Archives for October 22, 2014

Palladin Acquires Harrys of London

by

Palladin Consumer Retail Partners has made a majority investment in luxury shoemaker Harrys of London.  Jennifer Moores, one of the founding shareholders of Harrys, is participating in the investment as are other founding shareholders.  The existing senior management team of Harrys – led by Marty Wikstrom, Chairman, and Kevin Martel, Creative Director – will remain significant shareholders.

Harrys of London is a luxury shoemaker and accessories company. The company’s products are sold in retail stores in the UK, UAE, Kuwait and Japan, online and in department stores and specialty retailers in more than 20 countries.  Harrys of London is headquartered in the Belgravia district of London (www.harrysoflondon.com).

The Palladin investment will provide Harrys with capital to expand its operating team, open additional retail stores and invest in new initiatives to fund growth including marketing, merchandising, product development, e-commerce and m-commerce.

“We have been discussing making an investment in Harrys for some time in order to establish a new high end footwear and accessories platform,” said Mark Schwartz, CEO of Palladin.  “The company has a very loyal following, a great brand name and, under the creative direction of Kevin Martel, developed an exceptional product line that spans several different categories – dress, work, and casual footwear, as well as accessories.”

Palladin Consumer Retail Partners, previously known as Palladin Capital Group, invests exclusively in retail and consumer products companies in North America and Europe that have revenues ranging from $50 million to $500 million. Palladin invests from $10 million to $50 million of equity capital in each transaction.  Palladin is investing out of its current fund which was closed in April 2012.  The firm was founded in 1998 and is based in Boston (www.pcrp.com).   Current and former investments include Aerosoles, InMotion Entertainment, Nic + Zoe, J. McLaughlin, KT Tape, Things Remembered, Restoration Hardware, Spencer Gifts, Andrew Marc, and Party America.

“The Palladin team brings a wealth of experience in footwear and growing consumer brands. Their expertise, support and leadership will provide creative insights and operational improvements that will be instrumental in capitalizing on the strength of the Harrys of London brand as we bring the company to the next level of development,” said Marty Wikstrom, Chairman.

Palladin’s principals have previously held CEO and other senior executive roles at several wholesale, retail, and related companies including Arnotts (Ireland), Gordon Brothers, Nine West, Jones, Holt Renfrew, Escada, QVC Networks and Bloomingdales.

“We look forward to using our contacts and expertise to partner with Harrys through what promises to be an exciting period of growth and development,” said Caryn Lerner, Operating Partner of Palladin.  “The Harrys’ team members have built a company known for innovation, technology, design and quality. We intend to build on the company’s product resources as we work more closely with our retail partners and enhance the customer experience in every distribution channel – retail, wholesale, e-commerce and m-commerce.”

William Blair provided financial advice to Harrys and legal advice was provided by Taylor Wessing.  Latham & Watkins acted as legal advisor to Palladin.

2014 PEPD • Private Equity’s Leading News Magazine • 10-22-14

HKW Adds-on Summit Catering

by

Royal Camp Services, a portfolio company of Hammond, Kennedy, Whitney and Company (HKW), has acquired Summit Catering.

“The Royal Camp management team has done an outstanding job with organic growth over the last few years and with the acquisition of Summit, the company is well positioned to serve the many opportunities in British Columbia,” said Jeff Wood, CEO of HKW and Chairman of Royal Camp.

Royal Camp is a provider of workforce accommodations, catering and other services to customers operating in the oil, natural gas and mining industries in western Canada. The company owns a fleet of equipment capable of accommodating camp sizes of 10 to over 800 workers and provides the staff necessary to operate these remote camps including foodservice, custodial and janitorial services as well as facility maintenance.  Royal Camp’s customers are oil and gas exploration and production companies, producers and developers of oil sands, providers of seismic services, and pipeline and general construction firms that outsource their camp and catering requirements to third parties. Royal Camp has offices in Edmonton, Calgary and Grande Prairie, Alberta (www.royalcamp.com).

Based in Smithers, British Columbia, Summit Catering provides catering and camp services to remote locations throughout Canada (www.summitcamps.ca).

“The acquisition of Summit is a huge positive for Royal Camp.  The existing relationships and established presence of Summit will enhance Royal Camp’s capability to provide both existing and new customers with first class camp accommodations and catering in the important British Columbia market.” said Daryl Rackel, President of Royal Camp.”

Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Since 1982, HKW has completed 47 platform management buyouts of small middle-market companies throughout North America as well as 52 add-on acquisitions. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-22-14

Sentinel Acquires Hollander Sleep Products

by

Sentinel Capital Partners has acquired Hollander Sleep Products, a designer, manufacturer, and marketer of bedding products, from HGGC (formerly Huntsman Gay Global Capital) which acquired the company in 2009.

“Hollander is a leader in its industry with a talented management team that possesses extensive market knowledge and deep functional expertise,” said Eric Bommer, a Sentinel partner. “We are thrilled to be partnering with such a deep and experienced team.”

