Archives for July 1, 2015

Bunker Hill Acquires ASPEQ Heating

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Boston-based Bunker Hill Capital has acquired ASPEQ Heating Group, a maker of electric-heating and thermal-management products.  In addition to capital provided by Bunker Hill Capital and other co-investors, John Eulich – the majority owner of ASPEQ – and other members of the senior management team invested meaningful equity in the transaction.

ASPEQ Heating Group is a manufacturer of both customized and standard design electric-heating and thermal-management products which are sold under the INDEECO, Heatrex and AccuTherm brands.  The company’s product portfolio is comprised of thousands of products under approximately 30 product categories that address virtually every electric-heating application across nearly every industrial process and commercial end market.  ASPEQ was founded by John Eulich in 2008 and is headquartered in St. Louis (www.aspeqheating.com).

INDEECO, which was founded in 1929, was acquired by ASPEQ in 2008 as a platform for acquisition. The company subsequently integrated two add-ons acquisitions – Heatrex in 2010 and AccuTherm in 2011. From the combination of these three businesses, ASPEQ consolidated four facilities into two flexible and vertically integrated manufacturing facilities.

“ASPEQ represents a very stable, diversified business with ’sticky’ customer relationships,” said Rufus Clark, Managing Partner of Bunker Hill Capital.  “We’ve been impressed by the company’s ability to execute an acquisition strategy, pursue operational efficiencies, and drive further margin expansion while growing the overall business. ASPEQ is well positioned for future growth.”

Bunker Hill makes control investments in lower middle market companies with EBITDAs between $5 million and $20 million, and enterprise values up to $120 million.  Sectors of interest include industrial products, business services, consumer products, and specialty retail.  The firm has offices in Boston and San Diego (www.bunkerhillcapital.com).

“ASPEQ’s management team, work force, and engineering talent are all dedicated to manufacturing the industry’s most technologically advanced heating solutions,” said Mark DeBlois, Managing Partner of Bunker Hill Capital. “The company’s commitment to its customers is evidenced by its ability to produce highly engineered, customized heating technologies. We are very excited to partner with CEO Mike Howard and his team in scaling the business to its next level of growth.”

Mike Howard, CEO of ASPEQ, believes that Bunker Hill is an ideal partner.  “Bunker Hill Capital will help us achieve the next phase of higher growth for ASPEQ. We look forward to continuing to build the ASPEQ platform through our network of sales reps and customer relationships as well as by entering new end markets. We believe that together with Bunker Hill Capital’s strategic and operational insight we can grow our leadership position within the heating solutions market.”

This is the fourth investment made by Bunker Hill from its second fund, Bunker Hill Capital II LP, with $200 million in capital commitments. Fund II closed in January 2011.  Bunker Hill Capital was joined in the transaction with equity, senior debt, and subordinated debt investments from management, Abacus Finance Group, Madison Capital Funding, BB&T Capital Partners and BMO Mezzanine Fund.

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15

Metalmark Acquires Camin Cargo Control

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Metalmark Capital has acquired Camin Cargo Control, a provider of testing, inspection, certification and other services to the oil, gas and petrochemical industries.

Camin Cargo Control provides inspection services for trading companies, major oil companies, domestic and foreign refiners as well as an increasing number of clients on the food and general cargo side of its business. Services include inspection, sampling, inventory control and laboratory analysis for the full range of petroleum and petrochemical products in addition to grains, fertilizer, coal, edible oils, sugar and minerals.  Camin Cargo Control was founded in 1982 by its CEO Carlos Camin and is headquartered in Linden, NJ (www.camincargo.com).

“We are pleased to announce the addition of Camin Cargo Control to our portfolio,” said Leigh Abramson, Managing Director of Metalmark Capital. “It’s a market-leading company that has a proven track record of growth through different economic and energy cycles. We have a great deal of expertise working closely with founder-owned businesses such as Camin Cargo Control, and we’re looking forward to working closely with Carlos and his team to contribute to the company’s continued growth and expansion into new markets.”

