February 19, 2014
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Archives for February 19, 2014

Court Square Acquires AFS Technologies

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afs nfCourt Square Capital Partners has acquired AFS Technologies, a provider of software used in the consumer packaged goods industry, from Goldman Sachs’ Private Capital and ABRY Partners. The investment by Court Square, in partnership with members of the AFS management team, also provides growth capital and capital for future acquisitions.

AFS Technologies is a provider on-demand cloud-based and server-based software used by manufacturers, distributors, sales agencies and third party logistics providers in the consumer packaged goods industry. AFS’s software is used for accounting, supply chain management, sales automation, warehouse management, and business intelligence. The company’s services include consulting, application development, maintenance, support, and training. AFS’ customers number more than 1,100 and are active as meat, fish, seafood, and poultry processors, grocery distributors, convenience store distributors, and frozen food distributors. AFS was founded in 1985 and is headquartered in Phoenix (www.afsi.com).

kurien jacob nf“This investment by Court Square will bring to a close AFS Technologies’ successful partnership with Goldman Sachs’ Private Capital Investing group since 2011. Over the course of Goldman Sachs’ partnership with AFS Technologies, the company expanded its global footprint, completed six acquisitions and became a leading provider of Trade Promotion Spend Management, Retail Execution and Data Visualization solutions in this segment,” said Kurien Jacob, CEO of AFS Technologies.  “For AFS customers and employees, having Court Square as a financial partner will provide capital to accelerate our investment in current technology and solutions, as well as continue to grow through acquisitions. Strategic acquisitions help accelerate our offerings and provide global support for our customers.”

Court Square Capital Partners was established as an independent private equity firm by the former members of Citigroup Venture Capital Equity Partners. Court Square is focused primarily on leveraged buyout transactions in the middle market. Sectors of interest include business services, general industrial, healthcare, and technology/telecommunications. Court Square currently manages approximately $5.5 billion of capital and is based in New York (www.courtsquare.com).

The Goldman Sachs Private Capital Investing group, which first invested in AFS Technologies in 2011, is the firm’s investment platform that makes equity and mezzanine investments in growth and middle market companies. Goldman Sachs is headquartered in New York. To access the Private Capital website click HERE.

ABRY Partners, which invested in AFS in 2012, invests in the media, communications and information sectors. ABRY is currently investing ABRY Partners VII (a $1.6 billion private equity fund), ABRY Senior Equity III (a $750 million senior equity/mezzanine fund) and ABRY Advanced Securities Fund II (a $1.2 billion senior debt fund). The firm is headquartered in Boston (www.abry.com).

William Blair & Company (www.williamblair.com) and Madison Park Group (www.madisonparkgrp.com) served as co-advisors to AFS Technologies in connection with this transaction.

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-19-14

Wynnchurch Exits Android Industries

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android nf1Wynnchurch Capital has sold its portfolio company Android Industries to a buyer group led by Mitsui & Co. (USA), Dundee Corporation, Wynnchurch’s Chairman Emeritus Rick Renaud and Android’s executive team.

hatherly nf“We are very pleased with the final results of our Android investment and commend management for their exceptional efforts during our long tenure together. This marks the last portfolio holding to exit from our Fund I and has ensured our inaugural fund remains a top performer,” said John Hatherly, Wynnchurch Managing Partner.

Android Industries provides modular assembly and sequencing for the automotive industry and also provides related supply chain logistics. Android provides assembly services for a variety of chassis and interior modules, including tire and wheel, engine, suspension, instrument panels and consoles, across 16 plants in five countries. Android also provides logistics services for approximately $8 billion of inventory each year and has assembled more than 130 million modules since 1990. The company was founded in 1974 and is headquartered in the Detroit suburb of Auburn Hills (www.android-ind.com).

hayes nf“Android has led the outsourcing of modular assembly by automotive OEM’s through exceptional execution, a focus on cost and technology leadership, and an innovative spirit in everything they do,” said Frank Hayes, a partner at Wynnchurch. “Android’s global leadership is a clear reflection of management’s dedicated philosophy of continuous improvement and always providing best-in-class solutions to its customers. We are proud to have partnered with the Android team during this ascent over the last ten years and wish them continued success with their new partners.”

