Archives for March 2014

Sentinel Capital Partners Acquires Newk’s Eatery

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Sentinel Capital Partners has acquired Newk’s Holding Company, owner and operator of the Newk’s Eatery franchise.

Newk’s offers a menu of made-from-scratch sandwiches, soups, salads, and pizzas. The company was founded in 2004 by Chris Newcomb (CEO), Don Newcomb (Chairman) and Debra Bryson (Vice President) as a locally owned sandwich shop in Oxford, Mississippi. Today, the Newk’s Eatery system consists of 67 restaurants located across the Southeast. Newk’s is headquartered in Jackson, MS (www.newks.com).

“We are very pleased to be partnering with Newk’s strong leadership team who are pioneers in the fast casual dining market,” said James Coady, a Sentinel partner. “Newk’s is well positioned for accelerating its growth and is very well aligned with the emerging fast casual trend in the restaurant industry.”

Sentinel Capital Partners invests in middle market companies in the United States and Canada in partnership with management. The firm invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs between $7 million and $40 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).

“Sentinel is a perfect strategic partner whose deep experience and success in supporting high growth restaurant and franchising businesses will allow Newk’s to realize its full potential,” said Chris Newcomb, CEO and co-founder.

In March 2014, Sentinel acquired Checkers Drive-In Restaurants from Wellspring Capital Management. Checkers Drive-In Restaurants develops, owns, operates and franchises approximately 800 Checkers and Rally’s restaurants. Checkers Drive-In Restaurants was founded in1986 in Mobile, AL and Rally’s Drive-In Restaurants was founded in 1985 in Louisville, KT. The two companies merged in 1999. Checkers is headquartered in Tampa, FL (www.checkers.com).

Investment bank Arlington Capital Advisors served as financial advisor to Newk’s. Arlington has offices in Birmingham, AL and Atlanta, GA (www.arlingtoncapitaladvisors.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-25-14

Golden Gate Acquires LiveVox

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Golden Gate Capital has acquired a majority stake in LiveVox, a provider of cloud-based contact center software for business process outsourcers and enterprise clients.

LiveVox provides a suite of integrated contact center services, including predictive dialing, automated call distribution (ACD), interactive voice response (IVR), call recording and reporting/business analytics tools, via a unified multi-tenant cloud platform. LiveVox has more than 175 customers that operate across a variety of industries, including financial services, healthcare and telecommunications, as well as outsourced call centers. LiveVox was founded in 1999 and will remain headquartered in San Francisco. The company will also maintain its operations in Atlanta; Denver; Medellin, Colombia; and Bangalore, India (www.livevox.com).

“LiveVox is well-positioned to capitalize on the increasing demands on companies to become more efficient and responsive to customers’ complex and evolving needs,” said Rajeev Amara, Managing Director of Golden Gate Capital. “Already a market leader, LiveVox has strong momentum as evidenced by its impressive track record of growth. We look forward to supporting LiveVox’s highly talented management team as they continue to execute their strategic plan for the company, broadening its reach and enhancing its product set.”

Golden Gate Capital targets companies across a range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing. The firm has approximately $12 billion of capital under management and is based in San Francisco (www.goldengatecap.com).

“This is a very exciting new chapter for our company, and we are thrilled that a world-class investment firm such as Golden Gate Capital has recognized the growth potential in our business,” said Louis Summe, Chief Executive Officer of LiveVox.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-25-14

Avista Acquires Portfolio of Branded Women’s Health Products

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Vertical Pharmaceuticals, a portfolio company of Avista Capital Partners (through Vertical/Trigen Holdings) has acquired the rights to three branded women’s health products from Upsher-Smith Laboratories. Avista acquired a majority interest in Vertical/Trigen Holdings in December 2013.

“This is a positive first step in our strategy to expand the Vertical/Trigen platform through add-on acquisitions,” said Brian Markison, Executive Chairman of Vertical/Trigen and Healthcare Industry Executive of Avista. “We will continue to pursue additional opportunities to acquire complementary assets in order to broaden our portfolio of high-quality products and accelerate the company’s growth.”

The acquired products include: Divigel (an estrogen hormone gel) 0.1%; Nexa Plus, a branded line of prenatal vitamins; and Provella, a women’s health focused probiotic dietary supplement. As part of the transaction, Upsher-Smith has transferred the New Drug Application (NDA) for Divigel® to Vertical Pharmaceuticals.

“We are very excited to be expanding our position in the growing field of women’s health,” said Steven Squashic, CEO of Vertical/Trigen. “With these additions to our portfolio, we will be able to drive efficiencies through enhanced scale and further optimize our commercial infrastructure. We are confident that our highly experienced women’s health sales force will enable us to reach more patients and caregivers with these products.”

