Archives for October 27, 2015

Bregal Acquires NATHAN Sports

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United Sports Brands, a portfolio company of Bregal Partners, has acquired NATHAN Sports, a designer of support equipment used by runners.

NATHAN Sports designs hydration and visibility equipment including hydration vests, belts, handhelds, bottles, running packs, visibility products and reflective vests. The company’s products are sold by specialty running shops, outdoor retailers, and sporting goods stores in 45 countries. NATHAN Sports is headquartered in the Philadelphia suburb of Sharon Hill (www.NathanSports.com).

“We’re excited to add NATHAN to the growing United Sports Brands portfolio of authentic brands. NATHAN is an ideal complement to the current portfolio of United Sports Brands products, and we look forward to working with the NATHAN team, further fueling this powerful brand’s growth,” said Tony Armand, chief executive officer of United Sports Brands.

NATHAN is the fifth brand in United Sports Brands’ portfolio, which includes Shock Doctor (a maker of mouth guards – www.shockdoctor.com); McDavid (sports medicine, sports protection and performance apparel – www.mcdavidusa.com); Cutters (athletic gloves – www.cutterssports.com); and XO Athletic (athletic cups and sports protection – www.xoathletic.com). United Sports is headquartered in the Minneapolis suburb of Minnetonka.

NATHAN’s principal owner and chairman, Jon Reichlin, will be an investor in United Sports Brands and remain a contributor to the NATHAN brand. NATHAN will relocate operations to United Sports’ headquarters in Minnesota and California in phases beginning in 2016.

Bregal Partners invests from $25 million to $90 million of equity in companies operating in the consumer, food & retail, energy services and healthcare services. Target investments typically have $15 million to $75 million or more of EBITDA. The firm has $600 million of committed capital funded by a sixth-generation family foundation.  Bregal Partners is based in New York (www.bregalpartners.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-27-15

Bunker Hill Exits SunBrite

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Bunker Hill Capital has sold its portfolio company SunBrite Holding Corporation to SnapAV, a portfolio company of General Atlantic. Bunker Hill acquired SunBrite in December 2010 from the company’s original founders and several individual shareholders.

SunBrite is a designer, manufacturer and supplier of all-weather outdoor televisions, outdoor digital displays and related accessories. The company’s products can withstand heavy rain, moisture, dust and insects, and can operate in extreme temperature ranges. SunBrite sells its products in the US and internationally for both residential and commercial applications. The company is headquartered near Los Angeles in Thousand Oaks, CA (www.sunbritetv.com).

“The sale of SunBrite represents a solid return for our limited partners, and we are grateful to Cameron Hill and the entire SunBrite management team for their hard work and devotion to the business over the years, as well as the support from our financing partners, Zions First National Bank and Avante Mezzanine Partners,” said Brian Kinsman, a Managing Partner of Bunker Hill Capital.

Bunker Hill makes control investments in lower middle market companies with EBITDAs between $5 million and $20 million, and enterprise values up to $120 million.  Sectors of interest include industrial products, business services, consumer products, and specialty retail.  The firm has offices in Boston and San Diego (www.bunkerhillcapital.com).

“Bunker Hill’s proactive, hands on approach to growing our business was a key success factor in taking the business to the next level,” said CEO Cameron Hill of SunBrite.

The buyer of SunBrite is SnapAV, a manufacturer and wholesaler of custom audio/visual products, accessories, and software based in Charlotte (www.snapav.com).  SnapAV has been a portfolio company of General Atlantic since June 2013.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-27-15

Topspin Acquires JD Beauty

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Topspin Partners has acquired a majority interest in JD Beauty, a designer and marketer of branded hair brushes and beauty care accessories.

Jeff Rosenzweig, the founder and CEO of JD Beauty, will continue to lead the company under Topspin ownership.  “We are excited to have Topspin as our partner.  Their expertise and network in the personal care industry will be invaluable as we grow our brand and expand our market presence,” said Mr. Rosenzweig.  “Topspin’s strategic insight will be helpful as we consider various avenues for growth.”

According to Topspin, JD Beauty’s flagship detangling brush, the Wet Brush, is the number one hair brush brand in the professional channel and the fastest-growing hair brush brand in the consumer retail channel.

“The Wet Brush reinvigorated the hair brush category with design and function and redefined the ‘detangling brush,'” said Leigh Randall, Managing Director at Topspin. “JD Beauty has established tremendous consumer and stylist acceptance and a loyal and growing base of consumers as evidenced by its rapid growth over the last few years. We intend to expand the Wet Brush brand into complementary new channels.”

Topspin Partners makes control investments in profitable and established lower middle-market businesses. Sectors of interest include health and wellness, niche consumer, food and beverage, business services and security. The firm is based near New York City in Roslyn Heights, NY (www.topspinpe.com).

“JD Beauty’s beginnings date to 1977, when I started selling beauty products at local flea markets. My mom’s basement in Queens was my first warehouse. I had no idea that we would evolve into one of the leading marketers and manufacturers of professional hairbrushes in the world. Here we are, 38 years later and JD Beauty Group is known for thousands of items,” said Mr. Rosenzweig.

