October 5, 2015
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Archives for October 5, 2015

Sterling Sells Liqui-Box to Olympus

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liqui box nf1The Sterling Group has completed the sale of Liqui-Box, a portfolio company of its third fund, to Olympus Partners.

Liqui-Box is a supplier of bag-in-box flexible packaging to the dairy, beverage and bulk food markets. Bag-in-box packaging is primarily used in the foodservice industry to package dairy mix for milkshakes and coffee drinks, fountain beverage syrup and pumpable liquid foods such as food concentrates and sauces. Liqui-Box also produces pouches and rigid plastic water bottles.  Liqui-Box was founded in 1961 and is headquartered in Richmond, VA (www.liquibox.com).

Greg Elliott nf2Sterling acquired Liqui-Box in 2011 through a corporate carve-out with DuPont.  Carve-outs are a firm specialty as Sterling has completed 22 of them since 1984.  Immediately upon acquiring Liqui-Box, Sterling established a new corporate headquarters and put in place systems and processes so that the business could operate on a standalone basis. “Sterling’s long history executing corporate carve-outs, the first of which occurred in 1984, was a critical factor in our success with the Liqui-Box investment,” said Greg Elliott, a Partner at The Sterling Group.

Sterling and the Liqui-Box’ management team, led by CEO Ken Swanson, created organic EBITDA growth of over 45% during the Sterling’s ownership period.  “The company has improved operations, expanded into new geographies and end markets, and successfully reached new customers.  The result is new levels of growth and profitability at Liqui-Box,” said Mr. Swanson.

Sterling was founded in 1982 and has sponsored the buyout of 46 platform companies and numerous add-on acquisitions for a total transaction value greater than $10 billion.  Currently, Sterling has over $2.4 billion of assets under management through its four funds.  The firm is headquartered in Houston (www.sterling-group.com).

The Liqui-Box acquisition is Olympus’ third investment out of its $2.3 billion sixth fund.  Olympus, with $5.5 billion of total capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion.  Sectors of interest include restaurants, consumer products, healthcare services, financial services and business services.  The firm was founded in 1988 and is based in Stamford (www.olympuspartners.com).  The Olympus team on this transaction included Manu Bettegowda, Evan Eason, Robby Polakoff and Mike Boccia.

Manu Bettegowda nf1“Liqui-Box is a market leader driven by its product quality, service and technological innovation. The company has an entrenched position with a broad, blue chip customer base and we are excited to expand to new customers, geographies and products,” said Mr. Bettegowda.  “We look forward to working with CEO Ken Swanson, CFO Lou Marmo and the rest of the Liqui-Box management team to help support the growth of the company through continued investment in the business and through acquisitions.”

Debt financing was led by Antares Capital (www.antarescapital.com) and Rabobank (www.rabobank.com).  Legal advice was provided to The Sterling Group and Liqui-Box by Willkie Farr & Gallagher (www.wilkie.com).  The Willkie deal team was led by partners Bruce Herzog and William Gump and included associates Manuel Miranda and Victoria Rosales.  Harris Williams & Co. (www.harriswilliams.com) was the financial advisor to The Sterling Group.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

Gridiron Capital Adds-On to Dent Wizard

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KHS nf1Dent Wizard International – a portfolio company of Gridiron Capital – has acquired Know How Systems Global, a provider of automotive services and repairs to automotive OEMs and insurance companies.

Know How Systems (KHS) provides repair services for hail damage, claims management and appraisal services to automotive OEMs and insurance companies at manufacturing plants and transit sites where automobiles being shipped or held may be damaged.  KHS serves customers in the US, Canada, and Mexico and is based in St. Louis (www.khsglobal.com).  The President of KHS is Scott Blind and he will continue in that position and will also be responsible for overseeing all catastrophe and hail operations for Dent Wizard.

Gridiron Capital acquired Dent Wizard in April 2015 from H.I.G. Capital.  Dent Wizard offers reconditioning services for vehicles, such as removing dents, dings, creases and hail damage from vehicles without affecting the original factory finish. Other services include bumper, scratch, wheel, leather and vinyl, and carpet and fabric repair services.  Dent Wizard provides its services to car dealerships, automobile manufacturers, auto auctions, body shops and collision centers, rental car agencies, insurance companies, fleet owners and operators and individual vehicle owners. Dent Wizard was founded in 1983 and is headquartered in the St. Louis suburb of Bridgeton (www.dentwizard.com).

“KHS brings a complementary set of services and strong customer relationships which enhance Dent Wizard’s offering as a one-stop solutions provider across North America,” said Kevin Jackson, Managing Director at Gridiron Capital.

