January 15, 2015
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Archives for January 15, 2015

Inverness Graham Acquires Identity Finder

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identity finder nf1Inverness Graham has acquired Identity Finder, a provider of enterprise data management software focused on discovering, classifying, monitoring, and protecting corporate information.

Identity Finder helps organizations avoid data breaches by finding and protecting confidential data such as personal information, medical records, credit card accounts, and intellectual property stored across the enterprise, within e-mail, and the cloud.  The company was founded in 2006 and is headquartered in New York (www.identityfinder.com).

Ramon Peypoch, a data security industry veteran, assisted Inverness Graham with this transaction and has joined the company’s board of directors.

trey sykes nf1“The combination of the explosion of data and the growing number of data breaches over the past few years has created a unique opportunity within the security software/SaaS segment, an area proactively targeted by Inverness Graham,” said Trey Sykes, Managing Principal of Inverness Graham.  “Identity Finder’s software discovers sensitive data with unparalleled accuracy across multiple platforms and then, unlike any other solution on the market, automatically classifies this sensitive data, allowing its customers to greatly reduce their overall sensitive data footprint with unrivaled efficiency.  Managing and reducing the sensitive data footprint greatly minimizes the risk of substantial losses, especially when data breaches are so commonplace in today’s environment.  We are excited to partner with an outstanding management team, who retained a substantial ownership position and will continue to manage the business operations.”

“We are extremely proud of the company and the product that we have built.  Our customers recognize it’s not a matter of if, but when a cyber attack will occur, and they rely on our Sensitive Data Manager technology to prevent the loss of their most valuable information assets,” said Identity Finder CEO Todd Feinman.  “Our new partnership with Inverness Graham, with the relationships and resources they bring to bear, will enable us to drive growth and accelerate value for both our customers and shareholders.”

Inverness Graham invests in lower middle market value-added manufacturing and service companies with revenues from $10 million to $50 million, EBITDA’s between $3 million and $10 million, and enterprise values of $20 million to $100 million. The firm manages $250 million in capital commitments and was formed by senior executives of the Graham Group, an industrial and investment concern with global interests in plastics, packaging, recycling, building products and outsourced manufacturing. Inverness Graham is based near Philadelphia in Newtown Square, PA (www.invernessgraham.com).

Abacus Finance Group provided the senior debt to finance this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-15-15

Z Capital Acquires ACCEL Performance Group

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accell nf1Z Capital Partners, through its portfolio company MSDP Group, has acquired automotive aftermarket parts maker ACCEL Performance Group.

ACCEL is a performance aftermarket parts manufacturer of digital fuel injection systems, fuel injectors, coils, distributors, caps, rotors, ignition wires and spark plugs. Brands include ACCEL, Mr. Gasket, Mallory Ignition, Lakewood, QuickTime and Hays. The company is based in Cleveland (www.accel-ignition.com).

MSDP Group designs, develops, tests and manufactures ignition controls, fuel injection, coils, timing accessories, spark plug wires and other performance accessories.  MSDP sells its products under the MSD®, Racepak®, Superchips® and Edge® brands to customers in the street enthusiast, professional racer and powersports markets. The company has an 84,000 sq. ft. manufacturing facility and approximately 400 employees. MSDP is headquartered in El Paso (www.msdperformance.com).

james zenni nf1“ACCEL is a natural fit for MSDP and a valuable addition to the company’s product portfolio,” said James Zenni, Chairman of MSDP and Chief Executive Officer of Z Capital Partners.  “Since making our investment in December 2013, MSDP has experienced significant growth, as well as enhanced its product innovation, brand marketing and distribution strategies.”

Z Capital makes control investments in middle-market distressed companies, operational turnarounds and special situations. The firm targets companies with an enterprise value of less than $1 billion or EBITDA of less than $100 million. Sectors of interest include consumer products, steel and steel processors, agricultural, gaming, leisure, real estate, manufacturing, specialty services and automotive.  The firm has approximately $1.9 billion of capital under management.  Z Capital is based in the Chicago suburb of Lake Forest and has an additional office in New York (www.zcap.net).

“The acquisition of ACCEL significantly enhances our position in ignition technology and allows MSDP to expand our product portfolio aimed squarely at diehard racing and street performance enthusiasts,” said Rick Ruebusch, Chief Executive Officer of MSDP.  “ACCEL complements our existing brands, providing us with both increased capability and an unmatched footprint in the aftermarket platform.”

