Archives for February 5, 2015

Summer Street Acquires Dwellworks

by

Summer Street Capital Partners has acquired Dwellworks, a provider of relocation management services. The management team of Dwellworks and Permal Capital Management co-invested in the transaction with Summer Street.  Dwellworks was a portfolio company of a private equity fund managed by Kirchner Group which manages assets for institutional investors.

Dwellworks is an outsourced provider of relocation management services including destination services for relocating employees and their families, intercultural training, property management for both vacant and tenant-occupied homes, and valuation services for relocation, specialty, and mortgage appraisal.  Customers include US based and international relocation management companies, corporations, and mortgage providers.  Dwellworks, founded in 2007, is headquartered in Cleveland and has offices in Canada, Mexico, Costa Rica, Brazil, the United Kingdom, Germany, and Luxembourg (www.dwellworks.com).

“The culture at Dwellworks is special.  Not only is it an organization with an exceptionally dedicated staff and experienced management team, but they live by their core values as well,” said Brian D’Amico, Managing Partner of Summer Street.  “This is evident each time you walk through the doors at Dwellworks, and in their reputation and client satisfaction.  We are excited to work with such a talented, collaborative team to continue to identify and realize growth opportunities.”

Summer Street Capital Partners has approximately $440 million of committed capital focused on investing in small-market companies. The firm makes equity investments of at least $10 million in companies with annual revenues of $20 million to $150 million that are located in the eastern half of the US and Canada. Summer Street invests in a range of industries but has particular interest in manufacturing; industrial, business and consumer services; and distribution.  The firm was founded in 1999 and is based in Buffalo (www.summerstreetcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-5-15

Centre Partners Exits Distant Lands

by

Centre Partners Management has sold its portfolio company Distant Lands Trading Company, a private label coffee company, to Ito En (North America), a subsidiary of Ito En, Ltd., a Japanese multinational beverage company, for $160 million. Centre Partners first invested in Distant Lands in 2006.

Distant Lands is a provider of private label and branded coffee to retail and foodservice companies.  The company is vertically integrated and uses a “seed-to-cup” business model which includes company-owned farms and mills in Costa Rica and Colombia as well as a sourcing and trading arm and roasting facilities in Washington and Texas.  Distant Lands was founded in 1982 and is headquartered in Renton, WA (www.dlcoffee.com).

“This transaction represents a successful outcome for Centre Partners and Distant Lands, and validates our strategy of supporting the growth of leading middle market companies. We credit the leadership of Distant Lands’ management team and employees, and are pleased they will have the opportunity to continue building the Distant Lands franchise with Ito En,” said Bruce Pollack, Centre Partners Managing Partner.

Centre Partners invests from $20 million to $60 million in North American based middle market companies that have $50 million to $500 million in revenue and $10 million to $60 million in EBITDA.  Sectors of interest include consumer, healthcare and business services.  The firm is currently investing through its sixth fund.  Centre Partners was founded in 1986 and has offices in New York and Los Angeles (www.centrepartners.com).

“Our partnership with Centre represented a key step in Distant Lands’ evolution.  During their ownership we have successfully added many new customers and product lines, such as our Panera-branded line of premium coffee and a proprietary Keurig-compatible single serve coffee offering.  We are well positioned to begin a new growth phase, and will benefit from the expertise and global resources of Ito En,” said Alton McEwen, CEO of Distant Lands.

Moelis & Company (www.moelis.com) was the exclusive financial advisor to Distant Lands in connection with this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-5-15

American Capital Acquires CGC Events

by

SMG Holdings, a portfolio company of American Capital that provides entertainment and conference venue management services, has acquired CGC Events, a provider of catering concessionaire services in Northern England.

CGC provides catering, concessions and hospitality services to horse racing tracks, stadiums, exhibition centers, and heritage sites.  CGC has been in business for more than 100 years and is headquartered in Yorkshire, UK (www.cgcevents.co.uk).