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).

“We wish to thank Wynnchurch for their partnership throughout an explosive period of growth and change,” said Jon Gregory, Android CEO. “Their support in our investments in groundbreaking innovation and building a global footprint, during a rather tumultuous time in the automotive sector, was critical in our achieving the success we have had. We appreciate their contributions and look forward to the next phase of Android’s global expansion with our new ownership group.”

Lazard & Company served as the financial advisor and Perkins Coie served as the legal advisor to Android Industries.

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-19-14

GTCR Acquires Creech & Stafford

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creech and stafford nf1AssuredPartners, a portfolio company of GTCR, has acquired the Creech & Stafford Insurance Agency. The operations of Creech & Stafford will be merged into Assured’s operating subsidiary Neace Lukens.

Creech & Stafford Insurance Agency, with annual revenues of about $3 million, specializes in business insurance, including workers’ compensation, liability and group employee benefit plans; personal insurance, including home, automobile and renters’ insurance; and life and health services, including life insurance and long-term care. Creech & Stafford was founded in 1982 and has locations in Lexington and Hazard, KY. The firm is led by partners Lloyd Stafford and Doug Creech (www.creechandstafford.com).

As part of the acquisition, 18 Creech & Stafford employees will join Neace Lukens. The Creech & Stafford Insurance Agency’s Lexington office will merge with the existing Neace Lukens Lexington branch this summer. The Neace Lukens Lexington office operates under the leadership of Managing Director Bryan Raisor.

Neace Lukens offers commercial property and casualty insurance, employee benefits programs, risk management consulting and personal insurance products. The company is headquartered in Louisville, KY and has more than 35 offices throughout Kentucky, Ohio, Indiana, Illinois, Michigan, Tennessee, Georgia, Arkansas, Florida, Mississippi, Louisiana and South Carolina. Neace Lukens was acquired by AssuredPartners in September 2011 (www.neacelukens.com).

AssuredPartners acquires and invests in insurance brokerage businesses (property and casualty, employee benefits, surety, managing general agencies, and wholesalers) across the United States and in the UK. From its founding in 2011, AssuredPartners has acquired more than 50 insurance firms and today has approximately $325 million in annual revenue with more than 80 offices in 26 states as well as a London office. The company is led by Jim Henderson (CEO) and Tom Riley (COO) and is headquartered north of Orlando in Lake Mary, FL (www.assuredptr.com).

“The Creech & Stafford acquisition supports the AssuredPartners goal of strengthening our presence in existing markets,” said Mr. Riley. “We are pleased to welcome Creech & Stafford to the rapidly growing AssuredPartners family.”

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-19-14

Harley-Davidson Operations Pro Joins GenNx360

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genx360 nfGenNx360 Capital Partners has added Latasha Akoma to its team as a new Operating Partner. Ms. Akoma will focus on driving performance, operational efficiencies and profitability across the GenNx portfolio companies in addition to working with its deal team to identify and evaluate new opportunities. She will report to Lloyd Trotter, Founding and Managing Partner.

“Latasha is an extremely talented leader who has extensive experience in running and growing industrial manufacturing companies. Her skill set and extensive manufacturing experience bring immediate value to our investments as we grow those businesses in their targeted industries,” said Mr. Trotter. “We look forward to leveraging her expertise in a range of opportunities as we build strong and profitable businesses.”

