Archives for November 5, 2014

The Carlyle Group to Acquire Dealogic

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The Carlyle Group and its co-investors have agreed to acquire Dealogic, a provider of financial data and analytics, for approximately $700 million from the company’s management and its founders, who will re-invest equity into the transaction.  The purchase of Dealogic is expected to close by the end of 2014.

Carlyle is partnering with co-investors Randall Winn, co-founder and former CEO of Capital IQ from 2004 to 2011, and Euromoney Institutional Investor, one of Europe’s largest business and financial magazine publishers with interests in financial publishing and event organization. Euromoney is headquartered in London (www.euromoneyplc.com).  Carlyle’s equity will come from Carlyle Partners VI, a $13 billion fund which had a final close in November 2013.

“Partnering with Carlyle and Dealogic is a great opportunity,” said Mr. Winn.  “Dealogic’s existing solutions are best-in-class for certain critical banker workflows and the company has developed exciting new products which are very compelling and broadens their addressable market.”

Dealogic is a financial software company that provides a platform for investment banks to conduct transactions in the areas of fixed income, equity capital markets, mergers and acquisitions, institutional sales and equity research, as well as FINRA, SEC and FTSE regulatory and investment banking strategies.  Dealogic sells its products to more than 500 clients globally including each of the world’s top 50 investment banks.  The company also works with other firms, such as the Wall Street Journal, to create financial leader boards.  Dealogic competes with Bloomberg, Mergermarket, Thomson Reuters, and smaller financial services information providers such as the Sovereign Wealth Fund Institute and Preqin.  The company was founded in 1983 and employs over 600 people.  Dealogic is headquartered in New York and London with additional offices in Hong Kong, Budapest, Tokyo, Mumbai, Sydney, Beijing, and São Paulo (www.dealogic.com).

“Dealogic is a globally recognized and trusted brand and its software and data platform is the de facto standard for the investment banking industry,” said Cam Dyer, Managing Director of The Carlyle Group.  “Through its 30-year history, Dealogic has invested heavily in developing its technology to create solutions that drive productivity and profitability for its customers and has become an increasingly important part of its customers’ critical work flows. We believe that Dealogic, with its talented management and employee base, will build on that success by introducing newly developed SaaS solutions and growing via acquisition to expand its relationships with customers.”

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation.  The firm employs approximately 1,600 people in 38 offices across six continents and is based in Washington, DC (www.carlyle.com).

“Dealogic is a growth company and we have been investing heavily in our technology and information to create new, innovative products and enhanced services,” said Tom Fleming, the CEO of Dealogic.  “We are excited to partner with Carlyle and will benefit enormously from their significant experience in the financial services technology sector and deep relationships across the financial community. Given our strong, long-standing relationships with our customers and excellent staff, Dealogic fits perfectly with the Carlyle model of investing in strong businesses and helping them considerably accelerate their growth and development.”

Barclays Capital and JPMorgan are acting as financial advisors to The Carlyle Group, which has secured committed debt financing from JPMorgan Chase Bank, Barclays Capital, and Deutsche Bank Securities.

Investec (www.investec.com) is acting as financial advisor to Dealogic and Gleacher Shacklock (www.gleachershacklock.com) is acting as financial advisor to Euromoney Institutional Investor.

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Topspin Partners Acquires Onaroo

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Patch Products, a toy company acquired by Topspin Partners in September 2014, has acquired the Onaroo brand of night lights and alarm clocks for children from American Innovative.

The buy of the Onaroo brand allows Patch to expand into a new, complementary category of children’s room décor.  “Patch is moving quickly and looking for opportunities to grow and expand. Onaroo is a strong strategic fit with Patch Products and will complement our existing products very well, while also allowing us to expand into new categories,” said Patch CEO Bob Wan.

The Onaroo line includes several award-winning products such as a talking bedside alarm clock and night light sold under the Teach Me Time!™ brand, a plush sleep buddy night light with music sold under the OK to Wake!™ brand, and Owl, a whimsical portable night light brand.

