May 28, 2014
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Archives for May 28, 2014

Blue Point Acquires Hilsinger

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hilco nf1Blue Point Capital Partners has acquired The Hilsinger Company, a designer, manufacturer and distributor of eyewear and eye care accessories, supplies and equipment. Hilsinger represents the second platform investment for Blue Point III, the firm’s third middle-market buyout fund.

Hilsinger supplies more than 20,000 products to independent eye care professionals and optical chains in a range of categories, including prescription protective eyewear, consumer and professional optical accessories, and ophthalmic products.  With more than 25,000 customers globally, the company serves the market through five primary brands: Hilco, Wilson Ophthalmic, Leader, OnGuard Safety and i-Promotions. Hilsinger was founded in 1956 and is headquartered south of Boston in Plainville, MA, and has additional operations in North America, Europe and Australia (www.hilco.com).

The business has grown and diversified substantially over the past 15 years through a combination of internal growth and several business acquisitions, most notably Wilson Ophthalmic (1998); Shield Lens Care (1999); Leader Sports (2001); Quality Accessories (2006), OnGuard Safety (2007), and Sadler Optical Tools & Findings (2007).

lemay nf1“Hilsinger’s market leadership and history of successful acquisitions create a strong platform for future growth. We plan to support the company in executing additional domestic and international acquisitions and optimizing its sourcing capabilities with our Shanghai-based supply-chain team,” said John LeMay, a partner with Blue Point.  “Blue Point looks forward to collaborating with the excellent management team at Hilsinger to build on its historical success.”

Blue Point Capital Partners is a lower-middle-market private equity firm that invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has over $800 million in committed capital and has offices in Charlotte, Cleveland, Seattle, and Shanghai (www.bluepointcapital.com).

“Hilsinger has been a leader in the optical industry for nearly sixty years, and we will benefit from the unique value and fresh perspective that Blue Point will bring to our company,” said Bob Nahmias, chief executive officer of Hilsinger. “Blue Point’s access to exceptional resources, including its presence in China, will be invaluable to Hilsinger as we look to expand into other markets and broaden our eyewear and eye care product offerings. With Blue Point’s strategic and operational guidance, we look forward to the opportunities on the horizon for Hilsinger.”

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

Blackstone Acquires Outerstuff

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outerstuff nf1Outerstuff, a designer, manufacturer and marketer of licensed children’s sports apparel for all of the major sports leagues in North America, today announced that it has closed an investment with Blackstone.

Blackstone will invest alongside founder and CEO Sol Werdiger, who will roll over equity in the transaction, and Blackstone will share equal economics and governance with the current shareholders. Blackstone will support Outerstuff in the next phase of its growth as it expands its presence in the sports apparel industry, both domestically and internationally.

“At Outerstuff, our vision is to become the preeminent global provider of apparel serving our sports league and brand partners,” said Sol Werdiger, Outerstuff founder and chief executive officer. “Our partnership with Blackstone gives us the financial resources and expertise we need to realize that vision. I am extremely excited about working with Blackstone as we begin the next chapter of our growth story.”

Outerstuff has established itself as an industry leader in the branded youth apparel market by leveraging its in-house design team, low-cost manufacturing, sophisticated demand-planning methodology and long-standing relationships with the leagues, brands, and retailers. Outerstuff designs and produces children’s jerseys, t-shirts and other clothing items for the leading brands in American sports, including the NFL, MLB, NBA, NHL, MLS, US Olympic Committee, and more than 200 leading colleges and universities, as well as Adidas’ youth apparel. The company operates via exclusive contracts with the leagues to produce their branded youth apparel, which it sells through specialty sporting goods stores and general retailers. Outerstuff was founded in 1983 by Sol Werdiger and is based in New York (www.outerstuff.com).

wallace nf1“Sol Werdiger is a visionary entrepreneur who has built Outerstuff into a unique and important strategic partner to sports leagues and sports apparel companies alike,” said Peter Wallace, a Senior Managing Director with Blackstone’s Private Equity business. “We are excited to partner with Sol and his outstanding management team and we look forward to supporting Outerstuff’s continued growth and expansion.”

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).

Sullivan & Cromwell served as legal advisor to Outerstuff during the transaction. Blackstone was advised by Wells Fargo Securities and Simpson Thacher & Bartlett.

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

Rosewood Private Investments Acquires MultiCam

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multicam nf1Rosewood Private Investments has acquired MultiCam, a portfolio company of Blue Sage Capital and a manufacturer of computer numeric controlled cutting machines. Blue Sage first invested in MultiCam in April 2008.

