September 11, 2014
Search

Private Equity Professional

Private Equity's News Leader

There is a right and a wrong in the universe, and that distinction is not hard to make.
Superman

You are here: Home / 2014 / September / Archives for 11th

Archives for September 11, 2014

Summit Park Closes Fund, Makes First Acquisition

by

summit park nf1Summit Park has recapitalized Tennessee Industrial Electronics (TIE), a supplier of new and refurbished parts for computer numerical control machine tools.  This transaction marks Summit Park’s first investment in its second fund, Summit Park II, LP, and the initial closing of the fund occurred concurrent with the closing of the TIE acquisition.

TIE nf1Tennessee Industrial Electronics provides parts and repairs for FANUC computer numerical control (CNC) systems.  FANUC Corp. (Yamanashi, Japan) is one of the largest makers of industrial robots in the world. TIE has over 50,000 FANUC drives, motors, and controls in inventory and provides next-day delivery to machine tool users throughout the United States.  The company was founded in 1992 by Bobby Haynes and is headquartered southeast of Nashville in La Vergne, TN (www.fanucworld.com).

As a part of the transaction, Douglas Peterson, a former executive at GE Fanuc Intelligent Platforms with responsibility for the CNC Business division, and Douglas Albert, also a former executive at GE Fanuc with responsibility for the Embedded Systems division, will join the leadership team of TIE.

“We are very excited to partner with Bobby Haynes and the entire team at TIE, and we look forward to working together to build on the company’s historical success,” said Bob Calton, Managing Partner at Summit Park.

Summit Park makes investments in lower middle market companies across a range of industries that have revenues between $10 million and $100 million or EBITDAs between $4 million and $10 million.  Sectors of specific interest include business and outsourced services; commercial security; environmental services; laboratory products and equipment; transportation & logistics; and test & measurement.  The firm is based in Charlotte, NC (www.summitparkllc.com).

Limited partners participating in the initial closing of Summit Park II, LP include J.P. Morgan Asset Management and Private Advisors.

Babson Capital Finance (www.BabsonCapital.com) provided the debt financing for the acquisition of Tennessee Industrial Electronics. The company was represented by CCG Advisors (www.ccgadv.com), an Atlanta-based investment banking firm.

2014 PEPD • Private Equity’s Leading News Magazine • 9-11-14

RBS Citizens Launched New Technology and Services Group

by

RBS Citizens nf1RBS Citizens has created a new lending division with the launch of the Technology and Services banking group.  The new group will focus on both emerging growth and established technology companies that are active in software and systems; business services; hardware and equipment; and media & communications.

steve woods nf1“We have a very strong portfolio of technology relationships in place that has grown significantly over the years as the major technology companies in our footprint have recognized our expertise in this area and turned to us for their banking needs,” said Steve Woods, Head of Corporate Banking at RBS Citizens. “We are pleased to be able to build on this regional success and to offer this expertise to technology companies nationwide.”

The Technology and Services group is led by technology banker and industry executive William Egge, who joined Citizens last year to develop and launch the technology and services group.  Mr. Egge has over 17 years of experience in the technology and services industry as both a banker covering the industry while at Wachovia Securities and as an M&A and corporate finance professional for two private equity backed technology companies in the technology-enabled services sector.  “William brings a unique technology industry background and perspective that we will leverage as we build the group into a national practice,” said Mr. Woods.

The national rollout of the Technology and Services group comes as Citizens expands its broader Mid-Corporate business nationally. This expansion includes the development of national banking groups focused on high-growth industries like technology, health care and franchise finance.  As part of this expansion, Citizens has hired teams of commercial bankers across its traditional New England, Mid-Atlantic and Midwestern markets and also in the following markets: Atlanta; Washington, DC; Charlotte, NC; Dallas and Los Angeles.

“I’m excited about the opportunity to expand our already strong Technology and Services business,” said Mr. Egge. “Citizens has a lot to offer companies in the technology sector. We have a diverse portfolio of clients that include both technology companies and private equity groups and we are deeply engaged in the technology M&A market. We have a very strong team with a lot of industry expertise that is focused on helping our clients achieve their goals.”

Citizens Financial Group is one of the nation’s oldest and largest financial institutions, with $130 billion in assets as of June 30, 2014.  Citizens offers a range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens is headquartered in Providence, RI (www.citizensbank.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-11-14

JMC Capital Acquires Nematron

by

nematron nf1Comark, a portfolio company of JMC Capital Partners, has acquired the assets of Nematron Corporation, a provider of computers and monitors used in industrial automation applications.

Nematron provides industrial personal computers (IPCs) and monitors that are used in harsh industrial environments. The company’s products are designed to withstand high temperature and humidity, shock & vibration, electrical noise, and are resistant to chemicals typically present in a manufacturing environment.  Nematron is headquartered in Ann Arbor, MI (www.nematron.com).

Lawrence bero nf2“Nematron has been an innovator in panel mounted industrial computer and operator interface devices for over 30 years and has thousands of systems installed worldwide. Nematron continues to develop innovative new solutions that set the industry standard,” said G. Lawrence Bero, a Partner at JMC.

Comark, acquired by JMC in April 2014, is a manufacturer of ruggedized industrial displays, integrated computers, workstations and kiosks that are used in industrial and commercial applications. The company is headquartered southwest of Boston in Medfield, MA (www.comarkcorp.com).

