Archives for 2013

CI Capital Partners Acquires Esquire Gas Products

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Tech Air, a distributor of industrial, medical, and specialty gases and related welding supplies and a portfolio company of CI Capital Partners, has acquired Esquire Gas Products Company.

“The acquisition of Esquire represents the next step in Tech Air’s buy-and-build strategy in the highly fragmented US packaged gas sector.  Consistent with previous acquisitions, Esquire is strategic and highly complementary to Tech Air’s existing operations.  Tech Air continues to pursue attractive opportunities like Esquire to add to its platform,” said Joost Thesseling, Managing Director at CI Capital Partners.

Esquire Gas Products Company specializes in dry ice (solid carbon dioxide) and liquid carbon dioxide, serving Connecticut, New Hampshire, Massachusetts, Vermont, Rhode Island, and the New York metro area.  Esquire was founded in 1940 and is based in Enfield, CT (www.EsquireGas.com).

“This transaction signifies our continued strategy of growth through selective acquisitions of key regional distributors.  Esquire’s singular focus on liquid carbon dioxide and dry ice products is a perfect complement to Tech Air’s existing business model.  With the addition of Esquire, Tech Air will be even better positioned to serve customers in growing markets such as food & beverage, bio-pharmaceuticals and healthcare,” said Myles Dempsey, Jr., Chief Executive Officer of Tech Air.

Tech Air is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies.  The company was founded in 1935 and is headquartered in Danbury, CT (www.techair.com).

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing.  Since the firm’s inception in 1993, CI Capital and its portfolio companies have made more than 100 acquisitions representing over $6 billion in enterprise value. CI Capital’s existing portfolio consists of companies which collectively generate annual revenue of approximately $5 billion, EBITDA of approximately $400 million, and employ approximately 15,000 people. The firm is based in New York (www.cicapllc.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13

Golden Gate Capital Acquires ArrMaz Custom Chemicals

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Golden Gate Capital has completed the acquisition of ArrMaz Custom Chemicals, a provider of process chemicals and functional additives for the fertilizer, industrial minerals and asphalt industries.

“We were attracted to ArrMaz as an investment due to its unique market leadership position, significant competitive advantages and long term growth potential,” said Rajeev Amara, a Managing Director of Golden Gate Capital. “We are committed to further investing in the company to expand its global footprint and potentially leverage its highly specialized knowledge of surfactants into other end markets.”

ArrMaz is a producer of a wide variety of process chemicals, which are generally custom formulated to meet customer specifications.  ArrMaz is a producer of functional additives and process aids to the fertilizer and asphalt industries and is a provider of chemical products to related minerals mining industries.  ArrMaz was founded in 1967 and is headquartered in Mulberry, FL (www.am-cc.com).

ArrMaz will continue to be led by its current management team, who will remain significant investors in the company.

“We are excited to work with Golden Gate Capital to accelerate our growth,” said Hank Waters, CEO of ArrMaz. “Golden Gate Capital’s investment validates the strength of ArrMaz’s value proposition, which is built on world-class products and exceptional customer service delivered by our talented employees. Golden Gate Capital’s substantial financial resources and long term outlook will enable ArrMaz to capitalize on an array of opportunities across the globe both organically and through acquisitions.”

GE Capital and Ares Capital provided financing to support the transaction. Lazard Middle Market advised ArrMaz. The Valence Group and Kirkland & Ellis advised Golden Gate Capital.

Golden Gate Capital targets companies across a range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing. The firm has approximately $12 billion of capital under management and is based in San Francisco (www.goldengatecap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13

Irving Place Capital Acquires Chromalox

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Irving Place Capital has acquired Chromalox, a manufacturer of branded electric heating and control products, from Sentinel Capital Partners.

Chromalox manufactures electric heat and control products, including heating components, immersion heaters, circulation systems, heat transfer systems, boilers, industrial and comfort air heating, heat trace cables, sensors, and precision electronic controls. Chromalox’s product catalog, known as the Big Red Book, is the industry’s “go-to” technical resource for engineers and technicians, with thousands of pages of product information, technical reference guides, and design tutorials.  The company has multiple manufacturing, engineering, warehousing, and sales locations in North America, Europe, and Asia.  Chromalox was founded in 1918 and is headquartered in Pittsburgh (www.chromalox.com).

In connection with this transaction, the senior management team of Chromalox has increased its ownership in the company and will retain a substantial stake in the business going forward.

“We are excited to have found a partner with the resources and experience to help take Chromalox to the next level,” said Scott Dysert, CEO of Chromalox. “Irving Place Capital’s deep expertise in branded industrial businesses will allow Chromalox to build on its strong operating platform and accelerate the company’s growth. We look forward to working closely with Irving Place Capital to realize our aggressive goals for building the business organically and through strategic acquisitions.”

“Chromalox has a distinguished history of leadership in engineering value-added heating solutions that are tailored to the needs of its customers across many diverse industries,” said Douglas Korn, a Senior Managing Director of Irving Place Capital. “With its impressive culture of productivity, innovation, and customer service, Chromalox has tremendous growth potential. We look forward to working with the company to continue to expand both in North America and internationally to better serve its customers and markets.”

A consortium led by GE Capital and composed of existing lenders to Chromalox provided debt financing for the transaction.

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities.  The firm focuses on making control or entrepreneur-driven investments.  Since its formation in 1997, Irving Place Capital has been an investor in 56 companies and manages over $4 billion, including its current $2.7 billion institutional fund.  The firm is based in New York (www.irvingplacecapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13

Welsh Carson Acquires Greater Houston Anesthesiology

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U.S. Anesthesia Partners (USAP), an anesthesia-focused physician services organization backed by Welsh, Carson, Anderson & Stowe, has acquired Greater Houston Anesthesiology P.A. (GHA) under which GHA will serve as USAP’s cornerstone affiliated practice.  As part of the transaction, USAP also completed its acquisition of the assets of GHA that provide practice management and business support services.