Gridiron Capital invests in manufacturing, service and specialty consumer companies that have EBITDAs from $5 million to $30 million and that are located in the United States and Canada. The firm is based in New Canaan, CT (www.gridironcapital.com).  Managing Partners Tom Burger and Kevin Jackson led the transaction for Gridiron Capital.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

Audax Adds-On with Eastern Catalytic Buy

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EASTERN NF1AP Exhaust Technologies, a portfolio company of Audax Group, has completed the acquisition of Eastern Catalytic, a maker of exhaust and emissions products.

Eastern Catalytic is a supplier of direct fit, universal, and manifold catalytic converters sold to the automotive light duty aftermarket. The company was founded in 1976 by Wilhelm Schafer and is headquartered northeast of Philadelphia in Langhorne, PA and has additional manufacturing facilities in Mexico and Canada.  The Langhorne operations includes a 115,000 sq. ft. manufacturing facility and 102,000 sq. ft. distribution center with a combined total of approximately 125 employees (www.easterncatalytic.com).

EASTERN F3

AP Exhaust Technologies (AP) is a manufacturers and suppliers of automotive, light truck, and heavy-duty exhaust and emissions products under the AP, CATCO, ANSA, Cherry Bomb, TruckEx, Xlerator, and Silverline brands. The company was founded in 1927 and is based southeast of Raleigh in Goldsboro, NC (www.apexhaust.com).

young lee nf1“This acquisition adds another well-recognized brand into the AP portfolio, combining AP’s full line exhaust offering and expertise with Eastern’s product development capabilities, and it positions us as a leading exhaust and emissions supplier in the North American automotive and heavy duty aftermarket,” said Young Lee, Managing Director of Audax Group.  “We look forward to working with the AP and Eastern teams to continue building the AP platform through organic growth and strategic acquisitions.”

Growth opportunities for Eastern Catalytic include expanding into new markets for catalytic converters including marine, industrial, off-highway, and fractional horsepower applications.

Investment bank Angle Advisors – based in the Detroit suburb of Birmingham (www.angleadvisors.com) – was the financial advisor to advised Eastern Catalytic. With the closing of this transaction, Angle Advisors has completed 27 aftermarket transactions since 2009 and 6 within the aftermarket exhaust and emission components segment.

“Angle Advisors’ experience in the automotive aftermarket and extensive relationships throughout the industry proved to be instrumental in our successful transaction,” said George Schafer, Sr., President of Eastern.

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).

GSO Capital (a division of Blackstone – www.blackstone.com) and Madison Capital (www.mcfllc.com) provided financing for the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

Corridor Adds Ergotech to Innovative Office Products

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ergotech nf2Innovative Office Products, a portfolio company of Corridor Capital, has acquired Ergotech Group. Both companies design, manufacture and sell mounting products for flat panel monitors, notebooks and tablets.

ergotech nf1Innovative Office Products (IOP) was acquired by Corridor Capital in September 2013. The company sells its products – more than 5,000 SKUs – to US and internationally based commercial furniture OEMs, IT and office equipment distributors, value-added resellers, and healthcare equipment OEMs. The company is headquartered north of Philadelphia in Easton, PA (www.lcdarms.com).  Similar to IOP, Ergotech is a manufacturer of multi-monitor desk stands and is headquartered near White Plains in Elmsford, NY (www.ergotechgroup.com).

“Ergotech is a great strategic fit with IOP. It significantly amplifies IOP’s position in the IT and value added reseller channels. We believe the additional sales resources and products will create significant opportunity for IOP going forward,” said Corridor Capital Managing Director, Cameron Reilly.

Corridor Capital makes control investments of $3 million to $12 million in mid-market companies with EBITDAs of $2 million to $5 million. Sectors of interest include specialty manufacturing, business services, and environmental services. Corridor focuses on complex situations, particularly those requiring growth support or operational or financial engagement. Corridor’s investor base includes approximately 150 executives across an array of industries and disciplines that the firm uses as an active resource for its portfolio companies and their teams. The firm is based in Los Angeles (www.corridorcap.com).

TCF National Bank (www.tcfbank.com) provided debt financing for the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

H.I.G. Acquires Universal Fiber Systems

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universal fibers nf1H.I.G. Middle Market has acquired Universal Fiber Systems, a maker of custom dyed synthetic fibers, from Sterling Group which acquired the company in September 2007 through its second fund.

universal fibers f1Universal Fiber Systems (UFS) produces dyed synthetic fibers synthesized from nylon, polyester, and other specialty polymers that are used in the commercial, residential and transportation carpet industries.  The company also serves customers in a variety of technical fiber end-markets – such as performance apparel – through its Premiere Fibers division.  The company was founded in 1969 and is headquartered in Bristol, VA with additional facilities in Europe, Thailand and China (www.universalfibers.com).