Monroe Capital provided a credit facility to MSDP Group to support the acquisition of ACCEL Performance Group.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-15-15

H.I.G. Capital Acquires DHISCO

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dhisco nf1The distribution division of Pegasus Solutions has been acquired by H.I.G. Capital and re-launched as The Distribution Hospitality Intelligent Systems Company (DHISCO).  The new brand, DHISCO, has roots from the original company’s inception 26 years ago under the name THISCO, The Hotel Industry Switch Company.

DHISCO is a processor of electronic hotel transactions providing connectivity and distribution services, including marketing, capturing and booking reservations, to over 100,000 hotels worldwide – representing 300 plus hotel chains in more than 200 countries. The company facilitates over eight billion shopping transactions each month.  DHISCO will continue to be headquartered in Dallas and has additional offices in Scottsdale, AZ and London (www.dhisco.com).

toni portmann nf1Toni Portmann has been appointed to serve as CEO and Executive Chairman of the Board of the new company.  “The H.I.G. partnership allows DHISCO to realize our full potential by enabling us to deepen our existing client relationships and expand our product and services platform,” said Ms. Portmann.

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).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-15-15

WCAS Acquires AIM Software

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aim nf1Welsh, Carson, Anderson & Stowe (WCAS) has made a majority investment in AIM Software, a provider of software products to the financial services industry.  WCAS is also investing additional capital into the business to provide for geographic expansion as well as organic and inorganic growth initiatives.

AIM Software provides data management applications that are used by financial services companies to control and access data.  The company’s GAIN product line utilizes a series of components and modules that are designed to let financial institutions source, control, and manage financial data used by their operations.  AIM was founded in 1999 and is headquartered in Vienna, Austria with additional offices in Luxembourg, Switzerland, France, the United Kingdom, and the United States (www.aimsoftware.com).

martin buchenberger nf1The existing management team, led by founder and CEO Martin Buchberger, will continue to operate the business and will maintain a significant ownership stake in AIM.  “We are excited to have found the right partner in Welsh Carson, which brings impressive expertise, strong intellectual capital and an investment focus that is consistent with AIM’s culture,” said Mr. Buchberger.

WCAS is focused exclusively on investments in business, information and healthcare services. Since its founding in 1979, WCAS has organized 15 limited partnerships with total capital of over $20 billion. The firm is based in New York (www.welshcarson.com).

Marlin & Associates was the exclusive financial and strategic advisor to AIM.  “The Marlin & Associates team was the ideal partner to aid us in this transaction. Their industry knowledge, expertise and passion were both apparent and invaluable. They demonstrated unwavering commitment, integrity and hard work,” said Mr. Buchberger.

Jonathan Kaufman nf1“We are extremely pleased to have served as the exclusive financial and strategic advisor to AIM and to have helped them initiate and complete this highly strategic transaction. We expect that the company’s unique business applications and strong culture combined with WCAS’s highly successful track record as a strategic partner will create a winning combination,” said Jonathan Kaufman, a partner with Marlin & Associates.

Marlin & Associates specializes in advising buyers and sellers of US and international middle-market firms that provide software, data, and related services. The firm has offices in New York, San Francisco, Washington DC, and Toronto (www.marlinllc.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-15-15

Pegasus Sells Climatec to Bosch

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climatic nf1Pegasus Capital Advisors has completed the sale of Climatec, a provider of building automation and energy management services, to Robert Bosch North America Corporation (RBNA).  Pegasus acquired Climatec in April 2012.

Climatec, founded in 1975, is a provider of building automation, energy efficiency, security and life-safety services to the education, health care, office, hospitality, industrial, federal, state and local government sectors.  Climatec has approximately 670 employees and is headquartered in Phoenix with additional offices in Arizona, California, Nevada and Texas (www.climatec.com).

During the course of Pegasus’ ownership, Climatec completed and integrated two add-on acquisitions and also organically entered new markets.  Since Pegasus’ acquisition, Climatec’s top line revenues have increased by more than 50% and the employee base grew from 390 to 670.  “Pegasus identified building automation and energy services as an attractive sector that fit within our investment focus on resource scarcity and sustainability,” said Craig Cogut, Founder of Pegasus. “We are pleased with the outcome of this transaction and believe Climatec is well-positioned for continued expansion.”

