Archives for May 2015

Cortec has Final Close for Fund VI

by

New York-based Cortec Group has held a final closing of Cortec Group Fund VI, LP with $1.1 billion of capital commitments.

“We are very pleased to announce that after approximately two months of fundraising-related meetings we completed the Cortec Fund VI raise, hitting our hard cap,” said Dave Schnadig, a Cortec Managing Partner.

Cortec invests in US and Canadian middle-market specialty healthcare, consumer and engineered products, and value-added distribution and service businesses.  Cortec’s target companies typically have enterprise values from $40 million to $300 million.  As with its prior three funds, Cortec Fund VI will focus on platform investments with revenues of more than $25 million and $5 million to $30 million in trailing EBITDA.

“We believe our success in working with business owners who want a partner that brings a combination of real-world business experience and private equity knowledge is unrivaled in the middle market,” said Jeff Lipsitz, a Managing Partner at Cortec.

Demonstrating this relationship, a number of former and current portfolio company CEOs and senior executives invested a combined $20 million in the new fund.

The senior Cortec team, which includes Partners Jon Stein, Gene Nesbeda and Jeff Shannon, has worked together for many years and remains intact for Cortec Fund VI.  The firm was founded in 1984 and is based in New York (www.cortecgroup.com).

“To experience the firm’s evolution from its first institutional capital pool of $27 million in 1990 to our current level is extremely gratifying,” said Scott Schafler, a Cortec founder and Managing Partner.

2015 PEPD • Private Equity’s Leading News Magazine • 5-27-15

ClearPoint Expands Investment Team

by

ClearPoint Investment Partners – an investor in lower middle-market business services and financial processing companies – has hired Taimur Shaikh as Principal and Joseph Velli, a financial services and technology executive, as the firm’s sixth Operating Director.

“These additions to the team reinforce our strategy to serve as a valuable partner to management through deep sector and functional expertise across operations, finance, and strategy,” said Ingrid Mazul, Co-founder and Partner of ClearPoint.

Mr. Shaikh has over seven years of private equity experience having worked at Trident Capital and Oak Hill Capital Partners. His experience includes transactions in the business and healthcare services and software sectors.  Mr. Shaikh has been responsible for all aspects of the investment process, including origination, evaluation and execution, and portfolio monitoring.   He began his career in investment banking at Lehman Brothers and has an MBA from Stanford and a BA from UCLA.

Mr. Velli has direct experience in building financial services and technology-based businesses.  He has completed 50 acquisitions during his 30-year career and has served on the Boards of private and public companies. For 22 years, he was with BNY Mellon, most recently as Chairman and CEO of BNY Convergex Group. He headed businesses in brokerage services, payments, clearing and securities services, employee benefits administration, and consumer banking. Mr. Velli currently serves on the Boards of Paychex and Computershare Limited, and previously served on the Boards of E*Trade Financial and American Management Systems.

“We are fortunate to have two executives with such outstanding investment and business transformation skills join our team,” said Carty Chock, Co-founder and Partner of ClearPoint.  “Taimur’s knowledge and relevant investment expertise provide additional sourcing and execution capabilities and Joe’s experience base further diversifies our bench of Operating Directors. His decades of leading payments and transaction processing companies add valuable management insight and relationships in these key sectors.”

ClearPoint invests from $20 million to $100 million in US and Canadian-based companies that have revenues of at least $100 million and a minimum EBITDA of $3 million.  Sectors of interest include business services and financial processing with a specific interest in outsourced services, transaction processing , data and analytics, and brokerage and distribution.  ClearPoint does not invest in “balance sheet” financial services companies such as banks or other lenders, or insurance carriers. ClearPoint was formed by co-founders and partners Ingrid Mazul and Carty Chock in 2013 and is headquartered in San Francisco (www.clearpointinvest.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-27-15

Rippowam Launched into Health and Wellness Sector

by

Rippowam Partners has been launched by Peter Weinbach and Graham Anderson to pursue investments in the healthy living and wellness sectors.

Rippowam targets companies that have annual revenues between $10 million and $100 million and EBITDAs from $2 million to $10 million.  Specific areas of interest include food and beverage; health and beauty; active life styles (gyms, yoga studios, and other recreational activities); restaurants; and medical spas.  Rippowam makes control and non-control investments, and through the partner’s personal capital and the firm’s network of family offices will invest from $5 million to $30 million in equity per transaction.

