July 21, 2015
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Archives for July 21, 2015

New Water Acquires Pride Family Brands

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pride family nf3New Water Capital Partners has acquired Pride Family Brands, a maker of aluminum outdoor furniture.

Pride Family Brands designs, manufactures and distributes hand-forged aluminum outdoor furniture under the Castelle, Prestige and Expressions brands, and designs and supplies promotional outdoor furniture under SummerWinds and private label brands.

pride family nf1

The company was founded in 1985 by Bernie Lowsky and his sons Jamie and Steve Lowsky. Under the Lowsky’s ownership, the company grew from a local retailer to a designer, manufacturer and distributor of outdoor furniture servicing over 1,000 retail locations across the United States.   Pride Family Brands is headquartered in Fort Lauderdale (www.pridefamilybrands.com).

New Water invests in lower middle market companies with revenues between $30 and $300 million.  Sectors of interest include consumer products, retail and industrial manufacturing & services industries.  The firm was founded in September 2014 and is based in Boca Raton (www.newwatercap.com).

LBC Credit Partners provided a senior secured term loan to support the acquisition.  LBC is a provider of middle market financing to companies with EBITDAs generally greater than $10 million and invests from $10 million to $50 million per transaction. LBC is headquartered in Philadelphia with additional offices in Chicago and Greenwich (www.lbccredit.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-21-15

ShoreView Acquires Pacific Aerospace & Electronics

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PAE nf1ShoreView Industries, a Minneapolis-based private equity firm, has acquired Pacific Aerospace & Electronics, a subsidiary of Esterline Corporation.

Pacific Aerospace & Electronics (PA&E) manufactures electronic packaging and connector products and provides machining and sealing processes that protects equipment used in defense (fighter aircraft), medical (cardiac-function devices), energy (oil-drilling tools), and other industrial applications.  In 2006, PA&E was acquired by SOURIAU, a manufacturer of interconnect products based in Versailles, France.  Esterline acquired PA&E when it acquired the Souriau Group of companies in 2011. PA&E was founded in 2002 and is based east of Seattle in Wenatchee, WA (www.pacaero.com).

ShoreView Industries makes control and minority investments in US-based middle market companies that have revenues from $20 million to $300 million and operating profits from $5 million to $40 million. Sectors of interest include manufacturing, distribution and service providers.  The firm currently has $900 million of capital under management and is based in Minneapolis (www.shoreviewindustries.com).

Esterline (NYSE: ESL) is a specialty manufacturer serving the aerospace and defense markets.  Esterline announced in September 2014 that it would look to sell certain subsidiaries, including PA&E, that were no longer core to the company’s strategic direction.  Esterline is headquartered in Bellevue, WA (www.esterline.com).

Seattle-based investment Zachary Scott & Co. (www.zacharyscott.com) advised Esterline on this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-21-15

Revelstoke Completes Two More Add-ons to Schryver

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main onsite nf3Schryver Medical Sales and Marketing, a portfolio company of Revelstoke Capital Partners, has completed the acquisitions of Main Street Clinical Laboratory and On-Site Imaging Solutions.  These two acquisitions follow Schryver’s January 2015 acquisition of Nashville-based Quality Mobile X-Ray.

Main Street Clinical Laboratory is a CLIA certified clinical laboratory that provides a test menu of laboratory services to physicians and other healthcare providers. The Clinical Laboratory Improvement Amendments of 1988 (CLIA) regulations include federal standards that are applicable to all US facilities that test human specimens for health assessment or to diagnose, prevent, or treat disease.  Main Street’s service area includes Mississippi, Tennessee and Arkansas. Main Street Clinical Laboratory is based south of Memphis in Southaven, MS (www.mainstreetlab.com).

On-Site Imaging Solutions provides mobile imaging to nursing homes, healthcare facilities, hospice centers, correctional facilities and home health patients throughout Arkansas. On-Site also offers EKG, ultrasound, and cardiac imaging services. The company is based in Little Rock, AR (www.myonsiteimaging.com).