JD Beauty is based on Long Island in Hauppauge, NY (www.jdbeauty.com).

Intrepid Investment Bankers (www.intrepidib.com) was the financial advisor to JD Beauty.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-27-15

Stoic Buys Store It Cold

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Stoic Holdings has acquired Store It Cold, a provider of cooling technology used in the walk-in cooler industry.

Store It Cold’s primary product is the CoolBot, a patented device that is used to create a low-cost walk-in cooler using a standard window or mini-split air conditioner. CoolBots are used in the agricultural, floral, brewing, dairy, grocery, seafood, restaurant, hunting, wine and transportation markets.  Since founding in 2007, Store it Cold has sold over 27,000 CoolBots across 58 countries (www.storeitcold.com).

In buying Store It Cold, Stoic Holdings partnered with the existing owners and the senior management team to complete the transaction, including founder Ron Khosla, who will be active with technical development of the CoolBot post closing. “I developed this technology as a small farmer who needed an affordable cold storage solution for my harvest,” said Mr. Khosla. “After many years of success, we are excited to partner with Stoic as we scale the business and continue to deliver high-quality cooling solutions to our customers.”

“Since founding in 2007, Store It Cold has earned its reputation for superior product performance, a strong customer value proposition, and exceptional customer service by manufacturing an outstanding product that cost effectively serves its customers’ cooling needs,” said Ryan Berk, a partner at Stoic. “We are excited to partner with Store It Cold and support its next phase of growth.”

Stoic Holdings invests in lower middle market companies that have operating income of $1 million to $10 million. Sectors of interest include manufacturing and industrial services; niche distribution and logistics; specialty materials; business services; testing and inspection; seafood and agribusiness; environmental services; aerospace and defense; and healthcare services. Stoic was founded in 2014 by Ryan Berk and Michael Dworkis and is headquartered in Denver (www.stoicholdings.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-27-15

Stone-Goff Has Fund II Close

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Stone-Goff Partners has held a closing for its second fund, Stone-Goff Partners Fund II, LP, (Fund II).

Stone-Goff (SGP) invests from $6 million to $20 million of equity in lower middle market companies that are active in the consumer, leisure, information, service, media and retail sectors. SGP is led by its founders Hannah Stone Craven and Laurens Goff, who together have more than 40 years of private equity experience. SGP was founded in 2010 and has offices in New York and Boston (www.stonegoff.com).

This closing for Fund II includes a capital commitment from lead investor Carl Marks & Co. “We are impressed by Hannah, Laurens and the business they have built together over the last few years,” said Mark Claster, President of Carl Marks. “We look forward to a long and fruitful future together.”

SGP announced last week its first Fund II investment, The Greene Turtle Sports Bar & Grille, a 41-unit, sports-themed casual dining restaurant chain based in Maryland with units located from Virginia to New York. “We continue to identify and invest in companies with a great track record of stable, profitable growth,” said co-founder and partner Laurens Goff, “and we look forward to announcing additional investments in the near term.”

Carl Marks & Co. is a family-owned and -operated merchant bank that is active in advisory services, distressed investments, investment management, private equity, and real estate.  “I’m delighted to have Hannah, Laurens and their team on board and excited to add another new team to the Carl Marks family,” said Katherine Boas, Executive Vice President at Carl Marks and a fourth-generation family member leading its growth. “They set the bar high as we begin our tenth decade.”

Carl Marks & Co. was founded in 1925 and is headquartered in New York (www.carlmarks.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-27-15

CIT Backs Audax Buy of Techniks

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CIT Group was the Joint Lead Arranger in a senior secured credit facility to back Audax Group’s September acquisition of Techniks Industries.

Techniks Industries was formed by the merger of NAP Gladu and Techniks in 2012.  NAP Gladu manufacturers and services wood and metal cutting tools used in building materials and industrial end markets, and Techniks supplies tool holding and work holding products used in CNC machine applications for general industrial end markets. The company is based in Indianapolis (www.techniksusa.com).

“Techniks Industries is a recognized market leader in the fragmented cutting tools and tool holders market,” said Geoffrey Rehnert, Co-CEO of Audax Group. “We will be active in growing the business organically and through add-on acquisitions.”

“This transaction involving the acquisition of Techniks marks our 20th platform transaction with Audax Group since 2007,” said Jeff Kilrea, Group Head and Managing Director of CIT Sponsor Finance.  “We value our long term sponsor relationships and are excited about the future opportunities as we continue to grow our relationship with Audax.”

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).

“CIT has been a reliable lender since our first financing with them in 2007. The firm’s expertise and experience in the sector is a true benefit to the clients they serve,” said Brian Doherty, Senior Vice President of Capital Markets at 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).

“The acquisition of Techniks is a great addition to Audax’s portfolio of growth companies. We’re pleased to put our deep experience in financing industrial businesses to work for Audax to help the company grow its platform,” said Jay Baldinelli, Managing Director, CIT Sponsor Finance.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-27-15