Archives for October 20, 2015

Wynnchurch Invests in Gypsum Technologies

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Wynnchurch Capital has made a growth equity investment in Gypsum Technologies, a maker of wallboard production systems. The senior management team of the company also invested in this transaction.

“Gypsum Technologies represents another investment by Wynnchurch Capital into the building products space, for which we believe the near and long term fundamentals are quite attractive,” said Frank Hayes, a Partner at Wynnchurch.”

Gypsum Technologies (Gyptech) provides complete turn-key solutions for automated gypsum board plants that convert raw gypsum into finished wallboard. The company was founded in 1993 and is considered one of the top designers, builders and providers of wallboard equipment and services. Gyptech has been responsible for supplying the equipment for the majority of new wallboard production volumes over the last decade. The company is led by CEO Gary Murray and has offices in North America, Europe and South America and is headquartered near Toronto in Burlington, ON (www.gypsumtechnologies.com).

“We are proud to partner with Gyptech, an innovative Ontario company that is a global leader in the wallboard industry. We look forward to working with such an exceptional team to further execute its growth plans,” said Morty White, a Managing Director at Wynnchurch.

Wynnchurch Capital makes investments of $10 million to $90 million in middle-market companies that have revenues of $5 million to $500 million. Sectors of interest include niche manufacturing, business and industrial services, energy and power services, logistics, transportation and value-added distribution. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit and Toronto (www.wynnchurch.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

Shore Capital Acquires Shippert Medical

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SCP Medical Products, a platform company of Shore Capital Partners, has acquired Shippert Medical Technologies, a manufacturer of disposable medical and surgical products for ear, nose, throat, cosmetic, and plastic surgery applications.

Shippert products include cannulas and tubing, syringes, aspirators, splints, garments, wound drainage bulbs, and nasal, sinus, and ear packing systems.  Shippert Medical was founded in 1978 by Sarah Shippert; CEO Dr. Ron Shippert – previously an otolaryngologist (an ear, nose and throat doctor) as well as a facial plastic and reconstructive surgeon – and Allison Therwhanger, the company’s CFO and COO. The Shippert family will retain an ownership stake in the company alongside Shore Capital.  Mrs. Therwhanger will continue to serve in a leadership role as part of the SCP Medical Products platform. Shippert is headquartered south of Denver in Centennial, CO (www.shippertmedical.com).

“Our family believes Shore Capital will be an excellent partner to drive continued growth at the company,” said Mrs. Therwhanger. “We are pleased to become a part of the platform and look forward to building a leading specialty medical and surgical products business in the years to come.”

Shore Capital formed SCP Medical Products in February 2015 when it acquired Summit Medical, a designer and manufacturer of microsurgery products. In addition to its Instru-Safe instrument protection line for infection control and sterilization, Summit Medical manufactures ear, nose, and throat products and a variety of other surgical devices.  The company is based in St. Paul (www.summitmedicalusa.com).  Summit Medical was the second platform investment out of Shore Capital Partners Fund I, LP, a $112 million fund raised in May 2014.

Shore plans to leverage customer and distributor relationships across the two companies to drive organic growth and cross-selling opportunities.

“We are excited to add an exceptional company and management talent to our medical products platform,” said Don Pierce, a Partner at Shore Capital.  “The Shippert family has built a highly-regarded business that complements Summit Medical very well. This investment epitomizes Shore’s strategy of partnering with strong owner-founder companies in one of our targeted sectors.”

Shore Capital Partners invests in lower middle market healthcare related companies that have $5 million to $50 million of revenue and $1 million to $5 million of EBITDA. Shore targets equity commitments of $10 million to $15 million per platform.  Healthcare sectors of particular interest include behavioral health; healthcare staffing; infusion therapy; laboratory products & distribution; laboratory services; outpatient rehab therapy; urgent care; veterinary services; pharmaceutical services and contract research.  Shore was founded in 2009 and is based in Chicago (www.shorecp.com).