“By acquiring CGC’s established food service brand, SMG will further expand its presence in the UK market, combining best practices at CGC and SMG, as well as extend its UK food service business into additional business areas, including racetracks, rugby and soccer stadiums and heritage sites,” said Wes Westley, SMG President and CEO.

SMG, acquired by American Capital in June 2007, is a venue management company providing private management services to owners of public assembly facilities.  SMG provides construction and design consulting, pre-opening services, venue management, sales, marketing, event booking and programming.  SMG currently manages over 240 venues, including arenas, stadiums, convention centers, exhibition halls, science centers, trade centers, theaters and performing arts centers. SMG’s facilities include stadiums such as the Mercedes-Benz Superdome, home of the New Orleans Saints, and Soldier Field, home of the Chicago Bears; convention centers McCormick Place in Chicago and Moscone Center in San Francisco; and the UK based Manchester Arena, the world’s third largest arena.  SMG also offers food and beverage operations through its concessions, catering and special events division, SAVOR.  The company was founded in 1977 and is based in the Philadelphia suburb of West Conshohocken (www.smgworld.com).

American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in lower and middle market private equity, leveraged finance, real estate and structured products.  Acquired companies typically have from $5 million to $25 million of EBITDA.  Founded in 1986, American Capital has $80 billion in total assets under management and has eight offices in the US, Europe and Asia.  The firm is headquartered in Bethesda (www.AmericanCapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-5-15

Grey Mountain Acquires Illinois Glassworks

by

Binswanger Glass, a portfolio company of Grey Mountain Partners acquired in December 2011, has acquired Illinois Glassworks, an installer of custom shower enclosures, mirrors, table tops, and architectural glass and glazing.

“The acquisition of Illinois Glassworks is representative of the strategic growth plan for Binswanger Glass, which centers on expanding into new markets that are contiguous to our current footprint and also seeking opportunities to partner with glass companies in markets beyond our current footprint,” said Norm Plotkin, CEO and President of Binswanger Glass.

Illinois Glassworks was founded in 1977 and is based in the Chicago suburb of Glenview (www.glassworks.net).

Binswanger Glass is a designer, retailer, and installer of architectural glass and aluminum products within the construction, residential, and automotive markets. The company has 65 locations across 15 states.  Binswanger Glass was founded in 1872 and is headquartered in Memphis (www.binswangerglass.com).

Grey Mountain Partners invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest include aerospace & defense, building products & materials, business process outsourcing, diversified manufacturing, energy & power, financial services, food & beverage, healthcare services & technology, industrial services, packaging, professional services, specialty chemicals, technology, transportation & logistics, wholesale and distribution. Grey Mountain was founded in 2003 by Managing Partners Rob Wright and Jeff Kuo and is based in Boulder with an additional office in Minneapolis (www.greymountain.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-5-15

Azalea Exits ETAK Systems

by

Azalea Capital has sold its portfolio company ETAK Systems to an investor group led by Mosaic Capital Partners and members of the company’s management team.   Azalea first invested in ETAK Systems in December 2007.

ETAK Systems provides maintenance and installation services to network infrastructure used by national wireless communication carriers.  Services include reserve battery power installation/replacement, power plant upgrades, capacity-expanding radio installations, site reviews, location analysis, engineering audits, battery testing, and small cell and distributed antenna system installation. ETAK Systems is based in Charlotte (www.etaksystems.com).

“We have enjoyed a successful relationship with Azalea in recent years as we have grown ETAK into an industry leading wireless services provider,” said Lee Priest, CEO of ETAK.  “Azalea provided valuable leadership and guidance, and was instrumental in the recruitment of our current team.  Azalea also provided growth capital to allow ETAK to flourish and was a value added partner during our years together.”

Azalea Capital invests in middle market companies that have annual revenues of $10 million to $100 million and EBITDAs of $2 million to $10 million.  Industries of interest include manufacturing, business services, and value-added distribution with a special interest in aerospace, consumer packaged goods, healthcare and energy and industrial services.  Azalea Capital was founded in 1996 and is headquartered in Greenville, SC (www.azaleacapital.com).

