Archives for September 23, 2014

The Sterling Group Acquires Seon Design

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Safe Fleet Holdings, a portfolio company of The Sterling Group, has completed the acquisition of Seon Design, a manufacturer of video surveillance equipment used in the school and transit bus markets.

“Seon has developed and built an industry-leading software and hardware platform for mobile surveillance and fleet asset tracking and management,” said John Knox, Safe Fleet President and CEO.  “The Seon products and capabilities are a great addition to Safe Fleet’s existing portfolio and will help us further serve our fleet vehicle customers.”

Seon is a manufacturer of video surveillance and fleet management products used in the school and transit bus markets.  The company also offers fleet management products used for live vehicle tracking, passenger ridership tracking, and school bus routing. Seon was founded in 1999 and is based in Coquitlam, BC (www.seon.com).

Seon is Safe Fleet’s second add-on acquisition in the last nine months. In December 2013, Fire Research Corporation, a Safe Fleet subsidiary, completed the acquisition of FoamPro from Pentair. FoamPro manufacturers foam proportioning and refill systems that are used by firefighters worldwide (www.foampro.com).

Safe Fleet provides safety-and productivity-oriented products used in the emergency vehicle, truck and trailer, utility vehicle, school bus, and transit bus end markets. Company brand names include ROM, Bustin, Prime Design, FRC, Specialty Manufacturing (SMI), Pretoria, Transpec, FoamPro, and now Seon.  Safe Fleet was formed through the simultaneous acquisitions of ROM Corporation and Specialty Manufacturing in 2013.  The company is headquartered south of Kansas City in Belton, MO (www.safefleetsolutions.com).

“Safe Fleet is committed to increasing its ability to provide critical safety products to its loyal customer base,” said Gary Rosenthal, a Partner at The Sterling Group.  “Safe Fleet will continue to pursue new acquisition opportunities to expand the products and solutions it offers its fleet vehicle customers.”

The Sterling Group targets controlling interests in basic manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million. Sterling has sponsored the buyout of 45 platform companies and numerous add-on acquisitions for a total transaction value greater than $10 billion. Currently, Sterling has over $1 billion of assets under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet and Roberts-Gordon.  The firm was founded in 1982 and is headquartered in Houston (www.sterling-group.com). 

2014 PEPD • Private Equity’s Leading News Magazine • 9-23-14

 

Peak Rock Adds-on Roses Southeast Papers

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Atlas Southeast Papers, an affiliate of Peak Rock Capital, has purchased Roses Southeast Papers, a manufacturer of tissue paper products.

Roses Southeast Papers produces a complete line of tissue products, including bath tissue, towels, and cocktail, dinner and dispenser napkins. The company is headquartered in Sanford, FL.

“Atlas Southeast’s purchase of the Roses Southeast manufacturing facility highlights Peak Rock’s continued focus and differentiated ability to identify, acquire and optimize strategic manufacturing assets,” said Anthony DiSimone, CEO of Peak Rock Capital.  “We are excited to add this business to our growing portfolio of outstanding companies.”

Atlas Southeast Papers is a manufacturer of private label and branded tissue products utilizing either virgin or recycled paper fibers.  The company produces a complete line of tissue products, including bath tissue, towels, and cocktail, dinner and dispenser napkins. The company is headquartered in Sanford, FL (www.atlastissue.com).

“Atlas Southeast’s manufacturing expertise and overall commitment to excellence have allowed the Company to produce a diverse set of product offerings that are highly in demand.  We are excited to now own the Roses Southeast facility and to support the company’s growth through organic initiatives, strategic partnerships and potential add-on acquisitions,” said Peter Leibman, Managing Director of Peak Rock Capital.  “Today’s announced acquisition further evidences our enthusiasm for the tissue paper manufacturing sector, a space which we know quite well through our 2013 investment in Atlas Paper Mills.

Peak Rock Capital makes debt and equity investments of $20 million to $150 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $25 million to $500 million. Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing, metals, and media. The firm is based in Austin (www.peakrockcapital.com).

Mesirow Financial acted as the financial advisor to Peak Rock Capital on the transaction. 

2014 PEPD • Private Equity’s Leading News Magazine • 9-23-14

Change Capital Partners Acquires Frette, Hires ex-CEO of Baccarat

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Change Capital Partners has closed on its acquisition of a majority equity interest in Frette, a luxury linen and home furnishings business.  Following the close of the acquisition, Change Capital Partners appointed Hervé Martin as the new Chief Executive Officer of Frette.

“I am delighted to welcome Hervé as Frette’s new chief executive and look forward to working with him.  He has achieved tremendous success in developing a wide range of highly regarded luxury brands and his experience in opening up new international markets and distribution is a perfect fit for Frette,” said Roger Holmes, Partner at Change Capital Partners.

Frette, is a luxury linen and home furnishings business, The company’s products are sold to hotels, restaurants, private homes, airlines, ocean liners and trains.  Frette operates 15 company-owned boutiques in Paris, Milan, Rome, New York and Beverly Hills and is present in high-end department stores from Los Angeles to London and Moscow to Hong Kong. The company has supplied high quality linens to European royal families throughout Europe as well as the Vatican.  Frette was founded in 1860 and is based near Milan in Monza, Italy (www.frette.com).