Metalmark Capital was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. Sectors of interest include healthcare, energy and industrials.  Metalmark Capital is currently investing through its latest fund that has $2.5 billion of committed capital. The firm is based in New York (www.metalmarkcapital.com).

“Metalmark is a great strategic partner,” said Mr. Camin.  “The firm’s operational knowledge and resources will allow us to leverage our existing expertise while we continue to expand our global footprint and maintain our industry-leading service model.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15

H.I.G. Adds-On to Lexmark Carpet Mills

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H.I.G. Capital’s portfolio company Lexmark Carpet Mills has completed the acquisition of Northwest Carpet.

Northwest Carpets is a manufacturer of solution-dyed, broadloom carpet focused exclusively on the hospitality end-market.  The company was founded in 1977 by Randy Coker and his father, Edward Coker and is headquartered south of Chattanooga, TN in Dalton, GA (www.northwestcarpets.net).

Lexmark, acquired by H.I.G. Capital in September 2013, is a manufacturer of broadloom carpet for hospitality, residential and niche commercial applications.  Lexmark was founded in 1993 and is based in Dalton, GA (www.lexmarkcarpet.com).

It is no co-incidence that both companies are based in Dalton, GA as the city is often referred to as the “Carpet Capital of the World,” and is home to more than 150 carpet plants.  More than 90% of the carpet produced in the world today is made within a 65-mile radius of the city.

According to Todd White, CEO of Lexmark, the acquisition of Northwest makes a lot of sense. “Northwest represents an attractive acquisition as we continue to grow our business. There are significant synergies and opportunities to enhance our design and service capabilities for our customers.”

“Northwest and Lexmark are highly complementary businesses.  Northwest has a long track record of producing high quality, design-focused broadloom carpet targeted exclusively at the hospitality market.  We are pleased to support the team in their growth and continued success,” said Ricky Stokes, Managing Director of H.I.G. Capital.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion.  H.I.G. has more than $17 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15

Rift Valley Acquires M&M Manufacturing

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Rift Valley Equity Partners has acquired the assets of M&M Manufacturing, a manufacturer of precision machined components used in a variety of aerospace, defense and industrial applications.

“M&M is an industry leading machine shop with an unparalleled reputation for providing the highest quality and exceptional service,” said David Caputo, Managing Partner of Rift Valley.  “We are thrilled to partner with Kenneth Statton and his team to continue to grow the business while maintaining our focus on delivering value to our customers.”

M&M Manufacturing provides precision machining and fabrication services to aerospace, defense and industrial companies.  The company’s manufacturing capabilities include CNC milling and turning, assembly and inspection, and value-added services such as programming, modeling and tooling. M&M was founded in 2000 by Kenneth Statton and operates out of a 50,000 sq. ft. facility in Tulsa (www.mm-mfg.com).

Rift Valley’s acquisition of M&M represents its second aerospace and defense platform investment following the acquisition of Crow Precision Components in October 2014.  Crow is a manufacturer of forged components used by companies operating in the aerospace, defense, industrial, oil & gas and power generation sectors.  The company was founded in 1951 and is headquartered Fort Worth (www.crowcomponents.com).

“As a partner, Rift Valley brings a lot to the table,” said Mr. Statton.  “Through their partnership with Crow, Rift Valley has demonstrated a deep understanding of our industry.  Together with Crow, we will be able to deliver enhanced capabilities to our customers, leveraging the significant resources provided by Rift Valley.”

Rift Valley makes control investments in North American based companies that have up to $150 million of revenue and $5 million to $15 million of EBITDA.  Sectors of interest include consumer products & services; retail; and industrial products & services.  Rift Valley was founded by David Caputo and has offices in New York and Toronto (www.riftvalleyequity.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15

Bain Completes Buy of TI Automotive

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Bain Capital has completed its previously announced acquisition of TI Automotive, a provider of fluid storage, carrying and delivery systems to automotive manufacturers.  The existing management team will continue to lead the company.  Bain Capital announced this acquisition in late January 2015.