MultiCam manufactures and distributes computer numeric controlled (CNC) cutting machines including routers, plasma, laser, water jet and knife cutting machines.  Through its network of independently owned distributors, MultiCam sells its products to a diverse set of end users around the world. MultiCam was founded in 1989 is based in Dallas (www.multicam.com).

Rosewood Private Investments invests from $5 million to $35 million in US based businesses with $20 million to $150 million in revenue and EBITDA margins of at least 10%. Sectors of interest include specialty manufacturing, value-added distribution, business and consumer services, commercial & consumer products, and media & communications. The firm is the private equity arm of The Rosewood Corporation, which is wholly owned by the Caroline Hunt Trust Estate, which was established in 1935 by Texas oil tycoon H.L. Hunt. Rosewood Private Investments is based in Dallas (www.rosewoodpi.com).

Blue Sage Capital specializes in growth, recapitalization and buyout financings of smaller middle-market companies based in Texas and the Southwest. Most of Blue Sage’s investments are in established, profitable companies with $10 million to $100 million of revenue and $3 million to $10 million of cash flow. Blue Sage invests in a variety of industries, with each initial investment in a company ranging from $10 million to $20 million. The firm is based in Austin, TX (www.bluesage.com).

Deloitte Corporate Finance (DCF) acted as the exclusive financial advisor to MultiCam.  “DCF’s knowledge and experience added value throughout the process. Their commitment to MultiCam helped us to achieve our overall goals and objectives. DCF’s insight and experience with middle market companies and transactions were vital to us finding the right partner for the next stage of MultiCam’s growth,” said Kris Hanchette, president of MultiCam.

“It has been a pleasure working with Kris and the rest of the MultiCam team to help them find a partner like Rosewood Private Investments, who they view as sharing the company’s vision for the future,” said Tom Spivey, managing director, Deloitte Corporate Finance and its southwest region leader. “We have a long-standing relationship with the Blue Sage team and are delighted to have advised their portfolio company on this transaction.”

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

Advent International Exits Vinnolit

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vinnolit nf1Westlake Chemical Corporation has signed an agreement to acquire German-based Vinnolit Holdings GmbH and its subsidiary companies from Advent International for €490 million. The transaction is expected to close in the third quarter of 2014. Advent International first invested in Vinnolit in July 2000.

Vinnolit is an integrated manufacturer of specialty polyvinyl chloride (“PVC”) resins.  The company’s products are used for a range of industrial and building product applications including automotive sealants, cable sheathing, flooring, medical applications, pipes, rigid film, technical coatings, wall covering and window profiles.  Vinnolit has six production facilities located in Germany and one in the UK.  These operations have a combined annual capacity of 780 thousand metric tons of PVC, including specialty paste and suspension grades, 665 thousand metric tons of vinyl chloride monomer (“VCM”) and 475 thousand metric tons of membrane grade caustic soda.  The company generated €917 million of revenue in 2013 and employs approximately 1,400 employees.  Vinnolit’s headquarters are located northeast of Munich in Ismaning, Germany (www.vinnolit.de).

ranjan sen nf1“We are delighted with the successful development of Vinnolit and thank its management team and the company’s employees for their cooperation and dedication throughout our investment. Vinnolit is well positioned to successfully expand its leadership position in specialty PVC further under the new ownership of Westlake,” said Ranjan Sen, General Manager at Advent International in Frankfurt.

Westlake Chemical Corporation (NYSE: WLK) is an international manufacturer and supplier of petrochemicals, polymers and building products.  The company’s range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVC building products including pipe and specialty components, windows and fence. Westlake is based in Houston (www.westlake.com).

The acquisition price of €490 million will be financed using existing Westlake cash and credit facilities.

“The acquisition of Vinnolit is an excellent strategic fit for Westlake. It will allow us to expand our chlorvinyl business globally and adds important specialty PVC products and technology to our existing portfolio,” said Albert Chao, Westlake’s President and CEO.  “Vinnolit is an impressive company with an outstanding reputation for meeting customer needs with superior technology, product quality, and operating excellence. We look forward to working with their talented team as they join the Westlake family of companies.”

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

Ancor Acquires Identity Group Holdings

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identity nf1Ancor Capital Partners, Merit Capital Partners and PNC Mezzanine Capital have acquired Identity Group Holdings Corporation, a manufacturer of identity products.

Identity Group manufactures custom identity products engineered to communicate a brand, message, location, or creative theme, and is best known for manufacturing and marketing customized interior signs. Identity Group’s customization capabilities allow it to produce high-volume, custom orders for businesses nationally and internationally. In addition to interior signage, Identity Group’s products include sign systems, dimensional lettering, stock signs, custom and stock stamps, and embossed, engraved, or printed identity products. The company is based east of Nashville in Cookeville, TN (www.identitygroup.com).

