Archives for February 4, 2014

Warburg Pincus Invests in Dude Solutions

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Warburg Pincus has made a minority investment in Dude Solutions, a cloud-based software-as-a-service provider of facility management services. Warburg will make additional funds available up to a maximum of $100 million as the company pursues strategic acquisitions.

“Dude Solutions has an impressive history of helping its clients save money, increase efficiency and improve services with their facility management solutions across a number of industries,” said Alex Berzofsky, Managing Director, Warburg Pincus. “We are excited to work with the team as they continue to expand the SchoolDude and FacilityDude brands through organic growth and strategic acquisitions.”

Dude Solutions provides facilities management services to school districts, community colleges, universities, governments, community organizations, healthcare and other commercial industries to manage and maintain their investments in facilities, equipment and IT infrastructure. The company enables their clients to streamline facility maintenance work order and IT help desk management, schedule preventive maintenance and plan for capital replacements, increase inventory accountability, maximize after-hours facility use and manage utility consumption through a suite of web-based applications. Dude Solutions was founded in 1999 and is based in Cary, NC (www.schooldude.com) (www.facilitydude.com).

“We chose to partner with Warburg Pincus in part because they appreciated how our entrepreneurial, innovative and industrious culture has enabled Dude Solutions to achieve its success to date,” said Lee Prevost, Co-founder of Dude Solutions and President of SchoolDude. “With this new capital, we can do more of what we have been doing at even a faster pace.”

Warburg Pincus has more than $35 billion in assets under management and has raised 13 private equity funds which have invested more than $45 billion in approximately 675 companies in 35 countries. The firm was founded in 1966 and is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Port Louis, Mumbai, San Francisco, Sao Paulo and Shanghai (www.warburgpincus.com).

“This investment is a testament to Dude Solutions’ market leadership, service focus and vision for facilities management,” said Kent Hudson, Chief Executive Officer and Co-Founder of Dude Solutions. “As we broaden our reach into facilities management and sectors where Warburg Pincus has deep domain knowledge, our clients will benefit as we continue to increase the value of our products and services.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-4-14

Riverside Acquires Be Green Packaging

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The Riverside Company has acquired Be Green Packaging, a maker of environmentally friendly products and packaging.

Be Green Packaging designs and manufactures certified, environmentally friendly products and packaging for the consumer packaged goods and foodservice industries. Be Green Packaging’s molded fiber products are tree-free, compostable, and recyclable. Products range from simple plates to complex packaging for consumer electronics. The company uses proprietary designs and processes and materials like bamboo, bulrush, wheat straw, sugarcane and rice husk that regenerates in a year or less. Be Green Packaging was founded in 2007 and is based in Santa Barbara, CA (www.begreenpackaging.com).

“Sustainability is no longer a luxury,” said Riverside Managing Partner Loren Schlachet. “Customers and retailers are demanding or requiring green materials, and Be Green Packaging has a proven track record of meeting that growing demand.”

Riverside plans to help Be Green Packaging’s co-founders, Ron Blitzer and Robert Richman, accelerate growth by investing heavily in US manufacturing, improving sales and marketing and continuing to invest in research and development.

“This is a high-growth industry, and Be Green Packaging has the tools and dynamic capabilities to enjoy the long-term trend toward sustainable packaging,” said Riverside Partner Joe Lee. “The company already serves a variety of blue-chip customers in numerous verticals, and has shown an ability to innovate while providing savings for its customers.”

Working with Mr. Schlachet and Mr. Lee on the transaction for Riverside were Assistant Vice President Steve Rice, Associate Elaine Ho, Operating Partner Bob Schmitz, Operating Partner and Managing Director of Asia Brian Bunker, and Operating Executive Finance Kim Katzenberger. Regional Director of Origination Jeremy Holland originated the transaction for Riverside.

Medley Capital (www.medleycapital.com) provided the financing and Jones Day advised Riverside on the investment.

The Riverside Company is focused on the smaller end of the middle market and invests in businesses valued at up to $250 million (€200 million in Europe). Since 1988, the firm has invested in more than 330 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 70 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-4-14

Keystone Capital Acquires Scott Group Custom Carpets

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Keystone Capital has made an investment in Scott Group Custom Carpets, a manufacturer of luxury carpets and rugs.

Scott Group designs and manufactures hand-made and machine-made custom wool (and silk/cashmere blends) carpets and rugs for a variety of high-end, luxury applications. The company is a supplier to the business aviation, high-end residential and commercial (including luxury retail), and yacht markets both in the US and abroad. Scott Group produces 100% American made carpets at its headquarters in Grand Rapids, MI and has a network of showrooms throughout the US. The company was founded in 1969 (www.scott-group.com).

Scott Group’s executive management team, consisting of Michael Ruggeri (President), Richard Ruggeri (Vice President) and Timothy Hill (Vice President, Operations and Finance), will remain significant shareholders and will continue to lead the day to day operations of the company.

“We are extremely excited to be a part of the future of Scott Group and about the partnership we have formed with the management team,” said Scott Gwilliam, Managing Director of Keystone Capital. “Scott Group’s niche market position, impressive business model and strong management team, along with its desire to partner with a patient, long-term oriented firm like Keystone made this a perfect fit for both sides.”

With the acquisition of Scott Group, Keystone Capital will be looking for opportunities to acquire complementary businesses. Areas of interest include suppliers of luxury fabrics and interior products serving similar end markets (i.e. business jets and interior design).

