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Archives for March 12, 2014

J.F. Lehman Acquires Sureclean

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sureclean nfNational Response Corporation, a portfolio company of J.F. Lehman & Company, has acquired Sureclean Limited, an industrial cleaning and waste disposal company.

Sureclean is a provider of environmental and industrial services to the oil & gas, petrochemical, renewables, utilities, civil engineering and construction sectors. Services include industrial cleaning and waste disposal. The company is headquartered in Alness, Scotland and has 135 employees (www.sureclean.com).

National Response Corporation (NRC), acquired by J.F. Lehman in March 2012, is a provider of diversified environmental, industrial and emergency response services. The company has approximately 800 employees and is headquartered in Great River, NY (Long Island) with regional offices throughout the US and internationally (www.nrcc.com).

harman nf“Since our acquisition of NRC in 2012, the company has demonstrated strong growth and we are delighted to be able to announce the addition of Sureclean to the group, bringing with it expansion into new geographies and a range of new, complimentary service capabilities,” said Alex Harman, a Partner at J.F. Lehman.

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has made investments in companies with an aggregate transaction value of approximately $1.6 billion. The firm was founded in 1992 and is headquartered in New York with additional offices in Washington, DC and London (www.jflpartners.com).

Senior debt financing for the acquisition was arranged by BNP Paribas Securities. Ernst & Young served as financial advisor to NRC and Jones Day provided legal counsel to NRC.

“NRC has experienced significant growth in its international business in recent years and the addition of Sureclean to the group further strengthens and broadens our service offering. We believe the combination of NRC’s global footprint and Sureclean’s quality personnel, cutting edge technology and proven track record makes for a strong strategic fit,” said Steve Candito, CEO of NRC.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14

Blackstone to Acquire Accuvant from Sverica

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accuvant nfBlackstone has entered into an agreement to acquire a majority stake in Accuvant, a provider of information security and services and a current portfolio company of Sverica International. Sverica International, which first invested in Accuvant in July 2008, will invest alongside Blackstone in the transaction. Accuvant management will also invest in the transaction.

Accuvant provides its enterprise customers with security software and hardware manufactured by its best-in-class technology partners. The company’s professional services arm offers enterprise security program design, enterprise assessments, incident response and remediation, PCI audit services, and IT compliance policy development and implementation. Since 2002, more than 4,500 organizations, including half of the Fortune 100 and 800 federal, state and local entities, have utilized Accuvant for their security needs. The company is headquartered in Denver and operates out of 35 additional locations in the US plus one international office in Toronto (www.accuvant.com).

Blackstone’s investment will be used by Accuvant to accelerate its pace of expansion and enable the management team to deploy additional capital and resources for a broader roll-out of its product- and service-based solution offerings.

Accuvant is one of several tech investments that Blackstone’s private equity funds have made in the technology sector over the last twelve months. Other recent investments include: Pactera Technology International Ltd, China’s largest IT outsourcing company; and Kronos, a global provider of workforce management software and services. Separately, Blackstone has made small minority investments in emerging security companies, including Carbon Black / Bit9, iSIGHT Partners, Secure Mentem, WatchDox, and Cylance.

johnson nf2“With this investment, we are excited to build upon Blackstone’s growing information security expertise as the sector becomes increasingly relevant across industries. Our investment will provide Accuvant’s experienced team with necessary resources as it continues to establish a reputation for excellence in the information risk and security space,” said Dave Johnson, Senior Managing Director in Blackstone’s Private Equity Group.

Blackstone is one of the world’s leading investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone is headquartered in New York (www.blackstone.com).

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).

“We are looking forward to being part of the Blackstone family,” said Dan Burns, Accuvant co-founder and chief executive officer. “Security has transcended everyone and everything – from people to companies to nations. Accuvant has already helped thousands of organizations protect themselves and their customers. But, there’s so much more we can do. This partnership will enable us to accelerate our pace of innovation and expansion, and allow us to deliver new services and solutions that meet the constantly evolving needs of the global and critically important market.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14

Water Street and JLL Merge Clinical Services Portfolio Companies

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Water Street Healthcare Partners and JLL Partners have merged their portfolio companies CCBR-SYNARC and BioClinica to create a global provider of specialty outsourced clinical services. CCBR-SYNARC was acquired by Water Street in April 2013 and JLL Partners acquired BioClinica in January 2013.

strothman nf“This merger creates a market leader uniquely positioned to support pharmaceutical companies with managing key components of their clinical trials,” said Peter Strothman, a Partner at Water Street.

