August 5, 2014
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Archives for August 5, 2014

Palladium Sells ABRA Auto Body to Hellman & Friedman

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abra auto nf1ABRA Auto Body & Glass, a vehicle repair provider and a portfolio company of Palladium Equity Partners, has signed an agreement to be acquired by Hellman & Friedman and members of ABRA`s senior management team.  The transaction is expected to close in the third quarter of 2014.

ABRA is a national provider of vehicle damage repair services.  The company provides collision repair, paintless dent removal, and auto glass repair and replacement services through 186 company-owned vehicle damage repair centers and 48 franchised centers in 19 states.  ABRA’s services enable its insurance company partners to improve customer satisfaction and drive policyholder retention, while reducing repair costs and driving efficiencies in the claims process. ABRA was founded in 1984 and is headquartered in Minneapolis (www.abraauto.com).

Luis Zaldivar nf1“We are proud to have been part of ABRA’s successful growth over the past three years. During our partnership, we worked closely with ABRA`s exceptional management team to enter new markets, accelerate the company`s acquisition program and enhance the company`s industry-leading capabilities. We are confident Hellman & Friedman will be an ideal partner in the next stage of the company’s development,” said Luis Zaldivar, Managing Director of Palladium.

Palladium Equity Partners targets investments in financial services, business services, food, healthcare, industrial and media businesses.  Palladium has a focus on companies that operate in the rapidly growing US Hispanic market – a market segment where the firm has expertise, a broad network and an extensive track record of investing.  Since its founding in 1997, Palladium has invested over $1 billion of capital in more than 20 platform investments and over 50 add-on acquisitions.  The firm is based in New York (www.palladiumequity.com).

Erik Ragatz nf1“Within the $30-billion collision repair sector ABRA stands out as a highly-respected, exceptionally well-run business,” said Erik Ragatz, managing director of Hellman & Friedman. “Built on a foundation of delivering superior standards for repair quality and customer service, ABRA has become a trusted partner of leading automotive insurers and a reliable source for quality collision repair services across the nation. We see outstanding growth prospects ahead and look forward to partnering with ABRA`s team to continue to execute on their strategic plan.”

Hellman & Friedman invests from $200 million to $750 million in companies across a range of industries including energy & industrials, software, business & marketing services, internet & digital media, financial services, insurance, media, and healthcare. Founded in 1984, the firm has raised and managed over $25 billion of committed capital and invested in over 60 companies. The firm is currently investing its sixth fund, with $8.4 billion of capital commitments. Hellman & Friedman is based in San Francisco with additional offices in London and New York (www.hf.com).

Harris Williams & Co. acted as advisor to ABRA in connection with the transaction. Greenberg Traurig and Simpson Thacher & Bartlett served as legal advisors to ABRA and Hellman & Friedman, respectively.

2014 PEPD • Private Equity’s Leading News Magazine • 8-5-14

Riverside Exits UltraVolt

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ultravolt nf1The Riverside Company has exited UltraVolt, a manufacturer of high-voltage power converters. Riverside acquired UltraVolt in September 2007.

UltraVolt manufactures standard, modified-standard, and custom high-voltage power supplies and systems for a variety of commercial, industrial, aerospace, and medical applications, using a portfolio of more than 10,000 application-specific product configurations.  The company has more than 1,000 commercial and military customers. UltraVolt also provides systems integration and engineering services for its products.  The company is headquartered on Long Island in Ronkonkoma, NY (www.ultravolt.com).

schlachet nf2“It’s been a joy to build a great management team and grow UltraVolt,” said Riverside Managing Partner Loren Schlachet. “Through investments in new products and technology, we were able to help UltraVolt navigate the global financial crisis, then execute an aggressive growth and profitability plan during the second half of our hold period.”

