February 12, 2015
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Archives for February 12, 2015

Morgan Stanley Exits EmployBridge

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Employbridge nf1Morgan Stanley Global Private Equity has completed the sale of its majority interest in EmployBridge, a provider of staffing services, to The Select Family of Staffing Companies, a national provider of workforce management services, for approximately $410 million.

Morgan Stanley Global Private Equity (MSPE) and Constitution Capital, citing strong trends in post-recession labor usage by US companies, acquired EmployBridge for $165 million in May 2011.  During the course of their ownership, EmployBridge completed four add-on acquisitions.

jim howland nf1“MSPE works closely with portfolio companies to evaluate organic growth and acquisition strategies, and we are proud of EmployBridge’s many successes over the course of the investment period,” said Jim Howland, Managing Director and an Operating Partner of MSPE. “Since 2011, we have worked with EmployBridge management to successfully complete four add-on acquisitions and achieve substantial growth in revenue during our ownership.”

EmployBridge is a provider of outsourced HR and specialty-branded temporary staffing services.  The company operates primarily under the ResourceMFG, ProLogistix and ProDrivers brands, and provides personnel for specialty manufacturing, warehousing and logistics, and transportation companies. EmployBridge is headquartered in Atlanta (www.employbridge.net).

MSPE makes private equity and equity-related investments of $75 million to $150 million in companies with enterprise values of $100 million to $1 billion. To date, MSPE and its affiliated funds have invested over $6 billion of equity across a variety of industries.  MSPE is based in New York (www.morganstanley.com/privateequity).

“We have focused on human capital management because we believe the companies in this sector have played a critical role during the recent recovery of the US economy and will continue to prosper in the coming years,” said Aaron Sack, Managing Director of MSPE. “Businesses of all sizes have benefited from the flexibility and efficiencies that contingent labor and outsourced human resources provides.”

Constitution Capital makes co-investments alongside private equity firms in middle market companies that have revenues generally less than $500 million. The firm is headquartered in Andover, MA (www.concp.com).

MSPE was advised on the transaction by William Blair & Company.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-12-15


 

Stone-Goff Partners Exits Thymes

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thymes mobileStone-Goff Partners has sold its equity stake in Thymes, a maker of branded fragrances sold to the bath & body and home fragrance markets, to Castanea Partners. Other investors in this transaction include Stanfield Capital, RCP Advisors, Northstar Mezzanine, and management.

Thymes creates curated fragrance collections for body and hand lotions, bar soaps and bubble baths, candles, fragrance mists, potpourris, reed diffusers, and refresher oils.  Thymes products are sold in over 5,000 specialty retail locations in the US. The company, led by CEO Anne Sempowski Ward, was founded in 1982 and is headquartered in Minneapolis (www.thymes.com).

laurens goff nf1“To be associated with such a powerful brand was a privilege,” said Laurens Goff of Stone-Goff Partners. “We will truly miss working with Anne and her team and we are confident they will continue to grow and thrive with their extraordinary new partners.”

Stone-Goff Partners invests in lower middle market companies in the consumer, leisure, information, service, media and retail sectors. The firm is based in New York (www.stonegoff.com).

Anne Sempowski Ward nf1“It has been a pleasure working with Stone-Goff in growing Thymes,” said Ms. Ward. “Their experience in supporting and building middle market companies has been essential to our success. We are well positioned for the future thanks to their early commitment and belief in the Thymes brand.”

Imperial Capital and law firm Fredrikson & Byron represented both Thymes and Stone-Goff.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-12-15

TA Associates Exits SoftWriters

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softwriters nf1TA Associates has sold its portfolio company SoftWriters, a pharmacy software company, to Roper Industries.

SoftWriters is a provider of pharmacy management software that is used by long-term care pharmacies, specifically closed door and specialty pharmacies. Closed-door pharmacies are niche operations that are not open to the public. Most provide services to customers with special needs or in group homes or long-term care facilities.  SoftWriters was founded in 1990 and is headquartered north of Pittsburgh in Allison Park, PA (www.softwriters.com).

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 450 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

Roper Industries (NYSE:ROP), the buyer of SoftWriters, is a diversified technology company serving a range of niche markets including software information networks, medical, water, energy and transportation. Roper is headquartered in Sarasota (www.roperind.com).

