December 10, 2013
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Archives for December 10, 2013

Platinum Equity Acquires Volvo Rents

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volvo rents nfThe Volvo Group has agreed to sell Volvo Rents to Platinum Equity for approximately $1.1 billion (SEK 7.2 billion). A pre-requisite for completion of the transaction is that Platinum Equity is successful in a debt offering to be made to finance its acquisition. The transaction is expected to be closed in the first quarter of 2014.

Volvo Rents, formed in 2001, offers rental of a range of machines used in the construction and engineering industry. In the first nine months of 2013 Volvo Rents had net sales of $470 million (SEK 3.1 billion) and recorded an operating loss of $7 million (SEK 47 million). Volvo will continue to sell products to Volvo Rents under the new ownership. Volvo Rents has operations in the US, Canada and Puerto Rico and has about 2,100 employees. The company is headquartered in Shippensburg, PA (www.volvorentsconstructionequipment.com).

“We looked at different alternatives to grow Volvo Rents’ business and concluded that the best alternative is to sell the operation to another owner. Volvo Rents’ business does not have a sufficiently strong connection with the Group’s core operation to motivate continued ownership,” says Olof Persson, Volvo Group President and CEO.

Platinum Equity invests in a range of industries including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Platinum Equity has completed nearly 150 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. The firm is based in Beverly Hills and also has offices in New York and London (www.platinumequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-10-13

HKW Sells Visioneering to 3P Equity and Silver Sail

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visioneering nfHammond, Kennedy, Whitney & Company (HKW) has sold its portfolio company Visioneering, a designer, manufacturer, and installer of automation tooling systems, to 3P Equity Partners and Silver Sail Capital. Visioneering had been a portfolio company of HKW since 2007.

Visioneering is a designer, manufacturer, and installer of complex assembly automation tooling systems used in the aerospace and defense industry. Products include highly-machined large assembly fixtures to smaller close-tolerance tools, such as jigs, mill fixtures, bond and curing tools, and facilities equipment. Visioneering’s customers include Boeing, Goodrich (UTAS), GE/Middle River Aircraft Systems, ATK, Lockheed Martin, Northrop Grumman, Bell, GKN, and Spirit Aerosystems. The company is based near Detroit in Fraser, MI (www.vistool.com).

“We were very pleased with the strong performance of Visioneering over the last several years. The company is known for its deep technical expertise and manufacturing “know-how”, combined with a deeply ingrained customer centric focus,” said Jeff Wood, CEO of HKW. “We are extremely appreciative of the strong leadership and dedication shown by CEO Jim Futterknecht and the entire management team at Visioneering. We are confident they have the right partner moving forward and wish them continued success.”

Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Over the past 29 years, HKW has completed 44 platform management buyouts of small middle-market companies throughout North America as well as 48 add-on acquisitions. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).

The buyers of Visioneering, 3P Equity Partners and Silver Sail, intend to continue to promote Visioneering’s organic growth initiatives and will pursue add-on acquisition opportunities.

3P Equity Partners invests in general manufacturing, plastics and packaging companies that have from $15 million to $75 million in revenues and $3 million to $10 million in EBITDA. The firm’s current portfolio includes several tooling and fixtures businesses in the US, as well as a number of industrial and food packaging organizations in Eastern Europe. 3P Equity Partners is headquartered near San Jose in Campbell, CA (www.3pequity.com).

Silver Sail Capital invests in companies that have from $10 million to $100 million in revenue and $2 million to $15 million in EBITDA. The firm invests in a variety of industries but has a specific interest in the consumer products, food, industrials and manufacturing sectors. Silver Sail was founded in 2012 and is based in Los Angeles (www.silversailcapital.com).

Investment bank D.A. Davidson & Co. (www.davidsoncompanies.com) acted as the exclusive financial advisor to HKW on the sale of Visioneering. “With our group’s keen understanding of the industry and potential buyers, D.A. Davidson was able to support the successful exit for HKW,” said Paul Weisbrich, managing director of D.A. Davidson’s Aerospace, Defense, and Government Services Group. “The aerospace and defense tooling automation world is experiencing a renaissance for three reasons. Fuel-saving requirements have propelled use of composites which are tool-intensive, both for ratable parts and modern flightline assembly techniques. Second, build rates are increasing to historic levels, stimulating more automation and continual changes to aircraft manufacturing assembly lines. Lastly, an aircraft is never done. Airplanes always evolve, build rates shift and derivatives are spawned. This activity constantly refreshes the tooling order books.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-10-13

Nautic Partners Acquires QoL Meds

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qol nfNautic Partners has acquired QoL Meds, an operator of specialty pharmacies that serve the mental health community.

QoL Meds (the “QoL” in the company name stands for “quality of life”) is an operator of on-site behavioral health specialty pharmacies. Over the last five years, QoL has grown from two pharmacies to 87 pharmacies as mental health centers have recognized the value of a pharmacy partner dedicated to serving mental health. The company dispenses over 2 million prescriptions and serves over 50,000 patients annually. In addition to medication dispensing, QoL offers other value-added services including medication assistance and monitoring, outcomes and adherence reporting, customized packaging, patient education, assistance with reimbursement and clinical coordination, and 340b (discount pricing) services. The company was founded in 2000 and is headquartered in Pittsburgh (www.qolmeds.com).

