Archives for March 10, 2015

Golub Backs Audax’ Integrated Supply Network

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Golub Capital was the Administrative Agent, Sole Lead Arranger and Sole Bookrunner on a senior credit facility to support the refinancing of Integrated Supply Network (ISN), a distributor of tools and testing equipment and an Audax Group portfolio company.  The Golub facility was also used to finance ISN’s add-on acquisition of Consolidated Lift.

The ISN facility is the third financing Golub Capital has provided to Audax in less than a year. “Consistent with our past experiences, Golub provided a flexible financing solution and was able to close quickly and smoothly,” said Mark Cordes, Managing Director at Audax.  “Their ability to speak for the full senior debt facility greatly simplified the financing process for us.”

Integrated Supply Network, acquired by Audax in July 2011, is a distributor of tools, testing equipment, and related supplies sold into the aftermarket automotive repair industry. The company offers over 50,000 SKUs, including sockets, wrenches, pliers, vehicle lifts, diagnostic systems, air compressors, and other tools used by automotive technicians.  The company was founded in 1972 and is based in Lakeland, FL (www.isnweb.com).

The add-on acquisition of Consolidated Lift, a distributor and servicer of automotive lift equipment, is a perfect fit for ISN. Consolidated Lift services all automotive lift types including above ground and in-ground models, scissor lifts, mobile columns, heavy duty lifts as well as wheel service equipment. The company is based in the Toronto suburb of Vaughn, ON (www.consolidatedlift.com).

“ISN is a prime example of Golub bringing to bear its product flexibility, hold capacity, and speed of execution to deliver for our client,” said Brian Crabb, Managing Director at Golub Capital. “We are thrilled to be partnering with Audax and the ISN team to support the business through the next stage of its growth.”

Golub offers buy-and-hold products ranging from $10 million to $75 million and includes one-loan financings, senior, 2nd lien and subordinated debt, preferred stock and co-investment equity.  The firm underwrites and syndicates loans up to $500 million and will hold up to $250 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. Golub has offices in New York, Chicago, and San Francisco (www.golubcapital.com).

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing.  Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15

CD&R Names Jillian Griffiths as New COO

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Clayton, Dubilier & Rice (CD&R) has appointed Jillian Griffiths to the position of Chief Operating Officer.  Ms. Griffiths will be responsible for CD&R’s finance, information technology, human resources, legal and office services operations.

“Jillian is a very talented financial executive whom we have come to know and respect over the past decade in connection with several transaction due diligence and portfolio company advisory assignments,” said Donald Gogel, Chairman and Chief Executive Officer of CD&R. “Her work ethic, judgment, and values line up exceptionally well with our culture and we look forward to her continued contributions to the Firm as a Partner.”

Ms. Griffiths is a 22-year veteran and former partner of PricewaterhouseCoopers.  At PwC, she was a partner in the firm’s US Deals practice, specializing in financial due diligence. She participated in over 150 transactions, dedicating a majority of her time advising private equity firms and Fortune 500 companies across a variety of industries.

“CD&R has a rich history and an unparalleled reputation for combining outstanding investment judgment and deep operational capabilities,” said Ms. Griffiths.  “I am delighted to be joining such a preeminent organization, and I look forward to helping support the firm’s success in the years ahead.”

Ms. Griffiths was named one of Consulting magazine’s “2013 Women Leaders in Consulting” for her outstanding achievements in client service. She is also a member of the Board of Turnaround for Children, an organization committed to transforming public education in high-poverty areas.  Ms. Griffiths is a Certified Public Accountant and holds a Bachelor of Science degree in accounting from Miami University.

Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $19 billion in 59 businesses representing a range of industries with an aggregate transaction value of approximately $90 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York and London (www.cdr-inc.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15

Ironwood Capital Promotes Three

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Ironwood Capital has promoted three of its employees to senior positions.  Alex Levental has been promoted to Managing Director; Zachary Luce has been promoted to Chief Financial Officer; and Paul Witinski has been promoted to Director.

Ironwood Capital President Marc Reich considers these three to be an important part of the firm’s future. “We are delighted to recognize the hard work and commitment of Alex, Zach and Paul.  They have played important roles in the growth of our business and are very much a part of our future.”

Mr. Levental’s primary responsibilities include deal origination, structuring and execution, industry research and portfolio management.  Prior to joining Ironwood in 2005, he was a Vice President of Market Development and Strategic Planning for CCA Global Partners. He started his career with Morgan Stanley as a financial analyst and later was an associate with Advent International.  He holds a BA in Economics and Russian Literature from Colby College and studied at the London School of Economics.

Mr. Luce is responsible for financial management and controls, external financial and regulatory reporting, and limited partner reporting.   His additional responsibilities include the development and management of internal systems and controls, cash management, and support of overall portfolio management.  Prior to joining Ironwood in 2010, Mr. Luce worked for seven years as an auditor in public accounting with McGladrey and CCR.  He has a BS degree in Accounting and also obtained his Master of Science in Accounting from the University of Connecticut.