Vertical/Trigen is a specialty pharmaceutical company engaged in the development, marketing, and distribution of both branded and generic prescription pharmaceuticals in the United States. Vertical, the segment of the company focused on branded pharmaceuticals, specializes in women’s health, pain management, and respiratory and allergy medications. Its brands include OB Complete, Corvite, ConZip, and Lorzone and are marketed by a dedicated national sales force. Trigen, the generic pharmaceutical arm of the company, markets over 70 formulations in the prenatal, hematinic (iron) supplement, and cough/cold remedy markets. The company is based in Sayreville, NJ (www.verticalpharma.com) (www.trigenlab.com).

Avista Capital Partners, with over $6 billion of capital under management, makes control or influential minority investments in growth-oriented energy, healthcare, communications & media, industrials, and consumer businesses. The firm was founded in 2005 and is based in New York with offices in Houston and London (www.avistacap.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-25-14

The Carlyle Group Names Co-Presidents

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The Carlyle Group today announced that Michael Cavanagh and Glenn Youngkin will become Co-Presidents and Co-Chief Operating Officers. Mr. Cavanagh is currently Co-Chief Executive Officer of the Corporate & Investment Bank at JPMorgan Chase & Co. Mr. Youngkin is a 19-year Carlyle veteran and currently is the Chief Operating Officer of Carlyle.

“Coupling a highly successful senior financial services executive with a proven Carlyle leader possessing deep institutional knowledge will help ensure that Carlyle continues to innovate and grow for another quarter century,” said David Rubenstein and William Conway in a statement from Carlyle. “Mike’s arrival combined with the well-deserved promotion for Glenn provides Carlyle with the incredible opportunity to enable fresh perspectives in an environment that embraces change.”

As Co-Presidents and Co-COOs, Messrs. Cavanagh and Youngkin will develop and implement Carlyle’s strategic growth initiatives and manage the firm’s global operations on a day-to-day basis. The role of President is a new position at Carlyle. Mr. Youngkin is based in Washington, DC and Mr. Cavanagh will be based in New York. Both will begin their new roles beginning in the summer.

“This is a rare opportunity to join a premier global investment firm during a time of swift change for the industry,” said Mr. Cavanagh. “We accomplished an immense amount at J.P. Morgan and I am grateful to my colleagues, especially Jamie Dimon, for their friendship, support and confidence. Carlyle is an established innovator and I look forward to partnering with Glenn and the rest of the Carlyle team to help take the firm to the next level of success.”

Mr. Cavanagh is a 25-year financial services industry veteran. He joined Bank One in 2000, and has held a number of senior management roles at Bank One and JPMorgan Chase & Co. and has been a member of the firm’s Operating Committee since 2004. Mr. Cavanagh is currently Co-CEO of JPMorgan Chase & Co.’s Corporate & Investment Bank and before that he was CEO of the firm’s Treasury & Securities Services division. From 2004 to 2010, he was the Chief Financial Officer of JPMorgan Chase & Co. Before joining Bank One, he worked for seven years at Citigroup and its predecessors. Mr. Cavanagh earned his BA in history from Yale University and his JD from the University of Chicago.

“I’m pleased to welcome Mike to Carlyle as my partner and believe his track record of success at a powerhouse bank will meaningfully impact how we think, plan and execute. Carlyle has an extremely exciting future and it will be great to have Mike here to help us realize our ambitions,” said Mr. Youngkin.

Mr. Youngkin joined Carlyle in 1995 and has held a series of increasingly senior leadership roles, culminating in COO in 2011. Prior to COO, he was Interim Principal Financial Officer, Global Head of the Industrial sector investment team and led Carlyle’s buyout activities in the United Kingdom. Prior to joining Carlyle, Mr. Youngkin was a management consultant with McKinsey & Company and worked in the investment banking group at CS First Boston. He earned his BS in mechanical engineering and his BA in managerial studies from Rice University and his MBA from the Harvard Business School.

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. The firm employs 1,500 people in 34 offices across six continents and is based in Washington, DC (www.carlyle.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-25-14

Duff & Phelps Announces Nine Managing Director Promotions

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Valuation and corporate finance advisor Duff & Phelps Corporation has announced the promotion of nine new managing directors.

“These nine leaders have an exceptional track record of client service and deep industry expertise,” said Noah Gottdiener, chief executive officer of Duff & Phelps. “I am pleased to welcome them to our team of talented managing directors and look forward to their continued success at our firm.”