According to Mr. Weinbach, Rippowam will be active in investing in consolidations, growth capital financings, buyouts, recapitalizations and PIPEs.  The firm has yet to close on its first investment but it is actively pursuing a number of opportunities that fit Rippowam’s investment criteria.

Messrs. Weinbach and Anderson – each with more than twenty years of private equity experience – began their careers as Associates and rose to become General Partners in various firms throughout their careers.  The two founders have collectively sat on over a dozen boards of directors and invested through different market cycles.

Mr. Weinbach was previously a Managing Director at AIG Horizon Partners, a $340 million private equity fund, and a Vice President at Apax Partners. Mr. Anderson was previously General Partner of Euclid SR Partners, a $250 million venture fund based in New York, and earlier was an Associate at law firm Susman Godfrey.

Mr. Weinbach is based in Rippowam’s Los Angeles office and Mr. Anderson is based in the firm’s New York office (www.rippowampartners.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-27-15

Maranon Leads Mezzanine of Health & Safety Institute

by

Maranon Capital provided a mezzanine investment and an equity co-investment to support the recent acquisition of the Health & Safety Institute (HSI) by The Riverside Company.

HSI is a provider of health and safety training and compliance services.  Sectors served include emergency care (CPR, first aid, blood-borne pathogens), workplace safety, professional responder (firefighters, EMTs, paramedics, nurses, and physicians), and health & safety compliance. The company has more than 40,000 customers and 13,200 affiliated training centers. HSI is headquartered in Eugene, OR (www.hsi.com).

Maranon led the mezzanine financing for this transaction with the participation of GCM Grosvenor, an alternative investment firm headquartered in Chicago (www.gcmlp.com).

Maranon Capital provides senior financing, mezzanine debt and equity co-investments for private equity-backed and non-sponsored middle market transactions. The firm is currently managing over $1 billion of committed capital and has offices in Chicago; Birmingham, MI (near Detroit) and South Bend, IN (www.maranoncapital.com).

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 380 transactions. The firm’s international portfolio includes more than 70 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-27-15

Swander Pace Exits Applegate

by

Swander Pace Capital has sold its minority investment in Applegate, a natural and organic meat company, to Hormel Foods. The transaction, including the ownership interest of Applegate founder Stephen McDonnell, is valued at $775 million.  Swander Pace first invested in Applegate in April 2009.

“We have enjoyed working with Stephen and the rest of his team to grow Applegate into the leader in the natural and organic meat industry,” said Andrew Richards, a Managing Director at Swander Pace. “Over nearly three decades, Applegate has been changing the food industry and providing quality products to meet the changing preferences of consumers who value transparency and natural ingredients.”

Applegate sells more than 140 natural and organic meat products including deli meats, hot dogs, bacon, sausages, frozen breaded chicken and pre-packed lunch kits. The company was founded in 1987 and is headquartered outside of New York in Bridgewater, NJ (www.applegate.com).

“Swander Pace has been a valued partner over the last six years and instrumental in providing guidance and support to grow our brand and expand distribution channels all while maintaining our commitment to our mission and values,” said Mr. McDonnell. “Applegate’s leadership in the natural and organic food movement and mission to the change the meat we eat will continue with our partnership with Hormel.”

“We have been honored to support Applegate in its efforts to change the meat industry,” said Rob DesMarais, a Managing Director at Swander Pace. “This transaction represents another successful execution of our consumer products investment strategy to attract and partner with world class teams, implement effective marketing strategies, optimize productivity, and drive success in a growing industry.”

Swander Pace Capital (SPC) invests in middle-market consumer products companies including branded and non-branded manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $400 million in revenues.  SPC has raised over $1.3 billion of equity capital through five private equity funds and has led investments in more than 40 consumer products companies.  SPC was founded in 1996 and has offices in San Francisco; Bedminster, NJ; and near Toronto in Oakville, ON (www.spcap.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-27-15

GenNx360 Adds On Majestic Industries

by

Tooling Technology Holdings, a portfolio company of GenNx360 Capital Partners, has acquired automotive die manufacturer Majestic Industries.

