Archives for April 2, 2014

Century Park Acquires Amber Chemical

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ICM Products, a specialty chemicals manufacturer and a portfolio company of Century Park Capital Partners, has acquired Amber Chemical Company. Century Park first invested in ICM Products in February 2012.

Amber Chemical is a specialty manufacturer of silicone adhesives, elastomers, fluids, emulsions and antifoams used in the electronics, photovoltaic, solar, automotive, molding, personal care, and chemical processing industries. The company’s sales and technical teams also assist customers with product selection, lab testing, trials, qualifications and application methods. Amber was founded in 1906 and has production facilities in Bridgwater, UK (headquarters); Richmond, VA; Lawrenceville, GA; Milan, Italy; and Tianjin, China (www.amberchemical.com).

“Broadening ICM’s customer and product base into attractive new markets has been a key focus of our growth strategy since we made our original investment,” said Guy Zaczepinski, Partner with Century Park Capital Partners. “Combining ICM with Amber Chemical could not provide a better fit—and we will continue to search for further strategic acquisitions across the specialty silicone space, in both elastomers and emulsions.”

ICM Products is one of the largest independently-owned specialty silicone formulators in the United States. The company specializes in the development of silicone polymers, emulsions and defoamers for use in a range of applications and end markets including personal care, food processing, mold release, cleaning, coatings and automotive care. Century Park’s investment in ICM was made in conjunction with Don Stanutz, former COO of Huntsman Corporation and a chemicals industry veteran. ICM was founded in 1989 by silicone technology expert Ken Charboneau and is based in Cassopolis, MI (www.icmproducts.com).

“The combination of ICM and Amber Chemical more than doubles the size of our platform. We truly are positioned as a global leader in the specialty silicone space, with a bright future ahead of us,” said Marty Sarafa, Managing Partner with Century Park Capital Partners.

Century Park Capital Partners invests from $10 million to $40 million in profitable, growing middle-market companies with operating cash flows of at least $4 million and revenues ranging from $25 million to $150 million. Sectors of interest include manufacturing, branded distribution and service businesses. The firm is based in Los Angeles (www.centuryparkcapital.com).

“The combination of ICM and Amber Chemical with its five operating subsidiaries will greatly expand the breadth of new products and services that ICM offers to the marketplace,” said David Smith, CEO of ICM Products. “We could not be more excited about the potential for this partnership.” Tom Gawlik, CFO of ICM Products, added, “With this transaction, ICM will have a stronger international footprint and will be able to add significantly more value to its customers.”

Madison Capital Funding (www.mcfllc.com), PNC Erieview Capital (www.pncerieview.com) and Montpelier Fund provided the financing for the transaction.

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-2-14

Madison Dearborn and CoVant Acquire LGS Innovations

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Madison Dearborn Partners and CoVant have completed their previously announced acquisition of LGS Innovations from Alcatel-Lucent. The all cash transaction totals $200 million of which 50 percent is being paid at closing and the balance paid based on LGS’ operating results during the 2014 fiscal year. Kevin Kelly, CEO, and the rest of the LGS Innovations management team will remain with the company.

“LGS Innovations has long been at the leading edge of developing and delivering highly innovative products and services to the US federal government, and we are pleased to now be in a position to help the team expand its business,” said Doug Grissom, a Managing Director at Madison Dearborn and the head of the firm’s Business and Government Services team. “We also are delighted to partner with CoVant. We look forward to growing LGS Innovations in concert with them, the LGS management team and the LGS employees.”

LGS Innovations is a provider of research and advanced networking and communications development services to the US federal government, state and local governments, foreign governments, and commercial enterprises. LGS’ services are used to build advanced wireless, optical, and wired products and other applications customized for specific mission environments. The company’s products are used by the public safety, battlefield, and emergency and first responder communities. LGS will remain the exclusive reseller of Alcatel-Lucent products and services to the US federal government. LGS employs more than 450 scientists and engineers and is headquartered in Herndon, VA with additional offices in Colorado, Illinois, Maryland, New Jersey, New Mexico, and North Carolina (www.lgsinnovations.com).