Schryver Medical, acquired by Revelstoke in July 2014, is a provider of mobile imaging diagnostics, clinical laboratory services, oxygen therapy and durable medical equipment rental. Schryver serves nearly 3,000 long term post-acute facilities, assisted-living centers, and skilled nursing facilities, as well as numerous homecare patients.  The company has approximately 500 employees and is headquartered in Denver (www.schryvermedical.com).

“We are excited to see our operations in the southeastern United States expand,” said Doug Goetz, CEO of Schryver. “Main Street and On-Site are both strategic to our goals and support the momentum we have gained in the southeast. These transactions serve as important steps in our continued effort to grow the Schryver footprint and offer services at a national level.”

“The resources, expertise, and strategy that Schryver has leveraged in building its reputation as a market leader will translate into continued success,” said Mark King, CEO, Managing Partner and Co- Founder of Revelstoke. “We are pleased by the Schryver team’s continued ability to identify and integrate add-on opportunities.”

Revelstoke invests from $10 million to $250 million in companies that have at least $5 million of EBITDA.  Sectors of interest include healthcare services and products; transportation and logistics; specialty distribution; energy and energy services; building products; business and outsourced services; marketing services; financial services; industrial services; and medical technology. The firm was founded by Managing Partners – Mark King, Dale Meyer, and Simon Bachleda – and is headquartered in Denver (www.revelstokecp.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-21-15

New Water Closes Fund I

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new water nf1New Water Capital has held a first and final close of its inaugural private equity fund, New Water Capital Partners, LP (Fund I), at its hard cap of $406 million. The firm began fundraising in March with an initial target of $250 million.  Capstone Partners was the placement agent for the new fund.

New Water invests in lower middle market companies with revenues between $30 million and $300 million.  Sectors of interest include consumer products, retail and industrial manufacturing & services industries.

Jason Neimark nf1“We are overwhelmed by the tremendous demand for Fund I from an impressive investor base and grateful for the support of our families, friends and partners in the successful launch of New Water,” said Jason Neimark, one of New Water’s Co-Founders. “The firm’s experienced team and focused investment strategy attracted a diverse group of high quality investors in a short amount of time.”

New Water focuses on special-situations investments, such as turnarounds, underperformers, corporate carve-outs, and companies in transition.  The firm was founded in September 2014 and is led by its partners Jason Neimark, Brian McGee, John Disa and Mark Becker. New Water is based in Boca Raton (www.newwatercap.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-21-15

KPS Completes Second July Dividend Recap

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a and e nf1KPS Capital Partners has completed a dividend recapitalization of its portfolio company American & Efird Global (A&E).  KPS acquired A&E from Harris Teeter Supermarkets in November 2011.

To complete the recapitalization, A&E raised $275 million of financing, including a $65 million revolving credit facility and a $210 million term loan.  The proceeds of new debt were used to refinance existing debt and to fund an $80 million cash distribution to stockholders.  Financing for the recapitalization was provided by Merrill Lynch, HSBC, JP Morgan, and PNC Capital Markets.

American Efird f2A&E is the largest US manufacturer and the world’s second-largest manufacturer and distributor of industrial and consumer sewing thread, embroidery thread and technical textiles.  A&E thread is used by producers of apparel, automotive components, home furnishings, medical supplies, footwear and certain industrial products.  The company owns or operates 28 manufacturing facilities and employs over 9,000 people around the world directly or in partnership with joint venture partners.  A&E is headquartered northwest of Charlotte in Mt. Holly, NC (www.amefird.com).

“A&E’s dividend recapitalization validates the transformation A&E has experienced since KPS invested in our company and we are pleased to return capital to our stockholders,” said Fred Jackson, Chief Executive Officer of A&E.  “Under KPS ownership, A&E has purchased Gutermann, one of the world’s leading manufacturers and distributors of premium, high-quality sewing thread products for consumer and industrial applications, as well as full control of several of the company’s joint ventures located throughout Asia.”

