Archives for March 17, 2016

Glencoe Acquires Cincinnati Preserving Company

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Glencoe Capital has acquired the Cincinnati Preserving Company (DBA Clearbrook Farms), a provider of private label and branded jams, jellies, fruit butters, preserves and fillings to both the retail and industrial markets.

Clearbrook Farms was founded in 1924 by Jacob Liscow as a supplier to Dolly Madison Bakeries.  The company is based north of Cincinnati in Sharonville, OH (www.clearbrookfarms.com) and today is led by President and CEO Andy Liscow (Jacob’s grandson). He will continue in his role with the company under Glencoe ownership. Dan Cohen, also a grandson of the founder, will remain with the company in a transitional role.

“I look forward to working with Glencoe Capital to continue building the Clearbrook brand,” said Andy Liscow. “We believe that the time is right to make investments in the business to expand our product offerings to be even more successful.  With the support of Glencoe, we can do that.”

“The acquisition of Clearbrook represents an excellent opportunity for Glencoe Capital to enter the fast growing specialty foods segment, “said Jason Duzan, a Managing Director of Glencoe Capital. “Clearbrook Farm’s branded retail products have an excellent and long-standing reputation for manufacturing a wide array of clean-label and high-fruit products, and is well positioned for growth among today’s consumers seeking quality all-natural foods.  The company also serves a select list of long-term customers in the private label and industrial segments, demonstrating innovation in product development, quality manufacturing, and excellent service.”

Glencoe Capital makes acquisitions and growth equity investments in lower-middle market companies that have EBITDAs between $3 million and $15 million. Founded in 1993, Glencoe Capital has offices in Chicago and in the Detroit suburb of Bloomfield Hills (www.glencap.com).

TCF Capital Funding provided a senior debt facility to support the transaction. “We were pleased to have the opportunity to support Glencoe’s investment in Clearbrook Farms,” said TCF Capital Funding Senior Vice President Ed Ryczek. “The TCF Capital Funding team is excited to provide a financing solution that will support the company’s long-term growth and strategic initiatives.”

TCF 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).

The Peakstone Group was the exclusive financial advisor to Clearbrook Farms on this transaction. Peakstone is an investment bank focused on middle market and family-owned businesses with a targeted transaction size of $10 million to $100 million. The firm is headquartered in Chicago (www.peakstonegroup.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-17-16

River Associates Buys Weaver Leather

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Weaver Leather, a portfolio company of Capital Partners since October 2008, has been acquired by River Associates.

Weaver Leather is an enthusiast brand of leather and nylon products sold to the retail and wholesale equine, pet, arborist, and livestock markets. The company’s products include equine tack and accessories, saddle and tack hardware, pet collars and leashes, livestock show products, arborist climbing equipment, leather hides, and leatherworking tools and equipment. The company was founded as the Fryburg Shoe Shop in 1973 by Harry Weaver. Today, the company has more than 200,000 sq. ft. of manufacturing and warehouse space at its headquarters located southwest of Akron in Mt. Hope, OH (www.weaverleather.com).

“In River Associates, we have found a partner who shares our values, respects our culture and provides Weaver with the resources it needs to grow far into the future,” said Paul Weaver, CEO of Weaver.  “I am very proud of Weaver’s talented management team and employees, and I expect an excellent partnership with River over the years to come.”

Investment bank Greene Holcomb Fisher (www.ghf.net) initiated the transaction, assisted in negotiations and served as the exclusive financial advisor to Weaver. “Greene Holcomb Fisher was a great partner for us during the whole process,” said Mark Allsteadt, a Managing Director of Capital Partners. “GHF’s industry knowledge and strong execution capabilities were instrumental in helping achieve a great outcome through a well-orchestrated, highly competitive auction process. We could not be happier with the outcome for the company and its management team.”

“On the heels of the Mills Fleet Farm transaction announced two weeks ago, the Weaver transaction represents another successful transaction for GHF’s Consumer team,” said Kent Adams, Managing Director at GHF.  “The transaction with River Associates and its debt financing partners – Northstar Capital and Madison Capital Funding – allows Capital Partners to recognize the significant value they have helped build over the past eight years and positions the Weaver management team with a great new partner to capitalize on the company’s leadership and momentum across its multiple niche sectors.”

