Archives for March 10, 2016

TVV Capital Adds-on to Big  3 Precision

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Big 3 Precision Products, a portfolio company of TVV Capital since October 2012, has acquired Sur-Form Corporation, a provider of material handling parts and systems. The acquisition of Sur-Form is the seventh investment for TVV Capital’s latest fund, TVV III which closed in December 2013.

Sur-Form designs and produces material handling equipment for the automotive industry, both as a supplier to other material handling businesses and as a direct supplier.  Sur-Form’s thermoformed and injection molded products include trays, bars and flippers that are designed to protect and transport products, such as sensitive or machined parts. Sur-Form was founded in 1997 by Edward Stacey, Jr. who will continue to lead the company under Big 3 ownership. Sur-Form operates a 45,000 square foot facility located northeast of Detroit in Chesterfield, MI (www.sur-form.com).

“The acquisition of Sur-Form highlights TVV’s focus on growing portfolio companies through add-on investments that provide operational and market synergies,” said Andrew Byrd, President of TVV Capital. “We acquired Big 3 Precision in October 2012 and believe the addition of Sur-Form will expand the growth opportunities for the combined companies.”

Big 3 is a supplier of injection blow mold (IBM) and injection stretch blow mold (ISBM) tooling and equipment to the plastics sector. Injection and stretch blow molding tools are used for the production of hollow objects in large quantities such as bottles, jars and other containers. Big 3’s customer base in this area includes pharmaceutical and personal care products companies such as GlaxoSmithKline, Bristol-Myers Squibb, and Procter & Gamble. Big 3 also manufactures parts and material handling racks for the automotive industry. Customers include automotive manufacturers such as Ford, General Motors, and Fiat Chrysler. Big 3 is led by its President and CEO, Alan Scheidt. The company was founded in 1970 and is headquartered east of St. Louis in Centralia, IL (www.big3precision.com).

“Sur-Form’s expertise in thermoforming and injection molding complements Big 3’s design and build capabilities while expanding their sales to Ford, General Motors, and Fiat Chrysler. Sur-Form’s operations are headquartered near Detroit and are expected to provide additional manufacturing capacity and distribution capabilities for Big 3,” added Mr. Byrd.

TVV Capital is a lower middle-market buyout firm focused on acquiring market-leading niche companies across a range of industries.  The firm targets companies with enterprise values from $10 million to $100 million, revenues from $15 million to $150 million, and EBITDA margins of 10 to 25 percent.  TVV Capital was founded in 1997 and is headquartered in Nashville (www.tvvcapital.com).

Legal advisors for TVV Capital were Nashville-based Bass, Berry & Sims (www.bassberry.com) and accounting services were provided by Marcum LLP (www.marcumllp.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-10-16

Altus Acquires Gear Division of Parker Hannifin

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Altus Capital Partners has acquired Nichols Portland, a designer and manufacturer of powdered metal gears, from Parker Hannifin Corporation.

Nichols Portland makes both fixed and variable displacement powdered metal gears – such as gerotor gears and smart pumps – that are used by OEMs in the automotive and on-off highway markets. Gerotor gears (“generated rotor”) are internal gear pumps that are used to move fluids through a system. They are primarily suitable for clean, low pressure applications such as lubrication systems or hot oil filtration systems, but can also be found in low to moderate pressure hydraulic applications. Nichols Portland was founded in 1904 and has its manufacturing operations and headquarters in Portland, ME (www.gerotor.net).

The management team of Nichols Portland – led by its general manager Rick Izor – participated in this acquisition. According to Altus, revenues for Nichols Portland’s products, especially smart pump and advanced variable gears, will grow due to the ever increasing need for fuel and motor efficiency.

“Altus is enthusiastic to partner with Nichols Portland’s management team in acquiring an industry leader in the designing and manufacturing of powdered metal gerotor gears and a growing developer of smart pumps for fuel applications,” said Russell Greenberg, Managing Partner of Altus Capital. “We recognize and value management’s depth of capabilities along with the company’s exceptional technological advancements, which has earned Nichols Portland its industry leadership position.”

Altus Capital Partners invests in corporate divestitures, management-led buyouts, and privately-held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm is headquartered in Wilton, CT with an additional office near Chicago in Lincolnshire, IL (www.altuscapitalpartners.com).

“Nichols Portland has a long tradition of providing innovative solutions for its customers. We look forward to working with and supporting management to expand upon this legacy,” said Heidi Goldstein, a principal at Altus Capital.

Parker Hannifin, the seller of Nichols Portland, is a diversified manufacturer of motion and control technologies and systems. The company has annual revenues of about $13 billion and employs approximately 55,000 people in 50 countries. Parker Hannifin was founded in 1918 and is headquartered in Cleveland (www.parker.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-10-16

Riverside Ups Investment in Soothe

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The Riverside Company has increased its investment in Soothe, a provider of lead generating services for home massage therapists, by $35 million. The new investment follows a $10.6 equity investment that Riverside made in the company in August 2015.

