Archives for 2013

Blue Wolf and Atlas Acquire Twin Rivers Paper

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Blue Wolf Capital Partners and Atlas Holdings have reached an agreement to acquire a controlling interest in Twin Rivers Paper Company, a portfolio company of Brookfield Asset Management.

Twin Rivers is a specialty paper company that manufactures packaging, label and publishing products, with mill operations in Madawaska, ME and Edmundston, New Brunswick. Twin Rivers also operates a lumber sawmill located in Plaster Rock, New Brunswick. The company is headquartered in South Portland, ME (www.twinriverspaper.com).

Brookfield Asset Management formed Twin Rivers Paper Company in April 2010 to acquire the specialty paper assets of Fraser Papers as part of a financial restructuring. At the time, Brookfield Asset Management had a 70% equity interest in Fraser Papers.

“Twin Rivers produces specialty papers and lumber products that are well regarded throughout the industry. Our plan is to build on these strengths as we seek to position the operations for long-term success and as a key contributor in the revitalization of the forest products sector in Maine and New Brunswick,” said Adam Blumenthal, Managing Partner of Blue Wolf.

Blue Wolf invests in companies in which effective management of relationships with complex constituencies, such as government and labor, can change organizations and create value. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. Blue Wolf focuses its efforts on companies based in and doing the bulk of their business in the United States and Canada. The firm is headquartered in New York (www.blue-wolf.com).

“With the active support, direction and guidance our firms bring, we believe we can provide Twin Rivers with additional resources to address its capital needs, cost structure, market exposure and other critical operational challenges presented by the highly competitive forest products industry,” said Tim Fazio, Managing Partner of Atlas Holdings.

Atlas Holdings is a private equity firm which invests in businesses undergoing complex financial and operational challenges. Sectors of interest include building materials; capital equipment; energy; industrial services; packaging, pulp, paper, and tissue; steel; and logistics, supply chain management and distribution. The firm typically invests up to $100 million in companies with enterprise values up to $500 million and EBITDAs up to $100 million. Atlas Holdings was founded in January 2002 and is based in Greenwich, CT (www.atlasholdingsllc.com).

Brookfield Asset Management is a global alternative asset manager with over $175 billion in assets under management. The firm has headquarters in Toronto and New York (www.brookfield.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-22-13

Peak Rock Capital Acquires Atlas Paper Mills

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Peak Rock Capital has acquired Atlas Paper Mills, a manufacturer of tissue paper products using recycled fiber.

“Atlas has a strong competitive position as a supplier of ‘green’ tissue products with long-standing customer relationships,” said Peter Leibman, Managing Director of Peak Rock Capital. “We believe Atlas is an excellent platform for expansion through organic growth and strategic add-on acquisitions and are excited to work with the company’s management team in pursuing these opportunities.”

Atlas Paper Mills is a manufacturer of private label and branded tissue products utilizing 100% recycled fiber. The company produces bath tissue, towels and facial tissue sold to the away-from-home and retail channels. Atlas produces approximately 34,000 tons of recycled tissue products per year and converts approximately three million cases of tissue and towels. The company is headquartered in Miami, FL (www.atlaspapermills.com).

Peak Rock Capital makes debt and equity investments of $20 million to $100 million in middle market companies with revenues greater than $50 million and enterprise values from $25 million to $500 million. Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing and media. The firm is based in Austin, TX (www.peakrockcapital.com).

“Atlas is a great example of our interest in investing in middle market businesses that can benefit from our resources and expertise to enhance their growth and strategic position; it also highlights our continued interest in the manufacturing and consumer product sectors,” said Anthony DiSimone, CEO of Peak Rock Capital.

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-22-13

Graycliff Partners Exits Information Storage

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Graycliff Partners has sold its portfolio company, Information Storage Consolidation Company, to Iron Mountain.

Information Storage Consolidation Company (“ISCC”) is a provider of outsourced document services, including physical storage, storage services, destruction and imaging to customers in the healthcare, business services, financial and legal sectors. The company has three operating divisions: Safe Records Center (Lansing, MI); Archives USA (Dallas, TX); and The Document Bank (Miramar, FL). ISCC is headquartered in Carrollton, TX (www.isccllc.com).

“It has been a privilege to work with CEO Ron Harper and the ISCC management team in building a leading document storage business that services a diverse group of industries across the country,” said Andrew Trigg, Managing Director, Graycliff Partners. “ISCC has provided exceptional service to its expanding list of customers, and now, Iron Mountain will carry on that legacy of meeting the information needs of our customers.”