Majestic is a manufacturer of progressive and transfer dies used for stamping automotive parts.  The company designs, engineers, builds, and tests dies for both automotive original equipment manufacturers and Tier 1 automotive suppliers. Majestic was founded by Al Janiszewski in 1980 and is based in the Detroit suburb of Macomb Township (www.majesticind.net).

Tooling Technology, acquired by GenNx360 in July 2014, is a manufacturer of tooling and automation systems utilizing thermoforming, twin-sheet and single-sheet vacuum forming, pressure forming, and compression and rotational molding.  The company sells its products to companies in the industrial machinery and components, oil and gas, logistics and supply chain management, agricultural, specialty chemicals, and aerospace sectors.  Tooling Technology employs approximately 100 people and has production facilities in Fort Loramie and Fremont, OH and an engineering design facility in Grand Rapids, MI.  Tooling Technology was founded in 1982 and is headquartered north of Dayton in Fort Loramie (www.toolingtechonline.com).

The Majestic acquisition expands the tooling capabilities of Tooling Technology and allows the group to continue its expansion into different industries and positions the company as a one-stop tooling shop.  “This acquisition vertically integrates the GenNx360 automotive tooling platform, expanding product diversity to the current offerings. Majestic’s strong engineering team and its well-entrenched OEM relationships will enable the platform to extend its footprint and market presence,” said Matthew Guenther, the GenNx360 Partner who led the transaction.

“Majestic is a great fit for us as it adds progressive die tooling capabilities to our offerings, expands our customer base and provides us with improved visibility in the supply chain,” says Tony Seger, CEO of Tooling Tech.

GenNx360 is a private equity firm focused on investing in industrial business-to-business companies in the middle market. Sectors of interest include aerospace & defense; automotive; building products; food & agriculture; healthcare; metals & mining; oil & gas and power; packaging, specialty chemicals; and transportation. GenNx360 was founded in 2006 and is headquartered in New York with an additional office in Boston (www.gennx360.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-27-15

Onex to Invest in Jack’s

by

Onex Corporation has made an investment in Jack’s Family Restaurants, a regional quick-service restaurant operator, in partnership with the company’s management team.

“In Onex, we have found a partner that understands the heritage of the Jack’s brand and its emphasis on people, service and community, which have allowed the company to be successful over the years,” said Benny LaRussa Sr., CEO and owner of Jack’s. “We are excited about partnering with Onex for the next phase of Jack’s growth.”

Jack’s Family Restaurants is an operator of quick-service restaurants specializing in burgers, fried chicken, made-from-scratch biscuits, crinkle-cut fries and hand-dipped shakes. The company employs approximately 4,400 individuals across 129 company-owned stores in Alabama, Georgia, Mississippi and Tennessee.  Jack’s Family Restaurants was founded in 1960 and is headquartered south of Birmingham in Homewood, AL (www.eatatjacks.com).

“Jack’s is a differentiated concept with strong consumer loyalty driven by its focus on high-quality food and exceptional customer service, which has contributed to its success over several decades,” said Matthew Ross, a Managing Director with Onex. “We are excited to work with the entire Jack’s team as well as the LaRussa family, and look forward to continuing to invest in Jack’s people and its brand for years to come.”

Onex Corporation makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $21 billion of assets under management and is based in Toronto with additional offices in New York and London (www.onex.com).  The investment in Jack’s Family Restaurants will be made by Onex Partners IV, Onex’ $5.7 billion flagship fund.

2015 PEPD • Private Equity’s Leading News Magazine • 5-26-15

ABRY to Acquire FastMed Urgent Care

by

ABRY Partners has agreed to acquire FastMed Urgent Care, the second largest independent urgent care organization in the US and the largest network in both North Carolina and Arizona.

FastMed provides non-appointment based medicine to the non-emergency patient market through its urgent care centers.  The acquisition includes FastMed’s 87 clinics in North Carolina and Arizona and also includes the company’s corporate headquarters in Raleigh, NC, and regional headquarters in Phoenix, AZ.  FastMed employs more than 1,100 individuals across both markets (www.fastmed.com).

