Archives for March 2014

Insight Equity Acquires Material Sciences Corporation

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New Star Metals, a portfolio company of Insight Equity, has acquired Material Sciences Corporation, a manufacturer of acoustical and coated products primarily used in automotive applications.  Insight Equity acquired New Star Metals in August 2012.

“The MSC transaction represents the third add-on acquisition for New Star under our ownership,” said Victor Vescovo, COO & Managing Partner at Insight Equity. “We remain interested in continuing to expand New Star through similar opportunities in the future.”

Material Sciences Corporation (MSC) has revenues of approximately $125 million and is a provider of materials used in acoustical and coated applications such as brakes, body panels, and engine components. MSC has two primary product segments: acoustical (anti-noise and vibration products, including the company’s trademarked Quiet Steel reduced vibration metal) and coated (decorative and protective metal coatings). The company’s products are used by the appliance, automotive, building systems, computer, construction, furniture, HVAC, lighting, and telecommunications industries. Automobile manufacturers are among the company’s largest clients. MSC (NASDAQ: MASC) was founded in 1971 and is headquartered near Chicago in Elk Grove Village, IL (www.matsci.com).

“We are excited to complete the purchase of Material Sciences. The addition of this company to New Star enhances our strategy to participate in the light-weighting of automobiles to meet the pending CAFE standards,” said Pat Murley, CEO of New Star.

New Star Metals provides metal processing, building products and supply chain management across an array of end markets. The company operates through five divisions: Canfield Coating, Electric Coating Technologies, Material Sciences Corporation, Premier Resource Group, and World Class Corrugating. New Star is headquartered near Chicago in Burr Ridge, IL (www.newstarmetals.com).

“We are thrilled to complete another public-to-private transaction and we look forward to working with Pat Murley and the New Star team to realize the potential synergies from this acquisition,” said Jack Waterstreet, a Principal at Insight Equity.

Insight Equity makes control investments in middle market, asset intensive companies across a range of industries and specializes in partnering with companies experiencing some level of underperformance. Insight Equity also seeks complex and challenging situations, including public to private transactions, corporate divestitures, bankruptcies, restructurings and private family ownership. The firm is based near Dallas in Southlake, TX and also has an office in New York (www.insightequity.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14

Riverside Acquires Harvey Tool

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The Riverside Company has invested in Harvey Tool Company, a provider of specialized cutting tools used in precision machining applications.

Harvey Tool Company is a provider of more than 9,000 cutting tools available in a variety of sizes, geometric characteristics, reaches and coatings. The company’s carbide milling tools are used by machine shops and other production facilities across North America and internationally. Harvey was founded in 1985 and is based in Rowley, MA (north of Boston) (www.harveytool.com).

“Harvey has a remarkable record for growing both its product lines and gaining share in the specialty cutting tool market,” said Riverside Partner Chris Jones. “The company has strong and growing brand awareness and is highly valued by customers.”

Riverside will provide support to Harvey as it executes on a plan to expand into adjacent product categories. Riverside will also be active in seeking strategic add-ons for the company.

“Harvey is a very well-run company with a diverse and differentiated set of cutting tool products,” said Mr. Jones. “We’re excited about partnering with President and CEO Pete Jenkins, COO Sam Ward, and the rest of the management team to expand Harvey’s business.”

Working with Mr. Jones on the transaction for Riverside were Vice President Ben Davis, Senior Associate Justina Wang, Associate Alex Treece, and Operating Partner Mike Thompson. Origination Principal Jim Butterfield sourced the opportunity and Partner Anne Hayes worked on financing the transaction for the firm.

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).

GE Antares Capital and Ares Capital provided financing for the transaction. Jones Day advised Riverside on the investment.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14

GenNx360 Invests in Novel Ingredient Services

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GenNx360 Capital Partners has made an investment in Novel Ingredient Services, a specialty nutraceutical ingredient services supplier to the health and wellness industry.