Graycliff Partners invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services or distribution. Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital. Graycliff Partners is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).

“Graycliff has been a great partner in facilitating the growth and expansion of ISCC by providing the necessary resources and operational and strategic planning expertise,” said Ron Harper, CEO of ISCC. “With the full backing of Graycliff Partners, ISCC has demonstrated significant growth, market share gains and customer satisfaction.”

Iron Mountain (NYSE: IRM) provides records management, information destruction and data backup and recovery services to more than 156,000 customers throughout North America, Europe, Latin America and Asia. The company had revenues in 2012 of approximately $3 billion. Iron Mountain was founded in 1951 and is based in Boston (www.ironmountain.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-22-13

Stellus Receives SBA “Green Light” Letter

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Stellus Capital Investment Corporation has received its “green light” letter from the U.S. Small Business Administration which allows the firm to continue its application process to obtain a license to form and operate a Small Business Investment Company subsidiary. If approved, the license would permit the company to issue SBA-guaranteed debentures.

Stellus Capital Investment Corporation (NYSE: SCM) investment activities are managed by its investment adviser, Stellus Capital. Stellus Capital invests in private middle-market companies with $5 million to $50 million of EBITDA through first lien, second lien, unitranche and mezzanine debt financing, and corresponding equity investments. The firm invests across a range of industries with specific interest in the energy, specialty finance, software, general industrial, defense, and business services sectors. Stellus Capital has offices in New York, Washington DC, and Houston (www.stelluscapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-22-13

Signal Hill Adds Office, Hires New Vice President

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Signal Hill Equity Partners has opened an office in Calgary, Alberta. Stephen Hughes has been hired by Signal Hill as a Vice President to oversee the new office.

“Expanding our presence with a dedicated office in Alberta is an important milestone in our strategic plan,” said James Johnson, Managing Partner of Signal Hill.

Mr. Hughes joins Signal Hill from Integral Wealth Securities. He has spent the past decade working exclusively in the oil & gas sector and brings with him knowledge and experience in the oil field services sector. Prior to his time at Integral Wealth Securities he was with Cannacord Capital and Wolverton Securities. Mr. Hughes has a BBA degree from the Southern Alberta Institute of Technology.

“We are extremely excited to have Stephen join our team as head of our Calgary office and look forward to him accelerating our investment activity in the region,” said Mr. Johnson.

Signal Hill currently has two private equity investments in Alberta and has dedicated additional equity capital to expand its presence in Western Canada. In March 2012, Signal Hill acquired C & V Portable Accommodations, a provider of portable accommodations, remote offices and geology & engineering labs to oil and gas companies (www.cvportable.com). The second Alberta-based acquisition was completed in March 2011 with the purchase of Westridge Cabinets, a cabinet manufacturer serving the new home construction and renovation markets (www.westridgecabinets.com).

Signal Hill invests from $5 million to $20 million of equity in companies with enterprise values of $20 million to $50 million. Sectors of interest include manufacturing, consumer products, distribution and business services. Signal Hill is currently investing its second private equity fund, a $100 million fund that can be invested at its discretion in mid-market Canadian companies. The firm is based in Toronto (www.signalhillequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-22-13

Cotton Creek Hires New Associate

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Cotton Creek Capital has added Alan Goldstein to its investment team as an Associate in the firm’s Austin office.

Previously, Mr. Goldstein was an investment banking analyst at Jefferies Group in New York where he specialized in mergers and acquisitions. At Jefferies, Mr. Goldstein advised clients ranging from small to large capital companies and financial sponsors on both buy-side and sell-side transactions across several industries.  Mr. Goldstein received his Bachelor of Business Administration degree in Finance from the University of Texas with minors in Accounting and Psychology.

Cotton Creek Capital invests in lower middle market companies in manufacturing, value-added distribution, industrial services, business services, healthcare services and consumer staples. The firm invests in companies with enterprise values between $15 million and $200 million, partnering with management teams on a variety of transactions, including buyouts, recapitalizations, buy-and-builds, and corporate divestitures. Cotton Creek Capital is affiliated with Brownlie & Braden, a provider of financial advisory services to high net worth families. The firm is headquartered in Dallas (www.cottoncreekcapital.com).