February 23, 2015
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Archives for February 23, 2015

IOP Invests in Monroe Truck Equipment

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monroe nf1Industrial Opportunity Partners (IOP) has invested in Monroe Truck Equipment in partnership with the current management team and owners.

Monroe Truck Equipment is a designer, manufacturer, distributor and installer/upfitter of specialized truck equipment for the municipal and commercial markets.  Monroe specializes in snow and ice related equipment for heavy duty, medium duty and light duty vehicles. The company’s primary products include snow plows, hitches, and salt spreaders.  Monroe Truck Equipment is headquartered southwest of Madison in Monroe, WI, and has five additional installation facilities in Marshfield and DePere, WI; Flint, MI; Joliet, IL; and Louisville, KY.  These six facilities, which employ about 600, have a combined footprint of 400,000 square feet. The company was founded in 1958 (www.monroetruck.com).

bob vedra nf1“We are thrilled to announce our partnership with the shareholders of Monroe, a business whose market-leading, branded product and reputation for quality, customer service and innovation has been recognized by IOP for many years,” said Bob Vedra, Senior Managing Director of IOP.  “We look forward to supporting the company with further investment and operational resources to continue the company’s impressive growth trajectory.”

IOP is partnering in its investment with Dave Quade (President), Rick Rufenacht (VP Marketing & Sales) and Greg Krahenbuhl (Vice President of Operations), a team of industry veterans who average 35 years of experience with Monroe.  Each of the three executives retain significant ownership interests in the company and remain in their current management roles.

IOP Operating Principal Andy Weller will become Monroe’s new Chairman of the Board.  Mr. Weller, who has significant experience with companies serving the commercial vehicle market and with similar manufacturing operations to Monroe, is a member of IOP’s Board of Operating Principals, which is comprised of executives who provide leadership to the businesses in which IOP invests.

“Monroe’s alignment with IOP is a truly exciting development that we feel will benefit all of our stakeholders including our community, our customers, and importantly, our employees,” said Mr. Quade.  “We have chosen to partner with IOP to provide both capital and a valuable operating perspective that will allow us to continue expanding our reach in both new customers and products.”

IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. Monroe represents IOP’s seventh platform investment in Industrial Opportunity Partners II, LP.  IOP, with $460 million of committed capital, was founded in 2005 and is headquartered in the Chicago suburb of Evanston (www.iopfund.com).

Minneapolis-based investment bank Quetico Partners (www.queticopartners.com) represented the shareholders of Monroe Truck Equipment.

PNC Business Credit, Fifth Third Bank and Norwest Mezzanine Partners provided financing for the acquisition.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-23-15

Shore Capital Acquires Summit Medical

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summit medical nf1xShore Capital Partners has completed the acquisition of Summit Medical, a medical device manufacturer.

Shore intends to use Summit Medical as a platform to expand into complementary segments and build a larger instrument protection and microsurgery company. Summit will pursue partnerships with other service-oriented medical product companies serving hospitals and alternate site environments.

Picture87Summit Medical designs, engineers and manufactures microsurgery products. In addition to its Instru-Safe instrument protection line for infection control and sterilization, Summit Medical manufactures ear, nose, and throat products and a variety of other surgical devices.  The company is based in St. Paul (www.summitmedicalusa.com).

Kevin McIntosh, President of Summit Medical, and Lorraine Duchene, Chief Financial Officer, will continue to lead the company’s management team under Shore’s ownership.

“We are excited to partner with Summit Medical and its management team, which has guided the company through a period of impressive growth,” said Don Pierce, Partner at Shore Capital. “Minimally-invasive surgery continues to proliferate by reducing wound size, recovery time, and infection risk, and Summit is well-positioned as a leading provider of comprehensive solutions for its customers. We look forward to working with the company to expand into complementary segments and build a leading instrument protection and microsurgery platform.”

Shore Capital Partners invests in lower middle market healthcare related companies that have $5 million to $50 million of revenue and $1 million to $5 million of EBITDA. Shore targets equity commitments of $10 million to $15 million per platform.  Healthcare sectors of particular interest include behavioral health; healthcare staffing; infusion therapy; laboratory products & distribution; laboratory services; outpatient rehab therapy; urgent care; veterinary services; pharmaceutical services and contract research.  Shore was founded in 2009 and is based in Chicago (www.shorecp.com).