“QoL has developed into one of the largest and most well-respected specialty pharmacies by delivering unmatched quality of care to its patients and clinical partners. QoL’s business model and approach to the delivery of care appropriately balances all constituents of healthcare which is a critical component of our healthcare investing model at Nautic,” said Chris Crosby, Managing Director of Nautic. “We are excited to be partnering with Jim Smith and the entire QoL team and believe that the company is well positioned for continued growth.”

Nautic Partners is a middle-market private equity firm with over $2.5 billion of equity capital under management. Nautic targets majority equity investments of $25 million to $75 million. Sectors of interest include business services, manufacturing, and healthcare. The firm was founded in 1986 and is headquartered in Providence, RI (www.nautic.com).

“We are thrilled to partner with Nautic who shares our vision of growth and building the leading provider of specialty pharmacies for the behavioral health community,” said Jim Smith, President and CEO, QoL Meds. “Nautic brings a wealth of healthcare investing experience, and we look forward to partnering with them to continue our mission of improving the “quality of life” for people living with mental illness by establishing a higher level of prescriptive care.”

QoL is Nautic Partners’ fourteenth investment from its most recent fund, Nautic Partners VI, LP, and continues Nautic’s history of investing in the healthcare industry. Other representative Nautic healthcare investments include American Imaging Management, AXIA Health Management, Genova Diagnostics, Healthcare Payment Specialists, Medegen, Reliant Hospital Partners, Superior Vision and Theorem Clinical Research.

“QoL’s services enhance compliance, improve patient quality of care, and reduce healthcare costs,” said Chris Corey, Principal of Nautic. “The market for mental health services is large and growing. With improved diagnosis of mental health disease, increased recognition by payers of active medication treatment protocols, and a continued shift to outpatient care delivery, we believe QoL is uniquely positioned to play an ever increasing role in delivering exceptional care to mentally ill patients and its clinical partners.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-10-13

Satori Capital Acquires Ranger Wireless Solutions

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ranger nfSatori Capital has acquired Ranger Wireless Solutions, a service provider to the wireless telecom industry.

Ranger Wireless’ patented service connects roaming wireless subscribers to their provider’s customer care center when they dial 6-1-1. As the exclusive dedicated provider of 6-1-1 customer care services, Ranger Wireless serves more than 40 carriers in the United States and Canada, and connects nearly 11 million calls each year. The 6-1-1 service is free of charge to customers of wireless carriers. Ranger Wireless is headquartered in Dallas (www.rangerwireless.com).

“Satori has been looking to acquire a portfolio of IT and telecom service providers, and Ranger Wireless serves as an excellent platform to realizing this vision,” said Sunny Vanderbeck, managing partner for Satori. “As the domestic leader in wireless customer care, Ranger is positioned well to expand its offering internationally as consumer expectations are increasingly global.”

Plans for Ranger Wireless include providing additional outsourced services to its customer base of wireless telecom providers. Although many of Ranger Wireless’ forthcoming growth initiatives will be organic, the company and Satori are actively seeking acquisition opportunities in the sector.

Leading Ranger Wireless will be John Ofenloch Jr., who has been named president and chief executive officer in conjunction with Satori’s acquisition. Mr. Ofenloch has more than 20 years of technology management experience, with a focus on telecommunications, Internet services, and integrated optic manufacturing.

Satori Capital invests in companies that have revenue of $25 million to $200 million and free cash flow of $3 million to $15 million. Sectors of interest include business services; consumer products; e-commerce; financial services; manufacturing; and software/IT/telecom. Satori Capital is based in Dallas (www.satoricapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-10-13

High Road Hits Hard Cap for Fund II

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high road nfHigh Road Capital Partners has held a final closing of High Road Capital Partners Fund II, LP (Fund II). Fund II hit its hard cap and raised $320 million in total commitments, well in excess of its $200 million target and twice the size of its predecessor fund.

fitzsimons“We are very grateful for the tremendous support and trust from existing and new investors. We have a diverse group of notable limited partners who share our belief that the smaller end of the middle market represents a great opportunity to create value and deliver exceptional returns,” said Robert Fitzsimmons, co-founder and Managing Partner of High Road Capital Partners.

High Road’s capital base comprises more than 25 institutional investors, family offices, and high-net-worth individuals. High Road Capital Partners raised Fund II in less than 12 months and the firm did not use a placement agent.

“Fund II will follow our proven and successful strategy of acquiring well-performing companies in the US and Canada with $3 million to $10 million in EBITDA and adding value through organic growth initiatives and complementary add-on acquisitions, and operational improvements. Our philosophy of ‘taking the High Road in everything we do’ has been an integral component of our success,” added Mr. Fitzsimmons.

