June 23, 2014
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Archives for June 23, 2014

Riverside Acquires Global Orthopaedic Technologies

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global ortho nf1The Riverside Company has acquired Global Orthopaedic Technologies, an Australian manufacturer and distributor of orthopaedic implants.

Global Orthopaedic Technologies (Global) supplies implants and instrumentation for hip, knee, shoulder and spine surgeries, along with related orthobiologics. The company was founded in 1999 by Mike Ribot and Steve Banks and has grown to become the largest Australia-owned orthopaedic implant designer and manufacturer. Messrs. Ribot and Banks will continue to be involved with Global as shareholders and senior managers, providing their knowledge and experience of the Australian orthopaedic industry.  The company has two research, design and manufacturing facilities in Bella Vista and Seven Hills in New South Wales and is headquartered near Sydney in Baulkham Hills (www.globalortho.com.au).

Simon Feiglin“Global has an enviable product portfolio and a history of innovation,” said Riverside Partner Simon Feiglin. “They’re a growing company in an expanding market thanks to offering products and services that are valued by surgeons and relied upon by patients in Australia and increasingly around the world.”

Riverside has partnered on the transaction with Andrew Fox-Smith and Duncan Lilley. Mr. Fox-Smith is a former Group President – International with Stryker Corporation, and has more than two decades of experience in the global orthopaedic market. Mr. Fox-Smith will serve as CEO. Mr. Lilley has most recently held senior roles with British Standards Institution and SAI Global and will serve as COO.

“We are delighted to partner with Riverside and Andrew Fox-Smith, who bring their vast international experience to Global, enabling us to develop new and exciting growth opportunities,” Mr. Ribot said. “When Steve and I started Global, it was with a vision to create a multinational orthopaedic business and this transaction is an important milestone in realizing that vision.”

According to Riverside, the firm’s experience in the healthcare sector includes more than 70 investments in the space, supported by a team of specialists who can help Global identify new opportunities and enter new markets.

“By partnering with Riverside, we have an exciting opportunity to not only organically expand Global, but also look at value-added acquisitions that can accelerate our growth objectives,” said Mr. Fox-Smith. “Global offers a comprehensive suite of products, has a demonstrated ability to develop and commercialize new products, and works closely with some of Australia’s leading orthopaedic surgeons. We intend to build on this success and open doors to new relationships and new opportunities to position the company for continued and long-term success.”

Steven Spiteri nf bo heitz nf1Working with Mr. Feiglin on the transaction for Riverside was Vice President Steven Spiteri and Associate Bo Heitz.

The Riverside Company is focused on the smaller end of the middle market and invests in businesses valued at up to $250 million (€200 million in Europe). Since 1988, the firm has invested in more than 340 transactions with a total enterprise value of more than $6 billion. The firm’s international portfolio includes more than 70 companies.  The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Babson Capital and Commonwealth Bank of Australia provided financing for the transaction. Jones Day, Deloitte, KPMG and AT Kearney advised Riverside on the deal.

2014 PEPD • Private Equity’s Leading News Magazine • 6-23-14

Versa Recaps Bell and Howell, Spins Off Its BCC Software Division

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bell and howellVersa Capital has recapped its portfolio company Bell and Howell which it acquired in June 2011. In so doing, Versa created BCC Software as a new company independent of its former parent, Bell and Howell.  Versa now holds majority ownership positions in both Bell and Howell and BCC, and in connection with the transaction Monroe Capital has provided BCC with a new revolving credit and term loan facility to support its growth.

greg segall nf1“We believe that there are many benefits to be gained by both Bell and Howell and BCC with BCC operating independently,” said BCC Chairman and Versa CEO Greg Segall. “BCC is the leader in postal software solutions and data marketing services. As it expands into new markets with new services and solutions offerings, BCC’s growth will best be accomplished as a stand-alone business.

BCC Software creates postal software applications and provides data marketing services. The company was founded in 1978 and delivered mailing technology solutions under the BCC name for more than 30 years until its purchase by Bell and Howell in 2005. BCC employs approximately 75 people and is based in Rochester, NY (www.bccsoftware.com).

Ramesh Ratan nf1“The BCC spin-off allows Bell and Howell to retire its outstanding third party debt under its credit facility with our valued lending partners PNC Business Credit and Crystal Financial, further advancing our organizational progress,” said Ramesh Ratan, Bell and Howell CEO.  “We’re excited about Bell and Howell’s opportunity set, and the team and I remain committed to realizing them through the continued execution of our own growth strategy. At the same time, BCC Software as an independent business will benefit from the focus, oversight and capitalization that come with being a free-standing business. This transition stands to make the two independent businesses stronger while BCC remains an important strategic partner with Bell and Howell as we work closely to create new services and solutions for our customers.”

Christopher Lien, President of BCC, will continue to lead the company. Mr. Lien has spent more than 22 years in the data and mailing industries and has received national recognition for his contributions, most recently in his industry election as Industry Chair of the Postmaster General’s Mailers Technical Advisory Committee, a 49-year-old organization with more than 150 members of the mailing industry.

“Chris has an exemplary, productive team, and we are committed to supporting their efforts both operationally and financially,” said Mr. Segall.  “Additionally, Bell and Howell is now in a better position to focus on its core competencies and continue to deliver valued products and services to its customers and partners.”