Part of the growth strategy that Ancor has developed for Identity Group is to provide capital to initiate an aggressive acquisition strategy of other providers of interior signage in market niches such as health care and hospitality.

kingsbury nf1“Identity Group has a strong management team and we’re excited to partner with them,” said Ancor Capital Managing Partner Raymond Kingsbury. “Together, we can allow the company to execute on its plan to be the dominant leader in the industry.”

Ancor Capital Partners invests in companies with enterprise value of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is based in Fort Worth (www.ancorcapital.com).

“The ability to team with an equity sponsor such as Ancor and their partners, including Merit and PNC, brings new life into our company and positions us on a strong platform on which we can drive growth,” said Brad Wolf, President and Chief Executive Officer of Identity Group.  “Our management team has reinvested in the business along with Ancor, and we are excited to be a part of such a vibrant group of investors.”

keene nf2“This is our sixth transaction with Merit Capital Partners, and we are especially pleased to once again be teaming with them in this acquisition,” said Ancor Capital Partner Randall Keene. “We also are very pleased to have PNC Mezzanine partner with us on Identity Group as we have known them for several years, we have great respect for them and their strategy and we look forward to building a long-term relationship with them.”

Merit Capital Partners invests mezzanine and equity capital of $20 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. Merit is currently investing its fifth fund, Merit Mezzanine Fund V, LP, with total commitments of $612.5 million. The firm was founded in 1993 and is based in Chicago (www.meritcapital.com).

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 • 5-28-14

Rotunda Capital Acquires Amware Logistics Services

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amware nf1Rotunda Capital Partners has acquired a majority stake in Amware Logistics Services, a provider of third-party warehousing and fulfillment services.  Mark Wilhelm and Jim Smith, Amware’s co-owners, will retain a meaningful ownership stake in the company and serve on the board of directors to provide strategic direction to the company.

whisner nf1“Amware has built a unique and successful third-party operations platform that provides premium value-added services for business to consumer and business to business warehousing and fulfillment customers,” said Corey Whisner, a partner at Rotunda. “We look forward to working with the management team to support the continued evolution of the company by increasing its growth through organic platform expansion and strategic acquisitions.”

Amware Logistics Services is a provider of third-party warehousing and fulfillment services to the following sectors: automotive aftermarket, hazardous & non hazardous chemicals, food grade products, industrial & construction materials, lumber, pulp & paper, and retail & consumer goods. Services include fulfillment, warehousing, transportation, and transloading.  Amware operates over 2 million square feet of warehouse space through nine facilities located across the United States and Canada. The company is headquartered in Eagle, CO (www.amwarelogistics.com).

Amware’s president, Vincent Gulisano, will become CEO of the company, and Rotunda Capital operating executive, John McAlpin, will become chief operating officer. Mr. McAlpin brings 30 years of experience in logistics management, having previously served as senior vice president of BNSF Logistics and vice president of operations of Newgistics.

Ray Greer, an experienced logistics executive, has agreed to join Amware’s board of directors. Mr. Greer is currently the President of BNSF Logistics and was formerly the CEO of Greatwide Logistics Services and Newgistics and serves on the board of Industrial REIT and DCT Industrial Trust Inc.

“Rotunda is an ideal partner for Amware, given the firm’s deep knowledge of logistics and distribution industries, its extensive operating executive network, and its successful history of growing businesses,” said Mr. Gulisano. “Rotunda Capital will enable Amware to continue executing our expansion plans by increasing our sales force, selectively adding new locations and investing growth capital in the existing network of locations.”

Fruehwirth nf1“We are thrilled to work with the management team to build on Amware’s deep relationships with existing clients and expand its fulfillment services for growing e-commerce and direct sales customers,” said John Fruehwirth, managing partner at Rotunda Capital.

Rotunda Capital invests in businesses with enterprise values of $5 million to $100 million. Sectors of interest include specialty finance, logistics and distribution, government and business services. Since founding in 2009, Rotunda Capital has completed seven platform investments and realized two exits. The firm has offices in Washington, DC and Chicago (www.rotundacapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

ICV Partners Completes Fund III With $400 Million of Capital

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ICV NF1ICV Partners has completed the final closing for ICV Partners III, LP (ICV III) with $400 million of committed capital.  Investors in ICV III consist of a majority of returning investors from ICV’s initial funds and a new group of domestic investors that include corporate, family offices and public pension funds.  MVision acted as placement agent for ICV Partners.

woods nf1“We are very pleased to have met our target for Fund III as a result of the strong support from a majority of our existing investors, and are very pleased to welcome a highly regarded set of new investors to ICV,” said Willie Woods, President of ICV Partners.  “Fund III is a testament to the talented and experienced team that we have built over 16 years and our firm’s teamwork and collaborative nature has proven to be a successful model that consistently builds value for our investors.”

