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Archives for 2013

PEGCC Elects New Board Chairman

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mehlman nfKen Mehlman has been elected Chairman of the Private Equity Growth Capital Council’s Board of Directors. Mr. Mehlman serves as a Member and Global Head of Public Affairs at Kohlberg Kravis Roberts & Co., a founding member of the PEGCC.

Mr. Mehlman brings more than two decades of public policy, political, communications and business experience to the PEGCC, having served previously in high-level positions on Capitol Hill, at the White House, and as Chairman of the Republican National Committee. Mr. Mehlman succeeds Mark Tresnowski, Managing Director and General Counsel at Madison Dearborn Partners.

“As a member of the PEGCC’s Board of Directors, Ken has long been a driving force behind our major initiatives,” said Steve Judge, PEGCC President and CEO. “We’re very pleased to have him as our new chairman. Ken is a unique talent with two decades of experience at the highest levels of government, politics and business. The PEGCC and our members will benefit tremendously from his leadership, advice and counsel.”

As chairman, one of Mr. Mehlman’s primary responsibilities will be to help expand the PEGCC’s outreach efforts to educate and engage all stakeholders about the value of a vibrant and dynamic private equity industry. At KKR, Mr. Mehlman has worked to formalize outreach and created an environmental, social and governance (ESG) program for the firm and its portfolio companies.

“I’m privileged to succeed Mark as Chairman of the PEGCC,” said Mr. Mehlman. “I have enormous respect for the PEGCC’s important work engaging with public policy makers to encourage more economic growth and retirement security for millions of Americans. I also share the PEGCC’s goal of building a community of investors who seek superior returns while also emphasizing active, responsible governance, long term investment and measuring success in years not quarters.”

The Private Equity Growth Capital Council is an advocacy, communications and research organization, and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy. Established in 2007, the PEGCC is based in Washington, DC (www.pegcc.org).

“I would personally like to thank Mark Tresnowski for his invaluable contributions and leadership for PEGCC and the industry as a whole throughout his tenure as Chairman,” said Mr. Judge. “From our many legislative battles over carried interest and the Dodd-Frank Act to the 2012 presidential election that brought our industry into the national spotlight, Mark provided the PEGCC with exceptional leadership.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-19-13

OMERS Names New President and CEO

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omers nf2Michael Nobrega, President & Chief Executive Officer at OMERS since 2007, will retire from his position on March 31, 2014 and will be succeeded by Michael Latimer, currently OMERS Chief Investment Officer.

nobrega nf“Michael Nobrega has had a tremendous impact on OMERS while playing a highly influential role in shaping the pension landscape in Canada,” said George Cooke, Chairman of the Board of the OMERS Administration Corporation. “He brought to OMERS an ability to look beyond today and well into the future which he has demonstrated in the development of the OMERS strategy, the way in which he has worked collaboratively with the Board of Directors, and by the meaningful role he played in positioning our pension plan for the future.”

Mr. Nobrega’s retirement is the final step in a succession planning process that began in 2010. The Board has been working with OMERS management since that time in making preparations for Mr. Nobrega’s retirement through the development of internal talent.

“During his time as CEO, Michael has done an excellent job in supporting the succession process by establishing a top-notch talent bench to come in behind him,” said Rick Miller, Vice Chairman of the Board. “Now that Michael has made his decision to retire, we anticipate a smooth transition as a result of the strength, experience and knowledge of OMERS gained by his successor, Michael Latimer, over the past several years.”

latimer nfMichael Latimer has been OMERS Chief Investment Officer since January 2010. He has driven the investment strategy for OMERS since that time and as CIO has had full accountability for the strategic, operational and financial leadership of the pension plan’s investment activities in both the capital markets as well as the private asset classes of infrastructure, private equity and real estate. Mr. Latimer will continue in the CIO role.

