August 7, 2015
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Archives for August 7, 2015

H.I.G. Acquires Art Wilson Company

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art wilson nf1ACG Materials, a portfolio company of H.I.G. Capital, has acquired Art Wilson Company.

Art Wilson Company (AWC) mines, processes, and markets anhydrite, gypsum and limestone products used in agricultural, industrial, and commercial applications across Nevada, California, Washington, Oregon, and Idaho. The company owns and operates a quarry and downstream production facility in Carson City, NV (www.awgypsum.com).

ACG Materials mines, mills, processes, and distributes minerals and aggregates including gypsum, anhydrite, limestone, sand, gravel and downstream food, pharmaceutical and plaster products across a range of end markets including building products, energy, industrials, infrastructure, agriculture, food and pharmaceuticals. The company is headquartered in Norman, OK and has 20 additional locations throughout Oklahoma, Texas, Kansas, Nevada, Washington, and British Columbia (www.acgmaterials.com).

ACG Materials was founded in 1955 and operated under the name Harrison Gypsum until May 2015. The buy of AWC is the fifth add-on acquisition that ACG has completed since H.I.G. acquired the company at the end of 2012 and marks the second acquisition this year. In February 2015, ACG acquired JA Jack & Sons, a Seattle-based miner and processor of limestone products (www.jajack.com).

Keval Patel nf4“We are pleased to support ACG Materials in its acquisition of Art Wilson Company,” said Keval Patel, a Managing Director of H.I.G. Capital. “The acquisition further bolsters ACG’s business on the West Coast and also aligns with our strategy of diversifying ACG’s geographic reach and end market exposure into value-added downstream processed minerals. We expect the use of anhydrite and gypsum to continue to grow as farmers look to capitalize on the excellent crop enhancing and moisture retention attributes of these products.”

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. H.I.G. Capital has more than $19 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).

“We are excited about the continued expansion of our operations into the Western US,” said Paul Harrington, Chief Executive Officer of ACG Materials. “Art Wilson Company not only allows us to acquire the market leading supplier of agricultural gypsum serving California’s Central Valley and surrounding areas, but also broadens our customer footprint, product portfolio, and end market diversification.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-7-15

Alliance Laundry Systems Acquired by BDT

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alliance nf1Ontario Teachers’ Pension Plan (Teachers) has agreed to sell a majority interest in Alliance Laundry Systems to BDT Capital Partners.  Teachers will retain a minority interest in the company following the closing of the transaction which is expected in the third quarter.

Alliance Laundry Systems is a designer, manufacturer and marketer of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries. Alliance produces a full line of commercial washing machines, dryers and ironers with load capacities ranging from 12 to 400 pounds. Brand names include Speed Queen, UniMac, Huebsch, IPSO, Primus and Deli.  Certain brands of its commercial products are also sold in the consumer laundry marketplace. Alliance has revenues of approximately $725 million and has 2,700 employees. The company is headquartered northwest of Milwaukee in Ripon, WI (www.alliancelaundry.com).

Alliance was founded in 1908 and operated as an independent company until 1979 when it was acquired by Raytheon.  In February 1998, Raytheon sold the company to Bain Capital for $358 million. Teachers acquired the company from Bain in January 2005 for $450 million.

jane rowe nf4During Teachers’ term of ownership, Alliance expanded operations outside North America, to Europe, the Middle East, Africa and Latin America and entered new product segments and new end markets.  “Alliance has delivered exceptionally strong revenue and earnings growth since we acquired the company and has been a terrific investment for more than 10 years,” said Jane Rowe, Senior Vice-President of Teachers.

“Our management team will hold a significant ownership stake following the transaction and is excited by the new partnership with BDT,” said Mike Schoeb, Alliance’s President and Chief Executive Officer.  “This partnership will allow us to accelerate the execution of our growth strategy, continue to invest in new products, and strengthen the value we bring to our distribution partners.  BDT’s long investment horizon and their strategic approach to partnering positions Alliance well for the future.”

“We are thrilled to partner alongside the entire Alliance team,” said Chip Dunn, Managing Director at BDT. “Alliance has built its industry-leading position by investing in its people, innovating across its product portfolio and delivering unmatched customer service. Our long-term capital will provide a solid foundation and long runway to continue to pursue exciting growth opportunities around the world.”

