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Archives for 2015

Byline Flexes Muscles in Chicago

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byline nf1Byline Bank has formed a new sponsor finance business to provide senior secured, cash flow loans to private equity sponsors to back acquisitions, provide growth capital and enable refinancings.

Staffing the new group are Jim Kuncl, Dan Delgadillo and Joe Horwath. The new team will be based out of Chicago but will pursue transactions across the country. All three professionals come to Byline from TCF Capital Funding – a cash flow and asset-based lender to lower middle-market businesses and private equity sponsors.

jim kuncl nf1“We will continue to focus our business on the lower middle market, which we define as businesses with $2 million to $10 million in EBITDA,” said Jim Kuncl, Senior Vice President and Group Head. “Byline provides us a strong platform for growth and the ability to be extremely responsive to our private equity customers.”

Byline Bank is a full service commercial bank providing retail and business banking, commercial mortgages, and other banking products and services to consumer and business customers. The bank has approximately $2.5 billion in assets and 80 branches with headquarters in Chicago (www.bylinebank.com).

Byline Bank is the successor bank to Metropolitan Bank Group which was purchased in 2012 by BXM Holdings, an investor group headed by Roberto Herencia, the former president of Banco Popular’s North American operations from 2001 until 2008. Mr. Herencia is today the Chairman of Byline.

Dan Delgadillo nf1“Something that was really important to us in looking for a partner was a strong cultural fit. Byline has built a winning, entrepreneurial team, and we are looking forward to adding to Byline’s continued success,” said Dan Delgadillo, Vice President Business Development. “We feel we are going to be able to bring an elevated level of thoughtfulness to our product and the market under this new platform.”

“We are excited to be adding this experienced team and platform to Byline. It is a strong fit with our strategy and this platform enhances our already strong commercial banking product offerings,” said Alberto Paracchini, President and CEO of Byline.

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-16-15

Excellere Partners Up with Behavioral Health Pro

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excellere nf55Excellere Partners has teamed up with Martin Favis – a behavioral health operator – to pursue a buy-and-build strategy in the mental health sector.

Mr. Favis has 23-years of experience in the behavioral health industry with both public and private equity owned companies. From August 2012 to February 2015 he was the President and CEO of Embassy Management, a Seattle-based human services provider with over 100 facilities in several Western States and Pennsylvania. Programs included work force development; residential & community based services for at risk children; individuals with developmental disabilities and autism spectrum diagnosis; traumatic brain injury and behavioral health care programs.

 “The continued ills of society suggest strong demand for reputable mental health service providers that are focused on doing things the right way,” said Mr. Favis. “There is a tremendous unmet need for strong clinical providers truly focused on improving patient care and meeting the expectations of patients and family members who are seeking providers that will treat their loved ones with compassion and a commitment to effective treatment. Excellere and I look forward to identifying businesses to partner with that can benefit from additional resources such as investments in clinical support, staff training and operational excellence in order to expand the overall impact from reputable providers.”

Before his time at Embassy Management Mr. Favis was the President and CEO of The Duvall Home from August 2008 to August 2012. The Duvall Home is a provider of residential and community based programs and services for the developmentally disabled and autistic.

matt hicks nf1“We developed our investment thesis within behavioral health due to the strong value proposition opportunity amongst patients, family members, clinicians, referral sources, government agencies and payers,” said Matt Hicks, a Partner at Excellere. “That, combined with increasing social acceptance for those seeking treatment, a supportive legislative and payer environment to help improve care and outcomes, and significant market fragmentation, suggest an appealing framework to build an attractive market leader in many of the behavioral segments we pursue.”

Excellere invests in middle-market companies with revenues ranging from $20 million to $150 million. Sectors of interest include healthcare services and products; energy and utility products and services; industrial technology and services; business services; and agri-business. The firm has $1.4 billion of capital under management and is based in Denver (www.excellerepartners.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-16-15

Pamplona Adds News Tech Partner

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pamplona nf1Pamplona Capital Management has appointed Justin Perreault as a new partner on its investment team. Mr. Perreault, who will be based in Boston, has over twenty years of information technology investing and operating experience and will pursue investments in the technology, media and telecom sectors.

Justin Perreault nf1Mr. Perreault is the fifth US-based partner of Pamplona. Before joining the firm, Mr. Perreault was with Commonwealth Capital Ventures where he co-managed three growth and early stage technology funds with $600 million of committed capital. Mr. Perreault holds a BS in Mechanical Engineering from Rensselaer Polytechnic and an MBA from Harvard Business School.