Keystone Capital invests in middle market companies with EBITDAs of $3 million to $15 million that are market leaders in niche, mature industries. Sectors of interest include niche manufacturing, industrial technology, food products and packaging, healthcare products and services, business and professional services. Keystone Capital manages in excess of $200 million in investment capital and is based in Chicago (www.keystonecapital.com).

“We are energized about the partnership between Keystone and Scott Group,” said Mike Ruggeri, CEO of Scott Group. “This partnership will allow our team to continue running the business, provides access to greater resource levels and will accelerate our strategic growth plan for Scott Group.”

Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis.

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-4-14

Pamlico Capital Acquires Valued Relationships

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Pamlico Capital has acquired a majority interest in Valued Relationships, a provider of telehealth monitoring. CEO Chris Hendriksen and President Andy Schoonover will retain significant ownership of the company and will continue to manage Valued Relationships. The investment by Pamlico was made through the firm’s third fund.

“Having invested in several related healthcare businesses over time, we were immediately impressed with the company’s high quality service offering, unique channel strategy and focus on improving outcomes for a growing demographic of elderly, ill and disabled clients,” said Pamlico Partner Art Roselle. “We are thrilled about the opportunity to partner with Chris and Andy and look forward to working with the VRI team to grow the business.”

Valued Relationships, Inc. (VRI) is a provider of telehealth monitoring, monitored medication adherence services, and medical alert systems, serving over 100,000 actively monitored clients. VRI’s services enable seniors, the chronically ill, and those with disabilities to maintain their independence and to avoid long-term care facilities, preventable ER use, hospitalization and hospital readmission. The company’s Care Center processes over two million medical alert and telehealth signals annually. VRI serves clients across the United States through commercial and government-funded health benefit programs administered by national and regional health plans, and other Managed Care Organizations. VRI was founded in 1989 and is headquartered in Franklin, OH (www.monitoringcare.com).

“Andy and I are proud of the growth and success that the business and our employees have achieved and are excited about taking this next step with Pamlico,” said CEO Chris Hendriksen.  “The team at Pamlico has significant knowledge of our business and a strong appreciation for VRI’s core goal of helping to extend and improve quality of life for our clients.”

Pamlico Capital invests from $25 million to $100 million in companies with total enterprise values of between $50 million and $250 million. Sectors of interest include business and technology services, communications, and healthcare. Pamlico Capital currently manages over $2 billion in assets and is based in Charlotte, NC (www.pamlicocapital.com).

VRI was advised by Triple Tree (financial advisor) and McDermott Will & Emery (legal counsel). Pamlico was advised by Alston & Bird LLP (legal counsel).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-4-14

Altaris Capital Partners Acquires HealthTronics

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Endo Health Solutions has completed the previously announced divestiture of HealthTronics to Altaris Capital Partners for an upfront cash payment of $85 million. In addition, Endo received rights to additional cash payments of up to $45 million based on the future operating performance of HealthTronics for a total consideration of up to $130 million.

HealthTronics is a national provider of urological services and products. The company provides advanced technology and support systems to urologists, hospitals, surgery centers and clinics across the United States. HealthTronics’ offerings include mobile medical equipment, IT solutions, laboratory solutions, and electronic health records. The company is headquartered in Austin, TX (www.healthtronics.com).

Altaris invests from $15 million to $50 million of equity in companies that operate across the healthcare industry, including the pharmaceuticals, medical devices, services and IT sectors. The firm is headquartered in New York (www.altariscap.com).

Endo Health Solutions (Nasdaq: ENDP) is a US-based specialty healthcare company with business segments that are focused on branded pharmaceuticals, generics, and medical devices. The company is headquartered near Philadelphia in Malvern, PA (www.endo.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-4-14

LBC Credit Backs Wynnchurch Dividend Recap

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LBC Credit Partners agented a $42.5 million senior secured term loan to support the recapitalization of Senco Brands, a Wynnchurch Capital portfolio company. Proceeds from the transaction were used to finance the company’s growth and a make a special one-time distribution to the company’s shareholders. LBC Credit Partners was Sole Lead Arranger, Sole Bookrunner and Administrative Agent for this transaction.

Senco is a designer, manufacturer and marketer of branded fastening tools and collated staples, nails and screws. The company’s products are used in home construction and remodeling; furniture; manufactured housing; and pallets and crating. Senco products are sold through professional distribution outlets in more than 40 countries. The company is based in Cincinnati (www.semco.com).

Senco filed for Chapter 11 bankruptcy protection in May 2009. Wynnchurch Capital was the stalking horse bidder in the sale process and purchased the company in July 2009.

LBC Credit Partners is a provider of middle market financing to companies with EBITDAs generally greater than $10 million. Products include senior term, unitranche, second lien, junior secured and mezzanine debt and equity co-investments supporting sponsored and non-sponsored transactions. LBC invests from $10 million to $50 million per transaction supporting acquisitions, growth strategies, refinancings, recapitalizations, and restructurings. LBC has more than $1.4 billion of capital under management and is headquartered in Philadelphia with additional offices in Chicago and New York (www.lbccredit.com).

Wynnchurch Capital makes investments of $10 million to $90 million in middle-market companies that have revenues of $5 million to $500 million. Sectors of interest include niche manufacturing, transportation & logistics, business services, value-added distribution, energy and power services, general industrials, and metals & mining. Wynnchurch manages a number of private equity funds with capital under management in excess of $1 billion. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit and Toronto (www.wynnchurch.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-4-14