Duff & Phelps advises clients in the areas of valuation, M&A and transactions, restructuring, alternative assets, disputes and taxation and has more than 1,000 employees serving clients from offices in North America, Europe and Asia (www.duffandphelps.com).

Duff & Phelps’ new managing directors are as follows:

  • Larry Andrade is based in the Toronto office and is part of the Dispute Consulting practice. He has more than 15 years of experience providing dispute consulting, forensic accounting and expert witness services in matters involving business valuation, commercial damages claims, complex accounting disputes and auditor negligence claims, and financial due diligence. He has expertise in the casino and gaming industry, including expert testimony and reports.
  • Gaurav Bhasin is based in the Silicon Valley office and is part of Pagemill Partners, a Division of Duff & Phelps Securities. He has closed over 30 M&A transactions advising public and private sellers, buyers and strategic partners in a range of technology industries (software, internet and hardware). Additionally, Mr. Bhasin has successfully completed complex cross-border transactions in geographical regions worldwide.
  • Enzo Carlucci is based in the Toronto office and is part of the Dispute Consulting practice. He has over 15 years of experience providing dispute consulting, forensic accounting, and expert witness services in matters involving commercial damages claims, business valuation, complex accounting disputes and auditor negligence claims, securities class action, and financial due diligence. Mr. Carlucci regularly provides expert valuation reports and testimony quantifying economic losses.
  • Richard Chase is based in the Chicago office and is the tax leader in the Transaction Advisory Services practice. He has nearly 20 years of experience as a tax specialist and attorney, primarily in the areas of mergers and acquisitions, refinancings and foreign and domestic tax planning. Mr. Chase has evaluated the tax risks associated with proposed M&A transactions for companies engaged in a variety of industries.
  • Jaime d’Almeida is based in the Boston office and is part of the Dispute Consulting practice. He has nearly 20 years of expertise in economic and valuation analysis and consulting, including experience leading valuation assignments. Mr. d’Almeida has provided both deposition and trial testimony on valuation and damages issues and has been featured in publications such as Valuation Strategies, Law360 and The Value Examiner.
  • Douglas Ellis is based in the Houston office and is part of the Dispute Consulting practice. He has more than 10 years of experience in the areas of business and asset valuation, economic and financial analyses, and dispute consulting. He also provides expert testimony in the context of intellectual property and commercial disputes. His industry experience includes biotechnology, computers, consumer products, energy, manufacturing, medical devices, retail, software and telecommunications.
  • Patrick Manion is based in the Silicon Valley office and is part of Pagemill Partners, a Division of Duff & Phelps Securities. He has more than a decade of experience advising technology companies on M&A and growth capital raises. His experience spans technology segments, including enterprise software, internet and media, mobile applications, and tech-enabled services, including closed transactions with leading technology consolidators and investors.
  • James Palmer is based in the London office and is part of the Valuation practice. He has over 13 years of experience performing valuations of business enterprises, debt instruments, equity securities and intangible assets.  These valuations are for the purpose of assisting clients in tax & financial planning & reporting, transaction advisory support, strategic planning & litigation support and portfolio valuation support for the alternative asset industry.
  • Mitch Vininsky is based in the Toronto office and is part of the Restructuring practice. He has over 14 years of experience in financial restructuring matters and has worked across Canada and the United States. During his career, Mr. Vininsky has assessed distressed businesses in a wide variety of industries and has also been involved in several forensic investigations and fraud matters.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-25-14

Sun Capital Exits Certified Power

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Sun Capital Partners has completed the sale of Certified Power, a distributor of fluid power and power train products, to Brinkmere Capital Partners.

Certified Power is a distributor of fluid power and power train products to the on- and off-highway mobile equipment market. The company will also assist its customers with the design, engineering, service and repair of customized products. Certified Power is headquartered near Chicago in Mundelein, IL and has nine locations throughout the Midwest (www.certifiedpower.com).

Certified Power was acquired by Sun Capital Partners in April 2012. “We are pleased that under our ownership, Certified Power has been able to capitalize on the market opportunity we saw when we acquired the business,” said Marc Leder, Co-CEO at Sun Capital. “The strategic efforts to enhance the company’s capabilities and solutions have it well-positioned to continue building on its success.”

This transaction marks Sun Capital’s third exit of 2014. Last year the firm completed eight exits and two IPOs, leading to more than $1 billion in realizations for the year — a record for the firm.

Sun Capital Partners is focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 335 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen (www.SunCapPart.com).

Brinkmere is a Southeastern-based private investment firm specializing in acquiring and developing small businesses. The firm was founded in 2012 by Managing Director Russell Beard and is based in Jacksonville, FL (www.brinkmere.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-24-14