Soothe connects independent massage therapists looking for incremental lead flow to consumers seeking a means to book an in-home massage with a licensed massage therapist. Consumers can book massages through a smartphone app or through the Soothe website. Soothe’s customers receive a five-star, high-quality massage therapist at their door in as little as 60 minutes. Soothe was founded by CEO Merlin Kauffman and CTO Bradley Herman and is based in Los Angeles (www.soothe.com).

According to Riverside, the company addresses the growing consumer demand for quality on-demand services. At the time of Riverside’s initial investment, Soothe was active in 10 markets. Today, it is available in 21, including two internationally. The company has plans to double its locations over the next year.

“We’re extremely enthusiastic about Soothe,” said Riverside Managing Partner Loren Schlachet. “This new capital will bolster its already impressive growth rate by providing the resources needed to promote this outstanding service, enhance its technology and enter a wide array of new markets.”

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million. Since its founding in 1988, Riverside has invested in more than 420 transactions. The firm’s international portfolio includes more than 80 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

“Riverside’s resources and knowledge will help Soothe accelerate its growth,” said Riverside Partner Brian Sauer. “We’re deeply committed to Soothe’s success and confident that it is the best offering of its kind on the market.”

Working with Messrs. Schlachet and Sauer on the transaction for Riverside were Operating Partner Dale Fuller, Vice President John McKernan, Associate Blake Tokheim and Finance Director Mike Rath.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-10-16

Lucky Number 13 for Duff & Phelps

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Duff & Phelps has announced the promotions of 13 members of its professional staff to managing director.

“The advancement of these thirteen professionals demonstrates Duff & Phelps’s commitment to strengthen our organization from within,” said Jacob Silverman, President of Duff & Phelps. “These individuals deliver the expertise and high-quality work Duff & Phelps is known for and I wish each of them continued success as they take the next step in their career at the firm.”

Many of these promotions are directly tied to the transaction side of private equity. Bradley Hileman, based in Santa Monica, leads the Financial Sponsors Group and is primarily responsible for building relationships with private equity firms across the US; Nicholas Clemens, based in Chicago, leads the Midwest Financial Sponsors Group; Laura McNaughton, based in Chicago, specializes in providing sell-side services to family and founder owned businesses and private equity owned companies; Darren Gange, based in New York, leads the firm’s East Coast Financial Sponsors Group; Edward Mielke, based in New York, is part of the firm’s Consumer, Retail, Food and Restaurants group; and Margaret Mi, based in Hong Kong, focuses on deal origination and execution of telecommunications, media and technology (TMT), consumer and healthcare transactions in China.

The balance of the managing director promotions include Brian Gore, Valuation Advisory Services, based in Chicago; Lauryn Haake, Legal Management Consulting, based in Houston; Michael Lateur, Property Tax, based in Austin; Chris Matteson, General Counsel, based in New York; Carla Nunes, Office of Professional Practice, based in Philadelphia; Marianna Todorova-Larkin, Office of Professional Practice, based in Philadelphia; and Tony Wilcher, Legal Management Consulting, based in Miami.

Duff & Phelps advises clients in the areas of valuation, mergers and acquisitions, restructuring, alternative assets, disputes and taxation. The firm has more than 2,000 employees serving clients from offices in North America, Europe and Asia (www.duffandphelps.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-10-16

Charlesbank Adds New Operating Partner

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Charlesbank Capital Partners has hired Neil Kalvelage as its newest Operating Partner.  Mr. Kalvelage joins Charlesbank from Bain Capital where he served for 10 years as operating partner.

Prior to his time at Bain Capital, Mr. Kalvelage was the Senior Director of Portfolio Strategy for The Hershey Company from July 2004 to August 2006. In 2003 he worked in the Corporate Strategy department at PepsiCo. Earlier in his career, he spent nearly five years as a manager at Bain & Company. Mr. Kalvelage has a BS from Penn State and an MBA from Carnegie Mellon.

“Given the growth in our portfolio, we have been evaluating the addition of an operating partner to our team for some time now,” said Josh Klevens, a Managing Director at Charlesbank. “Neil is a skilled leader with an established track record of working with management teams to achieve sustained growth for portfolio companies. He brings deep experience, integrity and an ability to balance strategy with execution. We are thrilled to have him on our team.”

Mr. Kalvelage most recently held board positions at Bain portfolio companies Retail Zoo, an Australian-based quick-service restaurant franchisor (www.retailzoo.com.au); and MYOB, an Australian-based provider of accounting and business services to small and medium sized businesses in Australia and New Zealand (www.myob.com.au).

Charlesbank Capital Partners invests in management-led buyouts and growth capital financings, typically investing from $50 million to $150 million per transaction in companies with enterprise values of $150 million to $1 billion. The firm has offices in Boston and New York (www.charlesbank.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-10-16