Capital Partners makes control or minority equity investments in middle-market manufacturing, distribution, services, consumer, and food companies. Target companies will be based in North America and have EBITDA from $4 million to $25 million. Capital Partners is led by its three Managing Directors – Brian Fitzgerald, Mark Allsteadt, Robert Tucker and Edwin Tan. The firm was founded in 1982 and is headquartered in Norwalk, CT (www.capitalpartners.com).

River Associates invests in companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million.  Sectors of interest include niche manufacturing, high margin distribution and industrial services. The firm was founded in 1989 and to date has completed 76 investments, including platform and add-on acquisitions. River Associates is based in Chattanooga, TN (www.riverassociatesllc.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-17-16

Liberty Hall Acquires Bromford Industries

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Aerospace and defense focused Liberty Hall Capital Partners has acquired Bromford Industries from Darwin Private Equity. Darwin acquired Bromford in August 2009 from Hampson Industries.

Bromford Industries is a supplier of engine components, fabrications and assemblies and landing gear components that are used in the aerospace and power generation industries.  The company’s largest customers include GE, Messier-Buggatti-Dowty, Rolls Royce, Siemens and Snecma. Bromford has 275 employees and annual revenues of approximately £30 million ($43 million).  Bromford’s existing management team, led by Gary Lowe, CEO, will remain in their roles following the acquisition. The company operates facilities in three UK locations – Birmingham (headquarters), Alcester and Leicester (www.bromfordindustries.co.uk)

Liberty Hall plans to use Bromford as a platform investment in order to build a diversified engine component supplier to the aerospace and power generation industries through both organic growth and add-on acquisitions. “We look forward to Bromford creating significant strategic value by adding complementary capabilities, diversifying across customers and expanding content on the highest value platforms through organic investments and strategic acquisitions,” said Rowan Taylor, Liberty Hall’s founding Partner.

Liberty Hall Capital Partners invests exclusively in businesses serving the aerospace and defense industry. The firm was founded by Mr. Taylor in July 2011 and is headquartered in New York (www.libertyhallcapital.com).

“As the commercial aerospace industry continues to enjoy long-term secular growth, one of the highest growing segments of the industry is demand for next generation fuel efficient engines,” said Mr. Taylor. “Bromford is a leading supplier to this segment with an impressive roster of customers, differentiated capabilities and a proven history of customer service. Bromford represents an ideal platform from which to build a fully-integrated, diversified engine component supplier.

Bromford is Liberty Hall’s third platform acquisition.  Last month, the firm acquired AIM Aerospace, a supplier of composite parts used in the commercial aerospace industry, for $200 million. In November 2013, Liberty Hall formed Accurus Aerospace, a fully-integrated Tier II aero-structures supplier. Since its formation, Accurus has completed three strategic acquisitions: Precise Machining & Manufacturing (2013), McCann Aerospace Machining (2014) and LaCroix Industries (2015).

Financing for the acquisition was provided by Royal Bank of Scotland Asset Based Lending. Bromford was advised by PwC Corporate Finance.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-17-16

Graycliff Partners Invests in Williams Sound

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Graycliff Partners has acquired Williams Sound, a provider of assistive listening systems, from Cardinal Equity Partners which had owned the company since January 2011.

Williams Sound is a designer, manufacturer, and marketer of wireless communication systems that are used to deliver sound and improve the hearing and communication ability of individuals in a variety of group or gathering situations. For example, the company’s products are designed for those with hearing impairment in public assembly spaces as well as for all listeners in language interpretation and tours. The company was founded in 1976 by Jerry Williams and is based near Minneapolis in Eden Prairie (www.williamssound.com).

“The Williams Sound team has built a multi-faceted business with significant potential for continued growth. The company’s product breadth and dedicated workforce makes it poised to take advantage of attractive industry tailwinds,” said Andrew Trigg, a Managing Director at Graycliff Partners.

Graycliff Partners invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution.  Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital.  Graycliff Partners is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).

“Williams Sound is pleased and excited to work with Graycliff Partners and we are looking forward to achieving our aggressive future growth goals together,” said Paul Ingebrigtsen, President and CEO, Williams Sound.

Minneapolis-based investment bank Prestwick Partners was the financial advisor to Williams Sound and Cardinal Equity Partners.

Cardinal Equity Partners invests from $2 million to $7 million of equity in companies that have from $5 million to $50 million of revenues and $1 million to $5 million of EBITDA. Sectors of interest include niche manufacturing, value-added distribution, consumer products, and service companies. The firm was founded in 1993 and is headquartered in Indianapolis (www.cardvent.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-17-16