Novel Ingredient Services is a supplier of botanical and nutraceutical raw materials for the dietary supplement, sports nutrition, food and beverage, and pet care industries. The company has a national service network with distribution facilities in Chicago, Los Angeles, and West Caldwell, NJ (headquarters). Novel was founded in 1995 (www.novelingredient.com).

Novel has experienced significant growth recently and has identified the opportunity to expand its services and capabilities to both its existing markets and complementary sectors such as cosmetics and food and beverage. “This partnership with GenNx360 reflects our strategic vision. GenNx360’s significant experience growing companies will be a valuable asset to our management and help us immensely in our continued growth efforts,” said Novel’s Chairman, Bob Green.

“Bob Green and his team have built a very impressive organization. We are delighted to have the opportunity to partner with Novel as the company embarks on the next phase of its strategy to grow its leadership position in the nutraceutical field while increasing its footprint in adjacent markets,” said Monty Yort, the GenNx360 Managing Partner who led the transaction.

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).

The investment in Novel Ingredient Services represents the second investment for GenNx360 Capital Partners’ Fund II.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14

Succession Capital Acquires United Fastener

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Succession Capital has acquired United Fastener, a retail and wholesale distributor of fasteners and related products.

“United Fastener immediately appealed to us because of the quality of their team, something that Succession Capital deeply values. They’ve successfully served San Diego since the 1960s. That level of stability is only possible when you prioritize customers and provide good service. We look to continue that for another fifty years to come,” said Nathaniel Broughton, Succession Capital’s Managing Partner.

United Fastener is a retailer and wholesaler of fasteners and related products. The company sells its more than 20,000 SKUs to general construction contractors, sheet metal contractors, trucking companies and signage companies. The company was founded in 1964 and is based in San Diego (www.unitedfastenerco.com).

Succession Capital, a subsidiary of Lynx Equity Limited, seeks to acquire small to medium-sized businesses from owners looking to retire. Succession targets transactions requiring between $2 million and $8 million of equity. The firm is based in La Jolla, CA (www.succession-capital.com).

United Fastener is Lynx Equity and Succession Capital’s 8th combined acquisition in 2014.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14

Newbury Closes Fund III Above Target

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Newbury Partners has held a final closing of its latest secondaries fund, Newbury Equity Partners III LP (Fund III), with over $1.1 billion of capital commitments.

Fund III exceeded its $1 billion target and hard cap after launching in the summer of 2013. Newbury secured commitments primarily from its existing investors – private and public pension funds, endowments, foundations and family offices. Approximately 60% of total commitments came from capital outside of North America. Newbury’s prior secondary fund, Newbury Equity Partners II LP, had a final close in 2010 with $1 billion of capital commitments from 91 limited partners.

Fund III will target privately-negotiated, small and mid-sized transactions ranging from $1 million to $50 million in size. Typical sellers include family offices, small financial institutions and investment management firms. Since inception, Newbury has completed more than 85 secondary transactions, committing approximately $1.6 billion.

“We are extremely pleased with the success of our fundraise and the strong support we received from investors globally,” said Richard Lichter, Managing Partner of Newbury. “We believe our disciplined, service-oriented investment approach not only drives better relative pricing in transactions, but also allows us to consistently perform for our investors independent of market conditions.”

MVision Private Equity Advisers (www.mvision.com) acted as exclusive fundraising advisor for Fund III and Proskauer Rose served as legal counsel.

Newbury Partners specializes in acquiring buyout, venture capital, special situations, mezzanine and fund-of-funds limited partnership interests in the secondary market. To supplement its secondary market activities, Newbury also pursues co-investment opportunities on a select basis. The firm is headquartered in Stamford, CT (www.newbury-partners.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14

Accel-KKR Raises Its Second Structured Capital Fund

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Accel-KKR has completed fundraising for Accel-KKR Structured Capital Partners II with $325 million in committed capital. The firm began raising Fund II in early 2014 with a $250 million target. The new fund received support from existing limited partners and also attracted numerous first-time investors.

“We are heartened by the support we received from our existing investors, which provided for an expedited fundraising process, allowing the firm to continue its focus on identifying and working closely with great businesses that need capital to continue their growth,” said Rob Palumbo, Managing Director of Accel-KKR.

