September 19, 2014
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Archives for September 19, 2014

Balance Point Helps TopSpin Buy Patch

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balance point nf1Balance Point Capital Partners has made a mezzanine investment and a minority equity co-investment to support the recent acquisition of toy company Patch Products by TopSpin Partners (Topspin Acquires Patch).

Patch Products designs, manufactures, distributes and markets games, children’s puzzles, preschool toys, creative activities and teaching tools.  Top-selling brands include 5 Second Rule®, Don’t Rock the Boat™, Farkle, The Game of THINGS…®,Mirari®, 100 Wacky Things®, Lauri® and Wooly Willy®.  Patch also has distribution rights for Perplexus™, Wood WorX™ and Stratego®.  The company was founded in 1985 by brothers Fran and Bryce Patch and is headquartered in Beloit, WI (www.patchproducts.com).

“We are excited to have the opportunity to partner again with Topspin,” said Seth Alvord, Managing Partner with Balance Point.  “Topspin has been an excellent sponsor to work with over the years and we look forward to the continued partnership with Patch.”

Balance Point Capital Partners invests from $5 million to $20 million of mezzanine and equity in lower middle market companies that have revenues of $10 million to $150 million and EBITDAs between $2 million and $25 million. Sectors of interest include business services, niche manufacturing, consumer & industrial, branded products, aerospace & defense, healthcare, and technology.  Balance Point was founded in 1988 and is based in Westport, CT (www.balancepointcapital.com).

Topspin Partners makes control investments in profitable and established lower middle-market businesses. Sectors of interest include business and information services, health and wellness, leisure, food and beverage and security.  The firm is based near New York City in Roslyn Heights, NY (www.topspinpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-19-14

ABRY Partners Acquires Millennium Process Coupon

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millenium process coupon nf1Millennium Process Coupon has been acquired by Inmar, a portfolio company of ABRY Partners. This transaction closed on September 3, 2104. ABRY Partners acquired Inmar from New Mountain Capital in January 2014.

Millennium Process Coupon (MPC) is a provider of promotional services, including coupon clearing and redemption, rebate handling and contest administration. I MPC handles the majority of all coupon redemptions in Canada and is most active in the financial services, government, retail, and manufacturing sectors. Millennium redeems approximately C$100 million of coupons each year.  The company is headquartered in Toronto (www.millennium1solutions.com).

Inmar is an operator of commerce networks that are used by retailers, wholesalers and manufacturers to manage reverse logistics (product returns), facilitate promotions and recover revenue through secondary marketing of returned products. Inmar serves over 1,000 business clients, annually processing billions of returned goods, promotional transactions and pharmaceutical claims. The company was founded in 1980 and is based in Winston-Salem, NC (www.inmar.com).

The acquisition of MPC by Inmar will provide MPC’s client base and the Canadian marketplace with extended service offerings of digital coupon processing, data analytics and additional shopper engagement services.

jason myler nf1Mid-market investment bank MHT MidSpan (www.mhtmidspan.com) acted as the exclusive financial advisor to MPC in the transaction.  “MPC is the leading tech-enabled coupon processer in Canada, and the combined Inmar/MPC entity will provide a great option for both retailers and manufacturers operating in the Canadian marketplace,” said Jason Myler, Managing Director, MHT MidSpan.  “We are proud of the result here and enjoyed working closely with MPC to drive an efficient and successful outcome.  We look forward to working with more Canadian-based tech-enabled services and software businesses in the future.”

MHT MidSpan provides seller advisory, acquisition advisory, corporate finance and strategic advisory services to mid-market companies ($25 million to $500 million in enterprise value) in the technology; business & information services; education; consumer/retail; healthcare, energy services and industrial growth sectors. The firm has offices in Boston, Dallas, and San Francisco (www.mhtmidspan.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-19-14

Revelstoke Acquires Transport Investments

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TII nf1Revelstoke Capital Partners has acquired Transport Investments, Inc. (TII), a transportation and logistics company.  Yukon Partners made a subordinated debt and an equity co-investment in the transaction.

Transport Investments is an asset-light transportation and logistics company focused on providing flatbed, drop-deck, specialized and heavy-haul trucking and brokerage services in the US, Canada, and Mexico. The company transports or arranges transport of heavy and over-dimensional freight for companies operating in the energy, infrastructure, manufacturing and industrial sectors.  The company is ranked by industry publications in the top 12 flatbed and heavy specialized trucking companies in the US and handles nearly 100,000 loads annually through its fleet of active owner-operator trucks, drive-away operators, and approved third party carriers. TII was founded in 1986 and is headquartered in Pittsburgh (www.thetii.com).

The management team of TII will continue to own a meaningful interest in the company and manage and operate the business on a day-to-day basis.

Simon Bachleda nf1“With its significant owner operator and agent base, we believe that the TTII platform represents a compelling opportunity to invest in an attractive niche in the transportation and logistics industry and are confident in the management team’s ability to further solidify its position as a leader in the market,” said Simon Bachleda, Managing Partner of Revelstoke.  “TII is well-positioned to accelerate its organic growth as well as pursue acquisitions that will further expand its trucking, brokerage and third party logistics service offerings and geographic coverage.”