Fund III will continue the investment strategy ICV has pursued since inception, providing operational and financial support to small businesses and their entrepreneurial management teams to improve the performance of lower middle market companies.

ICV’s previous fund was raised in 2006 with $313 million of committed capital.  The firm now manages a total pool of capital of nearly $850 million.

metz nf1“Fund III positions us well to continue to identify attractive investment opportunities with our team of 11 investment professionals and to partner with high quality management teams to build market leading companies.  We are excited about the performance of our current portfolio of companies and are enthusiastic about the prospects for Fund III,” said Lloyd Metz, Managing Director of ICV.

ICV Partners invests in family-owned and closely-held businesses as well as corporate divestitures with revenues from $25 million to $250 million and EBITDAs from $5 million to $30 million. The firm has $850 million in capital under management. ICV Partners was founded in 1998 and has offices in New York and Atlanta (www.icvpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

Travis Pearson Joins GI Partners as Managing Director

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GI nf2GI Partners has added Travis Pearson to its team as a new Managing Director. Mr. Pearson will work across the GI portfolio to drive operational initiatives and pursue new investment opportunities.

pearson nf1Mr. Pearson joins GI after 15 years at Bain & Company, where he served clients in technology, media, telecommunications, consumer and retail, and private equity. Mr. Pearson held several leadership roles at Bain, most recently serving as the regional practice leader for Technology in the Americas.

“We are delighted to welcome Travis to the firm,” said Rick Magnuson, Founder and Executive Managing Director of GI Partners. “He previously advised GI on several of our successful investments in IT infrastructure, healthcare, and retail. As a member of the team, he will further enhance our operationally focused investment approach by providing strategic advice for existing investments, as well as new investment opportunities. His deep domain knowledge and network will be tremendous resources for our investment professionals and portfolio company executives.”

“It’s an exciting time in GI’s history to be joining the firm,” said Mr. Pearson. “With the recent successful closing of Fund IV, the team is ready to replicate the firm’s trademark value creation initiatives across a new set of investments. I look forward to working alongside Rick and the rest of the GI team to further strengthen our operational capabilities.”

GI Partners invests from $50 million to $250 million in companies with enterprise values of $100 million to $750 million.  Sectors of interest include IT infrastructure & services; healthcare services; leisure & retail; and financial & real estate services.  Since founding, GI has managed $10 billion across four private equity funds and invested in 38 platform investments. GI Partners is based in Menlo Park (www.gipartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

SunTrust Expands to Boston

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suntrust nf1SunTrust Robinson Humphrey has established a new corporate banking office in Boston and hired veteran New England banker Greg Badger as group head of its Boston-based Northeast Corporate Banking team.

Mr. Badger joins SunTrust Robinson Humphrey (STRH) after more than 20 years with Bank of America and its predecessor banks in Boston, where he was senior vice president, managing director, Global Commercial Banking, and previously, managing director of Corporate & Investment Banking, Media, Telecom & Sports.

“Greg is highly regarded throughout New England, and very well positioned to build and lead our corporate banking team in the Northeast,” said Brian Peters, head of National Corporate Banking. “His decision to join SunTrust Robinson Humphrey is further validation of our national expansion strategy and the extensive capabilities of our wholesale banking platform.”

At Bank of America, Mr. Badger focused on public and private entities with revenues ranging from $50 million to $5 billion. In corporate and investment banking, he was responsible for client development, capital markets product origination and post-closing client management, with a primary focus on acquisition financing, leveraged lending and recapitalizations in the media, technology, sports and general industries.  Mr. Badger has worked closely with a number of professional sports organizations throughout his career, including the Boston Red Sox, Liverpool Football and the Chicago Cubs.  In addition to his two decades of experience with the Bank of America/Fleet Bank/Bank of Boston organization, he also worked for Merrill Lynch and Bank of New England.

The STRH Northeast Corporate Banking team offers a range of corporate and investment banking products and services, including debt and equity capital markets, treasury and payment solutions, financial risk management, foreign exchange, M&A advisory, and liquidity and investment products to clients in nine Northeastern states. STRH has recently extended its reach to middle market businesses and corporate clients, with new offices in Dallas and San Francisco and key hires in Chicago and Charlotte (www.suntrustrh.com).

2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14

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