November 5, 2015
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Archives for November 5, 2015

Pfingsten Adds to Clamp and Coupler Platform

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wesanco nf1ZSi-Foster, a maker and supplier of clamping and coupling products and a portfolio company of Pfingsten Partners, has acquired Wesanco, a manufacturer of metal framing, fittings, pipe clamps, and accessories for mechanical, electrical, industrial and OEM applications.

wesanco nf4ZSi-Foster is a supplier to the general industrial, fluid power, HVAC, refrigeration and electrical end markets. The company sells a product portfolio with over 11,500 SKUs to a diverse customer base of distributors and OEMs.  The company is headquartered near Detroit in Canton, MI, with a second manufacturing facility in Springfield, MO (www.zsi-inc.com and www.couplers.com).

The buy of Wesanco is ZSi-Foster’s first add-on acquisition since Pfingsten acquired the company in May 2014. Pfingsten intends to build the platform into a national manufacturer and distributor of engineered clamp, coupling and support systems.

“Wesanco is excited to join forces with ZSi-Foster,” said Wesanco’s owner Andy Shyer. “Our complementary product offerings will help accelerate the growth of both companies and allow us to better serve our customers with a more comprehensive product basket.”

Pfingsten Partners invests in middle market manufacturing, distribution and business services companies.  Since founding in 1989, Pfingsten has acquired 106 manufacturing, distribution and business services companies through four funds with total commitments of approximately $1 billion. The firm is based in Chicago with additional offices in India and China (www.pfingsten.com).

Wesanco is headquartered near Los Angeles in La Mirada, CA (www.wesanco.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-5-15

Industrial Growth Partners Acquires H&S Tool

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h and s tool nf1Climax Portable Machine Tools, a portfolio company of Industrial Growth Partners and a manufacturer of portable machine tools and welding systems used in industrial end markets, has acquired the assets of H&S Tool.

HS nf55H&S Tool is a manufacturer of portable machine tools used for pipe cutting and beveling primarily in repair and maintenance applications in the oil & gas, power generation and other industrial markets. The company sells its products through over thirty sales representatives and distributors located across the United States and in international markets.  H&S Tool is led by its President Jeff Howard. The company was founded in 1975 by the father and son team of Tolleif and Mark Hillestad and has a 30,000 sq.ft. facility located near Akron in Wadsworth, OH (www.hstool.com).

Climax Portable Machine Tools, acquired by Industrial Growth Partners in June 2013, is a manufacturer of portable machine tools and welding systems used in the power generation, mining, construction, shipbuilding and general industrial markets. Climax is led by its CEO Tom Cunningham and is headquartered southwest of Portland in Newberg, OR (www.climaxportable.com).

“This acquisition strengthens Climax’s position in the portable machine tool market and adds tremendous diversity to our business around the world,” said Mr. Cunningham. “The transaction also addresses customers’ desires for an independent provider with a full suite of highly engineered and durable portable machine tools, in addition to strengthening our growing rental business globally.”

Industrial Growth Partners (IGP) provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. IGP was founded in 1997 and is based in San Francisco (www.igpequity.com).

The buy of H&S Tool closed on October 1, 2015 and was supported with an additional equity investment from IGP and management.  IGP continues to seek add-on acquisitions for Climax.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-5-15

Sverica Acquires Synoptek

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synoptek nf4Sverica Capital Management has acquired Synoptek, a provider of outsourced IT managed services.

Synoptek provides help desk support, cloud hosting, disaster recovery, as well as consulting and project management services. Synoptek is headquartered in Irvine, CA with additional offices in Denver, Sacramento, San Francisco, and Boise (www.synoptek.com).

frank young nf1“We started tracking Synoptek in 2013 and first met CEO Tim Britt early in 2014,” said Frank Young, Managing Director at Sverica. “Tim and the team have impressed us with the tremendous growth they have experienced in that timeframe. Synoptek is now emerging as one of the largest managed service providers in the country, and we are very excited to partner with them to continue on their path of innovation and growth.”

Sverica invests in service oriented businesses and light industrial manufacturers. The firm targets companies with enterprise values under $100 million and EBITDAs greater than $3 million. Sverica was founded in 1993 and has raised over $500 million of investment capital across multiple funds.  The firm has offices in Boston and San Francisco (www.sverica.com).

tim britt nf1“Synoptek brings enterprise technology services to organizations that don’t have large IT departments. Ultimately, our customers have better IT capabilities and services by leveraging Synoptek’s shared IT services such as cloud computing infrastructure, network management services, security services, and help desk services.” said Tim Britt, Chief Executive Officer of Synoptek. “Our partnership with Sverica will enable us to continue to execute our plans for acquisitive and organic growth as we strive to become the leading branded IT managed services provider in the country.”

The acquisition of Synoptek is the first made by Sverica’s fourth fund – Sverica International Investment Fund IV, LP – which is currently being raised with a target of $250 million.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-5-15

Freeman Spogli Invests in Regent

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creative coop nf1Freeman Spogli & Co. has made an investment in Regent Holding Company, a designer, marketer and supplier of home décor and accent products.

creative co op nf5Regent markets its products through 12,000 independent and chain retailers in the US and over 3,500 customers in Europe. The company products – totaling more than 8,000 SKUs across more than 30 home décor product categories – are sold primarily under two trade brands, Creative Co-Op in the US and Bloomingville in Europe.  Products include jewelry, candle holders, clocks, coasters, decorative trays & bowls, frames, figurines & statues, and other home decor items. The company is led by its CEO Eugene Wang. Regent was founded in 2001 and is headquartered in Memphis (www.creativecoop.com).

