November 26, 2013
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Archives for November 26, 2013

Cortec Group Acquires Weiman Products

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weiman nfCortec Group has acquired Weiman Products, a provider of specialty cleaning products. Cortec invested in Weiman through its fifth fund, Cortec Group Fund V, L.P., and is the fund’s fifth platform investment.

“The entire team at Weiman is thrilled to be teaming with Cortec as we enter our next phase of growth. They bring to the table a unique blend of consumer and healthcare investing experience that will undoubtedly allow us to hit the ground running,” said Carl DeMasi, Weiman’s President and CEO.

Mr. DeMasi and the rest of the senior management team will continue in their current roles and as shareholders in the company.

Weiman is a provider of branded specialty cleaning products for the consumer market and specialty cleaning, sterilization and disinfectant products for the healthcare market. Weiman’s consumer division produces, markets and distributes over 50 formulations of branded specialty household cleaning products, all sold under the Weiman or Wright’s brand names, that address distinct cleaning needs within home, appliance, furniture and other specialty categories. The company’s consumer products are sold through retailers in the global mass, food, drug, specialty and e-Commerce channels, covering over 50,000 retail doors. The company’s healthcare division develops and manufactures over 60 healthcare formulas, consisting of detergents, instrument care solutions, high level disinfectants for processing surgical instruments, and general surface disinfection products. The company’s healthcare products are used in the acute, physician, dental and veterinary healthcare markets and are sold to the channel OEMs and distributors. Weiman Products was founded in 1963 and is based near Chicago in Gurnee, IL (www.weiman.com).

“Weiman has built an outstanding long-term track record under Carl DeMasi’s leadership, evidenced by 32 consecutive years of sales growth. The company’s consistent strong performance is directly attributable to the Weiman brand’s reputation for quality, efficacy and value among a broad range of consumers,” said David Schnadig, a Managing Partner at Cortec.

Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $40 million to $300 million. Cortec currently manages over $1 billion in its two active funds. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).

“Weiman’s historical growth has been impressive, but Cortec is even more excited about the company’s future prospects. Through development of innovative products, expansion into adjacent channels and acquisitions, we believe the company is poised for accelerated growth and are looking forward to partnering with the Weiman team,” said Jeffrey Shannon, a Managing Director at Cortec.

Duff & Phelps Securities served as financial advisor to Weiman.

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13

Audax Acquires Haverhill Cable and Manufacturing

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HCMC NFWinchester Electronics Corporation, a portfolio company of Audax Private Equity, has acquired Haverhill Cable and Manufacturing.

Haverhill Cable and Manufacturing is a producer of semi-rigid coaxial cable and cable assemblies. Its products are utilized in a variety of microwave and RF systems in commercial, military, and satellite equipment. The company is headquartered in Haverhill, MA (www.haverhillcable.com).

Winchester is a designer and manufacturer of connectors and cable assemblies used in the medical, military, energy & power, broadcast and ruggedized industrial end markets. The company is based in Middlebury, CT (www.winchesterelectronics.com).

Audax acquired Winchester in June 2006 and with the buy of Haverhill Cable has now completed eight add-on acquisitions including: Continental Connector Company (Hatfield, PA) in May of 2013; Clements National Company (Broadview, IL) in August of 2012; Electrical Specialty Products (Spartanburg, SC) in July of 2012; Kings Electronics Corporation (Rock Hill, SC) in May of 2007; and Advanced Interconnect (Franklin, MA) in April of 2007.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13

TA Associates Acquires Accruent

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accruent nfTA Associates has completed a majority investment in Accruent, a provider of real estate and facilities management software. Existing investor Vista Equity Partners, which first invested in Accruent in December 2009, will retain a significant ownership position.

Accruent provides market planning, site selection, project management, lease administration, facilities and space management software that is purpose-built for specific industries. Over the last four years, Accruent has completed four strategic acquisitions to become the largest independent provider of real estate and facilities software. The customer base has grown from 400 to over 1,200 customers that use the company’s software in 56 countries. The company was founded in 1995 and is headquartered in Austin, TX and has offices in Santa Monica, CA; Evanston, IL; Calgary, AB, Canada and Columbus, OH (www.accruent.com).

“We’ve been tracking the evolution and growth of this category for years and Accruent has clearly emerged as the market leader,” said Hythem El-Nazer, a Director at TA Associates who will join the company’s Board of Directors. “It is a very well-run company and we are excited to support the team’s current strategy and direction. We look forward to partnering with management and Vista Equity to build on Accruent’s success.”

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 430 companies globally and has raised more than $18 billion in capital. The firm was founded in 1968 and has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

“Real Estate, Facilities and Site Management represent a large component of enterprise spend and a huge strategic lever,” said Jason Werlin, a Principal at TA Associates who will also join the company’s Board of Directors. “The market is fragmented and, until recently, solutions were either painful to implement or incomplete. Accruent’s ability to deliver enterprise class solutions with the ease of cloud deployment is a tremendous opportunity for organizations to unlock value by managing real estate assets in a more strategic manner.”

Vista Equity Partners has more than $7 billion in committed capital and makes equity investments in enterprise software businesses and technology-enabled services companies. The firm was founded in 2000 and has over 50 investment professionals operating out of Austin, Chicago, and San Francisco (www.vistaequitypartners.com).

