Archives for April 22, 2015

Charlesbank Exits OnCore

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Charlesbank Capital Partners has sold its portfolio company OnCore Manufacturing, a provider of electronic manufacturing services, to NATEL Engineering Company.

Charlesbank acquired OnCore from Golden Gate Capital and Celerity Partners in December 2010.   OnCore was formed by Golden Gate and Celerity through the merger of Nu Visions Manufacturing and Veritek Manufacturing in January 2008.

Today, OnCore Manufacturing is a provider of complex electronics manufacturing services (EMS).  The company’s products are used in applications such as encrypted mobile communications, radar systems, medical equipment and broadband infrastructure.  Customers include blue-chip OEM manufacturers in the defense, healthcare and industrial markets.  The company has manufacturing facilities in Springfield and Wilmington, MA; Longmont, CO; San Marcos and Fremont, CA; Suzhou, China and Tijuana, Mexico.  OnCore is headquartered west of Boston in Springfield, MA (www.oncorems.com).

Chicago-based investment bank Lincoln International (www.lincolninternational.com) was the exclusive sell-side advisor to Charlesbank and OnCore Manufacturing.  “Lincoln’s unparalleled expertise in the EMS industry was critical in helping to facilitate the closing of this transaction. Charlesbank and the stakeholders of OnCore benefitted greatly from their efforts and knowledge,” said Michael Choe, Managing Director at Charlesbank.

NATEL Engineering Company is a provider of low-to-high-volume and high-mix electronic assembly services for Fortune 500 companies. The company was founded in 1975 and is headquartered in Los Angeles (www.natelems.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-22-15

DFW Exits Metanexgen

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DFW Capital Partners has completed the sale Metanexgen, a marketing services company serving the life sciences industry, to Insignia Capital Group.

DFW acquired Meta Pharmaceutical Services, a provider of data-driven email and direct mail marketing services, from its founders in August 2010.  In June 2013 the company merged with NexGen RxMarketing, a provider of online video and virtual meeting marketing services.  The combined company was renamed Metanexgen.  Today, Metanexgen is a provider of data-driven multi-channel marketing services that are used by pharmaceutical, biotechnology and medical device brands to market their products to healthcare practitioners.  Metanexgen is headquartered near Philadelphia in Bensalem, PA (www.metanexgen.com).

“We have been fortunate to partner with the deeply talented and committed Metanexgen management team. It has been a pleasure to work with the team as the organization developed and delivered significant growth, resulting in a great outcome for our investors,” said Brian Tilley, a Partner at DFW.

DFW Capital Partners invests in lower middle-market service companies, with an emphasis on healthcare and outsourced business and industrial support services.  DFW is headquartered in Teaneck, NJ, and maintains an office in Washington, DC (www.dfwcapital.com).

“Reduced access to healthcare practitioners is driving pharmaceutical, biotechnology and medical device companies to spend more on multi-channel marketing services,” said Tony Broglio, a Partner at Insignia.  “We believe Metanexgen’s full-service offering and technology solutions position the company at the forefront of the multi-channel marketing sector.”

Insignia Capital Group invests in lower middle-market companies with revenues of at least $20 million.  The firm will consider investments in an array of industries but has a specific interest in consumer, business services and healthcare. Insignia Capital Group is based near San Francisco in Walnut Creek (www.insigniacap.com).

“We have enjoyed and sincerely appreciate our partnership with DFW. Their support, vision, and guidance has helped position Metanexgen as a market leader that is well prepared to meet our clients’ growing needs, expand our offerings, and accelerate growth,” said Chris Wiltshire, Metanexgen’s President and CEO.  “We look forward to partnering with Insignia as we work to deliver extraordinary outcomes for our clients, employees, and shareholders.”

Lazard Middle Market (www.lazardmm.com) served as the exclusive financial advisor to Metanexgen.

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-22-15

Salt Creek Acquires CourseTrends

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Salt Creek Capital has acquired CourseTrends, a provider of online marketing services to operators of golf facilities.

The customers of CourseTrends utilize the company’s products to maximize revenues and provide golfers access to online tee-time bookings across all 50 states through its Golf18network website (www.golf18network.com).

“CourseTrends enables course operators to increase revenues and operate more efficiently using a broad range of technology solutions, while improving the overall golfer’s experience. We are excited to partner with Alan Stalcup, CourseTrends founder, in this transaction and look forward to his continued support through the company’s next phase of growth”, said Dan Phelps, Managing Director of Salt Creek Capital.