Shore and the SCP Medical Products continue to pursue acquisitions of other service-oriented medical product companies serving hospitals and alternate site environments.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

Halyard Capital Exits Datamyx

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Datamyx, a portfolio company of Halyard Capital, has been sold to publicly-traded Deluxe Corporation for $160 million in cash. Deluxe funded the purchase of Datamyx through an expansion of an existing credit facility which now provides total financing capacity of $525 million.

“We are extremely pleased to have worked with the management team at Datamyx since 2011 to build one of the leading businesses focused on providing effective, risk-based marketing data and analytics to financial services marketers,” said Bruce Eatroff, Founding Partner of Halyard Capital.

Datamyx is a provider of information, technology and analytics to banks, credit unions, mortgage providers, alternative lenders, insurance companies and others.  Datamyx’s marketing products grow customer’s revenue through customer targeting, lead optimization, retention and cross-selling services. The company is based in Boca Raton (www.datamyx.com).

“Halyard Capital has been an outstanding financial and strategic partner to our company. We set upon a strategy four years ago to broaden our customer base and product set and this transaction is a validation that we are poised to build upon our success and leverage the significant relationships and resources that Deluxe can offer our business,” said Ben Waldshan, CEO of Datamyx.

Deluxe Corporation (NYSE: DLX) is one of the two largest check printers in the United States, and provides various personalized products and services to small businesses, financial institutions, and consumers. The company is headquartered north of Minneapolis in Shoreview, MN (www.deluxe.com).

“We believe the acquisition of Datamyx creates a tremendous strategic opportunity for us as we continue to grow our marketing solutions and other services product offerings,” said Lee Schram, CEO of Deluxe. “Datamyx’s expertise in transforming data into actionable marketing information provides valuable insight and helps customers grow their business. These added data analytics and modeling capabilities provide our Financial Services segment with another robust marketing offering for our customers.”

Halyard specializes in middle-market leveraged buyouts and growth equity investments in technology-enabled information, data analytics, communications and business services companies that cater to the healthcare, education, marketing services, human capital management and media sectors.  The firm has over $600 million of capital under management and is based in New York (www.halyard.com).

Datamyx and Halyard Capital were represented by investment bank Petsky Prunier (www.petskyprunier.com).  Deluxe was represented by investment bank Cherry Tree & Associates (www.cherrytree.com).

The sale of Datamyx represents the third monetization from Halyard Capital Fund II, following the sale of Engauge to Publicis in August 2013 and the partial monetization of OneSource Virtual HR to Technology Crossover Ventures in June 2015.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

Intrepid Advised Salon Grafix on Recent Sale

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Intrepid Investment Bankers was the lead financial advisor to Continental Fragrances, owner of the Salon Grafix hair styling brand, on its recent sale to High Ridge Brands, a portfolio company of Brynwood Partners.

Continental Fragrances has been marketing the Salon Grafix “white can” brand of premium, salon-quality hair styling products since 1998. Other brands include High Beams (temporary spray-on hair colors) and Healthy Hair Nutrition (natural hair care and styling).  Continental Fragrances sells through retailers in the food, drug, mass and beauty channels. The company is headquartered in the Detroit suburb of Auburn Hills (www.salongrafix.com).

“Salon Grafix is a leader in the premium hair styling category and has been a mainstay on retailer shelves for over 15 years,” said Steve Davis, Managing Director and Head of the Beauty & Personal Care practice at Intrepid. “The premium positioning of the Salon Grafix brand is a terrific complement to the High Ridge Brands’ portfolio.”

High Ridge Brands was formed by Brynwood Partners in January 2011 to purchase the North American Zest personal cleansing brand from Procter & Gamble and to serve as a platform for further acquisitions in the personal care consumer segment.  High Ridge Brands is led by James Daniels, President and CEO, and is headquartered in Stamford, CT (www.highridgebrands.com).

