Archives for March 27, 2014

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