Archives for April 14, 2014

Range Light Acquires Freedom Electronics

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Private equity firm Range Light has acquired Freedom Electronics, a rebuilder of electronics used in gas pumps and other applications.

Freedom Electronics is a rebuilder of electronic gas pumps, point-of-sale terminals and printers, with a specialization in the remanufacture of Gilbarco, Tokheim, Dresser-Wayne and Verifone OEM parts.  The company has over 2,400 SKUs for sale, including circuit boards, displays, printers, keyboards, overlays, vacuum pumps, point of sale consoles, control boxes and cash drawers, card readers, optical encoders, power supplies and components for all major manufacturers of gasoline pumps. Freedom Electronics is based near Atlanta in Kennesaw, GA (www.freedomelectronics.com).

“We are excited to be working with management and supporting this niche market leader,” said Steve Groya of Range Light.  “The veteran team at Freedom has done an exceptional job of developing the Company, and we believe there is opportunity to continue to grow.”

Range Light makes control and minority investments in companies with at least $5 million in revenue and operating margins of at least 10%. Industries of interest include information and technology, consumer, agriculture, niche manufacturing, and service businesses in the following sectors: financial, healthcare, general business. Range Light is based in Chicago (www.rangelightllc.com).

TCF Capital Funding provided $12 million in secured financing to support the acquisition of Freedom Electronics by Range Light.  TCF provides asset-based loans and private equity sponsor-backed cash flow loans to companies with less than $100 million in revenue and between $2 million and $10 million in EBITDA. The firm is based in Burr Ridge, IL (www.tcfcapitalfunding.com).

“We are pleased to support Range Light’s investment in Freedom,” said TCF Capital Funding Senior Vice President Jim Kuncl. “The company’s management team has an excellent record of growing sales in its niche market, and Range Light is the ideal sponsor to position the company for its next phase of growth.”

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

Gores Exits Norment Security Group

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The Gores Group has sold its portfolio company Norment Security Group, a provider of correctional security technology, to Cornerstone Detention Products. Gores first invested in Norment in September 2007.

Norment Security Group is a supplier of physical and electronic security products, as well as integration and maintenance services, to the corrections and courthouse markets. Company owned brand names include Airteq, Trentech and ECS. In addition, Norment provides facility maintenance and service operations.  The company was founded in 1952 and is headquartered in Montgomery, AL (www.normentsecurity.com)

Cornerstone Detention Products specializes in the engineering, design, distribution, installation and project management of institutional detention equipment and products for the jail and prison industries at the federal, state, county, private and local levels. The company was founded in 1998 by Mitch Claborn and is headquartered near Huntsville in Madison, AL (www.cornerstonedetention.com).

Monroe Capital provided a $27 million senior secured credit facility to support the acquisition of Norment Security Group by Cornerstone Detention Products. Monroe Capital is a specialty finance company providing senior and junior debt and equity co-investments to middle-market companies. The firm was founded in 2004 and maintains offices in Chicago, Atlanta, Boston, Charlotte, Dallas, Los Angeles, New York and San Francisco (www.monroecap.com).

The Gores Group makes control investments in non-core, underperforming or undervalued businesses in the United States and Europe. The firm maintains an in-house team of over 60 M&A and operations professionals in the US and Europe. The Gores Group was founded in 1987 and is headquartered in Los Angeles with additional offices in Boulder, CO and London (www.gores.com).

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

Gores Invests in Tweddle Group

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The Gores Group has invested in the Tweddle Group, a provider of technology and publishing related services to automotive OEMs and their suppliers, in partnership with Andy Tweddle, the company’s CEO and owner and other members of the company’s management team.

Tweddle provides authoring, printing and delivery of owner’s and service manuals for automotive OEMs throughout North America, Europe and Asia. Tweedle manages a process that involves coordination between Tweddle and thousands of OEM employees across numerous departments. Customers include BMW, Chrysler, Ford, Nissan and Toyota.  Tweddle, a third generation, family-owned business, was founded in 1954 and is headquartered near Detroit in Clinton Township, MI.  The company has additional offices in Italy, Belgium, China and the UK (www.tweddle.com).

“Tweddle represents a compelling opportunity to partner with a deeply entrenched, dominant player in a niche market with an outstanding team,” said Anthony Guagliano, Managing Director of The Gores Group. “We are excited to partner with Andy Tweddle and the management team in continuing to develop and deliver market leading services to its customers.”

The Gores Group makes control investments in non-core, underperforming or undervalued businesses in the United States and Europe. The firm maintains an in-house team of over 60 M&A and operations professionals in the US and Europe. The Gores Group was founded in 1987 and is headquartered in Los Angeles with additional offices in Boulder, CO and London (www.gores.com).

