Archives for January 21, 2015

GTCR Acquires Fairway Media Group

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GTCR has partnered with Adams Outdoor Advertising to acquire Fairway Media Group from ACON Investments and MidOcean Partners.  Fairway is one of the country’s largest privately held outdoor advertising companies. GTCR – with a majority equity position in Fairway Media Group – is partnering with Adams Outdoor, Adams Outdoor CEO Kevin Gleason, Adams Outdoor CFO Abe Levine and existing Fairway management.

“We are thrilled to have the opportunity to partner with Adams Outdoor in this transaction,” said David Donnini, Managing Director at GTCR. “Kevin Gleason and Abe Levine are proven veterans of the outdoor advertising industry, and we look forward to working with them to continue building a leading outdoor advertising franchise at Fairway.”

Fairway Media Group operates approximately 20,000 bulletins, posters and digital billboards across numerous metro areas in fifteen states throughout the Southeast, Southwest and Midwest regions. The company was founded in 1983 and is headquartered west of Charlotte in Duncan, SC (www.fairwayoutdoor.com).

“Kevin and Abe have an exceptional track record in operating and managing outdoor advertising companies, and this transaction demonstrates GTCR’s commitment to finding creative ways to partner with leading management teams,” said Craig Bondy, Managing Director at GTCR. “Fairway is a unique asset within the outdoor advertising industry, and we look forward to supporting the growth opportunities available through acquisitions and internal investments.”

GTCR’s investment in Fairway was funded from GTCR Fund XI, a private equity fund raised in 2014 with $3.85 billion of capital commitments. Dallas-based Newstone Capital Partners (www.newstone.com) provided mezzanine debt financing to support the transaction.

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).

Adams Outdoor Advertising was founded by Steve Adams in 1983 and operates in eight states in the Midwest, Mid-Atlantic and Southeast regions of the country. The company is headquartered in Roswell, GA (www.adamsoutdoor.com).

Deutsche Bank Securities served as M&A advisor to GTCR, Stephen McNeely of Tantara Capital Partners served as an industry advisor, and Kirkland & Ellis served as legal counsel to GTCR.  Moelis & Company served as financial advisor to Fairway, and Hogan Lovells US served as its legal advisor. 

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-21-15

Madison Dearborn Acquires Walgreens Infusion Services

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Madison Dearborn Partners (MDP) has signed an agreement with Walgreens to acquire a majority interest in Walgreens Infusion Services. The transaction is expected to close during the second quarter of calendar year 2015.  At the conclusion of this transaction, Walgreens Infusion Services will become a new independent, privately-held company with Walgreens maintaining a significant minority interest.

Walgreens Infusion Services is one of the nation’s largest providers of home and alternate treatment site infusion services.  Walgreens Infusion Services’ geographic footprint includes 89 infusion pharmacies and 110 alternate treatment sites in 40 states, approximately 4,700 employees and the ability to serve more than 90 percent of the US population. Its clinical personnel, including nurses, pharmacists, technicians and dieticians, treat patients who are managing a broad range of acute and chronic conditions.

Paul Mastrapa, current divisional vice president of Walgreens Infusion Services, will serve as the new company’s CEO.   “The new company, which will have an industry-leading management team supported by MDP and Walgreens, will be positioned to provide even greater value to patients, local health systems, health plans and pharmaceutical manufacturers,” said Mr. Mastrapa.

In support of the transaction, BofA Merrill Lynch will lead the first lien financing and Goldman Sachs Mezzanine fund is providing the second lien notes.

Madison Dearborn Partners has a history of successfully investing in health care across a range of sub-sectors including hospitals, home and community-based care, skilled nursing facilities, life sciences, specialty pharmaceuticals and medical products. Investments in health care services companies include Team Health, National Mentor Holdings and Valitas. The firm’s most recent health care investments include Kaufman Hall, Ikaria and Sage Products.

“MDP looks forward to our business relationship with Walgreens, and we are confident the new company is well positioned to continue to grow in the alternate-site infusion services industry,” said Tim Sullivan, managing director, Madison Dearborn Partners. “Working in close collaboration with Paul Mastrapa and his team, and also with Walgreens, we plan to invest in additional resources and new technology to enhance the company’s preeminent capabilities as an alternate site provider of critical health care services.”

