Archives for June 2016

Northern Pacific Forms Translation Platform

by

Northern Pacific Group has acquired Merrill Brink International, the languages services division of Merrill Corporation, and completed the add-on acquisition of KJ International Resources. The operations of these companies will be housed in United Language Group, a new platform company formed by Northern Pacific. Yukon Partners and Hamilton Lane provided mezzanine capital and acquired minority equity positions in United Language Group to back Northern Pacific.

With these two acquisitions, United Language Group (ULG) will have approximately $50 million in annual revenues, immediately ranking it among the top 25 language services companies worldwide and sixth in the US. Northern Pacific intends to add-on complementary companies with the goal of creating one of the largest language service providers in the world.

“We’re excited about this investment in the language business and we see tremendous opportunities for growth, both organically and through further acquisitions. We expect to be very active in this highly fragmented $40 billion industry,” said Peter Offenhauser, Partner at Northern Pacific Group.

Northern Pacific Group invests in companies with $10 million to $100 million in revenues that are active in the technology and business services sectors. In addition to United Language Group, the firm has three other platforms: Delaget, a SaaS provider of restaurant data technologies acquired in March 2015; Outsell, a SaaS provider of digital marketing services used by automotive brands acquired in March 2015; and Renters Warehouse, a provider of outsourced property management services acquired in September 2015. Northern Pacific is based in the Minneapolis suburb of Wayzata (www.northernpacificgroup.com).

Northern Pacific partnered on this transaction with language services veterans Jeff Brink and Hans Fenstermacher. Jeff Brink and Greg Brink founded Merrill Brink as PH Brink International in 1987 and sold the business to Merrill Corporation in 2005.

Today, Merrill Brink services include document translation, machine translation, website conversion, desktop publishing, testing services, proofreading, linguistic validation, e-Learning translation, and technical translation. Merrill Brink’s customers include multi-national companies in industries such as life sciences, manufacturing, travel, and hospitality, as well as governmental entities and law firms. The company has offices in St. Paul, New York, London, Galway and Hong Kong (www.merrillbrink.com).

KJ International is also provider of translation services. Customers are active in the medical and technical industries – such as biotechnology, pharmaceutical, and medical devices – and other industries subject to a high level of oversight and regulation. KJ International is headquartered in Minneapolis (www.kjinternational.com).

“We are thrilled to launch our strategy with the acquisition of Merrill Brink and KJ,” said Jeff Brink, CEO of ULG. “We view ULG as an ideal platform for our expansion plans, which include additional near-term acquisitions.”

Yukon makes subordinated debt and equity investments of $10 million to $40 million in middle-market, private equity sponsored acquisitions. The firm invests in buyouts, growth and platform strategies, recapitalizations, mergers & acquisitions, public- to-private buyouts, and refinancings. Yukon Partners is headquartered in Minneapolis (www.yukonpartners.com).

Hamilton Lane is an alternative investment management firm with more than $33 billion in discretionary assets under management and an additional $191 billion in advisory assets.  The firm is headquartered in Philadelphia and has offices throughout the US, Europe, Latin America and Asia (www.hamiltonlane.com).

Bell Capital Finance provided senior debt to support the transactions. Backbone Capital Advisors (www.backbonecap.com), a provider of capital sourcing services based in Studio City, CA, assisted in the arrangement of debt financing. Fredrikson & Byron (www.fredlaw.com) served as legal counsel to Northern Pacific.

© 2016 Private Equity Professional • 6-29-16

H.I.G. Continues Build of Ship Supply

by

Ship Supply International, a portfolio company of H.I.G. Capital, has acquired R.S. Stern, a last-mile provider of supplies and equipment to ships.  This add-on is Ship Supply’s second acquisition in the last six months. In February the company acquired Houston-based Alliance Supply Management, a provider of similar services as R.S. Stern.

According to H.I.G., R.S. Stern is America’s oldest ship chandler – a provider of perishable and non-perishable provisions, cabin equipment, bonded stores and deck and engine supplies (ship stores) – for cargo ships, passenger cruise ships, and other vessels. The company was founded in 1870 by Robert S. Stern. In 1966 the Stern family sold the business to Louis Crystal and is today run by CEO Alan Kotz, Mr. Crystal’s grandson. R.S. Stern is headquartered in Baltimore (www.rsstern.com).

