Archives for August 26, 2015

Centerbridge Invests in Heartland, Buys Splenda

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Centerbridge Partners has made an investment in Heartland Food Products Group to finance the acquisition of the Splenda low calorie sweetener brand from McNeil Nutritionals, a subsidiary of Johnson & Johnson.

Heartland Food Products Group is a producer of low calorie sweetener products, creamers, beverage concentrates, coffee, and nutritional drinks. Heartland produces and markets both store brand and branded offerings in a variety of versions, flavors, and packaging formats. The company is headquartered near Indianapolis in Carmel, IN (www.heartlandfpg.com).

“Splenda is the most iconic low calorie sweetener brand in the world and fits well within our strategy to offer the very best tasting products to sweeten foods and beverages without adding calories,” said Ted Gelov, Heartland’s Chairman & CEO.

According to reports, Centerbridge was instrumental in bringing the acquisition to completion. “We are excited to partner with Heartland through the company’s next phase of growth and development as they integrate and grow the Splenda® brand,” said Jason Mozingo, Senior Managing Director at Centerbridge Partners.

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).

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-26-15

Audax and Moelis Sell Final Piece of Quest

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Audax Private Equity and Moelis Capital Partners have completed the sale of Quest Construction Products, the only remaining division of Quest Specialty Chemicals, to Building Materials Corporation of America.

In June 2015, Quest Specialty Chemicals sold the Quest Automotive Products and Quest Industrial Products businesses to Valspar Corporation.  With the sale of these two businesses, Quest – and in turn Audax and Moelis – retained ownership of the Quest Construction Products (QCP) business.  With the sale of QCP, Audax and Moelis have fully exited their investments in Quest Specialty Chemicals.

QCP manufactures and markets roofing systems, reflective coatings for buildings, and pavement coatings for the construction market.  Brand names include Hydro-Stop, United, and StreetBond.  During their ownership term, Audax and Moelis completed two add-on acquisitions which tucked in a decorative asphalt coatings business and expanded QCP’s geographic presence into Europe.  QCP is headquartered in Charleston, SC (www.quest-cp.com).

“We congratulate CEO Doug Mattscheck and his team on successfully building QCP through two acquisitions, and expanding into new end markets and geographies. We have enjoyed partnering with Doug and Moelis Capital to execute our acquisition strategy,” said Geoffrey Rehnert, Co-CEO of Audax Group.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing.  Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston, New York, and Menlo Park (www.audaxgroup.com).

Moelis Capital Partners is a middle market private equity firm founded in 2007 in connection with the formation of Moelis & Company, an independent investment bank. Moelis Capital Partners manages $870 million of committed private equity capital and specializes in traditional private equity investments in the middle market. The firm is based in New York (www.moeliscapital.com).

“Both Audax and Moelis have been great partners and resources in helping our team transform Quest into three strategic platforms through four acquisitions and investments in accelerating growth,” said Mr. Mattscheck.

Building Materials Corporation of America, the buyer of QCP, is privately held and does business under the name GAF Materials Corporation. The company, headquartered in Parsippany, NJ, is a North American manufacturer and marketer of commercial and residential roofing products (www.gaf.com).

Moelis & Company and Piper Jaffray & Co. advised Quest. Kirkland & Ellis and Fredrikson & Byron served as legal counsel to Quest.

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-26-15

Comvest Opens Chicago Office, Adds Staff

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Mid-market debt and equity investor Comvest Partners has opened a new office in Chicago to expand its transaction origination capabilities for its direct lending and control equity strategies. As part of the Chicago expansion, Comvest has hired Jon Huitink as a new Principal.

Mr. Huitink will join Greg Reynolds, Managing Director, and Tim Kim, Associate, in Comvest’s new Chicago office. Prior to joining Comvest, Mr. Huitink was a Senior Vice President with Golub Capital where he was involved in originating, underwriting, and managing, senior, unitranche, and junior secured debt investments, as well as restructuring distressed investments. Before Golub he held positions at Dymas Capital Management, LaSalle Bank, and Salomon Smith Barney. Mr. Huitink earned a BA in accounting from Central College in Pella, IA.

During his time at Dymas, Mr. Huitink worked with Dan Lee and Greg Reynolds – both are current Managing Directors at Comvest Capital. “Having worked with Jon for several years at Dymas, we are delighted to add him to the team,” said Mr. Reynolds.  “Jon brings a great deal of experience in structuring and underwriting, as well as a proven network for originations.  We believe Jon’s addition will strengthen the team as we continue executing on our direct lending strategy.”   In June 2015 Comvest’s direct lending strategy, Comvest Capital, announced the final closing of its third fund, with $450 million in capital commitments.

Comvest Partners provides debt and equity to middle-market companies. For debt investments the firm will invest from $2 million to $20 million per transaction in companies with $10 million to $200 million of revenue that have positive or negative EBITDA. For equity investments the firm will invest from $10 million to $50 million per transaction in companies with $15 million to $500 million of revenue that have positive or negative EBITDA. Since 2000, Comvest has invested more than $2 billion of capital in over 140 public and private companies.  The firm is based in West Palm Beach (www.comvest.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-26-15