“For three generations, Tweddle has provided our customers with exceptional support across multiple service offerings including acting as a Tier-1 provider of owner’s and service manual information to OEMs, replacing a complex process with an innovative, value-added technology driven solution,” said Andy Tweddle. “The Gores Group will be an ideal partner as we continue to move our business forward, expanding geographically, across additional OEMs, and into new technologies.”

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

Custom Ecology Acquires B.J. Bear

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Custom Ecology, a portfolio company of Kinderhook Industries, has acquired B.J. Bear Grain Co.  B.J. Bear is the fourth acquisition by Kinderhook its Custom Ecology platform.

B.J. Bear provides outsourced municipal solid waste hauling services to large commercial waste collection businesses and waste generators. The company is based in near Toronto in Kitchener, ON (www.bjbear.ca).

“Craig Stafford and his team at Custom Ecology have demonstrated a strong ability to identify, execute and integrate strategic acquisitions, which have expanded the company’s geographic footprint and enhanced its service offerings,” said Rob Michalik, Managing Director at Kinderhook. “B.J. Bear offers significant strategic value for Custom Ecology with its expansive service territory, exceptional management team and superior customer service.”

Custom Ecology (formerly known as Stafford Logistics) provides outsourced waste services for large commercial waste collection businesses and waste generators. The company’s services provide hauling for three waste streams: municipal solid waste, hazardous waste and industrial waste. The company is headquartered near Atlanta in Mableton, GA (www.customecology.com).

The acquisition of B.J. Bear expands Custom Ecology’s service geography into the Greater Toronto Area, which Custom Ecology currently services with its 55 truck operation based in Southeast Michigan.

Kinderhook Industries makes control investments in companies with transaction values of $10 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).

Credit Suisse serves as the Administrative Agent for Custom Ecology’s existing credit facility. The transaction was financed with a combination of cash and debt funded by the company’s revolving credit facility which is managed by Comerica Bank in its environmental services department.

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

KRG Capital Partners Exits Focus

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KRG Capital Partners has sold its portfolio company Focus Corporation to WSP Global in an all cash transaction valued at approximately $366 million.

The Focus Corporation is a consulting firm providing a range of engineering, geomatics, planning, and project management services to clients involved in oil and gas, oil sands, conventional oil & gas, pipeline, public and private infrastructure, and land development projects. Focus has approximately 1,800 employees located in 21 locations across Western Canada and one in Eastern Canada.  The company was founded in 1977 and is headquartered in Calgary, AB (www.focus.ca).

WSP Global (TSX:WSP) is a professional services firm providing construction management and engineering consulting services to governments, businesses, architects and planners. The company has approximately 15,000 employees – mainly engineers, technicians, scientists, architects, planners, surveyors, other design professionals, as well as various environmental experts – based in more than 300 offices, across 35 countries, on 5 continents. WSP Global was founded in 1959 and is headquartered in Montreal (www.wspgroup.com).

KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies. Since inception, KRG has invested in 45 platform companies and has completed 150 add-on acquisitions for those platforms. Founded in 1996, KRG has over $4 billion of capital under management and is based in Denver (www.krgcapital.com).

Harris Williams & Co. acted as the exclusive advisor to Focus.  The transaction was led by Drew Spitzer, Brian Lucas, Tiff Armstrong, Matt White and Chris Burnham from Harris Williams & Co.’s Energy & Power (E&P) Group.

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

Lynx Equity Acquires Port-Style

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Lynx Equity has acquired Port-Style Enterprises, an importer and distributor of kitchenware products. The acquisition of Port-Style is the firm’s 9th acquisition of 2014.

Port-Style is an importer and retail distributor of 30 different kitchen and houseware brands. The company also designs and sells its own branded product line called Kitchen Basics.  The company was founded in 1992 and is based near Toronto in Markham, ON (www.portstyle.com).

“Port-Style’s long track record of exceptional customer service and creative product offerings has resulted in an outstanding reputation in the industry,” said Brad Nathan, President of Lynx Equity. “We are delighted to add Port-Style to the Lynx family of companies.”

Lynx Equity, a subsidiary of Succession Capital Corporation, acquires small to medium sized companies with enterprise values of C$2 million to C$8 million. Sectors of interest include manufacturing, business services, financial services, industrial products, food and consumer products. The firm is based in Toronto (www.lynxequity.com).

The buy of Port-Style expands the Lynx portfolio to over 35 companies including wholesale distributors Streamline Art & Frame, JewelPop, Fine Line Imports and Baker Shoe. The total annual revenue of all portfolio companies now exceeds $169 million.

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