Harris Williams & Co. (www.harriswilliams.com) served as the exclusive financial advisor to SoftWriters and TA Associates. The transaction was led by Turner Bredrup, Geoff Smith, Bill Kayser and Tyler Bradshaw of Harris Williams & Co.’s Healthcare & Life Sciences Group and Sam Hendler of the firm’s Technology, Media & Telecom Group.

“Long-term care pharmacies require a best-in-class software solution to improve operational efficiency and address increased levels of regulation,” said Sam Hendler, a managing director at Harris Williams & Co. “SoftWriters’ solution suite provides real time insight into market activity and compliance and complements Roper’s Managed Healthcare Associates business.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-12-15

Harbour Group Acquires Air Monitor

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airmonitor nf1The Harbour Group has acquired Air Monitor Corporation, a maker of airflow measurement equipment, from members of the DeBaun family.

Air Monitor is a manufacturer of airflow measurement equipment used in control applications in the HVAC, power generation, health care, laboratory and industrial markets.  Products include differential pressure and thermal mass flow meters, coal flow measurement systems, and instrumentation. Air Monitor was founded in 1967 by Kenneth DeBaun, who passed away in 2010. Dean DeBaun acquired the business from his father in 1990.  Air Monitor is headquartered north of San Francisco in Santa Rosa, CA (www.airmonitor.com).

jeff fox nf2“Air Monitor has a long history of technological achievements and excellent customer service, which fits very well into the Harbour Group family of companies,” said Jeff Fox, Harbour Group’s chairman and chief executive officer.  “This acquisition continues our tradition of combining our deep operational resources with management teams of successful, family-owned business to accelerate growth and deliver outstanding results for both customers and employees.”

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 179 companies in 37 different industries. The firm is based in St. Louis (www.harbourgroup.com).

“This is a very exciting time for our company,” said Dean DeBaun, president of Air Monitor.  “We are very proud of our people and the company they helped build, and we are confident that our record of innovation and customer service will be enhanced by this new partnership.  Harbour Group’s nearly four decades of experience with growing engineering-driven companies like ours promises to deliver exceptional results.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-12-15

AIP Grabs Anixter Fastener Business

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anixter fasteners nf1Anixter International has entered into an agreement to sell its OEM Supply – Fasteners business to American Industrial Partners for $380 million in cash.  The transaction, already approved by Anixter’s Board of Directors, is expected to close during the second quarter of 2015.

The OEM Supply – Fasteners business (Fasteners) is a distributor and manufacturer of fasteners used in the heavy truck, power train, luxury automotive, agriculture, construction, and recreational vehicles markets.   The business reported 2014 revenues of $939 million and operating profit of $39 million.  Fasteners serves customers in 15 countries, and the average relationship among its 10 largest customers exceeds 17 years.

The Fasteners business includes 73 distribution centers, 12 quality labs and more than 1,900 employees worldwide. Upon closing, Fasteners will continue to be led by its current management team, with Ian Clarke assuming the role of President and Chief Executive Officer of the new company. The company’s headquarters will remain in the Chicago suburb of Glenview.

“We have great respect for Fasteners, which is widely recognized as a leading global OEM supplier,” said Eric Baroyan, Partner at AIP. “With long-standing customer relationships, strong management, a highly customized product portfolio and significant global growth opportunities, Fasteners is well-positioned to accelerate its business performance.”

American Industrial Partners invests in North American headquartered industrial companies with sales ranging from $100 million to $500 million and EBITDA up to $70 million. Transaction values are typically less than $500 million.  The firm was founded in 1989 and is currently managing more than $1.1 billion in equity capital. American Industrial Partners is based in New York (www.americanindustrial.com).

ian clarke nf1“I am confident that we have found the right partner in AIP, who brings deep operating and industry expertise as well as additional financial resources, which will enhance our ability to meet the needs of our customers and capitalize on global growth opportunities,” said Ian Clarke, Executive Vice President – Fasteners at Anixter. “Today’s announcement reflects the value the Fasteners team has created, as well as AIP’s confidence in our strategy and exciting future. We look forward to working with AIP as we continue to build on our strong foundation and create long-term value for all of our stakeholders.”

Goldman, Sachs & Co. served as financial advisor and Sidley Austin served as legal counsel to Anixter. Baker Botts served as legal counsel to AIP.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-12-15

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