Hervé Martin has built an extensive career in leading a number of international luxury and fashion brands.  He is the former Chief Executive of Baccarat, the luxury crystal manufacturer where he oversaw the firm’s global expansion into Asia and key emerging markets such as Brazil and Russia.  Previously, in Florence, he was Managing Director, Products & Marketing at Salvatore Ferragamo, the Italian luxury products firm with overall responsibility for its brand positioning, product development, marketing and sales support.  Prior to that he was Chief Executive of French fashion house Kenzo (part of the LVMH group).  Mr. Martin has also served as Managing Director Europe and Middle East at Louis Vuitton Malletier and was CEO of Cartier Jewelry International.

“It is a privilege to be joining Frette at this time and looking forward to the challenge of growing the business. I have long been an admirer of Frette, which has an unrivalled position in its market, and believe it has an exciting future ahead of it,” said Mr. Martin.

Change Capital invests in consumer-oriented businesses across the European lower mid-market. The firm brings both capital and operational experience to enable brands and retail concepts that have established a distinctive customer proposition to secure the next stage in their development.  Change Capital is currently investing its second fund and has so far deployed €440 million through 13 acquisitions across Europe. Change Capital is based in London, UK (www.changecapitalpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-23-14

Preston Hollow Continues to Staff Up

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Preston Hollow Capital has hired three former ORIX USA executives to fill key positions on the firm’s rapidly growing team. Preston Hollow Capital was launched in January 2014 by Jim Thompson, the long-time President and CEO of ORIX USA.

John Bills has been named as Chief Credit Officer, Greg May was selected as the new Managing Director of Corporate Development and Kandice Stephens was named the Director of Operations for the Dallas-based merchant bank.

“Mr. Bills, Mr. May and Ms. Stephens each bring a unique set of skills and knowledge to their roles at Preston Hollow Capital,” said Mr. Thompson. “We’ve experienced significant growth at Preston Hollow Capital and we will continue to look for specialized experience, track record and expertise.”

Preston Hollow Capital invests in fixed income, private equity, venture capital and alternative opportunities. The firm is based in Dallas (www.phcllc.com).

“We’re pleased that the growth of our business requires the expansion of our team at Preston Hollow Capital by filling these key roles with a group of highly capable professionals,” said Mr. Thompson. “Mr. Bills, Mr. May and Ms. Stephens are exceptional talents with a wealth of knowledge that will further position us for success.”

Mr. Bills, in his role as Chief Credit Officer, will oversee real estate credit analysis and underwriting for the firm’s investments that have real estate components. Before joining Preston Hollow Capital, Mr. Bills served 11 years at ORIX USA, where his most recent position was Managing Director, Chief Credit Officer and Surveillance Manager. Prior to this role, he was a Director and Senior Underwriter for the company.  Mr. Bills received a BBA degree in finance and political science at Southern Methodist University.

Mr. May, as Preston Hollow Capital’s Managing Director of Corporate Development, will have responsibilities for sourcing, evaluating and executing acquisitions and investments for the firm. He previously served as Deputy General Counsel for ORIX USA, which he joined in 2003. He provided a range of legal, transactional and governance support to ORIX USA’s various business lines in the investment banking, asset management, real estate finance and life sciences sectors.  Mr. May received his BBA degree in accounting from Baylor University and his JD degree from Baylor University School of Law.

Ms. Stephens, as Director of Operations, will be responsible for managing the company’s back office operations supporting all of Preston Hollow Capital’s trading and investment activity. Before joining Preston Hollow, Ms. Stephens served with ORIX USA for more than 31 years in various senior management functions including Director of Operations in ORIX USA’s Dallas Headquarters, Corporate Income Tax Director, Division Controller in Los Angeles and SVP of Operations in Atlanta. Ms. Stephens has a bachelor’s degree in accounting and economics from Iowa State University.

2014 PEPD • Private Equity’s Leading News Magazine • 9-23-14

H.I.G. Expands Investor Relations Team

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H.I.G. Capital has expanded its investor relations team with the hiring of Jordan Peer as Managing Director and Head of Investor Relations, and Thierry Edde as Director of Investor Relations.

Ms. Peer will be based in New York and will oversee all marketing and investor relations activities globally across the firm’s private equity, growth equity, real estate, credit and life sciences funds. Mr. Edde will be responsible for investor relations efforts in the Middle East and Europe and will be based in London.

“We are excited to welcome these talented professionals to the firm.  Jordan and Thierry have been hired at a time of significant growth in demand for the firm’s alternative asset product offerings. Moreover, Jordan’s profound knowledge of the capital raising process, her extensive network of relationships and deep understanding of the private markets makes her the ideal person to lead H.I.G.’s investor relations team,” said Tony Tamer, H.I.G. Capital co-founder and Managing Partner.

Prior to H.I.G., Ms. Peer spent five years at Blackstone’s credit business, GSO Capital Partners, where she led a number of fundraising and investor relations activities, across mezzanine, distressed, hedge fund and customized credit strategies. Prior to Blackstone, she was an investment banker at Barclays Capital and Lehman Brothers in the firm’s Leveraged Finance Group.

Mr. Edde is joining H.I.G. from MAB Partners, where he spent the past six years leading business development and key investor relationships with a focus on Europe and the Middle East. Before MAB, he was a Sales Director at Turner Broadcasting where he was responsible for commercial activities for CNN International across Southern Europe, Middle East, Africa, the CIS and the Balkans.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $17 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-23-14