“We are thrilled to work with H.I.G.,” said Marc Ammen, CEO of Universal Fiber Systems.  “This partnership will enable the continued globalization of our operations and market reach. We have invested in each and every one of our facilities and this will further our momentum. I am very excited about the future of our company and the partnership with H.I.G.”

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 $15 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).  Tenno Tsai, a Managing Director at H.I.G., led the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

BGL Advised Tenex on PEMCO Buy

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bgl nf55Brown Gibbons Lang & Company was the advisor to Tenex Capital Management on its September 2015 acquisition of Progressive Employer Management Company (PEMCO) from Palm Beach Capital.

Sarasota-based PEMCO is a provider of human resource, payroll, employee benefits and workers compensation services to small and medium sized companies (www.progressiveemployer.com).

Clifford Sladnick nf4Clifford Sladnick, the head of BGL’s Business Services practice, led the engagement with Tenex. “The professional employer organization (PEO) industry has reached an inflection point in growth and market penetration, as regulatory complexity and an improving labor market fuel demand for outsourced services in a largely untapped small and medium-sized business market,” said Mr. Sladnick.   “PEMCO is well-positioned to capitalize on this growth and increase its market penetration, and we look forward to assisting Tenex in identifying additional quality PEOs to grow its business.”  Tenex plans to grow PEMCO through continued organic growth and additional add-on acquisitions.

Brown Gibbons Lang (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. BGL was founded in 1989 and has offices in Chicago and Cleveland and real estate offices in Irvine and San Antonio (www.bglco.com).

For more information on the PEMCO transaction click here – Palm Beach Exits PEMCO

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

BB&T Capital Markets Staffs Up

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bbt capital markets nf1BB&T Capital Markets’ Logistics & Transportation investment banking group has added three new members to its team with the hirings of Karl Kirkeby, Gregory Waller and Ross Morgan.  All three of the new members will be based in the firm’s Richmond, VA office.

Having completed more than 120 logistics & transportation transactions since 2005, BB&T Capital Markets is one of the most active middle market investment banks in this sector.  “The addition of Karl, Greg and Ross to our team demonstrates BB&T’s commitment to growing its investment banking platform and dedicating resources to support the continued growth and success of the Logistics & Transportation group,” said Keith Prusek, co-head of the group.

Kirkeby nf1Mr. Kirkeby joins BB&T Capital Markets as a senior vice president. He will be active in the Logistics & Transportation Group with mergers and acquisitions and capital raising practices.  Prior to joining BB&T Capital Markets, Mr. Kirkeby was with Harris Williams & Co. and worked in the investment banking division at Goldman, Sachs & Co. His past experience includes 10 years in the industry and he has executed more than 40 transactions, with closed sell-side deals representing more than $3 billion of enterprise value. Mr. Kirkeby holds a BS in Economics from the United States Naval Academy and he has an MBA from the University of Virginia.  Prior to attending UVA, Mr. Kirkeby served as an officer in the US Navy for more than eight years in a variety of strategic and operational roles.

waller nf2Mr. Waller joins BB&T Capital Markets as an Associate.  Prior to joining BB&T he worked for KeyBanc Capital Markets and Western Reserve Partners, where he provided advisory services for middle market M&A and capital raising transactions.  Mr. Waller holds a BA and MA, both in History, from Youngstown State University and completed his JD and MBA at The University of Pittsburgh.

morgan nf3Mr. Morgan joins BB&T Capital Markets as an Associate.  Before joining the firm he worked for Piedmont Natural Gas and Boston Capital, and has prior M&A transaction and capital market advisory experience in the energy sector.  Mr. Morgan has a BS in Business Administration from Virginia Tech and has an MBA from Wake Forest University.

“We are pleased to welcome these experienced deal professionals to our group and are excited by the contributions they are making to our practice.  We attribute our ability to attract high-caliber talent to our leading presence in the market and strong overall momentum,” said Hugh Rabb, co-head of Logistics & Transportation Investment Banking.

BB&T Capital Markets provides capital and advisory services including research, sales and trading, equity and debt underwriting, M&A advisory and corporate banking. BB&T is one of the largest financial services holding companies in the US with $210 billion in assets. BB&T is based in Winston-Salem, NC (www.bbtcapitalmarkets.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

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