June 6, 2014
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Archives for June 6, 2014

AEA Investors Acquires Galco Industrial Electronics

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galco nf1Galco Industrial Electronics has been acquired by AEA Investors.  Galco is a distributor of industrial and commercial electrical and electronic control, automation and motion products.

Galco Industrial Electronics is a distributor of industrial electronics for automation, control and motion applications.  Galco’s product portfolio includes components such as drives, relays, contactors, circuit breakers, switches and numerous others, serving applications for controlled power, speed, velocity, torque, position, sequence, interpolation, test, measurement and data acquisition. The company also provides engineering and repair services.  Galco is headquartered in Madison Heights, MI (www.galco.com).

AEA manages approximately $6 billion of invested and committed capital in funds dedicated to three purposes: buyouts of middle market companies operating in the industrial, specialty chemical, consumer products and consumer services sectors; buyouts of smaller middle market companies in these same sectors; and mezzanine and senior debt investments. AEA was founded in 1968 and is based in New York.

Quarton Partners acted as the exclusive financial advisor to Galco in this transaction. Headquartered in the Detroit suburb of Birmingham, Quarton is a middle market investment banking firm, serving privately held and publicly traded companies, as well as private equity firms. Quarton Partners assists its clients with mergers and acquisitions, private capital raising, restructurings, valuations and other financial advisory services. Its principals have successfully completed hundreds of engagements in a variety of industries across the US and throughout the world (www.quartonpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-6-14

Olympus Partners Exits Homax Group

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homax nf1The North American architectural coatings business of PPG Industries has reached an agreement to acquire The Homax Group, a supplier of decorative wall and ceiling texture repair products. Homax is a portfolio company of Olympus Partners. The transaction is expected to close in the third quarter.

Homax is a supplier of decorative aerosol drywall and ceiling texturing applications utilized primarily for home repair. In addition, it supplies various epoxy finishes, patching, caulking and mesh tape repair products, and other painting tools and accessories. The company’s products are sold through major home improvement centers, hardware stores and paint suppliers. Homax is based in Bellingham, WA (www.homaxgroup.com).

“Homax products represent a new and unique offering for our customers,” said Scott Sinetar, PPG vice president, architectural coatings, North America. “The acquisition supports our continuing commitment to providing professional and do-it-yourself customers with leading coatings and related home remodeling and repair products.”

PPG Architectural Coatings is a provider of residential and commercial coatings and products. The business produces paints, stains and specialty coatings and products marketed under well-recognized lines such as FLOOD®, GLIDDEN®, LIQUID NAILS®, MANOR HALL®, OLYMPIC®, PPG PITTSBURGH PAINTS®, PPG PORTER PAINTS®, PPG Paints and SIKKENS® brands. Its distribution network includes more than 900 company-owned stores, more than 5,000 independent dealer locations and all major home improvement centers.

Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Net sales in 2013 were $15.1 billion. PPG shares are traded on the New York Stock Exchange under the symbol PPG (www.ppg.com)

Olympus Partners, with $5 billion of capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion. Sectors of interest include consumer products, healthcare, financial services and business services.  The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-6-14

Industrial Growth Partners Acquires Sanders

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sanders nf1Industrial Growth Partners (IGP), in partnership with management and certain outside investors, has acquired Sanders Industries. The transaction closed on May 30, 2014 and IGP’s investment was made through Industrial Growth Partners IV, LP.

Sanders, through its four divisions (Rubbercraft, Northern Engineering, Sanders Composites, and Fabritech) is a manufacturer of highly-engineered elastomeric tools used in large, composite structure manufacturing, in addition to elastomeric components for aerospace and defense OEM and MRO applications.  Sanders’ products include elastomeric tooling, seals, gaskets, ablatives, EMI/RFI/thermal shielding products, encapsulated o-rings, and composite APU plenums and ducts. In addition to its primary facility in Long Beach, the company manufactures from production facilities in Sheffield, UK; Diego, CA; and Westchester, PA.  Sanders was founded in 1985 and is headquartered in Long Beach (www.sandersind.com).

“IGP’s familiarity with the aerospace and defense markets through its prior investments and the firm’s deep experience in the manufacturing sector made IGP an ideal equity partner for us,” said Larry O’Toole, CEO of Sanders. “The Sanders management team is excited about the opportunity to leverage IGP’s experience to strengthen our position in our core markets and pursue the numerous opportunities in our pipeline. We look forward to capitalizing on the resources this new relationship provides.”

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm was founded in 1997 and is based in San Francisco (www.igpequity.com).

The purchase of Sanders creates a platform for the company to accelerate growth in its core commercial aerospace and defense markets and pursue selective acquisition opportunities. The acquisition is an ideal fit with IGP’s strategy of investing in niche engineered products companies with leading market shares and outstanding management teams.

2014 PEPD • Private Equity’s Leading News Magazine • 6-6-14

Industrial Growth Partners Acquires Integrated Global Services

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integrated global nf1Industrial Growth Partners, in partnership with management, has acquired Integrated Global Services, a provider of on-site internal surface protection services.  The transaction closed on May 12, 2014 and IGP’s investment was made through Industrial Growth Partners IV, LP.

Integrated Global Services (IGS) is a provider of on-site internal surface protection services for critical equipment in refineries, power plants and pulp & paper mills. The company’s customized services and products address metal wastage problems typically caused by corrosion and/or elevated-temperature erosion in the global refining, natural gas processing, coal-fired power generation, and pulp & paper industries. IGS’s services prevent equipment failure, extend service life, minimize outage downtime and reduce repetitive maintenance expenses for its customers. The company is headquartered in Richmond, VA (www.integratedglobal.com).

