Archives for May 7, 2015

Huron Continues Build-Up of Jensen Hughes

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Jensen Hughes, a portfolio company of Huron Capital Partners, has just completed two add-on acquisitions with the buys of ERIN Engineering and Research, and Sereca Consulting. These transactions represent the sixth and seventh add-on acquisitions completed by Huron since it acquired the Jensen Hughes platform (then known as Hughes Associates) in May 2011.

Today, Jensen Hughes is provider of fire protection engineering and consulting services that includes building and fire code consulting, fire protection design services, nuclear and power consulting, and litigation support. The company’s clients include government and commercial entities operating primarily in the nuclear power, education, and healthcare sectors.  Jensen Hughes is headquartered in Baltimore (www.jensenhughes.com).

ERIN Engineering and Research is headquartered near San Francisco in Walnut Creek, CA (www.erineng.com) and Sereca Consulting is headquartered in Vancouver, BC with additional offices in Toronto, Calgary, and Singapore (www.Sereca.com). With the completions of these two add-ons, Jensen Hughes now has nearly 700 employees and annual revenues approaching $150 million.

The acquisition of Sereca continues Jensen Hughes’ expansion into the Canadian and Southeast Asian marketplace.  “While our recent growth cycle has been exciting, we need to continue adding talent and complementary service offerings.  Sereca brings to our company a solid reputation in both Canada and Singapore, as well as respected staff with strong technical talents,” said Jensen Hughes CEO, Phil Rogers.

The complete list of add-on acquisitions for Jensen Hughes is as follows: (1) Sereca Consulting (Vancouver, BC) May 2015; (2) ERIN Engineering and Research (Walnut Creek, CA) May 2015; (3) Randal Brown & Associates Engineering (Toronto, CA) April 2015; (4) Rolf Jensen & Associates (Chicago, IL) June 2014; (5) Kodiak Fire & Safety (Ft. Wayne, IN) October 2013; (6) Anoba Consulting Services (Raleigh, NC) December 2012; and (7) Edan Engineering (Vancouver, WA) November 2011.

“Jensen Hughes is now a global company of engineers, consultants and scientists who advance the science of safety every day.  With its technical expertise, we believe the newly combined firm is perfectly positioned to offer the nuclear power industry the services and talent needed to meet their safety and protection challenges around the world,” said Peter Mogk, Huron Senior Partner.

Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include education & training, healthcare, specialty chemicals, specialty packaging, consumer products, home decor, business services, industrial manufacturing, food & beverage, and marketing services. The firm was founded in 1999 and currently manages over $1.1 billion in committed equity through four private equity funds. Huron Capital Partners has offices in Detroit and Toronto (www.huroncapital.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-7-15

Apax Partners to Acquire Quality Distribution

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Quality Distribution, a publicly-traded North American logistics and transportation provider, has signed an agreement to be acquired by Apax Partners at an enterprise value of $800 million or $16 per share in cash.  Under the terms of the agreement, Quality Distribution may solicit alternative proposals from third parties during a 40-day go-shop period.  The agreement has been unanimously approved by Quality Distribution’s Board of Directors.

Quality Distribution (NASDAQ:QLTY) operates the largest chemical bulk logistics network in North America through its wholly-owned subsidiary, Quality Carriers, and is the largest North American provider of intermodal tank container and depot services through its wholly-owned subsidiary, Boasso America.  Quality Distribution also provides logistics and transportation services to the unconventional oil and gas industry (oil and gas obtained through non-traditional sources such as oil sands, extra heavy oil, and shale oil) through its wholly-owned subsidiaries, QC Energy Resources and QC Environmental Services.  The company maintains a network of independent affiliates and independent owner-operators that provide its nationwide bulk transportation services. Quality Distribution is headquartered in Tampa (www.qualitydistribution.com).

“Having followed Quality for several years, we have been impressed with the strategy and vision articulated by the company’s management team,” said Ashish Karandikar, a Partner on Apax’s Services team.  “As the leading logistics platform in the bulk chemical transportation industry, Quality is well positioned to take advantage of both organic growth opportunities and strategic acquisitions while benefiting from the financial and operational flexibility of operating as a private company.

Apax invests in the technology & telecom; retail & consumer; healthcare; and financial & business services sectors.  The firm has eight offices located in London, New York, São Paulo, Munich, Tel Aviv, Mumbai, Hong Kong and Shanghai (www.apax.com).

Apax has secured committed financing for the transaction, which will be provided by Deutsche Bank, Bank of America, Jefferies Finance, MIHI (part of Macquarie Capital) and SunTrust Bank.

RBC Capital Markets is serving as financial advisor to Quality Distribution.

2015 PEPD • Private Equity’s Leading News Magazine • 5-7-15

Brookside Mezzanine Invests in TharpeRobbins

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Brookside Mezzanine Partners has made an investment in TharpeRobbins Company, a portfolio company of Gridiron Capital since April 2010.  Brookside provided subordinated debt to facilitate a recapitalization of the company by Gridiron.