According to the company, following the recapitalization A&E remains conservatively capitalized and KPS remains the controlling shareholder.  “Our conservative capital structure and the financial support of our stockholders provide us with the resources to support the company as it continues to successfully expand into adjacent geographies, products and end-markets, both organically and through acquisitions,”  added Mr. Jackson.

Earlier this month, KPS completed another portfolio company dividend recapitalization when it recapped Anchor Glass Container (acquired in April 2014) through a new $465 million term loan.  The proceeds were used to refinance outstanding debt and fund a $150 million cash distribution to stockholders. The bank group for this transaction included Credit Suisse and Barclays Bank.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital that invests in restructurings, turnarounds and other special situations. KPS targets manufacturing and industrial companies that are going through a period of transition or experiencing operating or financial difficulties.  The firm’s portfolio companies have aggregate annual revenues of approximately $6 billion, operate 98 manufacturing plants in 23 countries, and employ over 42,000 people worldwide.  KPS Capital Partners is headquartered in New York (www.kpsfund.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-21-15

Lincoln Expands Consumer Group with Latest Hire

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lincoln f6Chicago-based investment bank Lincoln International has hired Dominic Rispoli to expand its consumer group and has named him a Managing Director and Head of Retail, North America.  He will be based in the firm’s New York office.

“Lincoln International has substantial experience in retail outside of North America.  With Dominic, we now have a global capability in retail,” said Chairman of Lincoln International, Jim Lawson.  “His joining further strengthens Lincoln’s position as a leading advisor to consumer companies.”

Dominic Rispoli nf1With over 22 years of transaction and industry experience, Mr. Rispoli adds significant merger and acquisition advisory and capital raising expertise to Lincoln International.  He has advised on over 100 transactions for private equity groups, private companies and large corporations as well as emerging growth brands. A sampling of his experience includes the sale of Canada Goose to Bain Capital; the sale of Americana International (Bench Apparel) to Emeran Capital Partners; strategic and hostile defense advisory for Tiffany & Co.; the sale of Maxwell Shoe to Jones NY; and the divestiture of the Orchard Supply Hardware division of Sears Holdings to Ares Management.

In addition, Mr. Rispoli has equity and debt capital raising expertise having lead-managed transactions for numerous companies including Authentic Brands Group, DSW, Phillips-van Heusen, Rent-A-Center, Tempur-Pedic International, Tuesday Morning and Wal-Mart Stores.

“The consumer products, food and beverage, and retail sectors continue to see strong M&A activity.  Dominic strengthens Lincoln International’s consumer products and food presence and gives us a new and strong capability in retail in North America,” said Brad Akason, Co-Head of Lincoln’s North America Consumer Group.

Prior to joining Lincoln International, Mr. Rispoli was the Consumer & Retail Group Head and a Managing Director in Canaccord Genuity’s Investment Banking Division.  Prior to joining Canaccord, he co-founded Catalyst Brands, a retail and consumer products advisory firm, where he served as Managing Partner.  Before founding Catalyst, Mr. Rispoli was the Retail Group Head and a Managing Director for Barclays Capital, the investment banking division of Barclays, and a Managing Director in Lehman Brothers’ Global Retail and Consumer Group prior to that.  Mr. Rispoli began his investment banking career with JP Morgan Chase working in the Middle Market Structured Finance Group.  Mr. Rispoli has an MBA from Northwestern University and a BBA from the University of Massachusetts.

Lincoln specializes in merger and acquisition advisory services, debt advisory services, private capital raising and restructuring advice on mid-market transactions. The firm also provides fairness opinions, valuations and pension advisory services on a range of transaction sizes. Lincoln has sixteen offices in the Americas, Asia and Europe and is headquartered in Chicago (www.lincolninternational.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-21-15

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