Pamplona Capital makes private equity, fund of hedge funds and single manager hedge fund investments.  The firm is currently investing Pamplona Capital Partners IV LP, a $4 billion fund raised in 2014. Pamplona was founded in 2005 and is based in London and New York (www.pamplonafunds.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-16-15

Falconhead Acquires Multi-Flow from CMS

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multiflow nf1Falconhead Capital has acquired a controlling stake in Multi-Flow Industries, a provider of fountain beverage equipment and drinks, from CMS Private Equity which purchased a majority share of the company in 2008.

multiflow nf111Multi-Flow produces bag-in-the-box packages of branded and private label concentrated iced teas, juices, carbonated soft drinks, energy drinks and fortified functional water. Multi-Flow also distributes fountain beverage syrup concentrates and services fountain beverage dispenser equipment to over 4000 retail accounts. Customers include bars, restaurants, clubs, hotels, assisted living and nursing facilities. It also manufactures private label fountain beverage concentrates for wholesale foodservice companies. Multi-Flow services accounts across 15 metropolitan areas through 14 east coast warehouses and serves the remainder of the US through 90 independent distributors.

Multi-Flow was founded in 1937 by Sam Gottlieb to provide fountain beverages directly to restaurants, bars and institutional care facilities. Today, the company is led by its CEO Ken Schnarrs and is headquartered north of Philadelphia in Huntingdon Valley, PA (www.multiflow.net).

David Moross nf1“We are delighted to acquire Multi-Flow, which is a leader in the fountain beverage sector in its geographic markets,” said David Moross, Chairman and CEO of Falconhead Capital. “The company is well positioned for growth through strategic acquisitions and a range of attractive internal opportunities. We look forward to partnering with Ken Schnarrs and his team to enhance the value of Multi-Flow for the benefit of all its stakeholders.”

“The Falconhead team has a long history of supporting and growing companies within the food and beverage sector and Multi-Flow will benefit from its operational expertise as we work together to grow our business both organically and through strategic acquisitions,” said Mr. Schnarrs.

Falconhead Capital invests in consumer-oriented companies in the sport, leisure, lifestyle, and media categories that have revenues between $20 million and $150 million and EBITDA between $5 million and $30 million. Typical equity investments range from $10 million to $50 million per transaction and up to $100 million with co-investors. Falconhead’s portfolio now includes Multi-Flow Industries, GPS Industries, Javo Beverage Company, and Rita’s Water Ice Franchise Company.  The firm was founded in 1988 and is based in New York (www.falconheadcapital.com).

CMS Private Equity, the seller of Multi-Flow, is the private equity arm of CMS Companies which specializes in investing in middle market and mature companies that have enterprise values between $5 million and $50 million and a minimum EBITDA of $1 million. Sectors of interest include building materials and services; consumer products and services; distribution and logistics; for-profit education; health and fitness; franchisors; healthcare services; professional and business services; and restaurants. The firm typically invests in Eastern United States. CMS Private Equity was founded in 2004 and is based in Wynnewood, PA (www.cmsco.com).

Grant Thornton (www.grantthornton.com) served as Falconhead’s financial and tax advisor on this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-16-15

Transom Acquires Pro-Tec

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large_PRO_TEC_LogoBravo Sports, a portfolio company of Transom Capital, has acquired Pro-Tec, a seller of action sports protective gear, from Dye Precision which acquired the company in November 2012 from apparel and sports equipment company Vans.

pro tec nf33Pro-Tec is a brand of action sports protective gear. Products include helmets for skateboarding, biking, kayaking, rollerblading, snowboarding and other sports. The company was founded in 1973 and will be moving its day-to-day operations to Bravo Sports’ South Orange County location from its headquarters in San Diego (www.protechelmet.com).

Transom Capital acquired Bravo Sports in June 2015 when it merged the company with its existing portfolio company  One Industries – a motocross and mountain bike products company – which it had acquired in July 2013. Pro-Tec is the first major add-on acquisition for the combined company.

Leonardo Pais nf1“When you think of action sports protection, you think of Pro-Tec,” said Leonardo Pais CEO of Bravo Sports. “With the technology and industry recognition of Pro-Tec’s safety products, adding this iconic brand to our roster of exceptional brands and products is truly exciting for us at Bravo Sports.”

Bravo Sports products include scooters, skateboards, skates, sun shades and canopies that are sold through the mass merchant, sporting goods and big box retail channels.  The company has over 100 employees and offices in the US, Europe and Asia. Bravo was founded in 1965 and is headquartered near Los Angeles in Santa Fe Springs, CA (www.bravosportscorp.com).

ONE Industries produces protective gear, helmets, gloves, graphics, and racewear for motocross and mountain bike riders. The company’s products are sold under the ONE and SixSixOne brands. ONE Industries sells its products worldwide through dealers, stores and online. The company was founded in 1997 and is based in San Diego (www.oneindustries.com).

“Since we acquired Bravo Sports in June of 2015, we have been excited to grow the company and move it into the future with a diverse product offering, while still speaking to the customers,” said Russ Roenick, a Managing Director at Transom Capital .”