Summit Medical represents the second platform investment out of Shore Capital Partners Fund I, LP, a $112.5 million fund raised in May 2014.

“Shore Capital is the ideal partner for Summit Medical as the company moves into its next growth phase,” said Curt Miller, Founder and Chairman of Summit Medical. “I was impressed by Shore’s vision for the company and expertise in the microcap healthcare space as we select a steward for the future of our business.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-23-15

BRS Acquires Simpson Performance Products

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simpson nf1Bruckmann, Rosser, Sherrill & Co. (BRS) has acquired Simpson Performance Products, a provider of motorsports safety equipment, from Carousel Capital which first invested in the company in 1998.

Simpson’s motorsports safety products include head and neck restraints, helmets, firesuits, seat belts, window nets, parachutes, racing gloves and footwear.  The company also designs, manufactures and markets the HANS brand of advanced head and neck restraints (HANS is a motorsports term which stands for “head and neck support”).  Simpson Performance Products was founded in 1959 by Bill Simpson and is based northeast of San Antonio in New Braunfels, TX (simpsonraceproducts.com).

Tom Baldwin nf1“We are very excited to build on the accomplishments of the Simpson team in setting the industry standard for quality and reliability,” said Tom Baldwin, a Managing Director of BRS.  “We look forward to continuing the company’s focus on delivering cutting-edge safety solutions and extending its strong market position around the world.”

Bruckmann, Rosser, Sherrill & Co. invests in middle market consumer goods and services businesses and has $1.4 billion of capital under management.  Sectors of interest include consumer products, food and beverage, specialty retail, restaurants and specialty distribution.  Since 1996, BRS has purchased over 40 portfolio companies for aggregate consideration of more than $6.4 billion. In addition, BRS portfolio companies have completed approximately $1.9 billion of add-on acquisitions. The firm is based in New York (www.brs.com).

“We are very pleased to partner with BRS due to their ability to provide valuable strategic guidance and support our growth strategy. I am confident that Simpson will continue its strong momentum of expanding into new racing segments and geographies,” said Chuck Davies, Chief Executive Officer of Simpson.

New York and Charlotte based investment bank Fidus Partners (www.fiduspartners.com) acted as financial advisor to Carousel Capital.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-23-15

Thoma Bravo Acquires PowerPlan

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powerplan nf1Thoma Bravo has acquired PowerPlan, a provider of accounting, tax and capital budgeting software services for capital asset-intensive businesses.  PowerPlan was a portfolio company of JMI Equity and TPG Growth which acquired the business in February 2010.

Scott Crabill nf1“PowerPlan has addressed the information gaps that develop between finance and field operations in asset-centric businesses, and established a market-leading software company that is critical to all of its customers’ operations,” said Scott Crabill, a managing partner at Thoma Bravo.

PowerPlan is a provider of asset-centric accounting, tax, budgeting and analytics software for asset-intensive businesses that operate within the utility, oil and gas, transportation, and telecom industries.  The company was founded in 1994 and is based in Atlanta (www.powerplan.com).

Holden Spaht nf1“It’s exciting to be able to put our software experience and buy and build philosophy to work for PowerPlan,” said Holden Spaht, a managing partner at Thoma Bravo.

Thoma Bravo provides equity and strategic support to management teams building growing companies. The firm originated the concept of industry consolidation investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth.  Thoma Bravo currently manages approximately $7.5 billion of equity capital. The firm was founded in 1981 and has offices in Chicago and San Francisco (www.thomabravo.com).

William Blair acted as financial advisor to PowerPlan.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-23-15

Abacus’ Flexibility and Industry Smarts Closes Latest Deal

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abacus nf2Cash flow based senior lender Abacus Finance Group was the Administrative Agent and Sole Lead Arranger for senior secured credit facilities that backed the acquisition of Infinity Behavioral Health Services by Thompson Street Capital Partners.