Bank of America and BMO Capital Markets are joint lead arrangers for a senior secured credit facility to back the acquisition.  Morgan Stanley & Co., BMO Capital Markets, and Bank of America acted as financial advisors to Alliance.

BDT Capital Partners was founded in 2009 by former Goldman Sachs Vice Chairman Byron Trott. The firm has $8 billion of capital under management and is headquartered in Chicago (no website found).

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-7-15

Weinberg Acquires Accessory Overhaul Group

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AOG nf1Aero 3, a portfolio company of Weinberg Capital Group, has acquired Accessory Overhaul Group, a Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) certified repair station.

Aero 3 was formed by Weinberg Capital Group in 2012 to acquire AeroRepair Corp., which specializes in the repair and overhaul of regional and corporate aircraft brakes, wheel assemblies and landing gear, and Hemico, a manufacturer of replacement or modified aircraft parts. The two sister companies have facilities in Londonderry, NH and Indianapolis, IN (www.aerorepaircorp.com).

Accessory Overhaul Group (AOG) specializes in the repair and overhaul of aircraft brakes and wheel assemblies as well as starter generators, batteries, oxygen canisters and related aircraft components.  AOG serves similar markets as AeroRepair but also performs repair and overhaul services for Boeing and Airbus aircraft.  This will provide Aero 3 access to the growing market for narrow and wide body aircraft.  Over the next several months, AOG will be integrated into Aero 3 and rebranded AeroRepair. AOG is headquartered south of Atlanta in Griffin, GA and has an additional facility in Phoenix, AZ (www.aogatlanta.com).

Ronald Weinberg Jr nf1“The acquisition of AOG represents a further extension of the maintenance capabilities of Aero 3.  It will provide a host of new customers, increased services and aircraft models and geographic opportunities for the company,” said Ronald (Chip) Weinberg, Jr., Managing Director & Principal.  “We look forward to integrating the businesses as we continue to build Aero 3 into a globally-recognized leader in aircraft maintenance.”

Weinberg Capital Group specializes in acquiring middle-market companies that are based in North America and have annual revenues from $15 million to $100 million and EBITDAs ranging from $2 million to $10 million.  Sectors of interest include manufacturing, business services, medical and healthcare, aviation services, consumer products, and value-added distribution. Weinberg Capital Group is based in Cleveland (www.weinbergcap.com).

“Through this acquisition, Aero 3 will go from two to four strategically located facilities throughout the United States and will expand our aircraft and accessory repair and overhaul capabilities,” said Daniel Bell, CEO of Aero 3.  “Together with our logistics expertise, AeroRepair will be positioned to provide our best-in-class services to the largest metropolitan areas where the majority of aircraft maintenance bases are located.

Weinberg Capital Group is seeking additional add-on opportunities for Aero 3.  Add-on candidates would be active in the repair and overhaul of aircraft brakes, wheel assemblies, landing gear and other mechanical and hydraulic components.  Also of interest are businesses involved in the manufacture and distribution of PMA parts (a PMA – Parts Manufacturer Approval – is an approval granted by the Federal Aviation Administration to a manufacturer of aircraft parts).

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-7-15

Shorehill Building Up First Fund

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shorehill nf1Chicago-based Shorehill Capital has held a second closing of Shorehill Private Equity LP at $173.8 million. The firm began raising its first fund in November 2014 and is targeting $250 million in total capital commitments.

Shorehill Capital makes control investments in middle market industrial and distribution companies that have from $5 million to $50 million in EBITDA.  The firm was founded in 2013 by its managing partners Brian Simmons and Dave Hawkins, both former senior executives of CHS Capital.  Shorehill is based in Chicago (www.shorehillcapital.com).

In September 2014, the firm acquired its first portfolio company with the buy of Belt Power, a distributor of lightweight conveyor belts and belting accessories.  The company was founded in 1989 and is headquartered in Atlanta (www.beltpower.com).  NXT Capital provided a $17 million senior secured facility to fund the acquisition. Shorehill acquired Belt Power from Gen Cap America.

In addition to continuing its fundraising activities, Shorehill is looking for new platform investments of industrial and distribution companies and seeking add-on acquisitions to Belt Power, either businesses serving the lightweight belting market via distribution or through value‐added services.

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-7-15

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