Transom Capital Group invests in buyouts and turnarounds of companies with EBITDAs from $0 (turnaround situations) to $10 million. Sectors of interest include consumer products, media & entertainment, and industrial. The firm is based in Los Angeles (www.transomcapital.com).

St. Cloud Capital (www.stcloudcapital.com), a Los Angeles-based investor in lower middle-market companies, is also an investor in Bravo Sports.

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-16-15

GTCR to Acquire PR Newswire

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prnewswire nf2Cision, a portfolio company of GTCR and a provider of media information to public relations professionals, has signed an agreement to acquire PR Newswire from publicly traded UBM. The transaction is expected to close by the end of the first quarter of 2016.

PR Newswire (PRN) is a provider of public relations and investor relations communications. The company connects more than 30,000 customers to their target audiences through a distribution network that is considered by many to be the largest in the world. Customers of PRN include Fortune 2000 multinationals, public relations agencies, small businesses and government entities. PR Newswire was founded in 1954 and was acquired by Western Union in 1971. In 1982 the company was purchased by UBM. The largest competitor to PRN is Business Wire, a subsidiary of Berkshire Hathaway. PRN is headquartered in New York (www.prnewswire.com).

Mark Anderson nf1“PRN and Cision possess complementary capabilities that provide a unique opportunity to redefine public relations workflow when deployed together,” said Mark Anderson, Managing Director at GTCR. “This is an exciting acquisition for Cision and one that we have been pursuing for some time.”

Cision was acquired by GTCR in February 2014. The company is a subscription and cloud-based provider of public relations and marketing software that is used by public relations and corporate communications professionals to manage public relations campaigns, including content distribution, media monitoring and media analysis. Cision has approximately 16,000 annual subscription customers spread across a variety of industries. The company is headquartered in Chicago with additional offices in Canada, UK, France, Germany, Portugal, Sweden, Finland and China (www.cision.com).

“The addition of PR Newswire underscores GTCR’s commitment to technology investment and strengthens Cision’s communications and social software platform,” said Cision CEO Peter Granat.

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $12 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).

UBM (LSE:UBM) provides live media and business-to-business communications, marketing services and data collection. The company primarily serves the technology, healthcare, trade and transport, ingredients and fashion industries. UBM was founded in 1918 and is headquartered in London (www.ubm.com).

Deutsche Bank Securities, Barclays and RBC Capital Markets are providing debt financing to Cision in support of this acquisition.

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-16-15

Blackstone Closes on $18 Billion

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blackstone nf1Blackstone has held a final close of Blackstone Capital Partners VII (BCP VII) with $18 billion in capital commitments. Fundraising began in November 2014 and the fund had a $15.7 billion first close in May, seven months after launch. BCP VII has more than 250 limited partners from 40 countries.

Demand for the fund was in excess of its hard cap of $17.5 billion. Taken together with Blackstone and its employees’ commitment of $500 million, BCP VII will have $18 billion of available equity capital to invest. Blackstone expects to begin making investments out of this fund during the first quarter of 2016.

Blackstone is one of the world’s largest investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services.

Blackstone’s private equity business in total manages more than $91 billion in equity as of the end of the third quarter 2015. Blackstone is headquartered in New York (www.blackstone.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-14-15

Maranon Backs ParkerGale Buy of ATP

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maranon nf1Maranon Capital has made a mezzanine and equity co-investment in Aircraft Technical Publishers to back the acquisition of the company last month by ParkerGale Capital.

atp mf55Aircraft Technical Publishers (ATP) sells parts and maintenance data as well as workflow management software to companies that repair and maintain small airplanes. This is the general aviation market, which includes tens of thousands of maintenance, repair and overhaul (MRO) and fixed based operator (FBO) service providers. ATP customers buy products on an annual subscription basis and the company currently has about 17,000 subscribers.

Maranon provides senior financing, mezzanine debt and equity co-investments for private equity-backed and non-sponsored middle market transactions. The firm is currently managing over $1 billion of committed capital and has offices in Chicago; Birmingham, MI (near Detroit) and South Bend, IN (www.maranoncapital.com).

According to ParkerGale, ATP is the only organization that integrates information directly from more than 54 of the world’s leading manufacturers to create the industry’s most comprehensive repository of technical, operating, and regulatory data. ATP was founded in 1973 and is headquartered in San Francisco (www.atp.com).

ParkerGale Capital purchased the company from founding family member and CEO Caroline Daniels. Upon closing of the acquisition, ParkerGale named Charles Picasso, a co-investor on this transaction, as ATP’s new CEO.