Fund II will continue the strategy of making minority equity investments in technology companies using senior equity and other structured securities. “The idea behind our structured capital funds developed over the years as we saw so many good businesses with great management teams where minority stakes – as opposed to majority investments – made sense,” said Tom Barnds, Managing Director of Accel-KKR.

The partners and employees of Accel-KKR are committing 7% of the capital to Fund II, making the firm one of the largest investors. “We believe in strong alignment of incentives with our investors, and a very significant financial commitment from the firm to the fund is one of the many ways we seek to build and demonstrate that alignment,” said Tom Barnds, Managing Director.

Accel-KKR invests in middle market software and technology enabled service companies with revenues greater than $10 million. The firm invests in both majority ownership situations via its buyout funds, and minority equity positions through its Structured Capital funds. Accel-KKR was founded in 2000 and is headquartered in Menlo Park with additional offices in Atlanta and London (www.accel-kkr.com).

“While Accel-KKR invests in a wide variety of situations from our structured capital funds, we have found a particularly attractive niche in working with closely-held, owner-operated businesses that need capital for growth,” said Greg Williams, Managing Director at Accel-KKR who focuses on structured capital opportunities for the firm.

Accel-KKR raised its first structured capital fund with $180 million in capital commitments in 2011. The firm is also investing out of its fourth buyout fund, Accel-KKR Capital Partners IV, a $800 million fund that was raised in 2012.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14

Fulcrum Capital Partners Invests in Arctic Chiller

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Fulcrum Capital Partners has provided growth capital to support the continued growth of the Arctic Chiller Group. The investment was funded by Fulcrum Capital’s Private Equity Fund IV and marks the tenth investment in that fund.

Arctic Chiller Group is a manufacturer of modular chillers that are utilized in North America commercial and industrial cooling applications. The company serves the non-residential retrofit market with end consumers across several industries including Fortune 500 companies, government agencies and professional sports franchises. Arctic was founded in 1989 and is headquartered in Brampton, Ontario with additional manufacturing facilities in Newberry, SC (www.arcticchillergroup.com).

Fulcrum Capital Partners manages over C$500 million of capital and invests both equity and subordinated debt in companies with revenues of C$10 million to C$250 million. Sectors of interest include services, manufacturing, consumer products, distribution, food and retail. The firm has offices in Vancouver and Toronto (www.fulcrumcapital.ca).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-28-14

F.N.B. Capital Invests In DBi Services

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F.N.B. Capital Partners has provided mezzanine debt and preferred stock to support the recapitalization of DBi Services, a provider of infrastructure maintenance services.

“We are extremely excited to invest with this management team, who collectively are both leaders and innovators within their industry,” said Stephen Gurgovits, Jr., Managing Partner for FNBCP. “We expect the company will continue to capitalize on the increasing trend of outsourcing highway and rail maintenance projects.”

DBi provides infrastructure maintenance, operations and management services to government agencies, utilities, private industries, railways, retailers and other infrastructure owners. The company was founded in 1978 and is headquartered in Hazleton, PA (www.dbiservices.com).

FNBCP partnered with Alcentra (www.mezzanine.alcentra.com) and KCAP Financial (www.kcapfinancial.com) to provide the mezzanine debt and preferred stock in the recapitalization.

“It was a pleasure working with our two financing partners, and we were fortunate to have such an opportunity”, said Matthew Harnett, Partner for FNBCP.

Other parties involved in the transaction included M&T Bank (www.mtb.com) as the senior lender and investment bank Griffin Financial Group (www.griffinfingroup.com) served as the financial advisor to DBi.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-28-14

Vista Acquires PeopleAdmin

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PeopleAdmin, a provider of on-demand talent management software-as-a-service, has been acquired by Vista Equity Partners.

PeopleAdmin provides software-as-a-service talent management services designed for education and government organizations. The software is used to manage the hiring of people, enroll new employees, manage positions and employee performance; develop compliant, defensible audit trails; and to generate reporting and metrics. More than 700 organizations, including 30% of the 2,000 largest US institutions of higher education, use PeopleAdmin’s services. The company was founded in 2000 and is based in Austin, TX (www.peopleadminm.com).