Prior to becoming CIO, Mr. Latimer was President and CEO of Oxford Properties Group, the real estate investment arm of OMERS. He played a role in setting long-term goals and strategy and establishing and maintaining relationships with key partners globally. Before joining Oxford, Mr. Latimer was Chief Operating Officer of Borealis Capital Corporation. He holds a Bachelor of Business Administration Degree from McMaster University.

“I feel very good about taking on the CEO role following Michael Nobrega’s retirement. As a direct result of Michael’s leadership over the past several years, we have a clear strategy, a strong bench, an innovative culture and very engaged employees right across the enterprise,” said Mr. Latimer. “I am honored by the Board’s confidence in choosing me as the next OMERS CEO and I look forward to working closely with Michael, our leadership team and the Board over the next few months to continue what has been a very smooth transition.”

OMERS is one of Canada’s largest pension funds with over C$60 billion in net assets and has almost 430,000 members. OMERS invests in public and private market assets, including publicly-traded equities, fixed-income, infrastructure, private equity and real estate. OMERS is headquartered in Toronto (www.omers.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-19-13

Clayton, Dubilier & Rice Invests in PharMEDium

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pharmed nfClayton, Dubilier & Rice (CD&R) will make an investment in PharMEDium, a compounder of sterile drug preparations used by hospitals. Oak Investment Partners and Baird Capital will exit as part of the transaction, while JVC Management, an investment firm controlled by David Jonas, Chairman and CEO of the company, will retain a minority investment in the company.

PharMEDium’s sterile compounding services are used by hospitals to facilitate ready-to-use intravenous drug delivery to patients. Using FDA-approved drugs, diluents and containers, the company creates compounded sterile preparations (CSPs), which are not otherwise commercially available in the marketplace. PharMEDium provides CSPs in ready-to-use form with safety, labeling, stability, sterility and dating characteristics that are required by its hospital customers. PharMEDium serves more than 2,600 acute-care hospitals, including integrated delivery systems, academic medical centers, hospital groups, and standalone urban, suburban and rural hospitals. The company was founded by David Jonas in 2003 and is headquartered in the Chicago suburb of Lake Forest, IL (www.pharmedium.com).

Following the transaction, David Jonas, Founder, Chairman and CEO, will be succeeded by William Spalding, PharMEDium’s Executive Vice President, Strategy, Legal and Finance, who will become Chief Executive Officer. Mr. Spalding has more than 20 years of management leadership experience in the healthcare industry. Prior to joining PharMEDium, Mr. Spalding was the Executive Vice President, Strategy and Managed Care of CVS Caremark Corporation, and the Executive Vice President, Strategic Initiatives at Caremark Rx.

“Under David’s leadership, PharMEDium has become the preeminent provider of choice for pharmacy outsourced sterile, intravenous admixture compounding services and the national leader in the hospital pharmacy-outsourcing sector,” said CD&R Partner Richard Schnall. “The company has a sterling reputation for ensuring the highest level of patient safety and provides a highly differentiated value proposition to hospitals that are increasingly outsourcing the preparation of customized anticipatory sterile compounds. We look forward to partnering with the PharMEDium team to build upon the company’s exceptional track record of commitment to patient safety and customer service.”

Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $19 billion in 57 businesses representing a range of industries with an aggregate transaction value of approximately $90 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York and London (www.cdr-inc.com).

“I am extremely proud of our achievements as a company over the last decade and look forward to seeing PharMEDium continue its track record of innovative solutions for drug delivery with unmatched customer service offerings with our new equity partners,” said Mr. Jonas. “CD&R has a strong track record working with management teams to build businesses. Importantly, the firm shares our vision for growing PharMEDium and deep commitment to putting patient safety first in everything that we do.”

CD&R has obtained committed financing for this transaction from J.P. Morgan Securities, Credit Suisse and Morgan Stanley.

PharMEDium’s financial advisor was JP Morgan and K&L Gates acted as legal advisor. Credit Suisse Securities and Morgan Stanley acted as financial advisors, and Debevoise & Plimpton acted as legal advisor, to CD&R in connection with the transaction.

