Archives for November 12, 2015

Balmoral Acquires Enesco

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Balmoral Funds has acquired Enesco, a designer, developer, and distributer of consumer products to a variety of specialty card and gift retailers, home décor boutiques, national retail chains, and direct-to-consumer retailers.

Enesco’s products include gifts, plush toys, and home and garden décor that are sold under both company-owned and licensed brands. Enesco has approximately 700 employees and is headquartered outside of Chicago in Itasca, IL, with subsidiaries in the UK, France, Canada and China (www.enesco.com).

“We are excited to welcome Enesco to the Balmoral Fund family of consumer product companies,” said Jonathan Victor, Senior Managing Director at Balmoral. “The company’s portfolio includes highly recognized company-owned brands, such as Gund, Department 56, Our Name is Mud, and Gregg Gift, as well as iconic licensed brands like Jim Shore, Disney, Britto, and Peanuts.”

With closing of the buy, Todd Mavis, an operating advisor for Balmoral, will become the new CEO of Enesco. Mr. Mavis was most recently the CEO of Katun Corporation and First Advantage Corporation.

“There are many reasons to be excited about joining the company; great brands, global reach, and an experienced management team,” said Mr. Mavis. “I am looking forward to working closely with our licensors, retailers, and suppliers to meet the needs of our consumer customers.”

Tom Bowles, the outgoing CEO, will be retiring after successfully leading the business for the last five years. Mr. Bowles will continue working with the company in a consulting capacity to help insure a smooth transition.

Balmoral invests in corporate carve-outs, restructurings and other special situations. The firm targets investments of $5 million to $30 million of equity in companies that have $30 million to $300 million of revenues. Balmoral is headquartered in Los Angeles (www.balmoralfunds.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-12-15

Superior Capital Adds On to Rostra

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Rostra, a platform investment of Superior Capital Partners, has acquired the turn signal switch product line of Grote Industries. The acquired assets and manufacturing lines of Grote will be placed under Vehicle Safety Manufacturing, a division of Rostra, and will be relocated to the company’s operations in Newark, NJ.

Vehicle Safety Manufacturing (VSM) is a supplier of turn signal switches, lighting products and safety components to both OEMs and aftermarket customers in the heavy duty and slow moving vehicle marketplaces. Specific products include turn signal switches, interior and exterior LED lighting, clearance and marker lamp assemblies, auxiliary fog and off-road lighting, flashers, relays and connectors, along with strobe lamps and a variety of mounting assemblies.  VSM was acquired by Rostra Precision Controls in October 2014 and is headquartered in Newark, NJ (www.vehiclesafetymfg.com)

The buy of Grote’s turn signal switch operation positions VSM – according to Superior Capital – as the undisputed leader of domestically produced turn signal products for the North American heavy duty truck market. “The acquisition of the Grote product line represents exactly the type of operationally intensive, value-added bolt-on that we seek in order to create out-sized returns for our investors,” said Mark Carroll, Superior’s Managing Partner. “We’ve been working with the Rostra management team and Grote’s customers for months in preparation for the move of the product line.  When it is successfully transitioned, VSM will have the number one market position and have the lowest cost operations.”

Rostra Precision Controls is a manufacturer and distributor of electronic accessories including obstacle sensing systems, cruise controls and comfort systems to the light-vehicle aftermarket.  The VSM Division is a supplier of heavy duty turn signal switches, lighting products and safety components to both OEM and aftermarket customers in the heavy duty and slow moving vehicle marketplaces. Through its 12-volt Automotive Accessories division, Rostra is a manufacturer of add-on safety, comfort and convenience products including aftermarket cruise control systems, a variety of lighting accessories, parking assistance and obstacle detection systems, exterior vehicle camera systems, lumbar supports and seat heaters.  Through its Transmission and Powertrain manufacturing division, Rostra supplies a network of transmission rebuilders and repair shops with linear solenoid assemblies, transmission wire harness assemblies, sensors, controls, and vacuum modulators.  Rostra is headquartered in Laurinburg, NC (www.rostra.com) (www.rostratransmission.com) (www.valvebodydirect.com).

“The combination of these product lines allows VSM to expand its roster of the leading OE customers, as well as expand our reach to many new customers,” said Jim Pineau, Chief Executive Officer of Rostra and VSM.  “The responsibility of being the most dominant US manufacturer of turn signal switches for the heavy duty truck market is one we take very seriously. We expect that our enhanced scale and renewed commitment to product development will enable us to provide our customers with innovative new products over the coming years.”