“We continue to expand our presence in the industrial and building automation sector. The addition of Nematron will broaden our product line and distribution channels,” said Steve Schott, Chief Executive Officer of Comark. “Nematron’s state of the art handheld, industrial and panel PC product line is a great addition to our growing product portfolio. We look forward to working with the Nematron team to successfully integrate the Nematron business into Comark.”

JMC Capital Partners invests from $5 million to $15 million in lower-middle market industrial companies that manufacture “intermediate” products (products that are sold to other businesses).  Sectors of interest include industrial components and equipment; electrical and electronic equipment; process instrumentation and controls; analytical instruments and measuring devices; fluid control, filtration and pumps; specialty chemicals, adhesives and coatings; plastics and synthetic materials; and healthcare and safety equipment. In March 2014, JMC closed JMC Platform Fund I, LP (Fund I) with $125 million of capital commitments, $25 million above the firm’s target of $100 million. The investor base of Fund I consists largely of institutional investors and family offices.  JMC was founded in 1999 and is based in Boston (www.jmccp.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-11-14

Norwest Acquires Uintah from Moelis

by

uintah nf1Norwest Equity Partners (NEP) has acquired Uintah Engineering & Land Surveying, a provider of surveying and related services to the energy industry.  Uintah was a portfolio company of Moelis Capital Partners.

Uintah is a provider of surveying, drafting, and engineering services to the upstream and midstream oil & gas industry, specializing in the layout and design of well locations, roads, pipelines, evaporation ponds, compressor sites, and other related facilities.    Due to federal, state, and local requirements, land rights, and operator data needs, all work within the oil & gas services sector requires a survey.  Uintah has 200 employees that organize into 75 crews operating across eight basins via ten regional offices servicing more than 180 national exploration and production operators as customers. The company was founded in 1964 and is headquartered in Vernal, UT (www.uintahgroup.com).

tim kuehl“The Uintah investment is a great fit for our portfolio and nicely aligns with our strategy of partnering with profitable and growing companies within the oil & gas sector, as well as with our continued higher-level focus on the energy infrastructure industry,” said Tim Kuehl, a NEP partner.

Norwest Equity Partners makes equity investments of $30 million to $150 million in companies operating in the agriculture, applied technology, business services, consumer products and services, distribution, diversified industrials, and healthcare sectors. The firm manages $5 billion of capital through a series of equity and mezzanine limited partnerships and is currently investing NEP IX with $1.2 billion in capital. Norwest Equity Partners is headquartered in Minneapolis (www.nep.com).

brian allingham nf2“NEP is impressed with Uintah’s strong value proposition, long-term customer relationships, industry leadership, and solid financial performance. With a proprietary in-house database of almost 50 years of surveying and field work, Uintah offers outstanding service, quality and accuracy. We look forward to working with Tracy Henline, CEO, and his management team to continue to grow the business,” said Brian Allingham, a NEP principal.

“I am very proud of Uintah’s growth and success over the years and am excited about our company’s future with Norwest Equity Partners,” said Mr. Henline. “Both of our companies have a heritage dating back to the early 1960s, and we share many of the same values, including the importance of maintaining long-standing relationships. NEP’s investment capital and deep industry experience over the years will help Uintah achieve our ongoing growth plans and mission of providing the best surveying, drafting and engineering services possible.”

Financing for this transaction was provided by GE Capital. William Blair & Company and Moelis & Company served as financial advisors to Uintah.

2014 PEPD • Private Equity’s Leading News Magazine • 9-11-14

The CapStreet Group Acquires Red Aviation

by

red aviation nf1The CapStreet Group has completed a majority recapitalization of Davis S R Aviation and Turbine Jet Specialties (Red Aviation) in partnership with the companies’ senior management teams.

Red Aviation procures, sells, repairs and maintains business jet aftermarket parts and engines for the Global, Challenger, Lear and Gulfstream platforms, and maintains an inventory with more than 12,000 SKU’s.  The company operates through two segments: Red Aviation, based in Georgetown, TX, which focuses on components and structures; and Turbine Jet Specialties, based in Granbury, TX, which focuses on engines.  Red Aviation was founded in 2002 by Stephen and Karen Davis and is headquartered in Georgetown, TX (www.redaviation.aero).

george kelly nf2“We are excited about the future of Red Aviation. The company will be able to capitalize on several growth opportunities stemming from its unique market position and favorable macro-economic trends in the aftermarket business jet industry. We know that Steve Davis and the rest of the Red Aviation team will be great partners as they continue to expand their business,” said George Kelly, CEO of The CapStreet Group.

CapStreet makes control investments in privately held, lower middle market companies that are headquartered in Texas and surrounding states. CapStreet targets industrial and diversified business service companies with annual EBITDA between $5 million and $20 million.  Since the firm’s founding in 1990, CapStreet has invested in 35 platform companies.  The firm is headquartered in Houston (www.capstreet.com).

“We are thrilled to have the CapStreet team as partners,” said Steve Davis, president and CEO of Red Aviation. “We look forward to working with CapStreet and leveraging their expertise to take Red Aviation to the next phase of growth.”

2014 PEPD • Private Equity’s Leading News Magazine • 9-11-14

To search in site, type your keyword and hit enter