Archives for May 21, 2015

Yorkshire Equity Acquires Dry Systems Technologies

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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

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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

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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

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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

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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

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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