ParkerGale Capital makes control investments in profitable technology enabled services companies that have from $2 million to $6 million in profits and are based in North America. The firm was founded in 2014 by five former members of Chicago Growth Partners – Devin Mathews, Dave Chandler, Jim Milbery, Kristina Heinze and Ryan Milligan. ParkerGale is headquartered in Chicago (www.parkergale.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-14-15

Keystone Buys Cherry Hill from Eureka

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cherry hill nf5Keystone Capital has acquired Cherry Hill Holdings, a provider of mall-based photography services, from Eureka Growth Capital.

cherry hill nf11According to Keystone, Cherry Hill Photo is the US market leader in providing mall-based holiday photography services and products. Cherry Hill manages on-premises Santa and Easter Bunny photography programs for more than 325 mall locations throughout North America.  The company provides a turn-key service offering, which includes Santa and Easter Bunny placement, support staff, photography service delivery, product merchandising and customer service during the Christmas and Easter seasons.

In 2014 the company placed more than 500 naturally bearded Santas at premiere and specialty centers throughout the United States and Canada. The company’s Santas have appeared on CBS’s “48 Hours,” “Good Morning America,” and “Late Night with Conan O’Brien”. Cherry Hill, led by Ed Warchol, President and CEO, was founded in 1961. The company is headquartered east of Philadelphia in Marlton, NJ (www.cherryhillphoto.com).

kent dauten nf1“We are excited by the opportunity to partner with the management team at Cherry Hill to build on their rich, decades-long history of providing world-class holiday experiences,” said Kent Dauten, Keystone Capital Managing Director.  “The management team will continue to operate the business with the same enthusiasm and excellence in service they have always delivered, with Keystone Capital supporting the company’s growth and development”.

Keystone Capital invests in middle market companies with EBITDAs of $4 million to $20 million that are market leaders in niche, mature industries. Sectors of interest include niche manufacturing, industrial technology, food products and packaging, healthcare products and services, business and professional services. Keystone Capital was founded in 1994 and is based in Chicago (www.keystonecapital.com).

Mufson Howe Hunter (www.mhhco.com), a Philadelphia-based mid-market investment bank was the exclusive financial adviser to Cherry Hill. Peter Hill led the team for Mufson Howe Hunter

Chris Hanssens nf1“We were extremely impressed with how Peter Hill and his team were able to identify the right buyers to introduce to the Cherry Hill opportunity and how well they were able to prepare the management team to convey the story succinctly and accurately to a diverse group of interested parties,” said Chris Hanssens, Managing Partner of Eureka Growth Capital.

Eureka Growth Capital makes control and non-control investments in companies with $10 million to $75 million in revenue. Initial equity investments range from $4 million to $10 million but larger investments can be made with co-investment from the firm’s limited partners. Eureka Growth prefers investment opportunities in the Mid-Atlantic and Eastern US. The firm was founded in 1999 and is based in Philadelphia (www.eurekagrowth.com).

Senior debt financing was provided by The Private Bank (www.theprivatebank.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-14-15

SK Capital Exits IBA Molecular

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iba nf44SK Capital has signed an agreement to sell IBA Molecular to CapVest Partners. SK Capital Partners acquired a 60% interest in IBA Molecular from Ion Beam Applications in April 2012. The transaction is expected to close at the end of Q1 2016.

IBA Molecular is a developer, manufacturer and distributor of radiopharmaceutical products that are used in positron emission tomography (PET) and single-photon emission computed tomography (SPECT) molecular imaging procedures. The company also provides support services used in molecular imaging. IBA Molecular is headquartered in Louvain-La-Neuve, Belgium and has over 50 locations in the US, Europe and Asia and employs over 1,000 people (www.iba-molecular.com).

Nuclear medicine uses very small amounts of radioactive materials (radiopharmaceuticals) to diagnose and treat disease. In imaging, the radiopharmaceuticals are detected by special types of cameras that work with computers to provide very precise pictures about the area of the body being imaged. In treatment, the radiopharmaceuticals go directly to the organ being treated. The amount of radiation in a typical nuclear imaging procedure is comparable with that received during a diagnostic x-ray, and the amount received in a typical treatment procedure is kept within safe limits.

Jamshid Keynejad nf1“We are proud of what has been accomplished by IBA Molecular under our ownership and believe that the business has significant growth ahead under the continued leadership of Renaud Dehareng and his team,” said Jamshid Keynejad, Chairman of IBA Molecular and a Founding Partner of SK Capital. “We are confident that CapVest will be a strong partner for the company as it moves into the next stage of its development.”

CapVest is a European mid-market private equity firm. CapVest was founded in 1999 and is headquartered in London (www.capvest.co.uk).

SK Capital specializes in the specialty materials, chemicals and healthcare sectors and typically invests equity of $100 million to $200 million in each portfolio company. SK Capital’s portfolio companies generate revenues of approximately $8 billion annually and employ approximately 9,000 people. The firm currently manages more than $1.5 billion of committed capital and is based in New York (www.skcapitalpartners.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-14-15

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