“TI Automotive has achieved leading market positions across its product lines by having a disciplined focus on manufacturing high quality, performance critical fluid systems for global automotive OEMs,” said Todd Cook, a Managing Director at Bain Capital. “Bain Capital brings deep experience and a track record of success in the global automotive industry.  We look forward to collaborating with President and CEO Bill Kozyra and the rest of the management team to grow the business by enhancing the product portfolio and advancing the technology at an even faster pace.”

TI Automotive is an automotive supplier of fluid carrying systems; tank systems; pump and module systems; HVAC fluid systems, and powertrain components.  The company is headquartered in the Detroit suburb of Auburn Hills and has facilities in 29 countries (www.tiautomotive.com).

“TI Automotive is excited to usher in our next phase of growth in partnership with Bain Capital,” said Bill Kozyra, TI Automotive President, CEO and Chairman of the Board.  “We are looking forward to working with Bain Capital which has been a big supporter of TI Automotive.  This is an exciting time for our company.”

Bain Capital manages several pools of capital, including private equity, venture capital, and public equity and leveraged debt assets. The firm has more than $75 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in more than 450 companies in a variety of industries around the world. The firm has offices in Boston, New York, Chicago, Palo Alto, London, Munich, Dublin, Luxembourg, Tokyo, Shanghai, Hong Kong, Mumbai and Melbourne (www.baincapital.com).

Goldman, Sachs & Co. and UBS Securities served as financial advisors, Ropes & Gray served as legal counsel, and PWC served as accounting advisor, to Bain Capital.  Blackstone Advisory Partners served as financial advisor and Latham & Watkins served as legal counsel to the shareholders of TI Automotive. Weil, Gotshal & Manges served as legal counsel to TI Automotive.

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15

Centerbridge to Buy KIK Custom Products

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KIK Custom Products, a maker of household and personal care products and a portfolio company of CI Capital Partners, has agreed to be acquired by Centerbridge Partners.

KIK Custom Products is a contract and private label manufacturer of consumer products in the laundry, household cleaners, personal care, spa and pool, and over-the-counter medicated and pharmaceutical categories.  KIK entered the pool care business in 2011 with the acquisition of US-based Chem-Lab Products. The company is based north of Toronto in Concord, Ontario (www.kikcorp.com).

“Having followed KIK’s business for nearly seven years, we have great confidence we are supporting a leader in multiple categories with a strong North American footprint,” said Steve Silver, Senior Managing Director of Centerbridge.  “KIK is well positioned for continued expansion through both organic growth and strategic acquisitions. We look forward to supporting KIK and its management team through its next phase of growth and development.”

Centerbridge Partners invests from $50 million to $300 million in US based leveraged buyouts and distressed securities. The firm has $25 billion of capital under management and is headquartered in New York with an additional office in London (www.centerbridge.com).

CI Capital Partners first invested in KIK in 2007. “Under our ownership, Jeff Nodland, CEO, and Ben Kaak, CFO, along with the entire KIK management team, worked tirelessly to transform KIK through organic growth, strategic acquisitions and operational initiatives, creating a clear leader in the marketing and production of consumer packaged goods and pool and spa treatment products,” said Timothy Hall, Managing Director at CI Capital Partners.

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. The firm was founded in 1993 and is based in New York (www.cicapllc.com).

“Our partnership with the KIK management team resulted in a very successful investment for us, and we wish the KIK team and Centerbridge continued success,” said Fred Iseman, Chairman and CEO of CI Capital Partners.

KIK Custom Products was advised by Morgan Stanley & Co. and Rothschild.  Centerbridge was advised by its financial advisor Barclays, who alongside BMO Capital Markets is providing debt financing for the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15