“The acquisition of Onaroo is part of Patch’s strategy to build a leading company with high quality products serving both the specialty and mass channels in the toy and juvenile products industries,” said Stephen Lebowitz, Managing Director at Topspin Partners.

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).

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.topspinpe.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Leonard Green to Buy Packers Sanitation from Harvest

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Leonard Green & Partners will acquire Packers Sanitation Services (PSS), a sanitation services company, according to reports from Thomson Reuters. PSS has been a portfolio company of Harvest Partners since June 2011.

PSS is a contract sanitation services company that provides sanitation for over 450 food processing plants daily. The company has over 15,000 sanitation employees covering the US and Canada. Harvest Partners acquired PSS in June 2011 from Blue Point Capital Partners which had acquired the company in 2007.  PSS is headquartered in Kieler, WI and is led by CEO Jeff Kaiser (www.pssi.co).

Leonard Green & Partners invests in middle-market companies with market-leading franchises and defensible competitive positions, attractive growth prospects and proven management teams.  Sectors of interest include retail, distribution, healthcare, aerospace/defense and consumer/business services. Leonard Green & Partners was founded in 1989 and manages approximately $15 billion of equity capital. The firm is located in Los Angeles, CA (www.leonardgreen.com).

Harvest Partners invests in management buyouts and growth financings. Sectors of interest include business and industrial services, manufacturing and distribution, healthcare, midstream energy, consumer products, and retail.  The firm was founded in 1981 and is based in New York (www.harvpart.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Generation Growth Invests in Accurate Home Care

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Generation Growth Capital has made an investment in Accurate Home Care, a provider of home health care services.

Accurate Home Care (AHC) provides home health care services to patients of all ages and care requirements. Services provided include a range of Medicaid, Medicare and private pay services such as private duty nursing, personal care assistance, home health aide, and mental health, among other health services. AHC has nine regional offices serving Minnesota, Iowa and Illinois and provides more than two million service hours to its patients every year. The company is headquartered in the Minneapolis suburb of Otsego (www.accuratehomecare.com).

“When you look at taking costs out of the health care industry, home health care is a key component of that. AHC is a leading company in this industry with a strong management team that allows us to capitalize on this trend,” said Cory Nettles, a managing director of Generation Growth Capital.

Post acquisition, Amy Nelson, who founded AHC in 2002, will remain as CEO and she will retain a significant portion of the ownership. “We went through an extensive search process to find the best partner for Accurate Home Care who would help us continue to grow. We believe Generation Growth Capital will be a great fit for us. I am thrilled to be partnering with them,” she said.

Generation Growth Capital invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).

“We are impressed with the business that Amy and her management team have built. AHC has a best-in-class reputation in its served markets. AHC puts its clients first and leads with integrity and customer service, which gives them a competitive advantage in the market,” said John Reinke, a managing director of Generation Growth Capital.

Senior financing for this transaction was provided by Anchor Bank. Mezzanine financing was provided by Exmarq Capital Partners.

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Cotton Creek Acquires Coal City Cob Company

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Cotton Creek Capital has acquired Coal City Cob Company in partnership with the Cloonen family and management of the company. DFW Tank Cleaning, Coal City Cob’s affiliated tank washing operation, was also included in the transaction.

Coal City Cob is a second generation, family-owned business that provides liquid bulk transportation services to the chemical and hazardous waste industries.  Customers include chemical manufacturers and distributors, and specialty chemical companies. Coal City Cob operates a nationwide network of terminals, including a 27-acre facility near Dallas that has rail-to-truck bulk transfer ability, and offers fleet maintenance and tank wash services.  Coal City Cob was founded in 1970 and is headquartered in Waxahachie, TX (www.cccob.com).

“We have had a relationship with Coal City Cob for many years as a strategic provider of transportation services for our businesses,” said Cotton Creek Managing Director, Antonio DiGesualdo. “Over this period, Coal City Cob’s customer service and reliability have been unparalleled.”