Mosaic Capital Partners, the buyer of ETAK Systems, provides mezzanine debt and equity capital for change of control transactions to lower middle-market companies in the Southeastern, Mid-Atlantic and Midwestern sections of the United States. The firm has a specific expertise with transactions involving employee stock ownership plans. Sectors of interest include business services; chemicals; consumer products; environmental services; food & beverage; healthcare; distribution; material handling; niche manufacturing; and third-party logistics.  Mosaic Capital is affiliated with St. Louis-based merchant bank Butcher Joseph & Co. (www.butcherjoseph.com) and is headquartered in Charlotte (www.mosaic-cp.com).

Brookwood Associates (www.brookwoodassociates.com) was the financial advisor to ETAK Systems for this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-5-15

EIV Capital Closes Fund II Above Target

by

Energy-focused EIV Capital has held a final closing of its second fund, EIV Capital Fund II, LP, with total committed capital of $267 million, beating the fund’s $200 million target. All limited partners from the firm’s first fund participated in Fund II. Fundraising began in June 2014.

Fund II limited partners include the normal combination of institutional investors including public and private pensions, fund of funds, consultants and family offices.

“Our inaugural fund’s strong performance and the continued support from our initial partners provided EIV with the momentum it needed to have such a successful fundraise,” said Patti Melcher, Managing Director of EIV.  “We are tremendously excited and grateful for our new partners’ support and believe the current investment environment will leverage our team’s operating and financial expertise to identify and capitalize on opportunities to partner with great management teams seeking to grow through this cycle.”

Fund II invests from $10 million to $40 million of growth equity per transaction in three areas: (i) Midstream – infrastructure projects focused on gathering, processing, distribution, storage and marketing of oil, natural gas and refined products; (ii) Related Services – crude oil trucking, equipment leasing, oilfield water handling, and flare management; and (iii) Expanded Natural Gas Uses – small scale natural gas fired cogeneration projects, LNG as a transportation fuel and landfill gas recovery.

New York-based Champlain Advisors (www.champlainadvisors.com) was the exclusive placement agent for Fund II. “EIV’s track record and midstream operating background attracted a top-tier list of sophisticated investors for its first-time institutional fund in a process that took less than 6 months” said Terry Crikelair, Managing Partner of Champlain Advisors.

EIV Capital was founded in 2009 and is headquartered in Houston (www.eivcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-5-15

Maranon Capital Expands Team

by

Maranon Capital has added Theresa Mozzocci as a new Principal and has promoted Andrew Eshelman to Vice President.

Ms. Mozzocci has over 20 years of experience in business development and alternative investment strategies. At Maranon, she will focus on fund raising and investor relations. Before joining Maranon she was with Cantor Fitzgerald Investment Advisors, Crestline Investors, William Blair & Company, and Duff & Phelps Investment Management. Ms. Mozzocci earned an MBA from DePaul University and a BBA from the University of Wisconsin.

“We are excited to add Theresa to our team. Her experience with institutional investors and investment consultants will be important as we expand the credit and equity co-investment strategies under management at Maranon,” said Tom Gregory, Managing Director and Co-Founder of Maranon Capital.

Mr. Eshelman joined Maranon as an Associate in 2012 from Bank of America Merrill Lynch’s investment banking group. He is responsible for evaluating new transaction opportunities and portfolio monitoring. Mr. Eshelman earned a BS in Finance and Accounting from Indiana University.

“Andrew’s promotion to Vice President recognizes the value he contributes to Maranon’s investment underwriting team and his exceptional work with our private equity clients and portfolio companies,” said Mr. Gregory.

Maranon Capital provides senior financing, mezzanine debt and equity co-investments for private equity-backed and non-sponsored middle market transactions. The firm is currently managing over $1 billion of committed capital and has offices in Chicago, IL; Birmingham, MI (near Detroit) and South Bend, IN (www.maranoncapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-5-15