September 11, 2015
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Archives for September 11, 2015

LNK Partners to Sell Niman Ranch to Perdue Farms

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niman nf1LNK Partners has entered into an agreement to sell Niman Ranch and its parent company Natural Food Holdings (NFH), to Perdue Farms. LNK acquired NFH in June 2011.

Natural Food Holdings is a manufacturer and marketer of all-natural fresh and prepared protein products, primarily pork.  The company’s Niman Ranch brand is an all-natural brand of pork, beef, and lamb that is antibiotic free, hormone free, and raised humanely and sustainably through a network of US family farms. The company is headquartered in Alameda, CA (www.nimanranch.com).

David Landau nf1During LNK’s ownership, the firm grew the Niman Ranch brand by expanding into new geographic markets, new distribution channels, and through new product development.  “It has been a privilege for LNK to partner with the NFH team in building Niman Ranch into one of the defining brands in the farm-to-fork movement,” said David Landau, a Partner of LNK.  “This sale represents an excellent result for our investors as well as a terrific outcome for the NFH team and the Niman Ranch brand, which have found a great long-term home at Perdue.”

LNK Partners invests up to $150 million of equity per transaction in consumer and retail businesses. The firm is flexible in the type and structure of its investments and is comfortable being a minority or majority shareholder. The firm is based in White Plains, NY (www.lnkpartners.com).

“The LNK team has been an extraordinary partner in building the Niman Ranch business, supporting all of the investments we have made in the brand and the infrastructure required to support it, and never pushing us to sacrifice any of our core tenets for the sake of short-term growth or profitability,” said Jeff Swain, CEO of NFH.  “They have been tremendous stewards of the Niman Ranch brand and we are excited to see the baton pass on to Perdue.”

Perdue Farms is a major chicken-processing company based in Salisbury, MD with annual sales in excess of $6 billion (www.perduefarms.com).

Natural Food Holdings was advised by Houlihan Lokey and Kirkland & Ellis.  Perdue Farms was advised by Moelis & Co. and Venable LLP.

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-11-15

Arsenal Adds-on Again to Accella

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quadrant nf1Accella Performance Materials, a manufacturer of polyurethanes and recycled rubber products, has acquired the Spray Foam Division of Quadrant Urethane Technologies.

quadrant nf11Quadrant Spray Foam is a manufacturer of spray foams used in insulation applications. The division is led by Robert Jamieson and is based north of Dallas in McKinney, TX (www.quadfoam.com). Mr. Jamieson will take on the primary leadership role of Accella’s growing spray foam business unit.

Accella, acquired by Arsenal in 2012, is a manufacturer of custom formulated polyurethane systems and recycled rubber products. The polyurethane business is focused on formulations for spray, pour and cast applications involving foams, coatings, adhesives, sealants, and elastomers. The recycled rubber products business manufactures recycled tire crumb, equine matting, athletic flooring, and playground surfacing. Accella is headquartered in the St. Louis suburb of Maryland Heights (www.accellacorp.com).

John Televantos nf4“We are very pleased to bring the Quadrant spray foam business into the Accella group. With this strategic acquisition, Accella’s position as the leading independent polyurethane systems house is even stronger by leveraging the combined technology, manufacturing and customer support across the group,” said John Televantos, an Arsenal Partner who co-heads its specialty industrials group.

Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value.  Industries of specific interest include specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; and process industry components and services.  Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

“The combination of Quadrant Spray Foam and Accella provides a strong product portfolio of spray foam system solutions and services, allowing us to further expand our foot print in spray foam insulation,” said Andy Harris, President and CEO of Accella.

Quadrant is a manufacturer and contract producer of epoxy and urethane systems and specialty fluids. The company has two production facilities, one in McKinney, TX and the other Garland, TX. Quadrant has been family-owned since its founding in 1970 (www.quadrantchemical.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-9-16

Strength Capital Partners Adds-on to Arch

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smiths nf3ARCH Global Precision, a portfolio company of Strength Capital Partners, has acquired Smiths Machine, a manufacturer of machined components used in aerospace, defense, energy, and locomotive applications.

Arch Global Precision is a manufacturer of machined components and cutting tools. The company’s products are sold to customers in the automotive, industrial, healthcare and aerospace end markets. The company has approximately 480 employees and had 2014 revenues of $89 million, up from $48 million in 2012. Arch projects revenue of $124 million this year. The company is headquartered in the Detroit suburb of Livonia, MI (www.archglobalprecision.com).

Strength Capital formed Arch Global Precision in December 2011 to acquire Hi-Vol Products, KEO Cutters and Richards Micro-Tool, all from TriMas Corp. in a $39 million asset purchase.  The purchase of Smiths is the 13th add-on acquisition completed by Strength Capital for the Arch platform. Since its formation in late 2011, Arch Global Precision has grown from $8.8 million of EBITDA to $26.4 million through organic growth and strategic acquisitions.

The owner of Smiths Machine, Tim Smith, will remain active as the Vice President of Sales and Operations for Smiths Machine.  Smiths Machine is headquartered southwest of Birmingham in Cottondale, AL (www.smithsmachine.com).

