December 2, 2013
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Archives for December 2, 2013

Hellman & Friedman Acquires Applied Systems

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applied nf2Applied Systems, a provider of insurance software and a portfolio company of Bain Capital, has signed an agreement to be acquired by Hellman & Friedman in a transaction valued at approximately $1.8 billion. The transaction is expected to be completed in early 2014.

JMI Equity will be investing alongside Hellman & Friedman. Members of Applied Systems’ senior management will continue to maintain a significant ownership position in the company. Bain Capital first invested in Applied Systems in 2006.

Applied Systems develops, sells, and supports insurance agency and broker management systems and provides services for accounting, customer, policy, claims management, and all related agent and broker functions. The company has a customer base of over 12,000 agencies and brokerages and 350 insurers across the United States, Canada and the United Kingdom. Applied Systems was founded in 1983 and is headquartered in University Park, IL (www.appliedsystems.com).

“All of us at Applied are pleased to be partnering with Hellman & Friedman and JMI Equity as they share our commitment to revolutionize the global business of insurance by investing behind the company’s unique product vision for the benefit of our customers,” said Reid French, CEO of Applied Systems. “This is an exciting time in the 30-year history of Applied Systems. Our senior management team and I are extremely appreciative of Bain Capital’s unwavering support in executing our growth mission over these past seven years. This acquisition represents an endorsement of Applied Systems’ talented employee base, strategic plan and product vision that have made the growth of our company possible.”

Bain Capital manages several pools of capital, including private equity, venture capital, and public equity and leveraged debt assets. The firm has more than $66 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in more than 300 companies in a variety of industries around the world. The firm has offices in Boston, New York, Chicago, London, Munich, Tokyo, Shanghai, Hong Kong and Mumbai, with over 800 employees worldwide (www.baincapital.com).

“We believe Applied Systems is a uniquely positioned company in the global insurance software market,” said David Tunnell, managing director of Hellman & Friedman. “It combines the largest user base in the industry with Applied Epic, the fastest growing new agency management system, to be the market leader in insurance technology for deployments both on premise and in the cloud.”

Hellman & Friedman invests from $200 million to $750 million in companies across a range of industries including energy & industrials, software, business & marketing services, internet & digital media, financial services, insurance, media, and healthcare. Founded in 1984, the firm has raised and managed over $25 billion of committed capital and invested in over 60 companies. The firm is currently investing its sixth fund, with $8.4 billion of capital commitments. Hellman & Friedman is based in San Francisco with additional offices in London and New York (www.hf.com).

JMI Equity is a growth equity firm that invests in software and technology-enabled services companies. Founded in 1992, JMI has invested in 110 businesses and has over $2.1 billion of committed capital under management. The firm has offices in San Diego and Baltimore (www.jmi.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13

Metalmark Capital Exits Airborne Systems

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airborne nfMetalmark Capital has reached an agreement to sell its portfolio company Airborne Systems, a designer and manufacturer of parachutes, to TransDigm Group for approximately $250 million in cash. The transaction is expected to close by the end of the first quarter of 2014.

“Airborne’s leading products and technologies have been a valuable part of Metalmark’s portfolio for the past four years,” said Jeff Siegal, Managing Director of Metalmark Capital. “We have thoroughly enjoyed working with Airborne and its outstanding management team and wish them the very best in the future.”

Airborne Systems is a designer and manufacturer of personnel parachutes, cargo aerial delivery systems, emergency escape systems, naval decoys and other related products. Product offerings primarily include current generation troop parachutes, latest generation steerable parachutes for tight drop zone landings, and the ram-air, maneuverable parachute systems used for special operations. Airborne Systems‘ revenues for the fiscal year ended June 30, 2013 were approximately $160 million and roughly 45% of the company’s revenue came from domestic customers and 55% from international customers. Airborne Systems is headquartered in Pennsauken, NJ (www.airborne-sys.com).

“Airborne Systems is the worldwide market and technology leader in military personnel parachutes, guided aerial cargo and payload delivery systems. The company’s wide range of proprietary products, broad international customer base and recurring stream of upgrade and replacement products fit well with the TransDigm value creation model,” said W. Nicholas Howley, Chairman and Chief Executive Officer of TransDigm Group

TransDigm Group (NYSE: TDG) is a designer, producer and supplier of engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and lighting and control technology. The company is headquartered in Cleveland (www.transdigm.com).

Metalmark Capital was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. These companies span a range of industries, including energy and natural resources, industrials and healthcare. Metalmark Capital is currently investing through its latest fund that has $2.5 billion of committed capital. The firm is based in New York (www.metalmarkcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13

Revolution Capital Acquires Maysteel

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maysteel nfRevolution Capital Group has acquired Maysteel, a manufacturer of sheet metal enclosures.

Maysteel is a designer and manufacturer of sheet metal enclosures that are used in the utility, self-service, alternative energies, medical, and security industries. The company was founded in 1936 and is headquartered in Menomonee Falls, WI (www.maysteel.com).

