Archives for November 20, 2014

Providence Acquires VendorSafe Technologies

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Providence Equity Partners has acquired VendorSafe Technologies, a provider of cloud-managed IT security services.  Upon closing of the transaction, the VendorSafe board of directors has named Kevin Watson, a Providence Equity Senior Advisor and cyber security industry veteran, as the company’s new Chief Executive Officer.

VendorSafe is a provider of cloud-managed IT security services that protect small- and medium-sized business’ information, payment systems, and on-premise public and private Wi-Fi networks from data breaches and other risks posed by hackers. Customers include retailers, quick serve restaurants and grocers among others.  The company is headquartered in Houston (www.vendorsafe.com).

“I am excited to join the VendorSafe team, as the company is very well positioned to address the rapidly expanding market opportunity driven by growing breach awareness in the small business community,” said Mr. Watson. “With more than 80% of breach attacks targeting small businesses, VendorSafe’s implementation technology uniquely positions us to address this growing segment of the market.”

Providence plans to assist VendorSafe in expanding into new markets such as hospitality, healthcare, legal, and insurance, and to expand into other geographic regions. Providence will also invest in VendorSafe’s technological infrastructure to allow it to expand its product offerings within cloud-managed network and wireless security.

“VendorSafe fits well with our investment strategy of identifying profitable growth companies that leverage cloud technology to deliver mission critical services to attractive end markets,” said Marco Ferrari, principal at Providence. “We are excited that Kevin Watson is joining VendorSafe as CEO. Kevin is a proven leader and an excellent complement to the existing VendorSafe team.”

Providence Equity Partners invests in the media, entertainment, communications and information industries and has approximately $40 billion of capital under management. The firm was founded in 1989 and is based in Providence with additional offices in New York, London, New Delhi, Hong Kong, and Beijing (www.provequity.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-20-14

Harbour Group Acquires Atlas Homewares

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Top Knobs USA, a portfolio company of the Harbour Group, has acquired Atlas Homewares.

Atlas Homewares provides decorative hardware products, including cabinet knobs, cabinet pulls, bath accessories, house numbers, and switch plates.  Atlas was founded by Adrienne Morea and is based in Los Angeles (www.atlashomewares.com).

“Adrienne is the quintessential entrepreneur,” said Jeff Fox, Harbour Group’s chairman and chief executive officer.  “She founded her company over 20 years ago with a vision, wonderful designs and a trip to a trade show.  From there, she built a great, award-winning business, with strong brands and an excellent reputation.  This business combination is a perfect example of one of Harbour Group’s strategies to put our operational expertise and capital behind the management teams of leading entrepreneur and family-owned businesses in order to help them achieve their next level of success.”

Top Knobs, acquired by the Harbour Group in 2008, is a manufacturer of decorative hardware for the kitchen, bath and closets. Products include knobs, door handles, pulls, hooks and other kitchen, bath and closet fixtures.  The company has over 4,000 product designs. Top Knobs was founded in 1994 and is based in Hillsborough, NJ (www.topknobsusa.com).

“We are thrilled to be combining forces with Top Knobs,” said Ms. Morea.  “We get the combined market strength of both industry leaders, while growing the Atlas brand and supplying the market with an ever-expanding library of stylish hardware.”

Harbour Group and its companies are engaged in manufacturing and distribution in multiple industries, including flow and energy measurement, boiler systems, professional diagnostic and repair tools, specialty LED systems, niche distribution, logistics services, decorative kitchen and bath hardware, abrasives, diamond-cutting products and related tools, entertainment and music products, and auxiliary plastic processing equipment.  Since its founding in 1976, Harbour Group has acquired 177 companies in 37 different industries. The firm is based in St. Louis (www.harbourgroup.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-20-14

Eureka Growth Acquires Jansy Packaging

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Jansy Packaging, a provider of specialty packaging for branded consumer products companies, has been acquired by Eureka Growth Capital.  As part of the transaction, Jansy’s management team will retain an equity stake in the company.

Jansy Packaging is a full-service provider of packaging design, engineering, manufacturing, and production services.  The company maintains a growing list of blue-chip consumer brands, including Jawbone, LG, Limited Brands, NARS Cosmetics, Oakley, and P&G.  The company is headquartered in Congers, NY and has offices in the New York, Chicago, and Los Angeles (www.jansypkg.com).