So far, High Road has completed two platform acquisitions and one add-on acquisition for Fund II. In May 2013, High Road acquired The Crown Group, a provider of coatings for electrocoat, powder coat, and liquid applications to the automotive, agricultural, heavy truck and other industrial end markets. The company is headquartered in Warren, MI (www.thecrowngrp.com). In November 2013, High Road completed and add-on acquisition for Crown with the purchase of Electra-Finish, a provider of plastic coating services to the automotive, agricultural, heavy truck and other industrial markets. The company specializes in decorative painting on interior plastic parts. Electra-Finish is based in Asheboro, NC (www.electra-finish.com). In October 2013, High Road acquired SMB Machinery Systems, a provider of used packaging and process equipment to the food and beverage industries. SMB is based in Ball Ground, GA (www.smbsales.com).

High Road Capital Partners invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. High Road was formed in 2007 and currently manages over $470 million of committed capital. High Road has completed 27 transactions, comprising 25 acquisitions – 11 platform investments, 14 add-on acquisitions – and two exits since its founding in 2007. The firm is based in New York (www.highroadcap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-10-13

Trilantic Beats Target, Raises $2.2 Billion for Latest Fund

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trilanticcapitalTrilantic Capital Partners has held a final closing of Trilantic Capital Partners V (North America) LP (Fund V) with $2.2 billion in capital commitments.

Fund V exceeded its initial target of $2.0 billion and the size of its previous fund of $1.9 billion. Fund V is Trilantic’s first stand-alone fund following its emergence from Lehman Brothers Merchant Banking in 2009.

ayers nf“We saw strong interest from both current and new investors in this round of fundraising,” said Charlie Ayres, Chairman of the Trilantic Executive Committee. “We are grateful for this capital and look forward to continuing our differentiated investment approach focused on patient and flexible capital.”

Approximately one-half of the capital commitments for Fund V are from new investors and more than one-quarter from foreign limited partners. The fund’s limited partner base includes public and private pension plans, sovereign wealth funds, insurance companies, corporations, not-for-profit organizations, family offices and high net worth individuals.

Trilantic Capital Partners makes control and significant minority investments in North America and European companies that have enterprise values of $100 million to $1 billion. Sectors of interests include business services, consumer, energy, financial services and media & telecommunications sectors. Trilantic was formed in 2009 by the former principals of Lehman Brothers Merchant Banking. Since its inception, Trilantic has made 14 new investments in North America and six in Europe. Trilantic currently manages four institutional private equity funds with aggregate capital commitments of $6 billion. The firm is based in New York (www.trilantic.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-10-13

Former W. R. Grace Executive Joins Arsenal

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abrams nfArsenal Capital Partners has named Shawn Abrams as an Operating Partner in the firm’s Specialty Industrials Group. Mr. Abrams has 30 years of experience in the chemicals and materials industries, most recently serving as President of Grace Catalysts Technologies.

“We have developed a powerful team of Operating Partners and a network of executive advisors who represent top talent within their respective fields and they bring immediate value to our investments as we grow those businesses in their targeted industries,” said John Televantos, a Partner who co-heads Arsenal’s Specialty Industrials Group. “Shawn is an extremely talented leader who has extensive experience in running and growing specialty industrials companies and he greatly complements our existing team of executives.”

Mr. Abrams served for the past six years with W. R. Grace & Co., most recently as President of Grace Catalysts Technologies, whose products are used in refining, petrochemical and other chemical manufacturing applications. Prior to joining Grace, Mr. Abrams had over 17 years of experience in global industrial markets at Evonik Industries, where he held a variety of increasing senior leadership positions in sales and general management in the US, Germany, and Singapore. He began his career at FMC Corporation in their Industrial Chemicals group after receiving his BSME from Lehigh University in 1984. He received his MBA from Thunderbird School of Global Management.

“Shawn brings strong leadership, management, and technical experience and a proven track record of building and growing global businesses. He has a distinguished career in the global chemicals and materials industries and we look forward to leveraging his expertise in a range of opportunities as we build strong and profitable businesses,” said Tim Zappala, a Partner at Arsenal Capital Partners and co-head of the firm’s Specialty Industrials Group.

Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value. Industries of specific interest include specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; and process industry components and services. Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

Arsenal’s current investments in the specialty industrials sector include Dash Multi-Corp., a manufacturer of formulated polyurethane, vinyl plastisol, specialty coatings as well as recycled rubber products; IGM Resins, a provider of intermediates to the global ultraviolet radiation cure coatings, inks and adhesives industry; Chromaflo Technologies, a pigment dispersion provider to the architectural and industrial coatings and thermoset composites industries; Fluoro-Seal Holdings, a provider of plastic barrier, adhesion and surface enhancement products and services as well as manufacturer of value-added materials; Royal Adhesives & Sealants, a producer of adhesives, sealants and coatings, and; International Fiber Corporation, a supplier of cellulose‐based insoluble fiber products for food and industrial applications globally. Previous investments in the sector include Novolyte Technologies, Genovique Specialties, Velsicol Chemical, Sermatech International, and Vertellus Specialties.

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-10-13

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