Revelstoke intends to provide TII with strategic guidance and additional capital to in order to accelerate its organic growth and the firm will also pursue add-on acquisitions.  “There is a great deal of consolidation going on in the trucking industry. With Revelstoke’s support, TII will continue to be a strong platform for growth through acquiring other trucking and logistics companies while we continue to make investments that will further strengthen our capabilities and the value-added services we bring to our agents and customers,” said Doug McAdams, CEO of TII.

Revelstoke invests from $10 million to $250 million in companies that have at least $5 million of EBITDA.  Sectors of interest include healthcare services and products, including life sciences; transportation and logistics; specialty distribution; energy and energy services; building products; business and outsourced services; marketing services; financial services, including insurance; industrial services; and medical technology. The firm was founded by Managing Partners, Mark King, Dale Meyer, and Simon Bachleda and is headquartered in Denver (www.revelstokecp.com).

michael hall nf1“We are once again excited to be partnering with the Revelstoke team,” said Michael Hall, Managing Partner of Yukon.  In July 2014, Yukon provided subordinated debt and an equity co-investment to back Revelstoke’s acquisition of Denver-based Schryver Medical.  “We are confident that Revelstoke’s logistics platform experience is a perfect complement to TII’s leading industry position and the senior management team’s expertise. These attributes will further TII’s impressive track record of growth,” added Mr. Hall.

Yukon Partners makes subordinated debt and equity investments of $10 million to $40 million in middle market, private equity sponsored business transactions.  Yukon invests in buyouts, growth and platform strategies, recapitalizations, mergers & acquisitions, public to private buyouts, and refinancings. The firm is based in Minneapolis (www.yukonpartners.com).

SunTrust Bank served as administrative agent on the transaction’s senior credit facility with East West Bank also participating.  SunTrust Robinson Humphrey acted as sole lead arranger and bookrunner on the transaction.

2014 PEPD • Private Equity’s Leading News Magazine • 9-19-14

Topspin Acquires Patch

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patch nf3Topspin Partners has acquired toy company Patch Products from its founders Fran and Bryce Patch.

Patch Products designs, manufactures, distributes and markets games, children’s puzzles, preschool toys, creative activities and teaching tools.  Top-selling brands include 5 Second Rule®, Don’t Rock the Boat™, Farkle, The Game of THINGS…®,Mirari®, 100 Wacky Things®, Lauri® and Wooly Willy®. Patch also has distribution rights for Perplexus™, Wood WorX™ and Stratego®.  The company was founded in 1985 and is headquartered in Beloit, WI (www.patchproducts.com).

“The growth Patch has seen in recent years is a result of its diverse, multi-category product line and its distribution in both mass and specialty retailers,” said Stephen Lebowitz, Managing Director at Topspin.  “We are excited to have found this outstanding company and are looking forward to supporting its management team and building upon its strong foundation.”

Post-closing, the Patch management team, led by CEO Bob Wann, will remain with the company. Mr. Wann is a prominent member of the toy industry, serving on both the Toy Industry Foundation Board of Directors and as Treasurer on the Executive Committee of the Toy Industry Association’s Board of Directors.

“We are excited to have Topspin as our partner going forward. It was very apparent from all of our discussions that Topspin shares the same excitement and support for the strategic vision we have for Patch.  This, combined with the additional financial resources that they can provide, will trigger further expansion and growth for Patch.” said Mr. Wann.

Topspin Partners makes control investments in profitable and established lower middle-market businesses. Sectors of interest include business and information services, health and wellness, leisure, food and beverage and security.  The firm is based near New York City in Roslyn Heights, NY (www.topspinpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-19-14

Wind Point Acquires Vision-Ease

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vision ease nfWind Point Partners has acquired Vision-Ease Lens, an ophthalmic lens manufacturer. The senior management team of the company co-invested with Wind Point in this transaction.

Vision-Ease Lens is a manufacturer of branded ophthalmic lenses, including clear, photochromic and polarized lenses in polycarbonate, hard resin, glass and high-index materials. The company’s products are sold through wholesale labs, independent opticians, optometrists and ophthalmologists, and retail chains. Vision-Ease is headquartered north of Minneapolis in Ramsey, MN (www.vision-ease.com).

nathan brown nf1“Vision-Ease is a strong investment for our firm because of its long-standing stability and position as a market leader in value-added ophthalmic lenses, as well as the breadth of its products and strong brand reputation,” said Nathan Brown, a managing director at Wind Point Partners. “We will contribute Wind Point’s expertise and resources to build on these core strengths with increased internal investment and acquisitions.”

Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.8 billion in capital under management and has completed more than 90 investments and 161 add-on acquisitions across its seven private equity funds. Wind Point Partners was founded in 1984 and is based in Chicago (www.wppartners.com).

“This recapitalization with Wind Point Partners will enable our long-term growth in some key areas, while continuing our excellence in day-to-day operations,” said Doug Hepper, president and CEO of Vision-Ease Lens. “The leadership team is investing alongside Wind Point to expand our business capabilities within and adjacent to our core competencies. We will also be able to devote more resources to global growth.”

2014 PEPD • Private Equity’s Leading News Magazine • 9-19-14

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