“PeopleAdmin has a history of delivering truly unique and mission-critical value to its clients,” said Patrick Severson, Principal of Vista Equity Partners Foundation Fund. “By combining our resources and expertise with the great team at PeopleAdmin, we see a tremendous opportunity to fuel the next stage of growth and help clients hire, develop and retain some of their greatest assets: their people.”

Vista Equity Partners has more than $7 billion in committed capital and makes equity investments in enterprise software businesses and technology-enabled services companies. The firm was founded in 2000 and has over 50 investment professionals operating out of Austin, Chicago, and San Francisco (www.vistaequitypartners.com).

“We are excited to partner with Vista as we look to accelerate our growth and continue to provide valuable solutions to our clients,” said Susanne Bowen, CEO of PeopleAdmin. “We share a similar vision for the company, and Vista’s software expertise and focus will enable us to continue to scale and serve our clients and invest in our best-in-class product suite.”

Lazard (www.lazard.com) served as financial advisor to PeopleAdmin.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-28-14

Ares Builds Mid-Market Sponsor Coverage

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Ares Capital Management has added two new investment professionals to its team as part of its expansion of its middle market sponsor coverage strategy. Joining Ares as Managing Directors are Grant Haggard and Brian Moncrief. The two new professionals will be based in Chicago and will focus on senior and subordinated financing opportunities with an emphasis on middle and lower middle market transactions.

“Adding Grant and Brian to our team reflects the growing demand for flexible capital by middle market companies and their sponsors,” said Kipp deVeer, President of Ares Capital. “This enhancement in the depth and breadth of our sponsor coverage reflects the attractiveness of potential returns across the middle market and the changing landscape as participants seek capital from non-bank sources, such as Ares.”

Messrs. Haggard and Moncrief have more than 35 years of combined experience in the leveraged finance industry, primarily focused on covering middle and lower middle market private equity firms nationally. Both most recently served as senior members of the business development team at Madison Capital Funding and they also worked together for eight years at GE Antares Capital.

“We believe we will be able to broaden Ares’ private equity relationships and capitalize on the progressive and seamless financing solutions that Ares can offer. With the universe of lenders in the middle market continuing to consolidate, we believe that Ares will continue to establish itself as a leader in the industry,” said Mr. Moncrief.

Ares Capital provides debt and equity to the US middle-market companies primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. The firm has offices in Los Angeles, Chicago, New York, Atlanta, Menlo Park and Washington, DC (www.arescapitalcorp.com).

“We are excited to be joining a powerful platform like Ares and look forward to building upon the extensive success that the direct lending team has created,” said Mr. Haggard.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-28-14

Keystone Acquires Kidde Fire Trainers

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Keystone Capital has acquired Kidde Fire Trainers, a business unit of United Technologies’ Building & Industrial Systems Group.

Kidde Fire Trainers (KFT) designs, installs and services live fire training simulators and related technologies. Customers include fire academies, municipalities, governments, and industrial companies. The company is headquartered in Montvale, NJ with additional offices in Barlborough, UK and Aachen, Germany (www.kiddefiretrainers.com).

“The KFT transaction is a perfect fit with Keystone’s investment criteria – a market leader with a great brand, a solid management team, and opportunities for growth and value creation under our stewardship,” said Scott Gwilliam, Managing Director of Keystone Capital. “We were glad to have worked with United Technologies on this important transaction, and look forward to working with the KFT management team to build a strong standalone business.”

All management and employees of KFT will be retained in the transaction, and the operations of the company will be unchanged.

“The most important benefit of this transaction from our perspective is our new ability to operate as a standalone business focused on nothing but fire training simulators,” said Rob Lane, the newly-appointed CEO of Kidde Fire Trainers. “We are energized and excited by the idea of working with Keystone and leveraging their extensive experience with corporate divestitures such as this.”