“We are excited to be partnering with the FastMed management team and believe strongly that the urgent care industry is at the center of two large trends in healthcare, providing convenient care to patients and lowering medical cost for insurance payors,” said Brent Stone, a Partner at ABRY.  “We believe FastMed’s integrated approach to patient care sets them apart in the industry and will allow them to expand rapidly in the urgent care marketplace.  We look forward to providing strategic and operating value in addition to capital that will expand FastMed’s services to a broader base of patients.”

According to ABRY, FastMed is the fastest growing urgent care company in the US.  “The additional capital and management talent that ABRY provides will allow us to significantly expand our geographic footprint and grow organically as well as through targeted acquisitions,” said Kevin Blank, CEO of FastMed.  “FastMed is in a high growth, high performance mode across all clinical, operational and financial functions.”

Mosaic Health Solutions, a healthcare-themed investment company based in Durham, NC (www.mosaichealthsolutions.com), will continue as a minority investor in the company alongside ABRY.  “FastMed has put quality, affordable care within reach of millions of consumers,” said Mosaic President Maureen O’Connor.  “We are pleased to continue working with FastMed as together we transform healthcare.”

ABRY Partners invests in the media, communications, and business and information sectors. The firm is currently managing over $4.3 billion of total capital and investing out of a $1.9 billion private equity fund, $950 million senior equity fund and a $1.5 billion senior debt fund. ABRY was founded in 1989 and is headquartered in Boston (www.abry.com).

Houlihan Lokey acted as the exclusive financial advisor to FastMed. The transaction is expected to close sometime in the second quarter.

2015 PEPD • Private Equity’s Leading News Magazine • 5-26-15

Platte River Acquires Profile Products

by

Platte River Equity has acquired Profile Products, a maker of products that are used for soil modification, erosion and sediment control, and vegetation establishment.

Profile’s products are designed to minimize soil loss and accelerate seed germination and are used in a variety of applications including private and civil construction, energy, mining, landfill, agriculture, horticulture, sports fields, golf courses, and retail lawn and garden.  The company is headquartered in the Chicago suburb of Buffalo Grove, IL (www.profileproducts.com).

“We have worked hard with our distributor partners to become leaders in each of our target markets and were looking for the right partner to help fuel the next chapter in our growth,” said John Schoch, President and CEO, Profile Products. “Platte River has the resources and experience to help us execute new expansion strategies.”

“As the clear market leader serving a diverse set of growing end markets and customers, we are enthusiastic about our investment in Profile Products,” said Kris Whalen, Managing Director of Platte River.  “With a strong foundation and active pipeline of new products, the company is positioned to better serve its existing customers and penetrate new markets. We look forward to helping John Schoch and the rest of the management team take full advantage of the available growth opportunities.”

Platte River makes equity investments of $10 million to $50 million in lower middle-market companies with enterprise values generally between $20 million and $250 million. The firm focuses on investing in the aerospace and transportation; energy and industrial products and services; and chemicals, metals, minerals and agriculture sectors. The firm invested capital out of its third fund, Platte River Equity III, LP, to acquire Profile Products.  Platte River is based in Denver (www.platteriverequity.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-26-15

Evercore Adds New Technology Banker

by

New York-based investment bank Evercore Partners has hired Tom Stokes as a new Senior Managing Director in its Technology Banking Group.  Mr. Stokes is based in New York and will focus on advising clients across the technology sector.  Before joining Evercore, Mr. Stokes was a Managing Director in the investment banking division of Goldman Sachs for 13 years. He has been particularly active in the semiconductor, electronics and industrial tech subsectors.

“Tom’s extensive experience, broad network of relationships across multiple technology sectors, and his reputation for integrity and providing sound, objective advice to some of the most notable companies in his sector, make him an excellent addition to our team,” said Ralph Schlosstein, Evercore’s President and Chief Executive Officer.

Evercore Partners provides advisory services to multinational corporations on mergers, acquisitions, divestitures, restructurings and other strategic corporate transactions. Evercore also has an investment business through which it manages private equity and venture capital funds for institutional investors.   Evercore has 28 offices in North America, Europe, South America and Asia and is headquartered in New York (www.evercore.com).