Brad Brutocao nf1“Regent is well-positioned as a critical link in the supply chain between independent retailers and low-cost overseas manufacturers, offering its customers a unique combination of product selection, customer service and reliability,” said Brad Brutocao, a Partner at Freeman Spogli.

Also investing in this transaction were the current owners – the Wang family – and the senior management of Regent. “The Wang family has successfully grown the company from a small regional operation to a recognized global competitor in the home décor category.  We are thrilled to be partnering with them and management in this next phase of growth,” added Mr. Brutoca.

Freeman Spogli invests in middle market consumer and distribution companies. Since its founding in 1983, the firm has invested over $3 billion in 52 portfolio companies with an aggregate transaction value of $20 billion.  Freeman Spogli has offices in Los Angeles and New York (www.freemanspogli.com).

Piper Jaffray (www.piperjaffray.com) was the exclusive financial advisor to Regent. Morgan, Lewis and Bockius (www.morganlewis.com) was the company’s legal advisor. Ropes & Gray (www.ropesgray.com) was the legal advisor to Freeman Spogli.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-5-15

Lovell Minnick Closes Fourth Fund

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lovell minnick nf1Lovell Minnick Partners has completed fundraising for its fourth institutional buyout fund, reaching the hardcap of $750 million and surpassing the $550 million target. The firm’s prior fund, Lovell Minnick Equity Partners III, closed in February 2010 with $455 million of commitments.

Investors in the new fund include endowments, foundations, insurance companies, pension funds, and family offices. Fund IV received commitments from many limited partners who invested in earlier funds, including Goldman Sachs Asset Management, RCP Advisors, Twin Bridge Capital Partners, and PPM America on behalf of certain clients. New investors include MassPRIM and the W.K. Kellogg Foundation.

Jeffrey Lovell nf1“Lovell Minnick is very grateful for the support we continue to receive from our limited partners, and we appreciate the new relationships we have developed with an outstanding group of investors who embrace our focus on middle-market financial services,” said Jeffrey Lovell, Chairman of Lovell Minnick Partners. “We see attractive opportunities across such themes as investment solutions, underserved credit markets, outsourcing, and consolidation. We look forward to building another portfolio of growing, dynamic companies where we can support management in realizing their strategic objectives.”

Lovell Minnick provides buyout and growth capital to middle-market financial services companies, typically making equity commitments of between $20 million and $100 million. Areas of specific interest include asset management, financial product distribution, insurance and securities brokerage, banks, and specialty finance.

Fund IV has already closed on three portfolio companies: J.S. Held, acquired in March 2015, is a consultant to insurance carriers on property loss, dispute resolution, and construction services (www.jsheld.com); LSQ Funding, acquired in April 2015, is a technology-enabled provider of working capital services to small and mid-sized businesses (www.lsq.com); and Worldwide Facilities, acquired in July 2015, is a wholesale insurance brokerage (www.wwfi.com).

Lovell Minnick firm is the successor to the private equity affiliate of Putnam Lovell Securities which was established in 1999 by Jeffrey Lovell and James Minnick. Lovell Minnick has offices in Philadelphia and Los Angeles (www.lovellminnick.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-5-15

Two More Salus Capital Pros Join Monroe

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monroe cap nf1Monroe Capital has expanded its industry reach with the launch of a new retail and consumer products lending group. Leading the new effort will be Andy Moser and Marc Price who join Monroe from Salus Capital Partners. Mr. Moser and Mr. Price will be based in Monroe’s Boston office.

“We are excited to establish this new group focusing on retail and consumer products asset based lending. This new finance group complements our existing healthcare, technology, media, and ESOP focused verticals,” said Ted Koenig, President & CEO of Monroe Capital.

andy and marc nf66Prior to joining Monroe, Mr. Moser was the President and CEO of Salus Capital Partners which he co-founded in 2011. Salus Capital – a Boston-based portfolio company of the Harbinger Group – is a provider of senior secured asset-based loans to the small and middle-market across a variety of industries.  Like Mr. Moser, Mr. Price joins Monroe Capital from Salus where he was the Executive Vice President and a co-founder.  Both Mr. Moser and Mr. Price exited Salus in April 2015 after the firm incurred losses from loans made to RadioShack which filed for bankruptcy protection in February 2015.

“Andy and Marc are both seasoned professionals. Their talents, combined with Monroe’s leading reputation, deep and long term capital base, and credit focused infrastructure, will create the ‘go to’ financing partner for companies and private equity sponsors alike in the retail and consumer products space.”

This is the third staff addition for Monroe from Salus in the past two weeks. In late October the firm hired Mark Sturrock – a Senior Managing Director at Salus – to lead its origination efforts and coverage of both private equity sponsored and non-sponsored transactions in Canada.  Mr. Sturrock is based in Toronto.

Monroe Capital provides senior and junior debt and equity co-investments to middle-market companies. The firm was founded in 2004 and maintains offices in Chicago, Atlanta, Boston, Charlotte, Dallas, Los Angeles, New York and San Francisco (www.monroecap.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-5-15

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