Bell and Howell is a provider of document processing, microfilmers, scanners, and financial services. Customers operate in the banking, insurance, telecommunications, public utilities, postal, freight operators, governments and print and mail service bureaus sectors. The “Bell & Howell” trademark is also licensed to makers of various electronic consumer products.  Headquartered with manufacturing in Research Triangle Park, NC, the company maintains engineering, sales and business presence in Wheeling, IL, Dallas, TX, Allentown, PA, Waterloo, Ontario, and overseas facilities in the UK and Germany (www.bellhowell.net).

Versa Capital Management invests in special situations involving middle market companies with revenues in the $50 million to $1 billion range or assets of $25 million to $500 million. The firm has $1.4 billion of capital under management and is based in Philadelphia (www.versa.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-23-14

Harbinger Looks to Acquire Central Garden & Pet Company

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central garden and pet nf1Harbinger Group has today released its most recent letter to the Board of Directors of Central Garden & Pet Company which outlines an acquisition of Central Garden & Pet for $10 in cash per share or alternatively to acquire Central Garden & Pet’s Pet Segment for $750 million in cash.

Central Garden & Pet Company produces and sells various products for the pet, and lawn and garden supplies markets in the United States. The company operates in two segments, Pet, and Lawn and Garden.

The Pet segment supplies products for dogs and cats comprising edible bones, edible and non-edible chews, dog and cat food and treats, toys, pet carriers, grooming supplies, and other accessories; and food, cages and habitats, toys, chews, and related accessories for birds, small animals, and specialty pets. It also offers animal and household health, and insect control products; aquariums, furniture and lighting fixtures, pumps, filters, water conditioners, food and supplements, and information and knowledge resources for fish, reptiles, and other aquarium-based pets; and products for horses and livestock. This segment sells its products to independent pet distributors, retail chains, grocery stores, mass merchants, and bookstores under various brand names, which include Adams, Aqueon, Avoderm, BioSpot, Farnam, Four Paws, Kaytee, Nylabone, Pinnacle, TFH, Zilla, Altosid, Comfort Zone, Coralife, Interpet, Kent Marine, Oceanic Systems, Pet Select, Pre-Strike, Super Pet, and Zodiac.

The Lawn and Garden segment provides grass seeds; wild bird feed, bird feeders, bird houses, and other birding accessories; weed, grass, ant and other herbicide, insecticide, and pesticide products; and decorative outdoor lifestyle and lighting products, such as comprising potteries, trellises and other wood products, and holiday lighting products. This segment sells its products to retail chains, independent garden distributors, grocery stores, nurseries, and garden supply retailers under the AMDRO, GKI/Bethlehem Lighting, Ironite, Pennington, Sevin, Grant’s, Lilly Miller, Matthews Four Seasons, New England Pottery, Norcal Pottery, Over-N-Out, Smart Seed, and The Rebels brand names.

Central Garden & Pet was founded in 1955 and is based east of San Francisco in Walnut Creek, CA (www.central.com).

Harbinger Group Inc. is a diversified holding company with operations in life insurance and annuity products; branded consumer products; asset-backed loans; and energy assets. HRG is principally focused on acquiring controlling and other equity stakes in businesses across a range of industries and growing its existing businesses. In addition to HRG’s intention to acquire controlling equity interests, HRG may also make investments in debt instruments and acquire minority equity interests in companies. HRG is headquartered in New York and traded on the New York Stock Exchange under the symbol HRG (www.harbingergroupinc.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-23-14

Lincoln Advises Identity Group on Recent Sale

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lincoln nf2Investment bank Lincoln International was the exclusive financial advisor to IDG Holdco (DBA Identity Group) on its sale to Ancor Capital Partners, Merit Capital Partners and PNC Mezzanine Capital.  As the exclusive financial advisor Lincoln provided advisory expertise and managed the preparatory, buyer coordination and contact, due diligence and final negotiation phases of the transaction which closed at the end of May 2014.

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 was founded in 1959 and is based east of Nashville in Cookeville, TN (www.identitygroup.com).

Lincoln International worked closely with the company’s senior management team, board of directors and primary shareholders throughout the sale process.

“Through a thoughtful and aggressive, customized marketing effort, Lincoln created a highly competitive process resulting in attractive alternatives for the shareholders with a very favorable outcome,” said Lawrence Hirsh, Chairman of the Board for Identity Group.  “Lincoln’s team provided tremendous leverage and assistance to management, the Board and shareholders, lending execution expertise, process guidance and industry knowledge throughout the sale process.”

“Lincoln worked tirelessly throughout the sale process by first making that crucial connection with the management team and then understanding our business and sharing our compelling story,” said Brad Wolf, President of Identity Group.  “They provided astute guidance to me and the management team throughout the sale process and helped find us a partner with the vision and the tools to help our business continue to grow.”

Lincoln International specializes in merger and acquisition advisory services, debt advisory services, private capital raising and restructuring advice on mid-market transactions. Lincoln International also provides fairness opinions, valuations and pension advisory services on a wide range of transaction sizes. Lincoln International has 16 offices in the in the Americas, Asia and Europe and is headquartered in Chicago (www.lincolninternational.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-23-14

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