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-19-13

Sun Capital Partners Exits Wabash Technologies

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wabash nfSun Capital Partners has signed an agreement to sell Wabash Technologies, a supplier of powertrain sensors and actuators, to Sensata Technologies.

Wabash designs and manufactures speed sensors, position sensors and actuators that are used in powertrain management functions. The company’s sensors appear throughout the vehicle and include pedal position sensors and speed sensors, as well as actuators for fuel management. The company services original equipment vehicle, engine and power equipment manufacturers, including major OEM and Tier-I companies in the medium/heavy truck, construction, agricultural, recreational, marine, and industrial markets. Wabash’s customers include Ford, Allison Transmission, Caterpillar, John Deere, Delphi and Magneti Marelli. Wabash was founded in 1946 and employs approximately 960 people. The company is headquartered near Detroit in Troy, MI and has manufacturing facilities in Mexicali, Mexico and Huntington, IN (www.wabashtech.com).

Sun Capital Partners first invested in Wabash in October 2007. Upon acquisition, Sun initiated several improvements to business operations in order to navigate the business through the global financial crisis, which was particularly challenging for the automotive industry. By carefully managing working capital, increasing production efficiencies, SKU rationalization, realizing meaningful platform growth with new and existing automotive OEM customers, and expanding into additional end markets and geographies, the company was able to offset enormous market declines.

“Wabash Technologies’ customer-focused solutions and achievement of significant operational improvements have fueled the company’s continued growth in the global sensor market,” said Marc Leder, Co-CEO at Sun Capital. “We’re pleased with the company’s progress under our ownership, and are confident the company is well-positioned for future success.”

Sun Capital Partners is a private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 330 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. The firm has offices in Boca Raton, Los Angeles, and New York as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen (www.SunCapPart.com).

Sensata Technologies is a supplier of sensing, electrical protection, control and power management products with operations in 11 countries. Sensata’s products are used in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning and ventilation, data, telecommunications, recreational vehicle and marine applications. The company is headquartered in Attleboro, MA (www.sensata.com).

“This transaction aligns with Sensata’s objective to execute on acquisitions that are close to our core business. Acquisitions such as this will help us achieve our target operating model of double-digit revenue growth during times of core market headwinds,” said Martha Sullivan, Sensata Technologies President and Chief Executive Officer. “Wabash’s position in the magnetic, speed and position sensing market builds on current Sensata capabilities and provides new capabilities in throttle position and transmission range sensing while enabling additional entry points into the important heavy vehicle and off-road market.”

Lincoln International advised Sun Capital Partners on the transaction.

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-19-13

LLR Invests in iJet

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ijet nfLLR Partners has made an investment in iJET International, an operational risk management services provider. Proceeds of the new investment will be used to grow iJET’s customer base, expand channel partner relationships, invest in new technology and pursue strategic acquisitions.

“We are extremely pleased to partner with the leadership team of iJET on this investment,” said David Stienes, partner in LLR’s Security, Defense & Government Services practice. “Over the past 14 years, iJET has cemented its position as the global leader in operational risk management with world class intelligence, a best-of-breed platform and 24/7 global assistance and response operations. As organizations push more aggressively into international markets, iJET will be there to help protect them on a global scale.”

iJET International provides intelligence-driven operational risk management services to enable multinational companies and government organizations to understand their global threat exposure; protect their people, facilities and supply chains; and mitigate operational risk. iJET’s intelligence operation monitors and analyzes over 19,000 sources of information spanning more than 200 countries and 25 languages. The company tracks over 130 million trips annually for direct clients and travel management partners. Through its response network, iJET provides on-the-ground security and medical assistance in over 200 countries. iJET also assists customers in building and enhancing operational risk management program through policies, training, exercises and outsourced resources. Founded in 1999, iJET is a headquartered in Annapolis, MD with offices in London and Singapore (www.iJET.com).

