Archives for March 18, 2015

Crestview Acquires JR Automation

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Crestview Partners has acquired JR Automation Technologies and Dane Systems (together “JR Automation”) from the Huizenga Automation Group which acquired the companies in 1995.

JR Automation is a designer and manufacturer of automated or operated assembly line equipment such as sonic welders, riveters, adhesive dispensers, vision inspectors and verifiers, leak testers, robotic palletizers, and other equipment. The company’s products are used in the aerospace, automotive, construction, consumer products, food processing, furniture, medical, and pharmaceutical industries.  JR Automation was founded in 1980 and is headquartered in Holland, MI (www.jrauto.com).

Crestview Partners was interested in this acquisition due to industry trends that support JR Automation’s long-term growth prospects.  Specifically, Crestview expects to see growth in process manufacturing automation and robotics as adoption beyond the automotive industry accelerates and nascent re-shoring of US manufacturing.

“We have been very impressed with the technical capabilities, broad team and the significant potential of JR Automation.  Bryan Jones and Scot Lindemann will continue in their leadership roles, now filling the Co-CEO positions, with support from Mike DuBose as Chairman,” said Tom Murphy, Co-Founder of Crestview Partners.  “We are excited to invest in a fast growing factory automation solutions leader with such a strong culture and reputation.  We look forward to partnering with management in executing their global growth plans.”

Crestview Partners invests from $100 million to $250 million in companies with enterprise values up to $3 billion. Sectors of specific interest include energy, financial services, healthcare, industrials and media.  The firm will invest in other industries where its relationship network and senior operating capabilities provide an advantage.  Crestview, founded in 2004 and headquartered in New York, manages funds with over $7 billion of aggregate capital commitments (www.crestview.com).

“We owe a great debt of gratitude to JC Huizenga and the team at Huizenga Automation Group.  They provided support over a 20-year partnership enabling us to successfully compete and grow on a global basis,” said Bryan Jones, Co-CEO of JR Automation.

The Huizenga Automation Group is part of The Huizenga Group, a Western Michigan-based privately held company that provides management services to companies involved in custom automation machine building, tool & die, pharmaceutical packaging, machined metal parts, electrical contracting and engineered automotive component manufacturing.  Huizenga Automation Group is based in Grand Rapids, MI (www.huizengagroup.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-18-15

Benford Capital Acquires Gas Detection Platform

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Benford Capital Partners has acquired the assets of gas detector maker ENMET Corporation in partnership with the company’s management team.

ENMET is a manufacturer of gas detection equipment for the industrial, medical, and aerospace & defense markets.  Products range from compressed air line monitors to portable detectors and continuous multi-channel fixed systems that are used in a variety of hazardous gas conditions.  ENMET is also a custom engineer of gas and vapor detection systems used in pipelines, ducts, process lines, storage tank headspaces, engine test cells, environmental chambers, vehicle maintenance areas and similar applications.  The company was founded in 1970 and is based near Detroit in Ann Arbor, MI (www.enmet.com).

Upon closing of the acquisition, Benford Capital appointed Norman Davis as the new President of ENMET.  Mr. Davis was the former president of Microsensor Systems, a Bowling Green, KY-based developer of chemical sensing technology used to detect chemical warfare agents.  Microsensor Systems was acquired by Mine Safety Appliances Co. (NYSE: MSA) in 2005.

Benford Capital is actively seeking add-on acquisitions of gas detection instrument and sensor manufacturers to expand or compliment the operations of ENMET.

Benford Capital Partners makes control investments in smaller, lower middle market companies that have revenues of at least $3 million and EBITDAs of at least $1 million.  Sectors of interest include niche manufacturers, unique service companies, and specialty distributors.  Benford Capital Partners was founded in 2004 by Edward Benford and is based in Chicago (www.benfordcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-18-15

Insight Equity Adds-on to Flanders

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Flanders Corporation, a portfolio company of Insight Equity, has acquired the assets of Pronamic Industries. This is the first add-on completed by Flanders since it was acquired by Insight Equity in May 2012.