TharpeRobbins designs, implements and manages employee recognition, customer loyalty and sales incentive programs.  The company’s programs include incentive products ranging from personalized jewelry to fine art, electronics, sports and outdoor merchandise. TharpeRobbins is headquartered north of Charlotte in Statesville, NC (www.tharperobbins.com).

Brookside Mezzanine Partners invests up to $20 million per transaction in companies with revenue of at least $15 million and EBITDA of at least $3 million. Sectors of interest include manufacturing, business services, distribution, restaurant, retail, and healthcare.  Brookside was founded in 2001 and has offices in Stamford, CT and Boston, MA (www.brooksidemezzanine.com).

Gridiron Capital invests in manufacturing, service and specialty consumer companies that have EBITDAs from $5 million to $30 million and that are located in the United States and Canada. The firm is based in New Canaan, CT (www.gridironcapital.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-7-15

Tengram Invests in This Works

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Tengram Capital Partners has made an investment in This Works, a maker and seller of aroma-therapeutic beauty products.

This Works is a natural beauty brand focused on developing, marketing, distributing, and selling aroma-therapeutic beauty products.  The company’s products are used in a variety of applications including body care, skincare, and sleep and are sold through health and wellness retailers, specialty beauty retailers, and third-party ecommerce retailers.  The company also sells its products through its corporate website. This Works was founded in 2003 by Kathy Phillips, currently the International Beauty Director for Condé Nast Asia and formerly the Health and Beauty Director of British Vogue.  The company is based in London, UK (www.thisworks.com).

“We are active investors in the beauty industry and evaluate a significant number of opportunities in the sector. We found This Works to be particularly compelling, given its great brand name, tremendous growth potential and unique, distinctive positioning. We are looking forward to working with the existing team to drive growth in the UK and to launch the brand in the US market,” said Richard Gersten, a Partner at Tengram.

The name “This Works” derives from the fact that each new product is tested and evaluated by a panel of 50 women of different ages and backgrounds who review products during the development process. The company will not launch a product until its panel of women tells them “this works.”

“Tengram has extensive beauty industry knowledge and a network of resources that will help build our business,” said Anna Persaud, the CEO of This Works.  “I look forward to working with them to build upon the brand’s strong momentum and execute on the company’s many growth opportunities.”

Tengram Capital Partners invests in companies in the branded consumer products and retail sectors. Specific areas of interest include apparel, sporting goods, consumer electronics, home furnishings, health and beauty, spirits, and food & beverages. Tengram was founded in 2010 by William Sweedler and Matthew Eby and is based in Westport, CT (www.tengramcapital.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-7-15

Charter Launches New Business Valuation Practice

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Grand Rapids-based investment bank Charter Capital Partners has launched a new business valuation practice and has hired Christine Baker as Managing Director to head the new group.  Ms. Baker most recently practiced in New York as a Managing Director at Meyers, Harrison & Pia – a boutique business valuation and litigation assistance firm.

Ms. Baker’s career experience includes performing and critiquing valuations of businesses in conflict settings such as in shareholder litigation and family law matters. She also has a strong background in preparing valuations for business planning purposes including corporate and private equity valuations, buy-sell agreements, estate, gift and other tax matters, sale and purchase of business interests, share-based compensation, partner buyouts, and succession planning. Earlier in her career, Ms. Baker was the firm-wide leader of the Litigation and Valuation Services team at Rehmann, one of the larger Midwest-based financial services firms serving the middle market.

Charter Capital Partners’ Managing Director John Kerschen will work with Ms. Baker in the new business valuation practice. “We could not be more pleased that Christine has joined our team,” said Mr. Kerschen. “As a nationally recognized professional in the field of business appraisal services, Christine brings an enhanced level of expertise and credentials to our practice. She is integral to accelerating the success of Charter and our clients.”

“I am delighted to join Charter Capital Partners and take the lead in addressing clients’ growing valuation requirements,” said Ms. Baker. “We see a variety of ongoing needs and I look forward to leveraging my expertise and experience in contributing to Charter’s track record of providing exceptional collaborative services to our clients.”

Charter Capital Partners is a middle-market investment bank providing buy- and sell-side advisory, business valuation, exit planning, and capital raising.  The firm was founded in 1990 and has offices in Grand Rapids and Kalamazoo, MI, and Mishawaka, IN (www.chartercapitalpartners.com).

Ms. Baker is an Accredited Senior Appraiser (ASA), a designation offered by the American Society of Appraisers, and holds an Accredited in Business Valuation (ABV) credential by the American Institute of Certified Public Accountants (AICPA).

2015 PEPD • Private Equity’s Leading News Magazine • 5-7-15