“Maysteel has been a market leader for nearly eight decades in providing full service sheet metal manufacturing solutions. This acquisition fits with Revolution’s plan to expand its portfolio of high-quality manufacturing companies, and we are impressed with Maysteel’s products, people and commitment to the community. We look forward to continuing to achieve the gold-standard Maysteel has established in serving its customers,” said Jeff Gray, Managing Director of Revolution Capital Group.

Revolution Capital Group invests in companies in the following sectors: media and publishing; manufacturing; telecommunications; software; business services; logistics; industrials; healthcare products and services; consumer products; distribution; oil and gas services; and IT products & services. The firm has offices in Los Angeles and New York (www.revolutionpe.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13

Badlands Capital Acquires Design Tanks

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designtanks nfBadlands Capital, in partnership with Aldine Capital Partners and Nordic Venture Partners, has acquired Design Tanks LLC.

Design Tanks is a designer and manufacturer of custom storage tanks made from fiberglass-reinforced plastic. The company builds tanks with a capacity of up to 50,000 gallons that are sold to the industrial and agricultural end markets. Design Tanks is headquartered in Sioux Falls, SD (www.designtanks.com).

“The management team of Design Tanks has built a business that focuses on providing complex, custom solutions for its customers. Design Tanks’ operational expertise contributes to the high quality tanks it manufactures. I look forward to working with the Design Tanks team,” said Blaine Crissman, Partner of Badlands Capital.

Badlands Capital is looking to acquire other tank manufacturers that have strong engineering and manufacturing capabilities that will expand Design Tanks’ geographic territory.

Badlands Capital makes control investments in middle market companies with revenue up to $40 million that are located in South Dakota, North Dakota, Minnesota, Nebraska, Iowa and Colorado. Sectors of interest include highly-engineered manufacturing and business services. Badlands Capital was founded by Blaine Crissman and is based in Sioux Falls, SD.

Aldine Capital Partners provides from $2 million to $15 million of mezzanine and junior capital financing to lower middle-market companies that operate in a variety of industries. The firm was founded by Michael Revord and Bert Brahm in 2005 and is based in Chicago (www.aldinecapital.com).

Nordic Venture Partners is a private equity firm that invests in entrepreneurs throughout the Midwest. The firm is led by managing partners Chad Hatch and Paul Schock and is based in Sioux Falls, SD (www.nordicventurepartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13

Odyssey Completes One Call Care Management Exit

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one call nfOdyssey Investment Partners has completed the previously announced sale of its portfolio company One Call Care Management to Apax Partners.

One Call is a provider of cost containment services to the workers’ compensation industry. Services include diagnostics, physical therapy, post-discharge and in-home care management, transportation, dental programs and other specialty services. In December 2009, Odyssey acquired One Call Medical which was merged with MSC Care Management in August 2012 to form One Call Care Management. The company is based in Jacksonville, FL (www.onecallcm.com).

“We set out to undertake a business transformation with One Call by expanding the service offering and building a scalable, high growth enterprise focused on delivering value for clients,” said Jeffrey McKibben, a Managing Principal at Odyssey. “We are extremely proud to have been a part of this chapter for the company and wish CEO Joe Delaney and the entire One Call team continued success under their new ownership.”

Odyssey Investment Partners is a middle-market private equity firm with more than $3 billion under management. Odyssey makes control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has offices in New York and Woodland Hills, CA (www.odysseyinvestment.com).

Apax Partners invests in the technology & telecom; retail & consumer; media; healthcare; and financial & business services sectors. The firm has offices in London and New York (www.apax.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13

Golub Capital Backs Aurora’s Buy of National Technical Systems

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golub2Golub Capital was the Sole Bookrunner and Administrative Agent on a $193 million financing to support the acquisition of National Technical Systems by Aurora Capital Group.

National Technical Systems (NASDAQ: NTSC) is a provider of engineering services to the aerospace, defense, telecommunications, automotive and high technology markets. Services provided include design engineering, compliance, testing, certification, quality registration and program management. The company was founded in 1961 and is based in Calabasas, CA (www.nts.com).

“Golub Capital provided an outstanding financing execution to support our investment in NTS,” said Michael Marino, Partner of Aurora Capital Group. “We have been working hard on this transaction for many months, and Golub supported our efforts throughout the process. We are thrilled to have a flexible and scalable financing solution in place that is tailored to grow alongside NTS and support its many strategic and operational initiatives.”

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).

“We are excited to support Aurora’s investment in NTS. We believe NTS is a unique platform in an attractive space with an extraordinary management team,” said Troy Oder, Managing Director at Golub Capital. “We value Aurora’s deep industry expertise and disciplined approach to investing, and we are thrilled to close our second transaction alongside them this year.”

Earlier this year, Golub Capital was the Sole Bookrunner and Administrative Agent on a $153 million financing to support the acquisition of Competitrack, a provider of advertising tracking services, by Market Track, a portfolio company of Aurora Capital.

Golub offers buy-and-hold products ranging from $10 million to $75 million and includes one-loan financings, senior, 2nd lien and subordinated debt, preferred stock and co-investment equity. The firm underwrites and syndicates first lien loans up to $300 million. Golub Capital will hold up to $250 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. Golub has offices in New York and Chicago (www.golubcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13

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