Hollander designs, manufactures and markets basic bedding products including bed pillows, mattress pads, comforters, foam products and related sleep accessories. The company markets its products under a portfolio of licensed and retail partner brands including Ralph Lauren®, Simmons®, Beautyrest®, Laura Ashley®, Nautica®, Waverly®, and Live Comfortably®. Hollander operates nine facilities across North America and employs 1,650 people worldwide. The company was founded in 1953 and is headquartered in Boca Raton (www.hollander.com).

“We are excited about our new partnership with Sentinel,” said Chris Baker, CEO of Hollander. “This marks a new chapter for our company as we continue to build upon our long record of industry leading design, innovation, quality and service.”

Sentinel Capital Partners invests in middle market companies in the United States and Canada in partnership with management. The firm invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $50 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).

HGGC (formerly Huntsman Gay Global Capital) makes leveraged buyout, recapitalizations and growth equity investments in middle market companies.  The firm invests from $25 million to $100 million in equity per transaction in companies that have revenues of $100 million or more, enterprise values of $100 million to $500 million, and EBITDA of $15 million or more.  HGGC is based in Palo Alto (www.hggc.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-22-14

Freeman Spogli Closes Fund 7 at Max Cap

by

Freeman Spogli & Co. has held a final closing of its seventh private equity fund, FS Equity Partners VII, LP, with $1.3 billion in commitments from its investors. Freeman Spogli is a middle market private equity firm specializing in the acquisition of consumer-related and distribution businesses.

The new fund surpassed its $850 million target and closed at its maximum cap.  More than two-thirds of the firm’s Fund VI investors re-upped for Fund VII. “We were able to accomplish these results due to the strong support of our existing partners as well as the addition of a significant number of new participants,” said Ron Spogli, CEO at Freeman Spogli.  Over 70% of Fund VI’s investors became limited partners in Fund VII, with total commitments increasing by 49% compared to Fund VI levels. The aggregate commitments of these historical partners accounted for approximately 55% of the total capital raised.

With the fund now closed, Freeman Spogli has confirmed that Fund VII included commitments from 80 investors, an increase of over 50% from Fund VI levels. In addition, the partners and principals of the firm have committed $104 million – approximately 8% of aggregate commitments – to Fund VII.

Lazard acted as lead placement agent and Triago acted as a placement agent for several European investors.  O’Melveny & Myers served as legal counsel.

Freeman Spogli & Co. invests in middle market consumer and distribution companies. Since its founding in 1983, the firm has invested over $3 billion in 50 portfolio companies with an aggregate transaction value of $19 billion.  Freeman Spogli has offices in Los Angeles and New York (www.freemanspogli.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-22-14

GE Antares Backs Glencoe’s Latest Add-on

by

GE Antares Capital was the administrative agent on a $95 million senior secured credit facility used to refinance the senior debt of Dialog Direct, a Glencoe Capital’s portfolio company, and to provide financing to for the company to acquire Allegra Direct Communications.

“GE Antares is a reliable and trusted debt provider to our firm. They were responsive and constructive from early due diligence through final documentation,” said Jason Duzan, managing director at Glencoe Capital.

In January of 2014, Glencoe formed Dialog Direct through the combination of four Glencoe marketing services and customer care portfolio companies: NOVO 1, Budco, South Shore Venture Enterprises and Dialogue Marketing.  Today, Dialog Direct provides sales and marketing support services including direct marketing, creative, customer service and sales, inside sales, order fulfillment, eCommerce and data analytics. The company has more than 5,000 employees across 16 locations and is headquartered in the Detroit suburb of Highland Park (www.dialog-direct.com).

The latest addition to Dialog Direct, Allegra Direct Communications, is a customer care provider for health insurance companies based near Detroit in Clinton Township, MI (www.allegra-direct.com).

“GE Antares is excited to support Glencoe Capital on this transaction,” said Kevin Fitzgerald, vice president of GE Antares. “Dialog Direct has proven itself to be a strong company and continues to bring employment opportunities to the state of Michigan. Both Glencoe and Dialog Direct are valuable clients to us and we look forward to supporting them both going forward.”

GE Antares is a unit of GE Capital with offices in Atlanta, Chicago, Los Angeles, New York, and San Francisco. Specializing in the middle market, GE Antares is a “one-stop” source for GE’s lending and other services to middle market private equity sponsors (www.geantares.com).

Glencoe Capital makes acquisitions and growth equity investments in lower-middle market companies that have EBITDAs between $3 million and $15 million. The firm has completed over 45 acquisitions, representing over $ 1.6 billion in transaction value. The firm currently manages three funds: the Glencoe Capital Michigan Opportunities Fund, Glencoe Capital Partners III, and Glencoe Capital Partners II. Founded in 1993, Glencoe Capital has offices in Chicago and in the Detroit suburb of Birmingham (www.glencap.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-22-14