Mr. Witinski is responsible for investment opportunity analysis and portfolio company monitoring, including analysis of market and competitive trends, identifying business development and growth strategies, and assessing exit opportunities.  He joined Ironwood in 2012 from McKinsey & Company, where he consulted primarily on operations and supply chain management. Prior to graduate school, he was an engineer at General Motors and is a licensed professional engineer. Earlier in his career, he served for six years as a nuclear reactor operator in the US Navy.  He graduated from the University of Rochester and holds graduate engineering degrees from the University of Rochester and the Massachusetts Institute of Technology as well as an MBA from MIT.

“Both the expertise and capabilities of Alex, Zachary and Paul enhance our ability to serve our clients,” said Carolyn Galiette, senior managing director, Ironwood Capital.  “We’re fortunate to have such a talented team.”

Ironwood Capital employs over 20 professionals most of whom are in the firm’s Avon, CT headquarters and traces its roots to its formation in 1986 as a subsidiary of Aetna. The company was acquired from Aetna in 1991, at which time it adopted the Ironwood Capital name.  With over $500 million of capital under management, Ironwood Capital provides non-control growth capital to middle market companies. Investments take the form of subordinated debt and preferred stock in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts (www.ironwoodcap.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15

Seacoast Exits UX Specialized Logistics

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Seacoast Capital has sold UX Specialized Logistics, a provider of last mile logistics services for retail chains and e-commerce companies, to XPO Logistics (NYSE: XPO).  The purchase price was $59 million, excluding any working capital adjustments, with no assumption of debt or cash.  UX had revenue of $113 million and an adjusted EBITDA of $8.2 million in 2014 resulting in a valuation multiple of 7.2x.

UX Specialized Logistics is a provider of last-mile logistics with services ranging from white glove home delivery, assembly and installation, and warehousing and fulfillment, to on-demand same-day expedited delivery, for major retail chains and e-commerce companies.  The company completes over 7,000 daily deliveries and has approximately 700 employees, with an additional contracted capacity of over 1,600 independent carriers and installers nationwide. UX Specialized Logistics was founded in 1978 and is headquartered in New York (www.uxlogistics.com).

During Seacoast’s five year term of investment, UX increased revenue at a compound annual growth rate of 19%.  “In partnership with management, we have implemented many growth and operational improvement initiatives, including expanding the company’s service offering, geographic footprint, and customer base; as well as driving greater operational efficiency by investing in quality systems, processes, and people,” said Eben Moulton, Partner at Seacoast.

Seacoast Capital provides between $3 million and $12 million of debt and equity capital for acquisitions, growth, shareholder buyouts, management buyouts, and leveraged recapitalizations. While industry agnostic, Seacoast has a particular interest in the specialty manufacturing, value-added distribution, and business services sectors.  Seacoast targets investments in companies with $10 million to $150 million in revenue and $2 million or more of EBITDA. Seacoast is currently investing its third fund, Seacoast Capital Partners III, with $150 million of capital commitments.  The firm was founded in 1994 and has offices in Boston and San Francisco (www.seacoastcapital.com).

Harris Williams & Co. served as the financial advisor to Seacoast and UX Specialized Logistics.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15

Tonka Bay Acquires Seaway Plastics

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Tonka Bay Equity Partners has acquired Seaway Plastics Engineering, a plastic injection molding company specializing in prototype and low volume production. Co-investing in the transaction with Tonka Bay were Seaway’s owners Tim Smock, CEO, and Paul Bernard, President.

“We are pleased to have the opportunity to invest in Seaway and to work with Tim and Paul,” said Cary Musech, Managing Principal of Tonka Bay Equity Partners.  “Our firm’s prior investments in injection molding and prototype to production business models make Tonka Bay a value-added partner for the company.”

Seaway Plastics Engineering is a plastic injection molding company specializing in prototype injection molding, low to medium volume production, mold making, and surface finishing through its Florida Finishing division. The company sells to OEMs in the medical, aerospace, military, packaging, food service, industrial, electronics, and consumer products industries. The company has approximately 160 employees at its facilities in Port Richey and Brooksville, FL (www.seawayplastics.com).

“We were seeking a partner that could help us serve our expanding list of top-tier customers, and provide growth opportunities for our employees,” said Mr. Smock.  “Tonka Bay’s culture and industry experience make them an ideal match for our company.”

Tonka Bay Equity Partners invests in highly-engineered manufacturing, value-added distribution and business services companies with EBITDA greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15

Blue Point Acquires Western Metrology

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Selmet, a portfolio company of Blue Point Capital Partners, has acquired Western Metrology, a manufacturer of aerospace components.  The Western transaction represents the second add-on acquisition for Selmet, which was acquired by Blue Point as a platform investment in November 2011.  Selmet completed its first add-on acquisition in July 2014 with the purchase of Onamac Industries.

