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Archives for November 2015

ACON Acquires Funko from Fundamental

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funko nf1ACON Investments has acquired Funko from Fundamental Capital which acquired the company in June 2013.

funko nf2Funko designs, imports and markets a portfolio of collectible products under licensing agreements with most of the leading creators and marketers of pop culture today. Funko deploys these licenses across several product platforms including vinyl figures, bobble-heads and plush characters. The company’s products are sold through multiple retail outlets including specialty stores, mass-market retailers, e-commerce, international and direct-to-consumer. Funko was founded in 1998 and is headquartered in Everett, WA (www.funko.com).

Under ACON ownership, Funko will continue to be led by CEO Brian Mariotti and other members of the existing senior management team, who will all be meaningful equity owners alongside ACON. Fundamental Capital will continue as a member of the board of directors and have a minority equity interest in the business.

Ken Brotman nf3“We are excited to be partnering with Brian and the entire Funko team,” said Ken Brotman, Founding Partner of ACON. “Funko has established itself as a fore-runner in the pop culture space and we look forward to building value in a business that is very well positioned for continued growth.”

“The growth Funko experienced following our partnership with Fundamental Capital has been spectacular,” said Mr. Mariotti. “Now we’re ready to take Funko to the next level and I look forward to partnering with ACON and benefiting from their experience to help us get there. As Funko continues to be a category disrupter in the pop culture and entertainment space, ACON’s expertise will be a welcome asset.”

ACON invests from $20 million to $150 million of equity capital in middle-market companies. The firm pursues a theme-based investment strategy by focusing on industries and businesses at key inflection points in their development and pursues these opportunities in partnership with established management teams. The firm was founded in 1996 and has offices in Washington, DC (headquarters); Los Angeles; Mexico City; Sao Paulo; and Bogota (www.aconinvestments.com).

Equity financing for the transaction will come from ACON’s third US domestic buyout fund, ACON Equity Partners III, LP. Debt financing for the acquisition is being provided by PNC Bank (www.pnc.com) and Cerberus Business Finance (www.cerberuscapital.com). Harris Williams & Co. (www.harriswilliams.com) was the exclusive financial adviser to Funko.

Fundamental Capital invests in small to mid-sized growth companies operating in the consumer products and services sectors that have revenues between $5 million and $50 million and EBITDA of at least $2 million. The firm was founded in 2004 and is based in San Francisco (www.fundamentalcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15

Riverside Adds On with Buy of Traffic Specialties

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tsi nf1Area Wide Protective, a portfolio company of The Riverside Company, has acquired Traffic Specialties. Riverside acquired Area Wide Protective from Blue Point Capital Partners in June 2015. The buy of Traffic Specialties is the first add-on acquisition for Area Wide Protective.

tsi nf5Area Wide Protective (AWP) helps direct or re-route traffic in support of construction, repair, or maintenance projects affecting public roads.  The company provides on-site technicians, equipment and vehicles, in addition to permitting and design services.  AWP has a variety of customers but mainly serves utilities, utility contractors, and telecommunications companies.  The company has more than 1,800 employees and a fleet of nearly 900 trucks and works out of 50 locations in 17 states throughout the Midwest, East, and Southeast.  AWP is led by its President and CEO John Sypek. The company is headquartered near Akron in Kent, OH (www.awptrafficsafety.com).

Traffic Specialties (TSI) provides similar services as AWP and serves similar customers including utilities, utility contractors and the roadway construction, repair and maintenance market. Traffic Specialties is headquartered in the Atlanta suburb of Stone Mountain, GA (www.georgiatrafficcontrol.com).

chris jones nf5“TSI is an excellent complement to AWP,” said Riverside Partner Chris Jones. “Both companies are proven leaders in the market, and customers will benefit from the resources and scale that will result from combining the two entities.”  Working with Mr. Jones on the transaction for Riverside were Vice President Ryan Richards, Associate Jordan Suydam and Operating Partner Tom Anderson.