Superior Capital Partners invests in niche manufacturers, value-added distributors and specialty service companies with annual revenues between $10 million and $150 million. Superior will invest up to $15 million of equity per transaction in management buyouts, corporate spin-offs, recapitalizations, family successions, acquisitions out of bankruptcy and debt purchases. The firm is based in Detroit (www.superiorfund.com).

TCF Capital Funding increased its existing credit facilities to Rostra to provide the debt financing for this add-on acquisition.  “We are excited to be able to support an existing TCF Capital Funding portfolio company in this accretive acquisition.  The addition of the Grote’s turn signal switch product line further strengthens VSM’s market share in this niche industry” said TCF Capital Funding President Joe Gaffigan.

TCF Capital Funding provides cash flow and asset-based lending to lower middle-market businesses.  National in scope, this senior leveraged lending group focuses on providing private equity sponsor-backed cash flow loans and asset-based loans to companies with less than $100 million in revenue and between $2 million and $10 million in EBITDA.  The firm is based just outside of Chicago in Burr Ridge, IL (www.tcfcapitalfunding.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-12-15

Bunker Hill Gets Tattooed

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Bunker Hill Capital has partnered with the founders and senior management team of ImportLA to recapitalize the company.  Co-founders Michael Chen, Wen Wei, and Billy Chen remain significant owners of ImportLA and will continue their involvement in the day to day operations of the company.

ImportLA is a designer, manufacturer, distributor and marketer of tattoo furniture and supplies including needles, tips & grips, inks, machines, power supplies, gloves, and stencils. The company sells to the US, Canada, and European markets under the TATSoul brand name.  ImportLA also designs and manufactures equipment for the pet grooming and spa/salon markets. The company is headquartered near Los Angeles in Baldwin Park, CA (www.tatsoul.com).

“The TATSoul brand is clearly the market leader for furniture and supplies within the body art industry,” said Brian Kinsman, Managing Partner at Bunker Hill Capital.  “We are looking forward to partnering with ImportLA’s highly energetic founders and together taking advantage of the growth opportunities that exist both domestically and internationally.”

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).

“We were impressed by Bunker Hill’s ability to understand quickly the nature of our business and industry and their proven history of assisting companies to develop and execute on a focused growth strategy. We are looking forward to working with them to continue driving innovation and building on our leadership position within the industry,” said Mr. Chen, Co-Founder and CEO at ImportLA.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-12-15

Sverica Acquires Mound Laser

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Resonetics, a portfolio company of Sverica Capital Management since October 2014, has acquired Mound Laser and Photonics Center.

Mound Laser and Photonics Center (MLPC) uses laser micro manufacturing techniques to make precision metal components that are used in the medical device and defense industry. The company’s core competencies include laser welding, laser microcutting, laser micromachining, and laser marking. MLPC has over 60 employees, more than 12,000 sq. ft. of laboratory facilities, a class 10,000 clean room, 22 laser workstations; 5 micromachining stations, 3 laser marking stations, 8 laser welding stations, and 4 laser microcutting/machining stations. The company is based south of Dayton in Kettering, OH (www.mlpc.com).

MLPC began as part of the October 1995 conversion of Ohio-based Mound Laboratory – an Atomic Energy Commission facility used for nuclear weapon research during the Cold War – to civilian use. Mound Laboratory was declared a Superfund site in 1989 and clean-up began in 1995. MLPC was acquired by Laser Fare in 1998 and in 2002 was acquired Dr. Larry Dosser from Laser Fare in order to pursue laser-based microfabrication.

Resonetics has been a portfolio company of Sverica Capital Management since October 2014. The company provides laser micromachining manufacturing services for medical device and diagnostic companies, as well as other markets requiring precision laser processing of polymers and glass. The company also designs, builds and services purpose-built laser workstations to meet specific customer needs. Since its acquisition by Sverica, the company has grown by nearly fifty percent and opened a second manufacturing facility in San Diego.  Resonetics is headquartered in Nashua, NH (www.resonetics.com).

With the acquisition of MLPC, Resonetics will now expand beyond polymers and glass and offer customers a wider array of material expertise. In addition to its core competencies in laser welding, cutting and machining, Mound has developed expertise using the latest ultrafast laser technologies. The company has also conducted research in micro-additive manufacturing and plans to introduce new, proprietary tools that will help medical device designers as they continue to create ever smaller, complex products that challenge the limits of conventional machining and joining technologies.