Keystone Capital invests in middle market companies with EBITDAs of $3 million to $12 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).

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 • 3-27-14

Madison Dearborn Exits Fieldglass

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SAP has agreed to acquire Fieldglass, a provider of technology for procuring and managing contingent labor and services and a portfolio company of Madison Dearborn Partners. SAP expects to complete the transaction in the second quarter of 2014.

Fieldglass, acquired by Madison Dearborn in October 2010, is a provider of vendor management services that are used by Global 2000 companies to manage and track their use of temporary labor. The company was founded in 1999 and is headquartered in Chicago with additional offices in London and Sydney (www.fieldglass.com).

Madison Dearborn Partners has more than $18 billion of capital under management. Sectors of interest include basic industries; business and government services; consumer; financial and transaction services; health care; and telecom, media and technology services. The firm has 44 investment professionals, consisting of 29 Principals and 15 Associates. Madison Dearborn was founded in 1992 and is based in Chicago (www.mdcp.com).

SAP (NYSE: SAP) is a market leader in enterprise application software. The company was founded in 1972 and is headquartered in Walldorf, Germany (www.sap.com).

“The acquisition of Fieldglass creates a compelling advantage for SAP customers as they access, attract and manage talent via the networked economy,” said Bill McDermott and Jim Hagemann Snabe, co-CEOs of SAP. “This move reaffirms SAP as the undisputed leader of integrated human resources and procurement in the cloud for businesses of all sizes and industries. Combining Fieldglass with SAP is a significant milestone in our strategy to help businesses simplify everything.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-27-14

Blackthorne Partners Acquires Hughes Company

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Blackthorne Partners has acquired Hughes Company, a food processing equipment manufacturer. Blackthorne partnered with business executive Ross Lund on the transaction and he has become president and chief executive officer of the company which was renamed Hughes Equipment Company upon closing of the transaction. Jeff Powell, the former president and owner, will retain an interest in the company and serve as a consultant to Mr. Lund.

Hughes Equipment Company was founded in 1961 and is a manufacturer and distributor of stainless steel equipment used in the food processing industry. Products include standard and customized equipment for vegetable, pasta, rice, fruit and root crop processing and preparation. The company has a 60,000-square-foot facility located near Madison in Columbus, WI (headquarters) (www.hughesequipment.com).

“Hughes Equipment Company has an impressive lineup of highly reliable products, unparalleled customer service, and an incredibly talented staff,” said John Syburg, a managing director at Blackthorne Partners. “We are confident we can build on that great foundation and meet our customers’ needs to an even greater degree.”

Blackthorne Partners invests in companies based in the upper Midwest that have $4 million to $15 million in revenues and EBITDA of at least $1 million. Sectors of interest include outsourced business services, light manufacturing, and value-added distribution. Blackthorne Partners is headquartered in near Milwaukee in Brookfield, WI (www.blackthornepartners.com).

“We have aggressive growth goals for the Hughes, which I know we can achieve based on the company’s existing staff of highly skilled and dedicated employees, our existing manufacturing technology, and the new resources we will bring to the operation,” said Mr. Lund. “Through investments in our people and in technology, we will help our customers become even more productive.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-27-14

Levine Leichtman Closes Oversubscribed Fund V

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Levine Leichtman Capital Partners held a final closing on $1.65 billion of capital commitments for Levine Leichtman Capital Partners Fund V, LP, exceeding its target of $1.5 billion. The firm’s earlier fund, Levine Leichtman Capital Partners IV, LP, a 2008 vintage fund, had $1.1 billion of capital commitments.

Fund V received worldwide support from institutional investors including public and private pension funds, sovereign wealth funds, endowments and foundations, insurance companies, fund of funds and family offices.

“We are very pleased by the support we have received from existing and new limited partners. Institutional investors responded very favorably to our differentiated investment strategy and to our 30 year investment track record. LLCP has generated consistent and attractive risk-adjusted returns across many economic cycles,” said Lauren Leichtman, CEO of Levine Leichtman Capital Partners.