Infinity Behavioral Health Services is a revenue cycle management company servicing 120 behavioral health facilities that provide substance abuse and mental health treatment across 14 states.  Services include utilization review, dispute resolution and claims submission.  The company is based in Fort Lauderdale (www.infinitybehavioral.com).

Elizabeth Borow nf1Abacus team members involved in the transaction included Sean McKeever , Tim Wong, and Rafal Rydzewski.  “Abacus Finance’s healthcare industry knowledge – in particular about outsourced revenue cycle management services – and the team’s flexibility in transaction structure were critical to the success of this transaction,” said Elizabeth Borow, Managing Director of Thompson Street. “As they have done in the past, the Abacus team met an aggressive schedule for closing the investment on time as promised.”

Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million. The companies that Abacus finances generally have EBITDAs between $3 million and $15 million. Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $10 billion in assets. Abacus is based in New York (www.abacusfinance.com).

tim clifford nf4“We know that when Thompson Street, a long-time trusted client that shares our lower-middle market focus, comes to us with a transaction, it will involve a high quality company,” said Tim Clifford, President and CEO of Abacus Finance. “Although only four years old, Infinity – which is led by a great management team – has become a dominant player in its niche market. As in prior transactions with Liz and her partners, flexibility, speed and certainty of close were key objectives in keeping with of the emphasis we place on exceptional client service in our Total Partnership Approach.”

Thompson Street Capital Partners makes investments in manufacturing, service and distribution businesses with annual revenues between $20 million and $200 million and a minimum EBITDA of $5 million.  Founded in 2000, the firm has managed more than $800 million in private equity capital and is currently investing its third fund. Thompson Street is based in St. Louis (www.tscp.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-23-15

Prospect Backs Carlyle Buy of PrimeSport

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prospect NFProspect Capital has provided a first lien senior secured floating rate loan facility to support the acquisition of PrimeSport by The Carlyle Group, Moorad Sports Partners and RSE Ventures. PrimeSport had been majority owned by Clearlake Capital.

david stonehill nf2“Carlyle selected Prospect based on its ability to provide committed capital to finance our acquisition of PrimeSport on an accelerated basis due to Prospect’s thorough knowledge of PrimeSport and its industry,” said David Stonehill, a Managing Director of Carlyle.

PrimeSport is a provider of consolidated sporting event packages including tickets, travel, hospitality, and VIP experiences for corporations, professional sports teams and fans.  PrimeSport maintains partnerships with some of the largest sporting events and organizations in the country including NCAA Championships®, the NCAA® Men’s Basketball Tournament and Men’s Final Four®, Men’s College World Series®, Division I Wrestling Championships, Women’s College World Series®, Women’s Final Four®, Women’s Volleyball Championship and Men’s Frozen Four®, NHL, 20 NFL teams, 2015 College Football Playoff National Championship, Rose Bowl, Sugar Bowl, Alamo Bowl, Orange Bowl, Holiday Bowl, Poinsettia Bowl, Chick-fil-A Bowl, and many others.  PrimeSport is headquartered in Atlanta (www.primesport.com).

jasn wilson nf1“Prospect is pleased to complete this important transaction with Carlyle,” said Jason Wilson, a Managing Director of Prospect Capital.  “We look forward to continued strong performance at PrimeSport, a company with a compelling value proposition for professional and collegiate sports leagues, teams, and fans involved in many of the biggest sporting events in the world.”

Prospect invests in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity.  The firm invests in an array of industries and is effectively industry agnostic.  Prospect closed nearly $3.2 billion of new originations during calendar year 2014, with further origination activity expected in the current quarter.  The firm is headquartered in New York (www.prospectstreet.com).

Behdad Eghbali nf1“Prospect demonstrated creativity by parallel processing a dividend recapitalization, which closed in September 2014, with a possible change of control process, and we were pleased to strongly recommend Prospect as a leading provider of staple financing in this transaction,” said Behdad Eghbali, a founding partner of Clearlake.

As part of the acquisition by Carlyle, Clearlake Capital and existing management have rolled over a significant equity stake in the company.  Sam Soni, PrimeSport’s founder, remains the CEO of PrimeSport.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-23-15

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