Eureka Growth Capital makes control and non-control investments in companies with $10 million to $75 million in revenue. Initial equity investments range from $4 million to $10 million but larger investments can be made with co-investment from the firm’s limited partners. The firm prefers investment opportunities in the Mid-Atlantic and Eastern US. Eureka Growth was founded in 1999 and is based in Philadelphia (www.eurekagrowth.com).

Sperry, Mitchell & Company (www.sperrymitchell.com) initiated this transaction, assisted in the negotiations, and served as exclusive financial advisor to Jansy Packaging.

2014 PEPD • Private Equity’s Leading News Magazine • 11-20-14

Consumer Retail Executive Joins Breakwater

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Breakwater Investment Management has added Deborah Benton as a Partner to its investment team.  Ms. Benton’s first role will be to serve as a strategic advisor to the board of directors of Breakwater’s portfolio company Planet Blue, a California-based lifestyle retailer and fashion brand.

“I am extremely proud to welcome Deborah Benton to Breakwater,” said Founder and Managing Partner Saif Mansour. “Deborah is a seasoned consumer retail executive who brings operational management expertise of the highest level to Breakwater. She has also been a leading example and advocate of women entrepreneurship, who adds incredible diversity, perspective and relationships to Breakwater’s investment activities.”

Prior to joining Breakwater, Ms. Benton served as President and COO of Nasty Gal, an online women’s fashion retailer that targets the millennials market.  At Nasty Gal, Ms. Benton led revenue growth of 400%, while building the team and infrastructure to support the company’s expanding operations. During her tenure, Nasty Gal was named one of the fastest growing retailers in the country.  Prior to Nasty Gal, Ms. Benton was COO of ShoeDazzle, an online women’s shoes and accessories company, where she managed over 20 times revenue growth in just over two years. Prior to joining ShoeDazzle, she served as Executive Vice President, Operations and Inside Sales at Teleflora.

“I am excited to embark on this next stage of my professional life and support the build out of Breakwater’s growth equity efforts in the branded consumer and specialty retail sectors,” said Ms. Benton.  “My goal is to identify attractive investment opportunities in emerging growth companies and support their leadership teams to deliver outstanding value creation. I am especially excited to join the Breakwater team given its entrepreneurial spirit and its focus on partnership.”

Breakwater Investment Management specializes in direct investments in small to lower middle market growth businesses with annual sales ranging from $5 million to $100 million. The firm serves as general partner of Breakwater Structured Growth Opportunities Fund, LP, a $100 million open-ended private investment partnership organized in August 2008. The fund’s investment objective is to generate both current income and capital appreciation through secured debt investments accompanied with equity participation rights, primarily in growth-oriented companies across a variety of industries.  Breakwater is based in Los Angeles (www.breakwaterfunds.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-20-14

Lincoln Adds to Industrials Expertise

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Lincoln International has hired Phillip McCreanor as Managing Director in its Global Industrials investment banking practice.  Mr. McCreanor will be based in the firm’s London office.

“The addition of Phil McCreanor seamlessly expands and deepens our industrials expertise while also highlighting Lincoln’s continued investment in growing our UK presence,” said Jim Lawson, Chairman of Lincoln International.

Mr. McCreanor has experience in a range of sectors including building products, packaging and print, and automotive. His industrials clients have included privately-held entities, private equity-owned enterprises and publicly traded corporations. Mr. McCreanor was most recently with Livingstone Partners, where he spent eight years and jointly led the industrials team. Prior to his time with Livingstone, Mr. McCreanor spent 12 years with Deloitte Corporate Finance covering the industrial products sector across Europe.

“I am thrilled to join the successful and growing Lincoln organization and to contribute to the firm’s continued international expansion,” said Mr. McCreanor.  “I was particularly attracted to Lincoln’s unparalleled global reach in the mid-market, which includes offices in Asia and South America, alongside its European and North American operations. Having deep sector and international coverage is incredibly important to delivering the high-quality service that clients increasingly demand and I look forward to being part of the further success of the Global Industrials team.”

Since 2010, Lincoln’s Global Industrials team has completed more than 150 M&A transactions. Overall, Lincoln International specializes in merger and acquisition advisory services, debt advisory services, private capital raising and restructuring advice on mid-market transactions. The firm also provides fairness opinions, valuations and pension advisory services on a wide range of transaction sizes. Lincoln International has 16 offices in the in the Americas, Asia and Europe and is headquartered in Chicago (www.lincolninternational.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-20-14