Earlier this year, the two investment firms reached an agreement to merge the two companies and recruited Jeffrey McMullen, an executive with 40 years of experience in the drug development industry, to serve as chairman.

“Together, CCBR-SYNARC and BioClinica offer the industry’s most comprehensive clinical imaging program across all major therapeutic areas that can interact with any contract research organization. In addition, they offer complementary services and software solutions in the high-growth areas of patient recruitment and clinical development,” said Mr. Strothman.

Together, CCBR-SYNARC and BioClinica support pharmaceutical and biotechnology companies with a portfolio of outsourced services that include: medical imaging analysis and consultation that track the effectiveness of new drugs and medical devices across major therapeutic areas, including oncology, neurology, musculoskeletal and cardiology; patient recruitment through a network of 26 dedicated research centers that enroll and retain qualified patients from targeted geographies to participate in trials; software and consulting services that improve the efficiency and management of the drug development process; cardiovascular safety and efficacy that measure the effects of compounds under development on cardiac health, and; central Lab Services that analyze biological samples originating from Phase I-IV trials. BioClinica is based in Newtown, PA (www.bioclinica.com) and CCBR-SYNARC is headquartered in Copenhagen (www.ccbr.com).

agroskin nf“Pharmaceutical and biotechnology companies are increasingly turning to outside specialists to help them manage the cost and complexities of drug development. As one entity, CCBR-SYNARC and BioClinica offer a combination of scientific expertise, clinical trial experience and advanced technologies that solve challenges across the drug development continuum. Their solutions are proven to reduce clinical trial costs, shorten drug development time, and improve data quality and compliance,” said Dan Agroskin, partner, JLL Partners.

JLL Partners seeks to invest in companies across a range of manufacturing and service industries. Sectors of specific interest include healthcare services, medical products, food and consumer products, chemicals, broadcasting, transportation, automotive, industrial manufacturing, and distribution. JLL Partners is based in New York (www.jllpartners.com).

Water Street Healthcare Partners targets investments ranging from $50 million to $500 million in four health care sectors: distribution, medical products, health care services, and pharmaceutical products and services. The firm has particular expertise in corporate divestitures from healthcare companies. Water Street has more than $1 billion of capital under management and is based in Chicago (www.waterstreet.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14

Salt Creek Has Partial Exit at Ultracor

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ultracor nfSalt Creek Capital has sold a majority equity interest in its portfolio company Ultracor to Gemini Investors. Salt Creek first invested in Ultracor in 2008 and remains a minority investor in the company.

Ultracor is a manufacturer of high-performance composite materials and systems for the space and aerospace industries. The company was founded in 1995 and is headquartered in Livermore, CA (www.ultracorinc.com).

mytels nf“It has been a pleasure to support Stan and the team at Ultracor for the past five years,” said Dan Mytels, Managing Director at Salt Creek Capital. “We appreciate the opportunity to work with Gemini, who we see as a value-added investor, to support the company’s next phase of growth.”

Salt Creek Capital invests in lower middle market companies located anywhere in the US that have $3 million to $50 million in revenue. Sectors of interest include business services, distribution, energy services, franchising, logistics and specialty finance. The firm is based in Menlo Park, CA (www.saltcreekcap.com).

Gemini Investors makes equity investments of $3 million to $8 million in companies with revenues of $10 million to $100 million and EBITDAs of at least $1 million. The firm is currently investing Gemini Investors V, LP, which has $190 million of committed capital. Gemini Investors was founded in 1993 and is based in Wellesley, MA (www.gemini-investors.com).

“Since acquiring Ultracor in December 2008, we have worked hard to expand our business and provide the industry with innovative products” said Stan Wright, President of Ultracor. “We look forward to working with Gemini to continue to create critical applications and solutions for our industry leading customers.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14

Houlihan Lokey Acquires ArchPoint Partners

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houlihan archInvestment bank Houlihan Lokey has acquired ArchPoint Partners, a San Francisco-based investment banking firm that provides mergers and acquisitions and private capital raising advisory services to clients in the technology sector. The acquisition closed on March 7, 2014.