“Having such a committed financial partner as LLR will allow iJET to accelerate its global growth and leadership in the operational risk management market,” said Bruce McIndoe, President and CEO of iJET. “The LLR team, including Operating Partner Gus Hunt, who has deep knowledge of our key domains, combined with the expertise of their high-growth technology portfolio companies, will rapidly become competitive assets as we take iJET to the next level.”

LLR Partners invests growth capital in technology and service businesses that have annual revenues of $25 million to $250 million in annual revenue, including those that serve commercial and government clients in the physical and cyber security markets, as well as government contractors to the US homeland security, defense, intelligence and healthcare agencies. LLR is currently investing out of its third fund with $800 million of capital commitments. The firm has over $2 billion of assets under management and has offices in Philadelphia, PA and Arlington, VA (www.llrpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-19-13

Saw Mill Capital Acquires Janus International

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janus nf2Saw Mill Capital Partners has acquired Janus International, a manufacturer of roll-up doors for the self-storage industry.

Janus International is a manufacturer of corrugated steel roll-up doors designed for the self-storage, industrial and commercial door markets. The company primarily manufactures light duty self-storage doors and hallway systems produced from coiled steel. Janus operates through six locations in the US and United Kingdom and is the largest domestic self-storage door manufacturer. The company was founded in 2002 by David Curtis and is headquartered near Atlanta in Temple, GA (www.janusintl.com).

“We are excited about the opportunity to partner with David Curtis and the team at Janus. The company is the clear leader in serving the growing self-storage and commercial door markets. We will look to build on the company’s proven high quality products and unmatched installation services to expand its market position in the US and internationally,” said Scott Rivard, a Principal at Saw Mill Capital.

Saw Mill Capital invests in manufacturing and service companies with enterprise values of $25 million to $200 million. Platform investments typically have at least $5 million of EBITDA and revenues of $40 million to $150 million. The firm is located in Briarcliff Manor, NY (www.sawmillcapital.com).

“I’m very pleased to have Saw Mill as our partner. Saw Mill’s strategic resources and investment approach will help accelerate our growth, both organically and through acquisition, allowing us to continue to provide superior products and services to our customers,” said David Curtis, Founder and CEO.

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-18-13

Rock Hill Capital Invests in Duracoatings

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dci nf1Rock Hill Capital Group has made an investment in Duracoatings, a provider of metal finishing services to the oil and gas industry.

Duracoatings (DCI) provides metal finishing services for hydraulics, pumps, valves, and drilling tools that are used in the oil and gas industry. Services include electroplating, thermal spraying, grinding, and polishing. Duracoatings specializes in providing chrome reworking and coating of down-hole motor-related tools. The company was founded in 1993 by Cliff Smith, Sr. and is based in Oklahoma City, OK (www.dciind.com).

“We chose to partner with Mr. Smith and DCI because we see tremendous opportunities ahead,” said Jeffery Christman, Managing Director of Rock Hill. “Two decades of positive results and a solid customer base help position DCI for strong growth. Moving forward, we plan to help Mr. Smith and his team streamline the operations, expand beyond current end markets into new ones and embrace new plating technologies, including the most recent addition tungsten carbide spray coating to its service offering. With limited competition in the arena, we see significant value enhancement opportunities ahead.”

“What struck me most about Rock Hill as an investment partner was their interest in partnering with us rather than taking over,” said Cliff Smith, Sr., Chairman of DCI. “They worked with us to develop a solid plan to streamline and consolidate our operations in order to better prepare us for significant growth and expansion. I’m confident that the future of DCI is on solid ground.”

Rock Hill Capital Group invests in small-to-lower middle market companies with enterprise values up to $75 million and EBITDA of less than $10 million that are located in the South and Southeast regions of the US. Sectors of interest include industrial and energy services and value-added distribution. Rock Hill has over $140 million of committed capital under management through Rock Hill Capital I, LP and Rock Hill Capital II, LP. The firm was founded in 2008 and is based in Houston (www.rockhillcap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-18-13

Gladstone Acquires Behrens Manufacturing

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behrens nf1Gladstone Investment Corporation has invested $12.9 million in a combination of debt and equity to purchase Behrens Manufacturing. Gladstone Capital Corporation also participated as a co-investor by providing $5.5 million of debt and equity financing on the same terms as Gladstone Investment in support of the acquisition. Behrens’ management team invested in this transaction alongside Gladstone.