Post closing, Coal City Cob will continue to be led by President and CEO Michael Cloonen and VP Operations Randy Wasson.  The Cloonen family will remain significant shareholders in the company.

“The consummation of our partnership with Cotton Creek represents a significant opportunity for our customers and employees as we combine the capabilities of Coal City Cob with the experience and resources of our new financial partner,” said Mr. Cloonen.

Cotton Creek Capital invests in lower middle market companies in manufacturing, value-added distribution, industrial services, business services, healthcare services and consumer staples. The firm invests in companies with enterprise values between $15 million and $200 million, partnering with management teams on a variety of transactions, including buyouts, recapitalizations, buy-and-builds, and corporate divestitures. Cotton Creek is headquartered in Dallas (www.cottoncreekcapital.com).

The investment in Coal City Cob is being made through Cotton Creek Capital Partners II, LP, Cotton Creek’s second standalone private equity fund.

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Blue Point Closes Fund 3 at $425 Million Hard Cap

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Blue Point Capital Partners has held a final close of its third fund, Blue Point Capital Partners III, LP, at the hard cap of $425 million. With this close, Blue Point has now raised more than $1.2 billion in capital across three institutional funds since its founding in 1990.

“We are pleased to have exceeded our target and reached our hard cap for Blue Point III,” said Chip Chaikin, a partner with Blue Point. Blue Point originally targeted $400 million for the fund, consistent with the size of its two previous funds. “Sophisticated investors have numerous options today to access the middle-market private equity asset class. We are gratified that many leading institutional investors, including a significant number of new investors, have confidence in our strategy and team.”

Blue Point Capital Partners invests in manufacturing, distribution and service businesses that have from $20 million to $200 million in revenue and EBITDA greater than $5 million.  Sectors of specific interest include energy services, environmental services, engineered components, industrial outsourcing, metals and plastics processing, and specialty distribution. Blue Point has offices in Charlotte, Cleveland, Seattle, and Shanghai (www.bluepointcapital.com).

“Fund III will continue to build on our strategy of regional sourcing and leveraging our excellent operating partners and operating resources in China,” said John LeMay, also a partner with Blue Point.  “We are grateful to our management team partners — our success is a reflection of their strong contributions.”

Blue Point has already completed two platform investments for the new fund with the acquisitions of OrthoLite (April 2014), a supplier of insoles and related shoe components to branded footwear companies (www.ortholite.com), and Hilco Vision (May 2014), a designer, manufacturer and distributor of eyewear and eye care accessories, supplies and equipment (www.hilco.com).

The final closing date for Blue Point Capital Partners III, LP was October 30, 2014.

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Nishant Bubna Joins Dresner

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Dresner Partners has hired Nishant Bubna as a new Vice President. Mr. Bubna has more than 12 years of finance experience, including nine years in investment banking.

Mr. Bubna has experience in the business services, consumer, industrials, healthcare, and technology sectors.  He joins Dresner Partners from KPMG Corporate Finance, where he was a Senior Associate within its investment banking group. Prior to KPMG, he was at Houlihan Lokey, Kinetic Advisors, and Charterhouse Equity Partners, where he gained experience in investment banking, mergers and acquisitions, restructuring, and private equity. He has also worked at UBS Investment Bank.  Mr. Bubna holds a bachelor’s degree in Business Administration from the University of California, Berkeley.

“Nishant is energetic and driven, and he has a range of experience in middle-market investment banking,” said Steven Dresner, President of Dresner Partners. “We look forward to his contributions to our team.”

Dresner Partners provides financial advisory services to business owners and managers, including institutional private placements of debt and equity, merger and acquisitions, valuations and strategic consulting services. Sectors of interest include business services, consumer products, financial services, healthcare, industrials, and technology.  The firm was founded in 1991 and is headquartered in Chicago with additional offices in New York, Palo Alto and Richmond (www.dresnerpartners.com).

“Dresner Partners is a leader in the middle market and has a reputation for outstanding client service,” said Mr. Bubna. “I’m pleased to be working with Steve Dresner and the rest of the firm’s leadership on closing new deals.”

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14