During the term of its ownership, Riverside worked with UltraVolt to improve its research and development capabilities, professionalize its sales and management teams, and applied its operating resources to improve UltraVolt’s manufacturing processes.

haynes nf1“Among other improvements, we helped UltraVolt implement lean operating practices, improve its pricing strategy and expand internationally,” said Riverside Vice President Dan Haynes. “It all helped lead to solid results despite a challenging macroeconomic environment.”

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 340 transactions with a total enterprise value of more than $6 billion. The firm’s current 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).

Working on the transaction with Mr. Schlachet and Mr. Haynes from Riverside were Operating Partner Dan Colbert and Assistant Vice President Garrett Monda. Origination Principal Amy Margolis helped facilitate the exit for Riverside.

Livingstone Partners (www.livingstonepartners.com) advised UltraVolt on the transaction.

2014 PEPD • Private Equity’s Leading News Magazine • 8-5-14

Arsenal Acquires Insight High Technology

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IHT Nf1IGM Resins, a portfolio company of Arsenal Capital Partners and a provider of specialty materials for the coatings, inks, and adhesives markets, has acquired Insight High Technology Group, a manufacturer of photoinitiators and pharmaceutical intermediates.

Sal Gagliardo nf2“The union with IHT further strengthens IGM’s global position as a leader in photoinitiators and pharmaceutical intermediates,” said Sal Gagliardo, IGM Chairman and Operating Partner of Arsenal Capital Partners.

Insight High Technology (IHT) Group is a manufacturer of photoinitiators, pharmaceutical intermediates and fine chemicals. The company’s products are used in the UV curing, pharmaceutical and the fine and customized chemicals markets. IHT is based in China and has facilities in Beijing (headquarters), Tianjin and Jiangsu (www.iht.com.cn).

IGM Resins (IGM), acquired by Arsenal in September 2012, specializes in the development, manufacture and supply of products and technical services to the UV ink and coatings industry. IGM produces and distributes a range of radiation curable materials including acrylate oligomers and monomers, photoinitiators, and additives. The company has manufacturing facilities in the EU, USA, and Asia, supported by technical labs in the EU, USA, Asia, and South America.  IGM is headquartered in the Netherlands (www.igmresins.com).

“We are very pleased that our long-time partner, IHT, has joined IGM,” said IGM Resins CEO Edward Frindt. “Their great strength in development of new materials, manufacturing capabilities and position in the Asia UV market combined with IGM’s market strength in the rest of the world creates a powerful organization offering depth and breadth of products and technical service to our global customers.”

Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value. Industries of specific interest include specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; and process industry components and services. Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 8-5-14

SFW Sells MD Buyline to Arsenal

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md buyline nf1SFW Capital Partners has completed the sale of MD Buyline, a provider of healthcare analytics and data, to TractManager, a portfolio company of Arsenal Capital Partners.  SFW acquired MD Buyline in February 2011.

MD Buyline is a provider of healthcare analytics and supply chain spend intelligence to healthcare providers and vendors.  The company’s services are used to identify cost reduction opportunities for purchased services, consumables, capital and IT. MD Buyline is based in Dallas (www.mdbuyline.com).

TractManager is a provider of compliance services that enable hospitals to create, oversee and manage their contractual agreements in compliance with regulations.  TractManager was founded in 1999 and is based in Chattanooga, TN with executive offices in Saddle Brook, NJ (www.tractmanager.com).

During the course of SFW’s ownership the firm supported CEO Satin Mirchandani and the company’s management team in a range of growth initiatives, including enhancing and extending its product lines, investing in the company’s sales, marketing and account management functions, and strengthening the company’s business infrastructure.  These investments enhanced MD Buyline’s service offering for its customers and extended coverage to include information on consumables and purchased services and other areas of hospital spend, each of which drove meaningful growth at the company.

Satin Mirchandani nf1“We are incredibly proud of the transformational improvements we enacted with the support and guidance of SFW,” said Satin Mirchandani, CEO of MD Buyline.  “We are eager to begin the next phase of MD Buyline’s development with TractManager, and are looking forward to providing even greater value to our customers.”