Latasha Akoma nfMs. Akoma has over 19 years of managerial experience leading safety, quality, cost and customer service improvements, and is certified in applying Lean Six Sigma applications in production settings. Most recently, Ms. Akoma held several management posts at Harley-Davidson Motor Company. She joined Harley-Davidson as Director of Manufacturing Operations in 2009, with responsibility for a 425,000 sq. ft. facility which included five production areas and a 120,000 sq. ft. Material Velocity Center. She advanced to the position of General Manager in 2011 where she was responsible for two facilities encompassing 192,000 sq. ft. over 96 acres. Prior to joining Harley-Davidson, Ms. Akoma was Senior Manager of Paint Operations at Chrysler where she held a variety of senior leadership positions in operations and general management. Ms. Akoma holds a BS in Mechanical Engineering with a minor in Energy & Robotics from Howard University and an MS in Engineering Management from the University of Michigan.

“As I considered the next stage of my career, private equity was of keen interest. GenNx stood out among its peers for its unique strategy and its focus on industrial manufacturing and business services, integrating operations and financial executives throughout its investment process, from sourcing to value creation to exit.” said Ms. Akoma. “I am excited to join the team and leverage my experience in acquiring and growing industrial and business services companies.”

GenNx360 Capital Partners is a private equity firm focused on investing in industrial business-to-business companies in the middle market. Sectors of interest include industrial machinery and components, oil and gas, transportation and logistics, agricultural, specialty chemicals, and aerospace. GenNx360 was founded in 2006 and is headquartered in New York with additional offices in Seattle and Boston (www.gennx360.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-19-14

Pritzker Group Continues Team Expansion

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pritzker nf2Continuing to expand its team of professionals, Pritzker Group Private Capital has added two new vice presidents to its team with the hirings of Ceron Rhee and Bradley West. The firm has also promoted Adam Milakofsky to vice president from senior associate. In the last 15 months, the firm has added seven professionals to its team expanding its capacity to source and support companies in its three targeted industry sectors: manufactured products, services and healthcare.

“Pritzker Group has assembled a world-class team to drive growth and operational excellence. These talented professionals share our focus on value creation and long-term growth and are great assets to the team,” said Paul Carbone, managing partner of Pritzker Group Private Capital.

rhee2Ceron Rhee joins Pritzker as a vice president-healthcare from TPG Capital, where he sourced, evaluated, executed and managed private equity investments across various segments of healthcare. Mr. Rhee previously held positions at The Blackstone Group, focused on healthcare private equity investments, and the healthcare investment banking division at Credit Suisse. He also served in the White House following the signing of the Affordable Care Act. Mr. Rhee will be based in Pritzker Group’s Los Angeles office. He will work with Michael Dal Bello, the firm’s new healthcare investment partner, and Michael Lynch, the firm’s new healthcare operating partner. Mr. Rhee received his BA, BS and MBA degrees from Stanford University.

west2 nfBradley West was named vice president-operations and will provide legal and financial services across Pritzker Group Private Capital’s companies. Mr. West, who is based in Chicago, comes to Pritzker from Vedder Price, where he served as an associate in the law firm’s finance and transactions practice. Prior to joining Vedder Price, he was an associate in Mayer Brown’s corporate and securities practice. Mr. West is a graduate of the University of Minnesota Law School and received an accounting degree from the University of Wisconsin.

mila nf2Adam Milakofsky was promoted to vice president from senior associate. Mr. Milakofsky has worked at Pritzker Group for six years, primarily within its private capital group, assisting with sourcing and executing investments with the firm’s services and manufactured products teams. Based in Chicago, he works with the management teams of several Pritzker Group companies, including PECO Pallet, Entertainment Cruises and Milestone AV Technologies. He holds a BA degree from Duke University and an MBA from Northwestern University.

Pritzker Group, led by Tony and J.B. Pritzker, has three principal investment teams: Private Capital, which acquires and operates North America-based middle-market companies in the manufactured products, services and healthcare sectors; Venture Capital, which is the largest technology venture investor based in the Midwest; and Asset Management, which partners with investment managers across global public markets. The Pritzker Group is based in Chicago (www.pritzkergroup.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-19-14

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