“We are very pleased to announce the acquisition of Smiths Machine. This acquisition continues the end market diversification strategy that we have been pursuing for our Precision Components segment, significantly expands our five-axis milling capabilities and establishes our initial manufacturing footprint in the Southeastern region of the country,” said Eli Crotzer, ARCH Global Precision President and Chief Executive Officer.

Strength Capital Partners invests in companies that have from $4 million to $20 million of EBITDA and are based in the Midwest and Central United States. Sectors of interest include manufacturing, distribution, industrial, business and financial services, infrastructure, and consumer products. The firm is based near Detroit in Birmingham, MI (www.strengthcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-11-15

Marlin Acquires Syrus

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syrus nf1Vivonet, a portfolio company of Marlin Equity Partners since December 2012, has acquired Syrus, a provider of back office and analytical reporting software used in the restaurant industry.

Syrus’ mobile and web-based SaaS offering provides insight into day-to-day operations of a restaurant that enable clients to grow sales; reduce food, inventory and labor costs; and improve operational efficiencies. Syrus is based in Columbus, OH (www.mysyrus.com).

Vivonet is a cloud-based point-of-sale software and systems provider to the food services sector. Vivonet’s products and services allow single and multi-location operations to remotely manage workflows, order management and consumer interactions.  Vivonet’s more than 1,000 customers include contract foodservice operators, limited service restaurants, table service restaurants and retail operators.  The company’s flagship product Halo is used for sales and loyalty management, sales analytics and enterprise management. Vivonet is based in Burnaby, British Columbia (www.vivonet.com).

Steve Johnson nf1“Over the past few years, Syrus has established itself as a leader in the back office software market for quick service restaurants. Syrus is a highly strategic acquisition for Vivonet and represents a significant step toward creating a full-service SaaS solution for the hospitality industry,” said Steve Johnson, a partner at Marlin.

Marlin Equity Partners invests in businesses that have revenues of $20 million to $1 billion and that are in the process of undergoing varying degrees of operational, financial or market-driven change. Sectors of interest include technology, healthcare, consumer products and services, business services, manufacturing, aerospace & defense, distribution & logistics, and media. The firm has $3 billion of capital under management and is headquartered in Los Angeles with an additional office in London (www.marlinequity.com).

Marlin continues to seek additional add-on acquisitions for Vivonet.

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-11-15

BGL Adds Metals Industry Pro to Team

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BGL nf5Brown Gibbons Lang & Company (BGL) has added Vincent Pappalardo to its team as a managing director.  Mr. Pappalardo has nearly 20 years of investment banking experience and will be responsible for leading BGL’s metals industry practice.

Vincent Pappalardo nf1“I am excited to join the BGL team and expand the firm’s metals industry practice in the already strong, well-known industrials platform,” said Mr. Pappalardo.

Before joining BGL, Mr. Pappalardo was a managing director at Stout Risius Ross and led the firm’s metals industry practice where he focused on mergers and acquisitions advisory for companies in the production and distribution of both ferrous and nonferrous metals and alloys. He was also active in the diversified industrial sector, both on domestic and international buy-side and sell-side transactions.  Additionally, he has advised clients in the private placement of debt and equity, enterprise valuations, solvency and fairness opinions, and financial restructuring transactions. Prior to Stout Risius Ross he spent time at Houlihan Lokey and the National Bank of Detroit. He earned an MBA from the University of Chicago and a BS from the University of Illinois.

“We are thrilled to have Vince join our team. His deep metals experience will greatly expand our ability to deliver value to clients in the industry,” said Michael Gibbons, BGL founder and senior managing director.

BGL is a mid-market investment bank that specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions. The firm has industry teams that are active in consumer products & retail services; energy & environmental services; healthcare & life sciences; human capital management outsourcing; industrials; and real estate.  BGL was founded in 1989 and has offices in Chicago and Cleveland and real estate offices in Irvine and San Antonio (www.bglco.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-11-15

Richard Neff Joins Baird Capital

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baird nf4Baird Capital, the direct private investment arm of Robert W. Baird & Co. (Baird), today announced that Richard Neff has joined the firm as its newest Operating Partner.

richard neff nf1Mr. Neff will work with Baird Capital’s healthcare team to pursue new investments in hospitals and physician organizations focused on provider efficiency.  “Baird Capital has cultivated a very talented, experienced team with in-depth industry expertise and a global relationship network,” said Mr. Neff.  “I am looking forward to working with the group to help build value in the portfolio.”

Mr. Neff has nearly thirty years of experience with GE, most recently as Vice President & General Manager of GE Healthcare’s $2.3 billion Hospital Services business.  During his time at GE he held multiple positions including CEO of the Specialty Finance Group of GE Capital Global Banking in London, COO and CEO of GE Capital Global Banking in Southeast Asia, and CEO of GE Money Bank in Switzerland.  Mr. Neff holds an MBA from Columbia and a BA from Rutgers College.

“Rich is a seasoned executive with extensive international experience and we are very pleased to have him join the Baird Capital team,” said Gordon Pan, Managing Partner of Baird Capital. “His deep experience in healthcare and his record of driving growth, makes him a perfect fit with our global operating model and further strengthens our competitive position.”

Baird Capital invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 million to $125 million and EBITDAs greater than $5 million. Baird Capital was founded in 1989 and is based in Chicago (www.bairdcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-11-15

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