Madison Dearborn Partners has more than $18 billion of capital under management. Sectors of interest include basic industries; business and government services; consumer; financial and transaction services; healthcare; and telecom, media and technology services.  Madison Dearborn was founded in 1992 and is based in Chicago (www.mdcp.com).

Walgreens is the nation’s largest drugstore chain and constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance (Nasdaq: WBA).  Walgreens operates 8,229 drugstores with a presence in all 50 states, the District of Columbia, Puerto Rico and the US Virgin Islands. The company is headquartered in Chicago (www.walgreens.com).

BofA Merrill Lynch acted as financial advisor and Sidley Austin acted as legal advisor to Walgreens, and Weil, Gotshal & Manges provided antitrust counsel.  MDP was advised by Barclays, Deutsche Bank and Goldman Sachs. Kirkland & Ellis acted as legal advisor to MDP and Ropes & Gray provided regulatory counsel.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-21-15

CIP Capital Forms eDriving

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CIP Capital has formed eDriving LLC a new platform company that combines I Drive Safely, a current CIP Capital portfolio company, and recently acquired DriversEd.com, a provider of online and behind-the-wheel driver education services.

Through the combination, eDriving will provide online driver’s education, defensive driving education, behind-the-wheel training and fleet driving safety.  The company also has more than 110 DriversEd.com branded cars that allow eDriving to provide both online driver education and behind-the-wheel driver training.  Customers include teenagers, adults, contract drivers and corporations.  The company has approximately 400 employees and will be headquartered in Oakland, CA and Carlsbad, CA with other local offices throughout the United States (www.edriving.com) (www.idrivesafely.com) (www.driversed.com).

According to CIP Capital, eDriving is positioned at the convergence of several trends: the growth of online education, the growing marketplace connecting drivers to new business models, the growth of apps and wearable devices to capture and control personal data and behavior, and the growing public focus on mitigating distracted and unsafe driving.

With the formation of eDriving, CIP Capital also initiated a series of management changes.  Celia Stokes joined eDriving in January 2015 as its new Chief Executive Officer. George Montgomery, the previous CEO of I Drive Safely, has been named as the company’s Chairman of the Board.

Ms. Stokes most recently served as the interim President of Envision Experience. She spent the previous eight years as EVP and Chief Marketing Officer at K12 Inc., a provider of online education curriculum and technology services to students and state and local governments.  “I am excited to lead eDriving and accelerate growth through the combination of the two leading brands in a very dynamic market,” said Ms. Stokes.  “We are extremely well positioned against the fascinating ‘drivatization’ trend happening not just in the US but around the world that is delivering driving-centered business models at a pace and scale unimaginable a few years ago.”

In addition, Lowell Orelup has joined eDriving as Chief Marketing Officer. Mr. Orelup was most recently Vice President of Marketing for Lending Tree, an online lender exchange.

CIP Capital invests from $25 million to $75 million of equity in companies that have revenues of $25 million to $100 million and EBITDA of $7 million to $20 million. A typical transaction size for the firm will be from $50 million to $150 million. Sectors of interest include B2B information management – brands providing subscription-based proprietary content or “must-have” information; Tech-enabled services – outsourcing of operations and processes of specific business functions to value-added third parties; Marketing services – data management tools and analytics used to target, acquire and retain customers; and Knowledge services – service providers to the education industry (childcare, K-12 and post-secondary) and corporate training. CIP Capital is headquartered in New York (www.cip-capital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-21-15

GoldPoint Closes 5th Co-Investment Fund

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GoldPoint Partners, a private equity affiliate of New York Life Investments, has held a closing of its fifth equity co-investment fund, GoldPoint Partners Co-Investment V, LP, with $675 million of commitments, a 50 percent increase from its prior fund.

The new fund will continue GoldPoint’s strategy of partnering with private equity sponsors by providing from $10 million to $50 million in equity co-investments to support their acquisition of middle market companies in the US and Western Europe.  So far, Fund V has invested or committed $227 million in 16 portfolio companies.  GoldPoint’s co-investment strategy dates back to 1991. Since then, GoldPoint has invested $2.2 billion in 149 equity co-investment transactions.