“We are extremely pleased to have a banker of Tom’s quality and experience join Evercore to help us continue to expand our capabilities in the technology industry, which is one of the largest and most active for investment banking services,” said Roger Altman, Evercore’s Executive Chairman.

Mr. Stokes received his BA, MA and MEng degrees in Engineering from Cambridge University and received his MBA degree from Northwestern’s Kellogg School of Management.

“I am excited about joining Evercore and building on the technology team’s strong momentum. Evercore’s client focus, advisory capabilities and expanding capital markets franchise provide a great platform to serve clients’ most strategic needs. Evercore has made a tremendous commitment to continuing to build its leading technology banking business, and I look forward to being a part of that effort,” said Mr. Stokes.

2015 PEPD • Private Equity’s Leading News Magazine • 5-26-15

Yorkshire Equity Acquires Dry Systems Technologies

by

Yorkshire Equity has acquired the assets of Dry Systems Technologies (DST), a subsidiary of Alpha Natural Resources. Yorkshire’s purchase was made in partnership with Ron Eberhart, the chief executive officer of DST.

DST is a maker of diesel engine emission control products and after treatment technologies that are used in the mining, extraction and tunneling industries.  The company’s products are designed to make diesel engines run cleaner.  DST specializes in upgrades for existing diesel engines, complete re-power of diesel powered mining and construction equipment, and diesel power-packages for new machinery builders. DST also offers machine upgrades – including full-machine rebuilding capabilities – and an OEM line of new machinery. The company is headquartered in the Chicago suburb of Woodridge, IL and operates additional facilities in Vienna, IL and Price, UT (www.drysystemstech.com).

“Partnering with a long term oriented investment team that is focused and supportive of DST’s continued vision for growth and expansion is exciting for our employees, our customers, and our many other stakeholders,” said Ron Eberhart, President of DST.  “The synergies of thinking and common focus on taking care of the customer first make for a winning partnership and everyone here is eager to continue building on the successful platform of products and services that DST offers to its growing client group.”

Yorkshire Equity invests in North American-based lower middle-market industrial companies that have from $2 million to $6 million of EBITDA and where the firm’s operating experience can assist in long term value creation.  The firm is based in Denver (www.yorkshireequity.com).

“Yorkshire is very excited to partner with Ron and the DST team to continue to build an industry leader in DST’s current markets and to enter into new markets,” said Stephen Largan, Managing Partner at Yorkshire.  “We know from experience that unparalleled service and innovative technological solutions are vital to supporting our customers’ businesses and we share Ron’s commitment to supporting DST’s current customers, the development of the DST team and his vision for growth.”

The seller of DST, Alpha Natural Resources (NYSE: ANR), is a producer of metallurgical coal for the industrial production of steel and iron, and low-sulfur thermal coal to fuel steam boilers for the production of electrical power. The company is headquartered in Bristol, VA (www.alphanr.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-21-15

BelHealth Exits Aureus Health Services

by

BelHealth Investment Partners has sold its portfolio company Aureus Health Services to Meijer, a regional hypermarket chain headquartered in Michigan.

Aureus, acquired by BelHealth in December 2012, is a specialty pharmacy and health services company that provides prescription drugs, nutritional supplements and therapy management services to patients, families, and medical professionals in treating a range of chronic health conditions including HIV, Hepatitis C, Cancer, and other chronic and rare conditions.  Aureus is headquartered in Pittsburgh and operates facilities located in New York, New Jersey, Missouri, California and Pennsylvania (www.aureushealthservices.com).

“We are very proud of what we have accomplished at Aureus,” said Richard Friedman, Chairman of Aureus and a BelHealth Operating Partner.  “The company grew revenue 10x under our stewardship and has become a leading national provider of specialty pharmacy and Hub services. Our executive team, led by Michael Nameth, did an excellent job in executing the strategic plan and driving tremendous growth. Meijer, with its strong retail footprint and focus on customer service, is the perfect partner for Aureus.”

BelHealth Investment Partners is a lower middle-market healthcare focused private equity firm.  The firm invests from $20 million to $40 million in companies in three healthcare segments: services, products, and distribution. BelHealth is based in New York (www.belhealth.com).