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 380 transactions. The firm’s international portfolio includes more than 70 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Kirkland & Ellis (www.kirkland.com) was the legal advisor to Riverside on the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15

Dunes Point Acquires Standard Locknut

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standard nf3Industrial Group Holdings, a portfolio company of Dunes Point Capital, has acquired Standard Locknut, a manufacturer of bearing accessories used in OEM and replacement applications.

standard nf4Standard Locknut’s bearing accessories include locknuts, lock washers, sleeves, and pillow blocks. Pillow blocks are a type of cast iron or cast steel bearing housing that is used to provide support for a rotating shaft. Standard Locknut sells its products to a variety of end markets including heavy construction, paper, mining, oil field, energy, and automotive. The company was founded in 1949 and is headquartered north of Indianapolis in Westfield, IN (www.stdlocknut.com).

Dunes Point Capital (DPC) is a family office and private investment firm that makes control investments in companies operating in the general industrial and energy sectors. DPC targets companies with enterprise values of up to $500 million.

DPC was founded in 2013 by Timothy White, a former Senior Managing Director of GSO Capital Partners and Blackstone where he served as Head of GSO Private Equity Investing, Co‐Head of Mezzanine Investing, and Co-Portfolio Manager for GSO’s Capital Opportunities Fund I.  Dunes Point Capital is based in Rye, NY (www.dunespointcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15

Revelstoke Closes at Hardcap

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revelstoke nf1Revelstoke Capital Partners has completed the fundraising for Revelstoke Capital Partners Fund I, LP and Revelstoke Capital Partners Co-Investment Fund I, LP. These two funds – the first institutional funds raised by the firm – collectively raised $303 million and were substantially oversubscribed and above target.

Investors in the new funds include insurance companies, endowments, funds of funds, pension plans, sovereign wealth funds and family offices. “We garnered significant support from our limited partner base and believe this is a result of our focus on, and deep experience in, middle market healthcare and business services industries coupled with our highly differentiated and value added approach to post investment strategic planning,” said Mark King, Co-Founder, Managing Partner and CEO of Revelstoke.

Revelstoke invests from $10 million to $250 million in companies that have at least $5 million of EBITDA.  Sectors of interest include healthcare services and products; transportation and logistics; specialty distribution; energy and energy services; building products; business and outsourced services; marketing services; financial services; industrial services; and medical technology.  Since founding in 2013, Revelstoke has raised more than $515 million in equity commitments. The firm is headquartered in Denver (www.revelstokecp.com).

“The close of these funds caps a highly productive year for Revelstoke during which we acquired three platform companies, completed five add-on acquisitions and successfully exited our first portfolio company,” said Simon Bachleda, Co-Founder and Managing Partner of Revelstoke. “Our seasoned investment team and stable of operating partners are actively evaluating numerous new investment opportunities while continuing to provide strategic guidance in growing our existing businesses organically and through add-on acquisitions.”

New York and London-based Beartooth Advisors (www.beartoothadvisors.com) was the lead fundraising advisor on certain limited partner relationships. Ropes & Gray (www.ropesgray.com) was the legal advisor to Revelstoke.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15

LBC Provides Mezz to Back Audax Buy of Techniks

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LBC nf1LBC Credit Partners provided a secured mezzanine loan to support the September acquisition of Techniks Industries  – a provider of industrial cutting tools and tool holders – by Audax Private Equity.

techniks f1Techniks Industries was formed by the merger of NAP Gladu and Techniks in 2012.  Today, 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).

LBC Credit Partners – the agent and sole lead arranger for this transaction – is a provider of middle market financing to companies with EBITDAs generally greater than $10 million. Products include senior term, unitranche, second lien, junior secured and mezzanine debt and equity co-investments supporting sponsored and non-sponsored transactions. LBC invests from $10 million to $50 million per transaction supporting acquisitions, growth strategies, refinancings, recapitalizations, and restructurings. LBC is headquartered in Philadelphia with additional offices in Chicago and Greenwich (www.lbccredit.com).

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).

CIT Group (www.cit.com/corporatefinance) provided the senior debt financing for the acquisition of Techniks Industries by Audax.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15

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