group, provides filtration products and services used by customers in the food & beverage; water, micro-electronics & telecommunications; environmental air; medical & bioscience; hydraulics; mining & minerals; industrial finishing and energy industries. The company operates facilities in 20 countries under three operating divisions: Liquid/Process, Environmental Air and Fluid. Filtration Group is headquartered in Chicago (www.filtrationgroup.com).

“Aurora, and the board it put in place, have been incredible partners during a transformational period of growth for Porex. As a result of Aurora’s investment and support, we have elevated our performance, delivering our technology to world-class customers around the globe with record levels of innovation, speed and quality. Looking ahead, we are excited to partner with Filtration Group as we continue to expand our market-leading capabilities in porous polymer technology,” said William Midgette, President and Chief Executive Officer of Porex.

Aurora Capital focuses principally on control investments in middle-market industrial, manufacturing and service oriented businesses. The firm, founded in 1991, has $2 billion of capital under management and is headquartered in Los Angeles (www.auroracap.com).

Robert W. Baird & Co. acted as financial advisor to Porex.

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-25-13

Shore Capital Partners Exits SCP Specialty Infusion

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Shore Capital Partners has sold SCP Specialty Infusion, a home infusion services company, to AxelaCare Health Solutions, a portfolio company of Excellere Partners. The transaction closed on October 31, 2013.

Infusion services primarily involve the intravenous (i.e., directly into veins or muscles, or under the skin) administration of medications to treat a range of acute and chronic health conditions. Physicians and hospitals generally refer patients to specialty infusion providers to continue their therapies at home or in other non-acute settings. The market for specialty infusion is approximately $10 billion and growing at approximately 8% to 12% annually.

SCP Specialty Infusion was created in November 2009 when Shore Capital Partners teamed with Chris York, CEO, and Mitch Friedman, CFO, both home infusion industry veterans, to complete a roll-up strategy in the space. In July 2010, the management team and Shore made their platform investment in Arizona-based Sirona Infusion. Over the next three and a half years, Shore and management completed three add-on acquisitions and built three de novo pharmacies. Shore and management integrated these regionally diverse companies by standardizing operations with weekly and monthly metric management and a unified IT platform. Shore and management also consolidated HR, corporate compliance, accounting and finance.

Today, SCP Specialty Infusion is a provider of acute home infusion services in the Western US. Its network of pharmacies, infusion centers, and nursing staff spans Arizona, New Mexico, California, Colorado, and Oregon. Therapies delivered include the full spectrum of acute and chronic infusion therapies including anti-infective, oncolytic, total parenteral nutrition, cardiac, hydration, and other intravenously delivered medicines. The company is based in Chandler, AZ (www.sironainfusion.com).

“Over the last three and a half years, we’ve built a company on the model of putting the patient first,” said Chris York, CEO of SCP Specialty Infusion. “We are confident that this model, combined with aggressive business development and an intense focus on metric management, enabled us to build a scarce asset in the home infusion industry. Shore’s operational oversight and financial support coupled with management’s industry expertise were highly complementary and helped facilitate the platform’s growth.”

Shore Capital Partners invests in lower middle market healthcare related companies that have $5 million to $50 million of revenue and $1 million to $5 million of EBITDA. Healthcare sectors of particular interest include behavioral health; healthcare staffing; infusion therapy; laboratory products & distribution; laboratory services; outpatient rehab therapy; urgent care; veterinary services; pharmaceutical services/contract research. Shore has completed 11 investments across the home infusion, lab services, physical therapy, and urgent care sectors. The firm was founded in 2009 and is based in Chicago (www.shorecp.com).

“We are pleased to have partnered with management to build SCP Specialty Infusion into one of the preeminent home infusion providers in the country,” said Justin Ishbia, Founder and Managing Partner of Shore Capital Partners. “Further, the successful execution of our value creation plan has allowed us to complete the sale of SCP Specialty Infusion on favorable terms for our investors.”

AxelaCare, acquired by Excellere Partners in December 2010, is a provider of home infusion therapy services, including Intravenous Immune Globulin, Hemophilia and other traditional home infusion services, such as Intravenous Antibiotics and Total Parenteral Nutrition. The company currently operates three pharmacies serving patients in 25 states. AxelaCare is headquartered in Lenexa, KS (www.axelacare.com).

Excellere Partners invests in middle-market companies with revenues ranging from $20 million to $150 million. Sectors of interest include healthcare; specialty foods; industrial technology and services; business services; and education and training. The firm has $737 million of capital under management and is based in Denver, CO (www.excellerepartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-25-13

Carlyle Closes Fund 6 Above Target at $13 Billion

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The Carlyle Group has held a final close of Carlyle Partners VI, a $13 billion fund that invests in US corporate buyouts and strategic minority investments across six industries. Two hundred sixty-nine investors from 43 countries committed capital to the fund. Carlyle began fundraising in late 2011 with a $10 billion target.

Demonstrating alignment with fund investors and confidence in the team, Carlyle, its senior professionals, operating executives, other professionals and advisors committed $1 billion in capital alongside Carlyle Partners VI fund investors, who committed $12 billion.

“We are grateful for the support of our fund investors, many of whom are repeat investors. Institutional and individual investors across the globe understand the value of having a proven buyout fund in their portfolio. We will take good care of their money as we work to invest wisely and create value,” said Allan Holt, Managing Director and Co-head of the US Buyout Group.

The US Buyout Group is part of Carlyle’s Corporate Private Equity segment, the oldest and largest of the firm’s four business segments, with assets under management of $62 billion as of September 30, 2013. Corporate Private Equity, with 262 investment professionals, operates 14 fund families worldwide with more than 150 portfolio companies as of September 30, 2013. The US Buyout Group specializes in six industry sectors: aerospace, defense & government services; consumer & retail; healthcare; industrial & transportation; telecommunications & media; and technology.

“Our deep and experienced industry investment teams continue to identify attractive investment opportunities. Combining that industry knowledge with Carlyle’s 27 Operating Executives and global network creates a powerful platform for value creation for our fund investors,” said Peter Clare, Managing Director and Co-head of the US Buyout Group. “Growth drives most of our value creation and we have built the capabilities necessary to find and accelerate real growth.”

Carlyle’s previous US buyout fund, the $13.7 billion Carlyle Partners V, closed at the end of 2008.

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. The firm employs 1,450 people in 34 offices across six continents and is based in Washington, DC (www.carlyle.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-25-13