ArchPoint co-founders and Managing Directors John Cooper and Rob Louv will jointly lead Houlihan Lokey’s Technology Group, reporting to Scott Adelson and Bob Hotz, Co-Heads of Corporate Finance. Susan Blanco and Dan Williams, ArchPoint’s other co-founders, will also serve as Managing Directors in the Technology Group.

cooper nf2“Since forming ArchPoint, we have worked diligently to build on our excellent track record with each client engagement through achieving superior outcomes, and we are eager to continue that momentum with Houlihan Lokey,” said ArchPoint co-founder and Managing Director John Cooper.

Founded in 2009, ArchPoint focuses exclusively on the technology sector. ArchPoint’s founding team has combined prior experience of more than 400 completed transactions totaling $200 billion and is considered a leader in SaaS business advisory work, having completed more than 50 transactions for SaaS companies. ArchPoint’s founders previously worked together in senior corporate and banking positions at Microsoft and JPMorgan Chase, among others.

adelson nf“The ubiquity of technology in every facet of society is undeniable,” said Scott Adelson, Co-Head of Corporate Finance at Houlihan Lokey. “By joining Houlihan Lokey, ArchPoint’s banking team will be able to forge direct relationships with end-users of technology in every industry in which we do business; similarly, these end-users will now have access to unmatched technology expertise, particularly in the software space. This acquisition is a fantastic addition to the arsenal of intellectual capital we provide our clients, and we’re delighted that the ArchPoint team is joining Houlihan Lokey.”

The acquisition comes at a particularly opportune time given recent M&A activity in the sector. In 2013, US technology M&A volume totaled $129 billion, the highest in more than a decade; year to date, 2014 volume through February was already more than $43 billion, according to Thomson Reuters data. Other factors, including continued private equity interest in the sector and the widespread belief that the global economy is improving, support continued deal activity in the sector.

louv nf“Joining a firm with Houlihan Lokey’s reputation, global reach, and client relationships, particularly among financial sponsors, is an extremely exciting opportunity, and we look forward to building a first-class Technology Group here,” said Rob Louv, ArchPoint co-founder and Managing Director.

Both Houlihan Lokey and ArchPoint advised themselves on the transaction. Manatt, Phelps & Phillips, LLP served as legal counsel to Houlihan Lokey and Holland & Knight was legal counsel to ArchPoint.

Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and Asia (www.hl.com).

ArchPoint Partners is a San Francisco-based investment banking firm that provides mergers and acquisitions and private capital raising advisory services to clients in the technology sector (www.archpoint.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14

Baird Promotes Roberto Ferranti to Principal

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ferranti nfBaird Capital has promoted Roberto Ferranti to Principal from Vice President. Mr. Ferranti joined Baird Capital in 2010 and works with the firm’s Portfolio Operations team.

Prior to joining Baird Capital, Mr. Ferranti served as a Vice President in the Corporate Recovery Group of Mesirow Financial. Before that, he was a Vice President in the Performance Improvement group at AlixPartners. Mr. Ferranti received his bachelor’s degree from Bocconi University in Milan, Italy, and an MBA from the University of Virginia. He is a native of Italy and is fluent in English, Italian and French.

pan nf“Roberto has been a key member of our operations team and has led the design and implementation of global strategies that drive portfolio company performance,” said Gordon Pan, Managing Partner of Baird Capital. “This promotion reflects his continued commitment to providing value for our investors.”

The Portfolio Operations team at Baird works with portfolio company management to develop and execute strategies that drive operational value and margin enhancement. In its history, the team has helped Baird’s portfolio companies generate millions of dollars of value from their operations through working capital optimization, performance improvement, strategic and shared sourcing initiatives, and supply chain management. The team has also helped portfolio companies generate revenue opportunities through European and Asian distribution relationships.

Baird Capital, the direct private investment arm of Robert W. Baird & Co., invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 million to $125 million and EBITDAs greater than $5 million. Baird Capital was founded in 1989 and is based in Chicago (www.bairdcapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14

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