SFW Capital Partners focuses exclusively on analytical tools and related services companies, including providers of instrumentation, software, information and analytical services. SFW typically invests from $10 million to $75 million of equity in middle market companies that have up to $25 million in EBITDA. The firm has offices in Rye, NY and Hudson, OH (www.sfwcap.com).

“MD Buyline’s focus on health-care analytics and information was a strong fit with SFW’s specialization and focus on providers of analytical tools and related services companies.  We are very pleased to have had the opportunity to work closely with Satin Mirchandani and the company’s management team to transform the business and position it for long term growth and success.  The company has performed very well during our time working together, and has further established its position as the leading provider in its field.” said Roger Freeman, Partner at SFW.

The sale of MD Buyline represents the second exit for SFW in recent weeks, following the sale of agricultural analytical solutions provider AGDATA in late July.

2014 PEPD • Private Equity’s Leading News Magazine • 8-5-14

Guardian Capital Closes Fund II at Hard Cap

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guardian capital nf1Guardian Capital Partners has held a final close of Guardian Capital Partners Fund II, LP at its hard cap of $153.5 million in capital commitments. The new fund was oversubscribed and was raised in just 12 months.  Guardian did not utilize a placement agent during the fundraise process.

Guardian Fund II is three times larger than Guardian’s $50 million debut fund which it raised in 2008 and 2009. Approximately 90% of the firm’s first fund limited partners re-committed for the new fund, as well as over a dozen new institutional and single family office investors, and many new individual high net worth investors.

haabestad nf1“We are grateful to our new and returning limited partners for their strong support of Guardian Fund II. We look forward to the opportunity to put the fresh capital to work over the next few years and build a robust portfolio of companies and management teams,” said Managing Partner, Peter Haabestad, who managed the fundraising process for Guardian.  “We are extremely pleased with the how the fundraising process played out.”

Guardian Capital Partners makes control investments in lower middle market private companies located primarily in the United States that have annual revenues between $20 million and $100 million and EBITDAs between $3 million and $9 million. Sectors of interest include consumer products, niche manufacturing and specialty business services. The firm is based in Wayne, PA, a suburb of Philadelphia (www.Guardiancp.com).

evans nf1“Guardian has built a strong team of private equity investment professionals focused on superior deal execution, intelligent portfolio company governance and value-added support and leadership to our lower middle market companies and their management teams. Our strong Fund I performance without a doubt helped tremendously in our fundraising process,” said Scott Evans, Managing Partner

Gibson Dunn & Crutcher provided fund formation and tax counsel to Guardian and Ernst & Young provides audit and tax services.

2014 PEPD • Private Equity’s Leading News Magazine • 8-5-14

Washington Partners Advises ESI on Sale to Sterling

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washington partners nf1Washington Partners was the exclusive financial advisor to ESI Group on its recent sale to Brace Industrial Group, a portfolio company of Sterling Partners.

Brace Industrial Group provides scaffolding, insulation, painting, coating and fire-proofing services to customers in the energy, petrochemical, manufacturing and agricultural sectors.  Brace was formed in 2013 by Pete Vrettakos, Hans Petter Hansen and Craig Kaple in partnership with Sterling Partners to acquiring scaffolding, insulation, specialty coatings and other industrial services companies. The company is headquartered in Houston (www.brace.com).

ESI nf1ESI Group is an industrial insulation, scaffolding and sheet metal contractor offering insulation, lagging, boiler repair, and other support services to fossil and nuclear power plants, chemical plants, petrochemical refineries, and pulp and paper facilities in Florida and throughout the Southeast United States.  The company has a 40,000 sq. ft. warehouse and headquarters in Tampa (www.energyserviceinsulation.com).

Washington Partners provides intermediary services such as mergers, acquisitions, divestitures, valuations, and transaction consulting for lower-middle market business owners. The firm’s clients have included public and private companies, investor groups, and management buyout groups throughout the world. Washington Partners was founded in 1999 and is based in Tampa (www.washingtonpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 8-5-14

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