CourseTrends products include customized websites, email marketing and mobile tools, social media management, e-commerce, and call center support.  CourseTrends was founded in 2003 and has more than 2,500 clients located across the US.  The company is headquartered in Austin (www.coursetrends.com).

As part of the transaction, Ali Murdoch – who joined Salt Creek Capital as an Executive Partner in early 2015 – will become the new CEO of CourseTrends.  “It has been a great experience working with Salt Creek Capital and Alan Stalcup. It’s exciting to step into a new operating role with an industry-leading company with such an impressive and dedicated team,” said Mr. Murdoch.  “CourseTrends has a strong track record of providing innovative solutions to the market place, and I look forward to our continued growth in the industry by adding new features and services.”  Before joining Salt Creek as an Executive Partner, Mr. Murdoch was the Chief Executive Officer of Hardworking Software.com, a provider of ERP and CRM services to the residential construction trades with a specific focus on the kitchen and bath sector.

Salt Creek Capital invests in lower middle-market companies located anywhere in the US that have $3 million to $50 million in revenue. Sectors of interest include business services, distribution, energy services, franchising, logistics and specialty finance. The firm is based in Menlo Park (www.saltcreekcap.com).

Midwest Mezzanine (www.mmfcapital.com) provided junior capital to CourseTrends in support of the transaction. Paul Kreie, Senior Managing Director, led the transaction for Midwest Mezzanine.

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-22-15

Svoboda Portfolio President Newest Managing Director

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Tom Brooker has joined Svoboda Capital Partners as a Managing Director and Operating Partner. Mr. Brooker previously served as President and CEO of GPA Holdings, a marketer and value-added distributor of specialty printable substrates and a portfolio company of Svoboda Capital.

“We are excited to have Tom join the Svoboda Capital team. He brings 35 years of solid managerial and industry experience, and his expertise and leadership skills are well suited to the strengths of our management team and our portfolio companies,” said John Svoboda.

Mr. Brooker joined GPA in June 2010 and Svoboda Capital acquired the company in October 2011.  GPA was sold earlier this month by Svoboda Capital to The Fedrigoni Group, an international maker and marketer of high value added paper, security products and self-adhesive items based in Verona, Italy.  Prior to his time at GPA, Mr. Brooker was the CEO of Nashua Corporation from 2006 until its sale in 2009.  Before Nashua, he was Group President of Forms, Labels and Office Products for Moore Wallace.

Svoboda Capital Partners invests from $10 million to $20 million in business services, value-added distribution, and consumer products companies that have revenues from $10 million to $100 million and EBITDAs from $3 million to $15 million. The firm was founded in 1998 and has over $300 million of capital under management.  Svoboda Capital is based in Chicago (www.svoco.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-22-15

GE Backs Trinity Hunt’s Buy of America’s Auto Auction

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GE Capital has provided financing as part of an $88 million senior secured credit facility to support the acquisition of America’s Auto Auction (AAA) by Trinity Hunt Partners.  CEO Ben Lange and CFO Dustin Miller will remain as shareholders of AAA and will continue to run the business.

GE Capital Markets served as co-lead arranger and joint-bookrunner on this facility, and GE Capital made an equity investment alongside Trinity Hunt.  “This is our fourth financing with GE Capital,” said Mr. Lange.  “We really value the expertise that GE Capital has about our business.”

America’s Auto Auction specializes in conducting wholesale auctions of automobiles on behalf of new car dealers, fleet lease businesses, repossession companies, and used car dealers.  The company was founded in 2005 and is headquartered in Dallas with 11 auction centers throughout the eastern half of the US (www.americasautoauction.com).

Trinity Hunt invests in companies that have EBITDAs between $3 million and $15 million and have enterprise values between $15 million and $150 million. The firm considers investment opportunities across a range of industries but has a specific interest in industrial products and services, business services and healthcare services. Trinity Hunt is based in Dallas (www.trinityhunt.com).

“We appreciate GE Capital as a predictable and reliable source for financing,” said Dan Dross of Trinity Hunt Partners. “This new facility gives us the resources we need to continue AAA’s expansion.”

GE Capital provides asset-based, cash flow and structured loans and leases to mid-size and large US businesses. Sectors of interest include: aerospace and defense; automotive and transportation; chemicals and plastics; construction and building products, corporate aircraft; energy; food and beverage; manufacturing; marine; metals and mining; paper, packaging and forest products; retail; and technology and electronics (www.gecapital.com).

“AAA, along with Trinity Hunt, is well positioned with this new acquisition and we are excited to be part of it,” said Bob McCarrick, chief commercial officer, GE Capital Corporate Finance.

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-22-15