“The team at Mound Laser has made impressive strides in recent years, taking on very difficult-to-manufacture components in the neurovascular, structural heart and peripheral vascular markets in particular,” said Tom Burns, Resonetics CEO. “Resonetics and MLPC share similar cultures built upon innovation, responsiveness, integrity and a passion for service. We’re excited about the combined technology, know-how and experience that we can now deploy across a wide range of materials in many of the fastest growing segments of the life sciences industry.”

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 capital across multiple funds.  The firm has offices in Boston and San Francisco (www.sverica.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-12-15

Salt Creek Capital Acquires WorkWell Medical Group

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Salt Creek Capital has acquired WorkWell Medical Group, a central California provider of occupational medicine and urgent care services.

WorkWell Medical Group provides health products and services to patients and employers to improve healing time for employees, enabling them to return to work more quickly. The company owns and manages five medical clinics that provide occupational medicine, workers compensation care and case management, and urgent care services throughout the central coast of California. WorkWell Medical Group was founded in 2003 by Dr. Sheilaja Mittal and Vikram Mittal and is headquartered in Salinas, CA (www.workwellmedical.com).

“WorkWell has developed an outstanding and diverse client base by delivering high-quality patient care, convenience and experience. We are excited to partner with Dr. Sheilaja and Vikram Mittal on this transaction and look forward to their continued support through the next phase of growth,” said Dan Phelps, a Managing Director of Salt Creek Capital.

Salt Creek Capital invests in executive-led buyouts of companies with EBITDA from $750,000 to $5 million. Sectors of interest are varied making the firm nearly industry agnostic but areas of specific interest include manufacturing, business and consumer services, distribution, and franchisors. The firm is based in Menlo Park (www.saltcreekcap.com).

As part of this transaction Talha Ashraf – a participant in Salt Creek Capital’s Executive Partnership Program and a former senior executive with Kindred Healthcare – will become the new President and CEO of WorkWell. “It has been a great experience working with Salt Creek Capital and Dr. and Mr. Mittal throughout the transaction process,” said Mr. Ashraf.  “I am excited to take on the lead operating role with an industry-leading occupational medicine and urgent care provider with such an impressive, caring and dedicated team.”

Healthcare-focused investment bank Edgemont Capital Partners (www.edgemontcapital.com) was the exclusive financial advisor to WorkWell Medical. Luke Mitchell, an Edgemont Managing Director and head of the firm’s efforts with office-based physician services groups, led the transaction for Edgemont along with Associate Vitaliy Marchenko.

“Through twelve years of dedication and tireless devotion to quality clinical care and patient satisfaction, WorkWell has earned its reputation throughout California and the Western US as being the go-to provider of walk-in medical services for patients and employers in central California,” said Mr. Mitchell. “WorkWell was seeking a financial partner to provide the experience, capital, and management expertise to support the company’s tremendous growth, including its plans to expand to other parts of California. Out of a comprehensive and highly competitive marketing process, Edgemont identified Salt Creek as an ideal partner for WorkWell.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-12-15

Ridgemont Closes Oversubscribed Fund 2

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Ridgemont Equity Partners has held a final closing of Ridgemont Equity Partners II, LP at the fund’s hard cap of $995 million.  The excess demand experienced by Ridgemont was due to ongoing support from existing investors combined with what the firm defined as “significant interest” from new investors.  Fundraising for the new fund was completed in late October.

“We are pleased that our sector focus and strength and continuity of our team resonated in the investor community and are excited to partner with a group of world class institutions,” said Travis Hain, a Partner at Ridgemont. “We have been disciplined in our execution and expect to continue leveraging our successful origination model and proven industry playbooks to drive attractive returns for our investors.”

Ridgemont Equity Partners (formerly Banc of America Capital Investors) focuses on middle market buyout and growth equity investments of $25 million to $100 million. The firm invests in the following sectors: basic industries and services; energy; healthcare; and telecommunications, media and technology. Ridgemont Equity Partners is headquartered in Charlotte (www.ridgemontep.com).

“Ridgemont principals have been investing in the middle market for more than two decades,” said John Shimp, a Partner at Ridgemont. “We collaborate with our management teams to build market leaders by bolstering infrastructure, enhancing operations and fueling strategic growth initiatives. We are excited about this next chapter for Ridgemont.”

San Francisco-based Brooklands Capital Strategies (www.brooklandscapital.com) served as a fundraising advisor to Ridgemont.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-12-15