Greater Houston Anesthesiology provides anesthesiology services for major medical facilities in, and surrounding, Houston and recently expanded its services into the Austin market. GHA is one of the largest anesthesia groups in the country, employing over 400 anesthesia providers, including approximately 220 physicians.  GHA anesthesia providers perform approximately 250,000 cases annually in all areas of anesthesiology, including cardiovascular, neurosurgery, obstetrics, orthopedics, pediatrics, transplant and acute pain management. GHA is the primary anesthesia provider for over 40 medical facilities in the greater Houston area. The company was founded in 1996 and is based in Houston (www.choosegha.com).

USAP partners with groups of anesthesiologists who seek a strategic partner with the capital resources and expertise to invest in their practice support infrastructure, and position them for continued success and growth withintheir markets.  A key element of USAP’s business model is to invest in IT systems that will drive efficiencies in provider workflow and the management of perioperative care processes.  USAP is headquartered in Fort Lauderdale (www.usanesthesiapartners.com).

Welsh Carson is focused exclusively on investments in business, information and healthcare services. Since its founding in 1979, Welsh Carson has organized 15 limited partnerships with total capital of over $20 billion. The firm is currently investing through its latest fund, Welsh, Carson, Anderson & Stowe XI, L.P., and is based in New York (www.welshcarson.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13

H.I.G. Capital Invests in California Forensic Medical Group

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H.I.G. Capital has made an investment in California Forensic Medical Group, a provider of outsourced healthcare services for county jail inmates in California.

California Forensic Medical Group (CFMG) is a provider of outsourced healthcare services to county correctional facilities in California.  CFMG’s programs are accredited through the California Medical Association and the Institute of Medical Quality for both adult and juvenile correctional facilities. The company was founded in 1983 and is based in Monterey, CA (www.cfmg.com).

H.I.G. partnered with Dr. Taylor Fithian, President and Medical Director; Elaine Hustedt, Vice President of Operations and Personnel; and Dan Hustedt, Vice President of Finance, on this transaction.

“We are very excited to invest in CFMG alongside its founding management team. Taylor, Elaine, and Dan are exceptional people and have built a best-in-class company that has differentiated itself by lowering healthcare costs while improving quality, enabling them to establish true partnerships with their county customers. CFMG and its employees place their customers (inmates and county corrections personnel) first and that focus will continue to be the key to CFMG’s success,” said Rob Wolfson, a Managing Director at H.I.G. Capital.

“We have found a wonderful partner in H.I.G., who understands how important CFMG is to our customers and employees and shares our vision for continued prosperity for the company,” said Dr. Fithian.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. Since its founding, H.I.G. has invested in and managed more than 200 companies and the firm’s current portfolio includes companies with combined revenues in excess of $8 billion. H.I.G. Capital has more than $8.5 billion of equity capital under management and is based in Miami and has other offices in Atlanta; Boston; San Francisco; London; Rio de Janeiro; Hamburg, Germany; and Paris, France (www.higcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13

Georgia Oak Partners Invests in TeamOne Logistics

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Georgia Oak Partners has made an investment in TeamOne Logistics, a provider of staffing and related services to transportation companies. This investment in TeamOne marks the inaugural transaction for Georgia Oak Partners.

TeamOne Logistics is a provider of workforce staffing, dedicated fleet, and warehousing operations to companies with transportation or warehousing related functions.  TeamOne specializes in employee services, including recruitment and screening, training and development, benefits, risk management and compliance. With approximately $50 million in revenue, TeamOne has more than 750 employees across 26 states. The company was founded in 2003 and is based in Alpharetta, GA (www.teamonelogistics.com).

Georgia Oak Partners funded the transaction with equity from its syndicate of investors, including Southeast-based executives and institutional investors.  Financing for the transaction was provided by the Commercial Banking Division of The Brand Bank.

Georgia Oak is partnering with the existing management of TeamOne Logistics, including founder Jerry Gray.  A 30-year veteran in the transportation and logistics industry, Mr. Gray continues as President of TeamOne. “The Georgia Oak partnership is an exciting next step for us and will bolster our top-line growth strategy,” said Mr. Gray. “It is important to us that Georgia Oak brings a local, relationship-based approach. We are excited about this next phase of growth and the benefits this partnership will provide to our customers and employees.”

“We are thrilled to partner with the experienced leaders at TeamOne,” said Michael Lonergan, Managing Director of Georgia Oak. “It has become increasingly challenging for companies with private truck fleets to navigate today’s operating environment. The shortage of truck drivers, increased regulations and rising insurance costs are trends that are expected to continue. We believe TeamOne is well-positioned to assist companies in managing the various complexities of transportation workforce management.”

Georgia Oak seeks to invest $2 million to $10 million in Southeast US based companies with revenues of $10 million to $100 million.  Sectors of interest include business services, including transportation and logistics; consumer products and services, including restaurants; niche and specialty manufacturing; and packaging and materials, including value-added building products.  The firm is based in Atlanta (www.GeorgiaOakPartners.com).

“Our investment in TeamOne launches Georgia Oak Partners on our mission to help grow ‘backbone economy’ undercapitalized companies in our region,” said A.D. Frazier, President of Georgia Oak. “We believe that the Southeast region will return to GDP growth rates greater than the US as a whole due to long-term fundamentals, which remain favorable. Our approach is to invest as a partner, alongside owners who are deeply passionate about the growth prospects of their businesses.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13