Pronamic manufactures, sells, and distributes fiberglass media and materials that are used in air filtration applications. The company’s products are used in retail and commercial air filters, paint booth filters, composites, and higher-end air filter applications. Pronamic is headquartered about 80 miles east of Raleigh in Washington, NC (www.pronamicindustries.com).

Since its inception in 2013, Pronamic has transformed an empty manufacturing space in Washington, NC in to a significant fiberglass media manufacturing facility.  “Pronamic is a unique company that has built the first new, fully operational fiberglass media manufacturing plant in the United States in several years,” said Ted Beneski, Chairman of Flanders and Managing Partner of Insight Equity.  “Their team’s successful start-up has been impressive.”

Flanders Corporation designs, manufactures, and sells air filters and other related products.  Flanders’ products are utilized in a variety of applications including commercial and residential heating, ventilation and air conditioning systems; semiconductor manufacturing; ultra-pure materials; biotechnology; pharmaceuticals; synthetics; nuclear power; and nuclear materials processing. The company was founded in 1950 and is headquartered in Washington, NC (www.flanderscorp.com).

“The vision to go into fiberglass manufacturing has been one under consideration at Flanders for many years,” said Harry Smith, Vice Chairman of Flanders.  “The founding and ramp-up of Pronamic enabled there to be a business local to Flanders’ headquarters that could focus solely on building and continuously improving a fiberglass media operation while Flanders could focus on its core business of manufacturing, assembling, and selling air filters and related products to its customers.”

Pronamic represents the second investment by Insight Equity in the filtration space.  “Insight Equity’s long-term outlook on the air filtration sector remains very positive,” said Brad Buser, a Principal at Insight Equity.  “The combination of Flanders and Pronamic will ensure that we have sufficient fiberglass supply to service our customers as we continue to grow and will also enable us to seek new revenue opportunities in additional fiberglass media end uses.  We are very pleased to have completed this acquisition.”

Insight Equity makes control investments in middle market, asset intensive companies across a range of industries and specializes in partnering with companies in complex and challenging situations, including corporate divestitures, aggressive growth opportunities, restructurings, and transitions from private family ownership.  The firm is based near Dallas in Southlake, TX and also has an office in New York (www.insightequity.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-18-15

Babson Backs Bridgepoint Buy of eFront

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Babson Capital Management was the lead arranger of financing to support Bridgepoint’s acquisition of financial industry software provider eFront from Francisco Partners for €300 million.

Babson co-arranged the debt financing in support of the acquisition alongside a group of banks which included ING, HSBC and Bank of Ireland.  The debt facility included a revolving credit facility, a capex/acquisition facility, and a term loan.

eFront is a software provider for the alternative investments and risk management areas of the financial services industry.  Its web-based software products automate many accounting, management and operational functions of private equity, venture capital and other alternative investment management firms. The company was founded in 1999 and serves more than 700 customers in 40 countries.  The company is headquartered in Paris (www.efront.com).

Babson Capital has $212 billion in assets under management and is a member of the MassMutual Financial Group. The firm has offices in Boston and Springfield, MA; New York, Chicago, Charlotte and Los Angeles, and nine other offices in Europe, Asia and Australia (www.BabsonCapital.com).

“Babson greatly values our longstanding relationship with Bridgepoint and we are pleased to provide support for the investment in eFront,” said David Wilmot, Managing Director at Babson.  “We are excited about the strength of eFront’s business model, its unique positioning with private equity sponsors and alternative investments managers, and its ability to provide customized solutions that create a highly loyal customer base.  We are confident that Bridgepoint’s financial and operational support will help the company reach its potential to deliver robust revenue and profit growth.”

Bridgepoint typically acquires businesses valued between €200 million and €1 billion.  The firm’s lower middle market business, Bridgepoint Development Capital, specializes in investments in businesses valued between €20 million and €150 million.  Sectors of interest include: business services, consumer, financial services, healthcare, manufacturing & industrials and media & technology.  The firm has offices in Frankfurt, Istanbul, London, Luxembourg, Madrid, Paris, Stockholm, Warsaw and Shanghai (www.bridgepoint.eu).

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-18-15