Fund V has already closed two investments and invested approximately $200 million of capital. In November 2013 Fund V acquired Genova Diagnostics, a specialty clinical laboratory that is based in Asheville, NC (www.gdx.net). In August 2013 Fund V made a growth capital investment in SFERRA Fine Linens, a designer and producer of branded, Italian luxury linen products sold through luxury retailers and specialty boutiques. SFERRA is headquartered in Edison, NJ (www.sferra.com).

Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-27-14

Scott-Macon Adds Consumer Products and Retail Investment Banker

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Scott-Macon, one of the oldest, independently-owned mid-market investment banks, has hired Scott Silverman as a new Managing Director. Mr. Silverman will lead the firm’s investment banking activities in the consumer and retail sectors.

Mr. Silverman specializes in mergers and acquisitions and has more than 20 years of experience advising companies and financial sponsors on both healthy and distressed transactions. He has acted as financial advisor to Boards of Directors, Special Committees, and/or principal shareholders in the purchase or sale of numerous businesses in a variety of industries, identifying, analyzing, and recommending strategic and financial alternatives and opportunities. In his career he has executed domestic, international, and cross-border transactions with a combined deal value of more than $15 billion.

Prior to joining Scott-Macon, Mr. Silverman was a Managing Director and Head of Consumer and Retail Investment Banking at Westbury Group, Managing Director at CDG Group in New York where he led the M&A practice, and a Vice President in the Mergers & Acquisitions Group at Credit Suisse First Boston in New York. Mr. Silverman also previously worked in Ernst & Young’s Corporate Finance Group in New York and Moscow where he started his career in corporate finance in 1993. He holds a BA in History from Brown University and received his Business Diploma from The London School of Economics and Political Science.

“With the continued strengthening of the consumer sector, we sought to establish the strongest possible senior banker to lead us in this critical area. With Scott’s depth of experience and track record of service to his clients, he is an outstanding choice to spearhead this effort. Major consumer and retail companies have long valued sound independent advice in the context of mergers and acquisitions,” said Robert Dimmitt, Senior Managing Director.

Scott-Macon is focused on middle-market transactions globally in the areas of mergers and acquisitions, the direct placement of debt and equity, and corporate advisory services. Clients include privately-owned companies, private equity firms and publicly-traded US and global corporations. The firm was founded in 1973 and is based in New York (www.scott-macon.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-27-14

May River Acquires Pride Engineering

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May River Capital has acquired Pride Engineering in partnership with management and other co-investors. The transaction included the majority of Pride’s prior shareholders, including Mark Zauhar, founder; Bruce Allyn, President; and David Gadow, Director of Engineering & Manufacturing.

“We are delighted to partner with May River. They share our vision for growing Pride and can provide financial, strategic and professional resources required to accomplish our goals and to provide our customers with the best products in the world,” said Bruce Allyn, President of Pride.

Pride Engineering designs and manufactures multi-piece machine tools and related equipment for the front-end production of two-piece food and beverage cans. The company’s product offering includes can body-forming tool packs, can bottom formers and precision grinders. The company’s products are used in over 365 can-making lines around the world. Pride is headquartered in the Minneapolis suburb of Brooklyn Park (www.pridecan.com).

“We were immediately drawn to Pride’s proprietary technology, its strong customer relationships, its large, global installed base, and the mission critical nature of Pride’s products,” said Steve Griesemer, May River Partner.

May River Capital invests from $10 million to $40 million of equity in companies with revenues of at least $15 million and EBITDA between $3 million and $15 million. Sectors of interest include manufacturing, commercial services, as well as supply chain and value-added distribution. Control investments are preferred but the firm will consider significant minority investments. May River was founded in January 2012 by Chip Grace, Dan Barlow and Steve Griesemer and is headquartered in Chicago (www.mayrivercapital.com).

“May River is pleased to be selected to partner with Pride’s management team in the acquisition. We look forward to assisting Bruce and the team in realizing Pride’s full potential in the years to come,” said Chip Grace, a May River Partner.