Intrepid Investment Bankers is a specialty investment bank that provides M&A, capital raising and strategic advisory services to middle-market companies across various industry sectors. Intrepid was formed in 2010 by a group of senior professionals from Barrington Associates, a middle-market mergers and acquisitions advisory firm that was acquired by Wells Fargo in 2006. Intrepid is headquartered in Los Angeles (www.intrepidib.com).

According to Intrepid, the firm is one of the most active mergers and acquisitions advisors in the beauty and personal care sector. “Beauty and personal care is a core sector for Intrepid and we are proud to have played a part in the sale of an iconic brand like Salon Grafix,” said Mr. Davis.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

CIT Backs Levine Leichtman’s Bertucci’s

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CIT Retail & Restaurant Finance was the Sole Lead Arranger in a senior secured credit facility to Bertucci’s Corporation, an owner and operator of Italian casual dining restaurants with locations from New England to Virginia. Bertucci’s is a portfolio company of Levine Leichtman Capital Partners.

“We’re pleased to provide this financing to Bertucci’s to help further their growth plans. This transaction highlights our deep experience in the restaurant sector and our ability to develop creative financing solutions for our middle market customers. We look forward to further building our relationship with Levine Leichtman,” said Chris Esposito, Managing Director, CIT Retail & Restaurant Finance.

CIT provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). CIT is a bank holding company with more than $65 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).

“This financing will help provide for ongoing capital needs of the company and facilitate Bertucci’s plans to extend its Bertucci’s kitchen reimage program,” said Lauren Leichtman, CEO of Levine Leichtman. “We’re pleased to once again call on CIT for its financing expertise and its deep knowledge of the restaurant sector.”

Bertucci’s was founded in 1981 and operates 88 locations in 10 states and the District of Columbia (www.Bertuccis.com). “We’re excited about our Bertucci’s kitchen reimage program. It emphasizes our iconic brick-oven experience and centers on promoting the open kitchen with theater-style cooking. We believe that watching your food being prepared is an integral part of the dining experience,” said Bill Freeman, CEO of Bertucci’s. “With the support of an experienced restaurant investor like Levine Leichtman and the financing acumen of CIT, we had the confidence this transaction would close quickly and smoothly.”

Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is based in Los Angeles with offices in Chicago, Dallas, New York, London and The Hague (www.llcp.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

Sidley’s PE Practice Expands in New York

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Law firm Sidley Austin has added Geoffrey Levin to its New York team as a partner in its private equity practice. Mr. Levin will concentrates his practice on representing private equity sponsors and their portfolio companies, as well as strategic M&A and governance matters involving corporate clients.

“Geoff is a highly skilled M&A lawyer with extensive experience advising well-known private equity sponsors as they navigate the complexities of a range of transactions,” said Matthew Rizzo, co-leader of Sidley’s Private Equity practice. “We look forward to utilizing his deep industry knowledge and leadership to help strengthen our core capabilities and enhance our client offerings.”

Mr. Levin regularly represents private equity sponsors and their portfolio companies in structuring and negotiating business transactions. His clients come from a range of industries including life sciences, financial services, communications, retail, healthcare, insurance and energy. The business transactions he oversees are often in the multibillion dollar range and have included representation of a private equity firm in a $4.4 billion acquisition and a consortium of hedge funds in a bid for more than $6 billion in distressed real estate assets.

“I am excited to join the creative and energetic group of lawyers that make up Sidley’s private equity practice,” said Mr. Levin. “I look forward to drawing upon the full strength and scope of the firm’s capabilities, particularly in the life sciences and regulatory space, to help clients achieve their strategic and commercial objectives.”

Sidley Austin is the sixth-largest US-based corporate law firm with 1900 lawyers, annual revenues of more than $1 billion, and offices in 19 cities worldwide including New York, Chicago, Washington DC, and Los Angeles (www.sidley.com).

“Geoff brings a wealth of knowledge gained from years of handling significant private equity transactions, and strategic mergers and acquisitions. His arrival further illustrates our commitment to the continued growth of our private equity group and we are pleased to welcome him to Sidley,” said Michael Schmidtberger, managing partner of Sidley’s New York office.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15