Fund V’s investor base includes public and private pension funds, financial institutions, insurance companies, family offices and a number of high net worth individuals.  “We are very grateful for the show of support we received from investors and we are confident that our 20 plus year track record of co-investing alongside our long-established, top-tier sponsor relationships in the middle market will continue to deliver strong results,” said GoldPoint’s CEO Thomas Haubenstricker.

“By consistently focusing on our Core Partner strategy, where we identify and invest in top performing sponsors and then become their trusted partner for direct equity co-investments and mezzanine financing, we have been able to build a portfolio of attractive co-investment opportunities that fit squarely within our sponsors’ areas of expertise,” said John Schumacher, GoldPoint’s Chairman.

Fund V is managed by six senior investment professionals led by Mr. Schumacher and Mr. Haubenstricker.  The GoldPoint team manages $9.8 billion of private equity assets including $1.4 billion of direct mezzanine investments, $1.5 billion of equity co-investments, and $6.8 billion of private equity and debt fund commitments.

GoldPoint is headquartered in New York (www.goldpointpartners.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-21-15

Lutz M&A Acquires Corporate Ventures

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With the acquisition of mergers and acquisitions advisor Corporate Ventures, Omaha-based Lutz M&A has brought together two of the area’s most prominent names and expanded its service capabilities for business owners seeking M&A advisory services.

Lutz is an accounting and professional services firm based in Omaha with approximately 150 professionals.  The firm’s service offerings include accounting and tax, business consulting, talent, technology and wealth management (www.lutz.us).  Serving small and mid-market businesses, Lutz M&A works with strategic buyers and private equity firms from around the country for larger-value businesses and identifies qualified, potential buyers from the Omaha area for smaller businesses.

“The acquisition of Corporate Ventures creates significant opportunity for Lutz M&A to provide business owners the highest level of expertise in all areas throughout its corporate transition,” said Bill Kenedy, Audit & Consulting Partner at Lutz.

Corporate Ventures, also based in Omaha, provides mergers and acquisitions services to lower middle market businesses that typically have revenues of $1 million to $50 million and earnings of $500,000 to $10 million (www.corpventures.com).

Brad Lehl, vice president of Corporate Ventures, has joined the Lutz M&A team following the acquisition. He brings nearly 20 years of experience in mergers and acquisitions, private equity and corporate finance to Lutz.

“Brad’s significant experience is a valuable asset to the division and enhances the successful relationships we’ve established with our clients and provides additional business transition services to non-clients,” said Mr. Kenedy.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-21-15

Brian Cooper Newest Partner at Atlantic Street

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Middle market private equity firm Atlantic Street Capital has promoted Brian Cooper to Partner.  Mr. Cooper joined Atlantic Street in 2013 with a background in private equity and investment banking.

Prior to joining Atlantic Street, Mr. Cooper worked at GB Merchant Partners – Gordon Brother’s private equity affiliate – where he invested equity in leveraged buyouts. Prior to Gordon Brothers, he worked at Financo, a boutique investment bank focused on serving the consumer sector. He received a Bachelor of Science in Economics in 2003 from the Wharton School at the University of Pennsylvania. Mr. Cooper serves on the boards of Atlantic Street’s portfolio companies Uniguest and Z Wireless.

“Brian has demonstrated a clear ability to evaluate complex investment opportunities and to work closely with our portfolio companies to create lasting value,” said Peter Shabecoff, Managing Partner at Atlantic Street Capital.  “As we continue to grow our firm and evaluate and manage investments, we believe it is important to develop and acknowledge individuals within the firm who understand and exhibit our collaborative investment philosophy.  Brian will be critical to our continued success and we are pleased to recognize his contributions with this promotion.”

Atlantic Street Capital invests from $5 million to $20 million in middle market companies with revenues from $25 million to $150 million. Sectors of interest include consumer products and services, transportation and logistics, business services, and basic manufacturing. The firm is currently investing from Atlantic Street Capital Partners, LP II and is based in Stamford, CT (www.atlanticstreetcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-21-15