According to Harold Blue, the founder and Managing Partner of BelHealth, the firm’s investment in Aureus was very successful and was driven both by add-on acquisitions and operational improvements. “Richard and Michael did a terrific job in taking Aureus from a New York-based, local business, to a national specialty pharmacy and Hub services platform. During BelHealth’s ownership, Aureus completed two acquisitions that provided both geographic and disease state diversification. Aureus also established a national Hub to service patients through grocery chains, group purchasing organizations, independent pharmacies and wholesalers.  Aureus’ exceptional financial results led to an outstanding investment return for our limited partners.”

Meijer, the buyer of Aureus, is a privately-owned regional hypermarket chain.  About half of the company’s 200 stores are located in Michigan’s Lower Peninsula, with additional locations in Illinois, Indiana, Ohio, and Kentucky.  Based on 2013 revenue, Meijer is the 27th-largest retailer in the United States.  The company was founded in 1934 by Hendrik Meijer and is headquartered near Grand Rapids in Walker, MI (www.Meijer.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-21-15

Kinderhook’s Lodis Merges with American Belt

by

Lodis Accessories, a portfolio company of Kinderhook Industries, has merged with The American Belt Company and the combined company has been renamed American Accessories.

Lodis Accessories, acquired by Kinderhook in January 2006, is a supplier of fashion accessories for men and women, including clutches, belts, wallets, brief bags, handbags and travel accessories. Lodis’ products are sold in department stores, specialty boutiques and luggage stores. The company was founded in 1970 and is based near Newport Beach in Lake Forest, CA (www.lodis.com).

American Belt is a supplier of men’s accessories including belts, wallets, and suspenders for branded products, including Carhartt, and private label customers.  American Belt has been owned and operated by the Ford family since its founding in 1969 and is headquartered northeast of Philadelphia in Bensalem, PA (www.americanbelt.com).

“We are excited to be partnering with American Belt and the Ford family to execute against our long term strategic objectives,” said Tom Tuttle, Managing Director of Kinderhook Industries.  “This merger further strengthens the Lodis platform as the company continues to expand its market presence.  This transaction has brought together two companies that will provide an exceptional platform to meet the growing demands of our customers and the market.”

Kinderhook Industries makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements.  Kinderhook pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $1.25 billion of committed capital and is based in New York (www.kinderhook.com).

According to Adam Yuzuk, CEO of American Accessories, the two companies are perfect merger partners.  “American Belt and Lodis’ respective product mix complement one another as American Belt has a strong presence in men’s accessories and Lodis has a stronger presence in women’s accessories. The combination of Lodis and American Belt will strengthen the company’s position in the accessories market and also position the company for continued success.”

“American Belt is entering into a new chapter and we are thrilled to be joining forces with the team at Lodis,” said Michelle Ford, who will remain with the company. “The cultures of these two companies are a great fit. Both companies have entrenched industry relationships and we are looking forward to continuing to provide exceptional products.”

Financing for the transaction was provided by PNC Bank (www.pnc.com). HT Capital Advisors (www.htcapital.com) served as the exclusive financial advisor to American Belt.

2015 PEPD • Private Equity’s Leading News Magazine • 5-21-15

Levine Leichtman Invests in Allied Aerofoam

by

Levine Leichtman Capital Partners (LLCP) has made an investment in Allied Aerofoam Products.  The investment in Allied Aerofoam will be made out of Levine Leichtman Capital Partners Private Capital Solutions, LP and LLCP Co-Investment Fund, LP.

Allied Aerofoam is a fabricator of niche foam products that are used in an array of end-markets and applications including pet beds, packaging, specialty children’s furniture and marine cushions. The company was founded in 1988 and is headquartered in Tampa with additional manufacturing facilities in Atlanta and Thomasville, GA, and Milan, TN (www.alliedaerofoam.com).

Alan Rash will continue to lead Allied Aerofoam in his current role as Chief Executive Officer along with Bill Carrington, the company’s President.

“We are excited to partner with Alan and Bill and the rest of the management team who have led the growth of Allied Aerofoam and solidified its position as a market leader in the foam fabrication industry,” said Lauren Leichtman, Co-Founder and CEO of LLCP.  “The company has an outstanding reputation for design, quality and customer service as shown by its ability to consistently introduce new products and enter additional end markets.”

Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds.  The firm is based in Los Angeles with offices in Chicago, Dallas, New York, London and The Hague (www.llcp.com).

“I am very excited about LLCP’s investment and believe that the firm’s strategic and financial expertise will make them a great partner as we continue to grow the business,” said Mr. Rash.

Allied Aerofoam was advised by Oppenheimer & Co. (www.opco.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-21-15

Bookend Capital Launched in New York

by

Alexander Panos has launched Bookend Capital to invest in companies active in the branded consumer products sector.  Mr. Panos was previously a General Partner and Managing Director at TSG Consumer Partners, and a member of its investment committee.  He left the firm in October 2014 with the desire to launch a new firm to invest in smaller consumer companies.

Bookend will initially invest in companies with personal capital from Mr. Panos and pledged capital from other investors.  Typical transactions for Bookend will involve from $5 million to $30 million of control or minority equity per transaction.  Sectors of interest include consumer focused food, beverage, beauty and apparel companies with annual revenues of $10 million to $80 million.  Bookend Capital is headquartered in New York (www.bookendcapital.com).

Mr. Panos has an extensive background in branded consumer products. He joined TSG’s predecessor company, The Shansby Group, in 1998 as an Associate in San Francisco.  He was named a Managing Director of the firm in 2004 and in 2007, he moved to TSG’s New York office.  He also served on TSG’s investment committee.  In his 16 years with TSG, Mr. Panos worked together with other TSG Managing Members on the firm’s Fund IV investments in Smart Balance, NV Perricone, and Harry’s Fresh Foods, and Fund V’s investments in PopChips, Stumptown Coffee, and Island Oasis.

“I have been fortunate to have had successful partnerships with so many trailblazing founders and CEOs,” said Mr. Panos. “With Bookend, we will support a next generation of brand-builders.”

Prior to joining The Shansby Group, Mr. Panos was an investment banker at Bear Stearns and Merrill Lynch. He holds a BS and an MBA, both from the Wharton School at the University of Pennsylvania.

2015 PEPD • Private Equity’s Leading News Magazine • 5-21-15

Altamont Capital Lures Consumer Products Pro

by

Altamont Capital Partners has hired Todd Lachman as a new Operating Partner. Mr. Lachman will focus on investment opportunities in the consumer sector, with a particular focus on consumer packaged goods.  Mr. Lachman has 25-years of experience in consumer products with specific experience in pet care, confectionery, food, and household goods.

“We are thrilled to partner with Todd.  He brings a wealth of relevant experience and leadership capabilities to the team, demonstrated by the outstanding results he has delivered throughout his career,” said Jesse Rogers, Managing Director of Altamont.

Most recently, Mr. Lachman was the Global President of the Mars Petcare business where he generated market share gains driven by organic growth and multiple acquisitions, including the multi-billion dollar acquisition and integration of Iams/Eukanuba from Procter & Gamble.  Prior to this role, Mr. Lachman was the President of the Mars Chocolate business in North and Latin America.  Before his time at Mars, Mr. Lachman held senior management roles at Del Monte Foods, H.J. Heinz, and Procter & Gamble.

“I am thrilled to join the very talented Altamont team to explore investment opportunities in the consumer sector. Altamont’s track record of successfully acquiring and adding value to businesses makes the firm a perfect partner,” said Mr. Lachman. “I am confident that our unique combination of skills and experience will generate exceptional investments and deliver attractive financial returns.”

Altamont Capital Partners invests in middle-market businesses with specific interest in the financial services, government services, consumer/retail, industrials and healthcare sectors. Altamont was formed in 2010 by Jesse Rogers, Randall Eason and Keoni Schwartz who previously worked together at Golden Gate Capital and Bain & Company. The firm has over $1 billion of capital under management and is based in Palo Alto (www.altamontcapital.com).

“We are excited that Todd has joined the team,” said Altamont Managing Director Casey Lynch. “His demonstrated ability to lead a variety of consumer businesses and his experience building teams to deliver profitable growth will be an incredible asset to our firm.”