Minneapolis-based Investment bank Franklin Partners (www.franklinpartnersinc.com) served as financial advisor to Pride and the selling shareholders in this transaction. Fifth Third Bank (www.53.com) provided senior and subordinated debt financing to support the transaction.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-26-14

Quad-C Exits Cloverhill Bakery

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Quad-C Management has sold its portfolio company Cloverhill Bakery, a manufacturer of individually wrapped sweet baked goods, to Switzerland-based global food business ARYZTA AG. Quad-C invested in Cloverhill in 2009.

Cloverhill is a manufacturer of individually wrapped pastries for retail, co-pack, foodservice and vending customers. The company’s product portfolio includes over 30 product formulations and 300 SKUs, including fold-over and round Danish, cinnamon rolls, honey buns, donuts, muffins, crumb cakes, and cream-filled cakes. Cloverhill operates two world-class bakeries in the Chicago metropolitan area. During Quad-C’s investment period, Cloverhill has invested approximately $100 million in growth capital and grown revenue by more than 80%. Cloverhill was founded in 1961 and is headquartered in Chicago (www.cloverhill.com).

“Back in 2009, Quad-C saw Cloverhill as an exciting opportunity to invest in a high growth market leader in the packaged foods space, but equally as important, to partner with an aggressive, talented management team willing to reinvest significantly with us as co-owners,” said Frank Winslow, partner, Quad-C Management. “We are thrilled with the outcome of our work together, which resulted in substantial expansion and the creation of long-term value for the company.”

Quad-C is a middle market private equity firm that invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. Sectors of interest include business services, consumer, general industrial, healthcare, specialty distribution and transportation/logistics. The firm is currently investing Quad-C VIII, a $700 million fund raised in 2012. Quad-C was founded in 1989 and in its 25-year history has invested over $2 billion of equity across more than 50 companies. The firm is headquartered in Charlottesville, VA (www.quadcmanagement.com).

“We are very pleased with the success of the Cloverhill investment and feel the partnership we created with management is indicative of our investment approach at Quad-C – one where interests are aligned among our limited partners, ourselves and management and where strategies are set in a collaborative fashion. We wish the team luck and look forward to their continued success,” added Steve Burns, senior partner, Quad-C Management.

The buyer of Cloverhill Bakery, Aryzta, is a global bakery company dually listed on the Swiss and Irish stock exchanges. The company’s range of products includes artisan breads, sweet baked goods, and an array of other items such as pizza, tarts, and pies. Aryzta is headquartered in Zurich, Switzerland with operations across North America, South America, Europe, Southeast Asia, Australia, and New Zealand (www.aryzta.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-26-14

H.I.G. Exits American Hardwood Industries

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H.I.G. Capital has completed the sale of its portfolio company American Hardwood Industries to Baillie Lumber.

American Hardwood Industries (AHI) is a manufacturer and supplier of hardwood lumber in the United States and abroad. AHI is the largest producer in its regions with over 100 million board feet of annual capacity across eleven sawmills and kiln drying facilities in Virginia and throughout the Appalachian territory. AHI is a vertically-integrated supplier that sells its products under the Augusta, Blue Triangle and Graham Lumber brands, as well as under its Cross Creek wholesale trading division. The company also sells hardwood flooring under the Montebello Flooring brand. AHI was founded in 1955 and is headquartered in Waynesboro, VA (www.ahwood.com).

Baillie Lumber is one of North America’s largest hardwood lumber manufactures, distributors and exporters. The company is based near Buffalo in Hamburg, NY (www.baillie.com).

H.I.G. originally invested in AHI, then Augusta Lumber, in 2006. Since that time, the company has completed multiple add-on acquisitions that more than doubled the size of the business and also invested heavily in manufacturing best practices.

“H.I.G. has been an outstanding and committed partner to American Hardwood Industries. Through a series of add-on acquisitions and operational investments, H.I.G.’s support has helped AHI to more than double its revenues, upgrade its equipment, invest in business processes, develop its brands and expand its international reach to establish the company as a leading exporter of US hardwoods,” said John O’Dea, CEO of AHI.

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. H.I.G. Capital has more than $15 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-26-14