The new ownership structure unlocks new markets and growth opportunities that were previously unavailable to LGS Innovations. “As a market leader with a differentiated offering, LGS Innovations is a highly attractive business,” said Joseph Kampf, CEO of CoVant. “The company is uniquely positioned for new growth channels as it can now pursue markets and customers previously closed to them as a subsidiary of a non-US company. LGS Innovations has a strong portfolio of intellectual property, patents and products. Our focus will be to help the company build on this platform and deliver its technology solutions to an expanded array of clients around the world.”

CoVant is an investor group established by Joseph Kampf and other former senior executives of Anteon International Corporation. This team grew Anteon from a $100 million company when acquired in 1996 to a $1.7 billion company when sold in 2006 to General Dynamics for $2.2 billion. CoVant was formed for the purpose of acquiring and growing companies in the federal technology solutions marketplace, and has teamed with Madison Dearborn Partners on behalf of its Fund VI entity to pursue such acquisitions. CoVant is based in McLean, VA (www.covant.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).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-2-14

JMC Capital Partners Acquires Comark

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JMC Capital Partners has acquired Comark Corporation, a manufacturer of ruggedized industrial computing and interface products.

“We are excited to have JMC as our partner. Their strategy and track record of sourcing and integrating acquisitions will allow Comark to build a market leading position,” said Steve Schott, CEO of Comark.

Comark’s products include ruggedized industrial displays, integrated computers, workstations and kiosks that are used in a range of industrial, commercial, military, mobile and retail applications. The company is headquartered southwest of Boston in Medfield, MA (www.comarkcorp.com).

JMC Capital Partners invests from $5 million to $15 million in lower-middle market industrial companies that manufacture “intermediate” products (products that are sold to other businesses). Sectors of interest include industrial components and equipment; electrical and electronic equipment; process instrumentation and controls; analytical instruments and measuring devices; fluid control, filtration and pumps; specialty chemicals, adhesives and coatings; plastics and synthetic materials; and healthcare and safety equipment.

Last month, JMC Capital Partners held a closing of JMC Platform Fund I, LP (Fund I) with $125 million of capital commitments, $25 million above the firm’s target of $100 million. The investor base of Fund I consists largely of institutional investors and family offices. JMC was founded in 1999 and is based in Boston (www.jmccp.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-2-14

Lamar Horne Promoted at PNC Mezzanine

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PNC Mezzanine Capital has promoted Lamar Horne to Senior Associate. “Lamar has made significant contributions to our firm, our portfolio and our team since he joined over five years ago. We are pleased to recognize his accomplishments and announce his promotion,” said PNC Mezzanine Capital Partner David Blair.

Mr. Horne joined PNC Mezzanine Capital in June 2008. Previously he was an Analyst with Wachovia Securities in its Leveraged Finance Group where he worked on the underwriting and syndication of leveraged bank loans for middle market companies across a range of industries. Prior to Wachovia Securities, Mr. Horne worked as a corporate finance intern with UBS Investment Bank in its Technology Division. He is a graduate of Morehouse College with a concentration in Finance.

PNC Mezzanine Capital, a division of The PNC Financial Services Group, provides financing for buyouts, acquisitions, recapitalizations and growth for companies in a range of industries, including consumer and business services, niche manufacturing and value-added distribution.

PNC Mezzanine will invest from $10 million to $40 million per transaction, and can lead financings of up to $60 million. The group invests in companies with revenues greater than $20 million and EBITDA greater than $5 million. Investments will typically take the form of second lien debt, subordinated debt or subordinated debt with warrants, and preferred stock with a dividend. Equity investments will be considered in conjunction with a mezzanine investment. PNC Mezzanine Capital was founded in 1989 and is based in Pittsburgh (www.pncmezzanine.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-2-14