2015 PEPD • Private Equity’s Leading News Magazine • 5-21-15

LLR Invests in CompoSecure

by

LLR Partners has invested in CompoSecure, a designer and manufacturer of financial cards used by affluent customers of credit card issuers. The new investment from LLR will be used to finance an expansion of sales and marketing and for new product development.

CompoSecure’s flagship products are laser engravable ID cards and luxury metal cards that are sold to card issuers in the financial services, government, security, retail, gifting, resorts and casinos sectors. The company also offers composite pre-laminated products and sub-assemblies to other plastic card manufacturers. CompoSecure is headquartered near New York in Somerset, NJ (www.composecure.com).

“Specialty credit cards are an increasingly attractive way for issuers to differentiate themselves to win, retain, and boost usage by affluent customers,” said Mitchell Hollin, partner at LLR. “CompoSecure continues to differentiate itself with new product innovation led by an experienced engineering team. We are excited to partner with the company and support its continued growth as the dominant player in this unique market.”

LLR Partners invests in technology and service businesses that have annual revenues of $25 million to $250 million. The firm’s target companies include those that serve commercial and government clients in the physical and cyber security markets, as well as government contractors to the US homeland security, defense, intelligence and healthcare agencies. LLR is currently investing out of its fourth fund with $930 million of capital commitments. The firm has offices in Philadelphia, PA and Arlington, VA (www.llrpartners.com).

“CompoSecure has years of experience producing iconic, luxury cards, infusing each with an understated elegance that elevates the cardholder’s transaction experience and enhances the issuer’s brand,” said Michele Logan, CEO of CompoSecure. “LLR’s expertise in financial services and experience helping middle market businesses grow made them an ideal capital and strategic partner for CompoSecure, as we continue to enable clients to maximize their brand equity with high net worth customers.”

Generational Capital Markets (www.gencm.com) was the financial advisor to CompoSecure for this transaction.  “With its understanding of CompoSecure’s products and markets and its track record with financial services and middle market companies, I don’t think we could have found a more perfect partner for our client than LLR,” said Eric Sanderson, a Managing Director at Generational Capital Markets .

2015 PEPD • Private Equity’s Leading News Magazine • 5-20-15

DWHP Exits Health and Safety Institute

by

DW Healthcare Partners (DWHP) has sold its portfolio company, Health & Safety Institute (HSI), to The Riverside Company.  This is the second bite of the apple for Riverside as the firm was the owner of HSI before its sale to DWHP in August 2012.  Riverside acquired the company that became HSI when it purchased American Safety & Health Institute in July of 2006.

DW Healthcare Partners invested in HSI in August 2012, partnering with the company’s Chief Executive Officer Bill Clendenen.  During the term of DWHP’s ownership the company completed two acquisitions with the buys of Summit Training Source and WorkSafe Canada.  These acquisitions expanded HSI’s presence in workplace safety training and compliance.

“DW Healthcare Partners has been an exceptional partner for HSI and fully supported our strategic vision and the investments we made across our entire business,” said Mr. Clendenen. “Working with DWHP, we broadened our product portfolio through two acquisitions, expanded and strengthened our sales team and invested significantly in our technology platform.  These investments will drive the continued growth of the business.”

HSI is a provider of health and safety training and compliance services.  Sectors served include emergency care (CPR, first aid, bloodborne pathogens), workplace safety, professional responder (firefighters, EMTs, paramedics, nurses, and physicians), and health & safety compliance. The company has more than 40,000 customers and 13,500 affiliated training centers. HSI is headquartered in Eugene, OR (www.hsi.com).

“HSI’s management team lead by our CEO, Bill Clendenen, did an excellent job of growing and diversifying the HSI portfolio of brands and positioning the company for continued success,” said DWHP’s Founder and Managing Director Andrew Carragher.  “We are confident that the team will continue to build on this track record with their new partner.”

DWHP is a private equity firm focused exclusively on the healthcare industry. The firm manages over $500 million in committed capital and invests in profitable healthcare companies with proven management teams.  The sale of HSI marks the first portfolio realization for DWHP’s third equity fund, a $265 million investment vehicle which closed in January 2013.  The firm is based in Park City, UT (www.dwhp.com).

Harris Williams & Co. was the exclusive financial adviser to HSI on this transaction.

2015 PEPD • Private Equity’s Leading News Magazine • 5-20-15