“Our four-year partnership with Vista Equity Partners allowed us to transform our company and products,” said Mark Friedman, Founder and CEO of Accruent. “Our new partnership with TA Associates allows us to stay private and focused on our current strategy while leveraging TA’s global scale and deep industry expertise to provide our customers with even more long-term value.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13

KPS Closes on Furniture Brands, Appoints New CEO

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furniture brands nfKPS Capital Partners has formed Heritage Home Group and completed the acquisition of substantially all of the assets of Furniture Brands International, a designer, manufacturer, and retailer of home furnishings. Heritage Home Group acquired the assets as part of a sale process under Section 363 of the United States Bankruptcy Code.

Furniture Brands International (OTC: FBNIQ) is a home furnishings company with brands that include Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Hickory Chair, Pearson, Laneventure, and Maitland-Smith. The company’s products are sold through a range of channels, including the company’s own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. The company was founded in 1911 and is based in Clayton, MO (www.furniturebrands.com).

With the closing of the acquisition, KPS has named Ira Glazer as President and Chief Executive Officer of Heritage Home Group.

“This is the beginning of a new era for Heritage Home Group and its brands. The company has a new owner, a new CEO, a new Board of Directors and a new strategic direction,” said Raquel Vargas Palmer, a Partner of KPS. “Heritage Home Group launches with truly iconic brands, a solid financial structure and access to KPS’ financial resources and expertise. We strongly believe in the fundamental value of this business and the significant growth potential that can be unlocked through focused investment in our brands.”

glazer nfMr. Glazer is an executive with three decades of successful turnaround experience. He is the former president and CEO of Kansas City-based WireCo World Group, a wire rope company, which was acquired by KPS in 2002 and sold to Fox Paine & Company in 2007.

“I am honored to lead Heritage Home Group. Free of Furniture Brands’ burdens and liabilities, and with a rock-solid balance sheet and many outstanding associates who are joining our company, we have an exceptional opportunity to build a true industry leader,” said Mr. Glazer. “I am also pleased to partner and collaborate again with KPS, a firm that has distinguished itself as a global leader in turnaround investing and is ideally suited for this exciting venture.

GE Capital and PNC Bank provided financing for the transaction. Proskauer Rose acted as legal counsel to KPS.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. The firm’s portfolio companies have aggregate annual revenues of approximately $7.6 billion, operate 87 manufacturing plants in 25 countries, and employ over 31,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13

Nexxus Closes on $550 Million for its Sixth Fund

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nexxus nfNexxus Capital has held a final closing of its sixth institutional private equity fund, Nexxus Capital VI, with capital commitments of $550 million. The new fund was oversubscribed and exceeded its original target of $400 million.

Pension plans, sovereign wealth funds, and endowments from North America, Europe and the Middle East account for the majority of the investor base. The new fund will make equity investments in midsize companies primarily in Mexico, where there is an opportunity to institutionalize family or entrepreneurially owned businesses.

Nexxus Capital is the oldest independent Mexican private equity firm with more than 18 years in the market. The team has a successful track record achieving unleveraged gross IRRs of over 25%, with over $1.2 billion in assets under management plus $100 million in co‐investments across six institutional funds. Nexxus Capital is headquartered in Mexico City (www.nexxuscapital.com).

Nexxus VI is comprised of two investment vehicles: a Mexican public vehicle listed on the Mexican Stock Exchange (Ticker: NEXX6CK 13) and an Ontario limited partnership. Both vehicles will co‐invest on a pro‐rata basis according to total available resources of each vehicle.

MVision Private Equity Advisers acted as lead global fundraising adviser. Santander and Citigroup acted as joint‐bookrunners for the Mexican vehicle.

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13

Penfund Backs OMERS Buy of Caliber Collision

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penfund nfPenfund has provided a $60 million 2nd lien loan to Caliber Collision Centers which was recently acquired by OMERS Private Equity.

Caliber is a provider of automotive collision repair services with a network of 157 collision centers located in California, Texas, Arizona, Nevada, Oklahoma and Colorado. The company has approximately 3,700 employees and repairs more than 285,000 vehicles annually. Caliber is headquartered in Dallas (www.calibercollision.com).

Penfund specializes in providing junior capital to middle market companies throughout North America. The firm provides second lien, high yield and mezzanine debt, control and minority equity, as well as bridge facilities, standby lines, underwritten facilities and financial guarantees. Penfund is currently investing out of Penfund Capital Fund IV which has $460 million of committed capital. The firm was founded in 1979 and is based in Toronto (www.penfund.com).

“We are delighted to have been able to support OMERS’s acquisition of Caliber. We are also very pleased to continue our long association with Caliber. We believe Caliber’s exceptional management team will continue to rapidly grow the business with the backing of the human and financial resources of OMERS,” said Jeremy Thompson, a partner at Penfund. “This growth will be underpinned by the intensifying desire of automobile insurers to rely on the ability of large, efficient and trustworthy repair center operators to deliver high quality services to their policy holders.”

OMERS Private Equity manages the private equity activities of OMERS, one of Canada’s largest pension funds. The group’s investment strategy includes the active ownership of businesses in North America and Europe. Sectors of interest include manufacturing, financial and business services, industrial and consumer products, transportation, and technology. Investment sizes range from $100 million to $500 million. The firm is located in Toronto with offices in New York and London and has $6 billion of investments under management (www.omerspe.com).

“We are thrilled to partner with Steve Grimshaw, President and CEO of Caliber, and his management team for the company’s next phase of growth,” said Tim Patterson, Senior Managing Director at OMERS. “We believe that Caliber will continue to distinguish itself as the market leader in the highly fragmented collision repair industry in the years ahead.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13

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