Behrens is a manufacturer and marketer of utility products and containers. Behrens is the top supplier of steel cans, pails, tubs and watering cans in North America and offers the largest breadth of products in its industry. The company was founded in 1911 and is based in Winona, MN (www.behrensmfg.com).

“Gladstone is proud to be partnering with the talented and experienced management team at Behrens to help it continue to build on the growth that it has achieved over the past several years. We look forward to working with yet another great American company, and to helping Behrens’ management team build on its impressive history of producing high quality products in the United States,” said Kipp Kranbuhl, Director, Private Finance, of Gladstone Management Corporation.

Gladstone Investment Corporation is a publicly-traded business development company that makes debt and equity investments in US-based small to middle-market businesses. Target investments generally range from $5 million to $30 million in companies with over $3 million in EBITDA. Sectors of interest include light and specialty manufacturing, industrial products, business and government services, media and communications, consumer products and services, healthcare services, transportation, specialty chemicals and energy services. Gladstone is based in McLean, VA with additional offices in New York, Chicago, and Los Angeles (www.GladstoneInvestment.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-18-13

Sverica International Invests in 7Summits

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7summits nfSverica International Management has made a growth equity investment in 7Summits, a provider of social business consulting and agency services.

“Companies are looking to leverage social networking to transform their business across every functional area as we help them to engage their employees, partners and customers to help build their business,” said Paul Stillmank, Chief Executive Officer of 7Summits. “We look forward to working with Sverica and leveraging their deep experience as we continue to aggressively grow our business and expand into new markets.”

7Summits is a provider of social business consulting and agency services. 7Summits offers its customers expertise in social business strategy, community experience design, platform development and integration, as well as community activation. 7Summits was founded in 2009 and is headquartered in Milwaukee (www.7summitsagency.com).

“We are impressed by the talented team of social business experts, the strong client relationships, and the track record of quality work product that 7Summits has built in its short history. 7Summits has demonstrated an impressive level of sustained growth while driving profitability, making the company a great addition to our portfolio,” said Jordan Richards, Managing Director at Sverica. “We are excited to partner with Paul Stillmank and his management team to expand 7Summits’ leadership position in this nascent market and capitalize on growing demand for social business solutions.”

Sverica invests in service oriented businesses and light industrial manufacturers. The firm targets companies with enterprise values under $100 million and EBITDAs greater than $3 million. Sverica was founded in 1993 and has over $425 million of assets under management across three funds. The firm has offices in Boston and San Francisco (www.sverica.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-18-13

KRG Acquires PulsePoint Group

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pulsepoint nfOlson, a digital advertising agency and a portfolio company of KRG Capital, has acquired PulsePoint Group, a digital marketing strategy consulting firm. KRG first invested in Olson in October 2009.

PulsePoint Group is a digital marketing strategy consulting firm specializing in C-suite and boardroom-level consulting. PulsePoint provides insight, strategy development and strategic execution for communications and marketing management projects with a special focus on social and digital engagement. The firm’s client list includes Toyota, Novartis and Delta Air Lines. The company is based in Austin, TX (www.pulsepointgroup.com).

OLSON is one of the top 5 independent, full-service digital advertising and marketing agencies in the United States. OLSON provides services to brands in numerous verticals ranging from transportation and retail to financial services, consumer packaged goods, and medical devices. Customers include Best Buy, General Mills, MillerCoors, Target and Wrigley. Olson has offices in Minneapolis, Austin, Chicago, Toronto, Los Angeles, San Francisco and New York (www.olson.com).

KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies. Since inception, KRG has invested in 45 platform companies and has completed 144 add-on acquisitions for those platforms. Founded in 1996, KRG has over $4 billion of capital under management and is based in Denver (www.krgcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-18-13

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