“IGP’s familiarity with IGS’s key end markets through its prior investments and the firm’s deep experience in the industrial sector made IGP an ideal equity partner for us,” said Rich Crawford, CEO of IGS. “The IGS management team is excited about the opportunity to leverage IGP’s experience to help expand our business internationally and to strengthen our position in our core markets. We look forward to capitalizing on the resources this new relationship provides.”

The transaction creates a solid platform for IGS to accelerate its international growth, enhance its selling capabilities and pursue selective acquisition opportunities. The acquisition is an ideal fit with IGP’s strategy of investing in niche industrial companies with leading market shares and outstanding management teams.

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm was founded in 1997 and is based in San Francisco (www.igpequity.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-6-14

Blue Sea Capital Closes First Fund with $327 Million

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blue sea nf1Blue Sea Capital has closed its debut fund with $327 million of capital commitments of which approximately 10% comes from the General Partner and its affiliates.

wandoff nf1“We are humbled by the strong support our fund has drawn from a premier limited partner group,” said Rick Wandoff, Partner at Blue Sea. “Our successful fundraiser reflects our principals’ demonstrated track record of transforming companies in partnership with entrepreneurs, quality and deep team, disciplined investing strategy and strong investor alignment.”

Launched in the second quarter of 2013, Blue Sea Capital Fund I LP (the “Fund”) achieved its final close within 12 months and exceeded its $300 million target. Investors include a diversified base of leading institutions from around the world, including pension funds, insurance companies, fund-of-funds, endowments and multi-family offices.

“In a discerning institutional private equity market, we feel fortunate to have attracted first-class investors in a successful debut fundraiser who appreciate the significant value our team is capable of delivering to the entrepreneurs we partner alongside,” said J.R. Davis, Partner at Blue Sea. “We are thrilled to launch Blue Sea and are excited about the opportunities we see in our target market.”

Blue Sea will target growth-oriented lower middle market companies seeking equity investments of up to $60 million across three industry verticals: aerospace & defense, healthcare and industrial growth. The firm’s strategy is to partner with talented managers and differentiated companies, typically as the first or second institutional investor, and deliver strategic and operational value-add that drives growth acceleration, industry outperformance and business transformation.

Blue Sea’s Partners, J.R. Davis, Mark Silk and Rick Wandoff, are complemented by a team of principals with whom they previously worked in various capacities, including Andy Boswell, Scott Kirkendall and Matt Turk. Peter Brockway serves as Senior Advisor to the firm. Blue Sea is headquartered in Palm Beach with an additional office in El Segundo, CA (www.blueseacapital.com).

silk nf1“We believe that the value-added capabilities and resources we are able to deliver to companies have significantly more potential to create value than simply providing capital. Marked by a philosophy of collaborative partnership with management, our team of long-term investors and operators in the lower middle market takes great satisfaction in driving returns through building and transforming companies. The fact that the fund includes a personal investment from at least one executive in each of the prior companies our principals worked with is a testament to our team and this fundamental value creation approach,” said Mark Silk, Partner at Blue Sea.

Lazard Frères & Co. acted as exclusive fundraising advisor for the fund. Kirkland & Ellis served as legal counsel.

2014 PEPD • Private Equity’s Leading News Magazine • 6-6-14

Lynx Expands with Opening of Three New Offices

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lynx nf1Lynx Equity continues to expand its portfolio and has now announced the opening of three new offices, with locations in the United States and Western Canada.  Its first American office, located in San Diego, opened this past January, and the company’s Midwest office, located in Kansas City, will open this July.

Lynx Equity’s US subsidiary, which operates under the name Succession Capital, will focus on acquisitions throughout the United States. It will also oversee the operations of Lynx’s US-based portfolio companies, currently including Bumkins Finer Baby Products, Maverick Express and recently acquired United Fastener and Floor Solutions.

Managing Partners Nathaniel Broughton and Brandon Laughridge will be heading up Succession Capital’s offices along with President Brad Nathan. Earlier this year, Lynx also opened an office in Calgary, Alberta. Led by Vice President – Western Canada, Mathew Burpee, the Calgary office will focus on acquisitions throughout Western Canada.

“We see a tremendous opportunity to expand Lynx’s model into the United States as well as Western Canada. We are regularly approached with potential acquisitions of small to medium-sized businesses in these areas and we look forward to the expansion opportunities that this provides our company,” said Brad Nathan, President of Lynx and Succession. “Nate, Brandon and Mathew all approached us just over a year ago and we have been thrilled to work with them to grow our business.”

Succession Capital announced its first acquisition this past March when it acquired United Fastener (San Diego).  This was followed by the purchase in April of Floor Solutions (Portland).

Succession Capital and Lynx Equity continue to pursue investments throughout the United States and Canada, with a focus on buying businesses from owners looking to retire and will continue to utilize a buy and hold strategy.

Succession Capital, a subsidiary of Lynx Equity, seeks to acquire small to medium-sized businesses from owners looking to retire.  Succession targets transactions requiring between $2 million and $8 million of equity. The firm is based in La Jolla, CA (www.succession-capital.com).

Lynx Equity 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).

2014 PEPD • Private Equity’s Leading News Magazine • 6-6-14

 

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