Pegasus invests in middle market companies across a range of industries. The firm partners with management teams of growth companies, with a focus on those that benefit from the business implications of global resource scarcity. Sectors where this trend is most pronounced are food, water, energy, health & wellness and security. Pegasus currently manages approximately $2 billion in assets.  The firm was founded in 1996 and has offices in New York and Cos Cob, CT (www.pcalp.com).

“We were fortunate to have had the opportunity to partner with Climatec’s world class management team and to have achieved significant growth while working together to execute on our strategic plan,” said Eric Gribetz, Co-Managing Partner of Pegasus. “We wish Climatec well in its next chapter with Bosch.”

“Pegasus has been a great strategic partner and supporter to us at Climatec,” said Terry Keenen, President of Climatec. “Working with Pegasus and leveraging its resources has enabled us to better position Climatec for the future.”

Robert Bosch North America is a regional holding company of the Bosch Group, a global supplier of technology and services to the mobility, industrial technology, consumer goods, and building technology sectors. The company is based in the Detroit suburb of Farmington Hills (www.boschusa.com). The company’s parent, Robert Bosch GmbH, is headquartered in Stuttgart, Germany (www.bosch.com).

William Blair & Company was the advisor to Pegasus and Climatec on the transaction and Kirkland & Ellis provided legal counsel.

Seabury Group Launches New Merchant Bank

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seabury nf1Advisory and professional services firm Seabury Group has launched a new merchant banking platform within its Seabury Corporate Finance operating subsidiary.  The new merchant bank will pursue minority equity investing, private debt financing and commercial aircraft leasing within the aviation, aerospace & defense and transportation industries.

Seabury Corporate Finance is led by senior managing director Patrick Dowling and in addition to its existing businesses – aerospace & defense advisory, structured finance, and maritime corporate finance – will now build out its new merchant banking platform.

Christopher Kubasik nf1“Seabury’s move into merchant banking is a natural fit as it builds on deep and extensive knowledge of a highly adept and experienced team of industry experts,” said Seabury’s President & Chief Executive Officer Christopher Kubasik. “Pat Dowling’s nearly four decades of finance experience, complemented by a team of strong industry veterans, provides an ideal environment which leverages our strengths and will deliver results for our clients.”

Mr. Dowling, who recently joined Seabury, has extensive experience in the industry, which includes a partnership at Massif Partners, executive positions as Senior Managing Director & Group Head of Aerospace & Defense at Tygris Commercial Finance Group, Managing Director & General Manager of CIT Leveraged Finance Transportation, and a career as a Managing Director with GE Capital.

Patrick woling bf1“Seabury has a well-known brand in the aviation, aerospace & defense and transportation industries, with a unique cross-selling and sharing opportunity within our businesses that originate unique and attractive investment opportunities,” said Mr. Dowling.  “We have had a successful track record of creating such transactions on a one-off basis for our clients and we are now well positioned to invest side by side with our clients or provide financing.”

Seabury Group is an advisory and professional services that specializes in the aviation, aerospace & defense, transportation, financial services, and insurance industries. The firm is headquartered in New York (www.seaburygroup.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-15-15

Corey Millette Joins Summit Park

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summit park nf1Lower middle market focused Summit Park has added Corey Millette to its team as Controller.  Ms. Millette will be responsible for financial reporting, investor relations and reporting, and compliance.

Prior to joining Summit Park, Ms. Millette was a Manager at PricewaterhouseCoopers.  During her tenure there, Ms. Millette provided attest and financial statement audit services to clients in the financial services industry, with a focus on clients in the asset management and alternative investments sectors. Ms. Millette began her career in Boston serving mainly large registered investment companies and transferred to Charlotte in 2012 to help expand PwC’s local Asset Management practice.

Ms. Millette received a Bachelor of Science in Corporate Finance and Accounting and a Masters in Accounting from Bentley University. She is also a certified public accountant in North Carolina and Massachusetts.

Having closed its second lower middle-market fund in September 2014, Summit Park is actively seeking platform investments in businesses with $20 million to $100 million of revenue, located in the South and Southeastern regions of the US in the business services, outsourced services, light manufacturing, and distribution industries.  Within these sectors, the firm has a specific interest in companies in the food and beverage, food safety, and test and measurement sectors. Summit Park is headquartered in Charlotte (www.summitparkllc.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-15-15

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