Western Metrology manufactures precision aerospace, commercial and military components. The company is based south of Portland in Wilsonville, OR (www.westernmet.com).  “Western has exceptional knowledge and ability in machining and measuring complex castings, such as those manufactured by Selmet,” said Mark Morris, a partner with Blue Point.  “Blue Point and Selmet have continued the acquisition growth initiative we started in 2013, and the Western acquisition enhances Selmet’s expertise and provides additional capacity for machining titanium castings.”

Selmet is a manufacturer of complex titanium investment castings for the aerospace and defense industries. Products include engine, airframe and other aircraft and military components. The company is based south of Portland in Albany, OR (www.selmetinc.com).

“With expertise in machining, CMM programming, development and inspection of titanium castings, Western has been one of Selmet’s strongest technical machining partners and is an ideal tuck-in for the platform,” said Rick Kenyon, CEO of Selmet.  “The Western acquisition expands Selmet’s machining capabilities and immediately strengthens our inspection capabilities and talent.”

Blue Point Capital Partners is a lower middle market private equity firm that invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has over $800 million in committed capital and has offices in Charlotte, Cleveland, Seattle and Shanghai (www.bluepointcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15

Greenbriar Acquires World Freight Company International

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World Freight Company International (WFCI), a freight services provider, has been acquired by Greenbriar Equity Group. WFCI’s existing minority investors including 3i; ActoMezz; IDI Group and IDI Mezzanine; Idinvest; and Ardian are exiting their investment.

World Freight Company International is a global leader in the general sales and service agent (GSSA) market.  WFCI manages approximately €1 billion of freight annually with over 750 employees worldwide. The company operates through its subsidiaries including Air Logistics, Kales Group, ATC, Worldwide GSA, Hermes, and Platinum. WFCI is headquartered in Roissy, France and services the cargo freight capacity of more than 190 airline customers serving every major air cargo market globally.

Pierre Brunet, WFCI’s founder, CEO, and current majority shareholder will continue as a significant shareholder and as CEO of the company. The senior management teams of all of the operating subsidiaries of WFCI will also continue in their existing roles.

“WFCI is a trusted partner to its customers and plays a critical role in the global air freight economy. The company is led by a proven and experienced management team who helped establish the modern GSSA market and we see significant opportunities for further growth at WFCI, both with existing customers as well as with new customers and in new markets worldwide,” said  Noah Roy, Managing Partner at Greenbriar.

“Greenbriar’s deep expertise and relationships in the logistics and aviation sectors make them a perfect fit for WFCI. They are committed to supporting WFCI as we continue our international growth strategy, both organically and through additional acquisitions,” said Pierre Brunet, CEO of WFCI.

Greenbriar Equity Group invests from $50 million to $150 million per transaction in the global transportation industry, including companies in aerospace & defense, automotive, freight & passenger transport, logistics & distribution, and related sectors. The firm manages $2.5 billion of committed capital and is based in Rye, NY (www.greenbriarequity.com). 

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15

RoundTable  Exits Specialty Pharma Company

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RoundTable Healthcare Partners has completed the sale of Tower Holdings – including operating subsidiaries CorePharma, and Amedra Pharmaceuticals – and Lineage Therapeutics to Impax Laboratories for $700 million in cash.  This transaction marks the fifth portfolio company sale from RoundTable’s $500 million Fund II and generated a return of more than nine times invested equity capital.

CorePharma – along with its affiliated companies Amedra and Lineage – is a pharmaceutical company focused on the development, manufacture and commercialization of complex branded and generic pharmaceutical products. The companies specialize in high value generic formulations including extended-release, delayed-release and DEA controlled substances and the marketing of niche brands including Albenza, Dexedrine, Daraprim, Adrenaclick epinephrine autoinjector and its authorized generic.   CorePharma is headquartered in Middlesex, NJ (www.corepharma.com) and Amedra (www.amedrapharma.com) and Lineage (www.lineagetherapeutics.com) are headquartered in Horsham, PA.

“Tower’s management team – led by Chief Executive Officer, Christopher Worrell – did a tremendous job of growing the company’s revenue and profitability and expanding its product portfolio, while simultaneously solidifying its manufacturing, quality and regulatory operations,” said Jack McGinley, a Founding Partner of RoundTable and Chairman of the Boards of Tower and Lineage. “We believe that Impax will be an excellent strategic partner to help the companies achieve their next phase of growth.”

Impax is a specialty pharmaceutical company focused on the development of complex, high-value generics, and branded products that target central nervous system disorders and other select specialty segments. The company is headquartered in Hayward, CA (www.impaxlabs.com).

RoundTable Healthcare Partners is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable manages $1.9 billion in capital, including three equity funds totaling $1.5 billion and two subordinated debt funds totaling of $400 million. The firm is based in the Chicago suburb of Lake Forest (www.roundtablehp.com).

“RoundTable has been an exceptional partner for Tower and Lineage. They have supported strategic investments across all aspects of our operations and provided significant capital and transaction assistance for strategic acquisitions and product pipeline development,” said Tower CEO Christopher Worrell.

Credit Suisse Securities acted as exclusive financial advisor to Tower Holdings and Lineage Therapeutics and Sidley Austin acted as exclusive legal advisor to RoundTable in this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-10-15