Ship Supply International, acquired by H.I.G. in November 2015, provides last-mile delivery of products and maritime services to cruise, cargo and military marine vessels. The company utilizes an asset-light business model and serves customers in over 100 domestic and international ports. Ship Supply was founded in 1968 and is headquartered in Miami. The company is led by its president Christian Giannakopoulos (www.shipsup.com).

H.I.G. will continue to seek regional add-ons for Ship Supply that expand the company’s geographic footprint, product portfolio and customer base with the ultimate goal of building a global commercial port logistics services company.

“R.S. Stern augments our recent acquisition of Alliance Supply and continues the growth of the Ship Supply platform,” said Jeff Zanarini, a Managing Director at H.I.G. “This transaction demonstrates our continued commitment to the maritime logistics sector and is another example of our ability to find and quickly execute on high-quality add-ons for Ship Supply.”

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. has more than $20 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

© 2016 Private Equity Professional • 6-29-16

New Group Head for Monroe in Southern California

by

Monroe Capital has hired Steve Hinrichs as a new managing director in its Los Angeles office. Mr. Hinrichs will serve as the firm’s group head for the Southern California region.

“Steve has an accomplished career of over 25 years providing financing to middle-market companies and brings with him many great relationships and a wide range of experience across multiple industries,” said Ted Koenig, President and CEO of Monroe Capital. “He will help us continue to grow our origination platform that we have built throughout the US and Canada.”

Prior to joining Monroe, Mr. Hinrichs was a managing director at Capital One Business Credit. Prior to Capital One, he was a senior vice president at Bank of America Business Capital, where he managed a team and was responsible for the originations, structuring, underwriting, closing and funding of asset-based financing transactions for 16 years. Mr. Hinrichs has a BA in Accounting and Finance from San Jose State University.

Monroe Capital provides senior and junior debt and equity co-investments to middle-market companies based in the US and Canada. The firm was founded in 2004 and maintains offices in Chicago, Atlanta, Boston, Charlotte, Dallas, Los Angeles, New York and San Francisco (www.monroecap.com).

© 2016 Private Equity Professional • 6-29-16

HCAP Promotes Frank Mora to Partner

by

Mezzanine debt and private equity investor HCAP Partners has promoted Frank Mora to Partner. Mr. Mora joined the firm in 2013 and is responsible for the origination, structuring, diligence, and execution of new investment opportunities as well as limited partner relationships.

Prior to joining HCAP Partners in February 2013, Mr. Mora was a principal at DBI Capital, a Carlsbad-based private equity firm, as well as a vice president in the fixed income capital markets group for Citigroup. He has an MBA from Columbia and a BS in Economics from the University of Pennsylvania.

Mr. Mora is a member of the firm’s investment committee for HCAP Partners III and a board observer on several of the firm’s portfolio companies including Cubex, Datashield, Native Foods Café, Protect Plus Air Holdings and Reischling Press. Mr. Mora is also a board member of Paragon Technology.

“HCAP is pleased to announce the promotion of Frank Mora,” said Tim Bubnack, Managing Partner.  “Frank’s extensive operational and investment experience has been a great addition to our team.  He is a key member of our firm and I look forward to working closely with him as a senior member of our leadership team.”

HCAP is a provider of mezzanine and equity capital to lower middle market companies throughout the western United States. The firm invests from $2 million to $9 million in businesses generating between $10 million and $75 million in revenues. Sectors of interest include healthcare, software, services, and manufacturing.

HCAP is presently investing from HCAP Fund III, LP, a $92 million fund that closed in December 2014. HCAP has invested in over 50 companies since its founding in 2000 and is based in San Diego (www.hcapllc.com).

© 2016 Private Equity Professional • 6-29-16

Trinity Hunt Promotes and Hires

by

Trinity Hunt Partners has promoted Blake Apel to Principal from Vice President and hired Garrett Greer as a new Vice President.

Mr. Apel first joined Trinity Hunt in 2007 from Bain & Company.  He spent three years with the firm before leaving to pursue his MBA at the University of Chicago. He has been involved in eight platform investments at Trinity Hunt and he currently serves on the Board of Directors of Lakeview Health, Deposition Solutions and Family Help & Wellness, and is active with the firm’s investments in America’s Auto Auction and Auction Credit Enterprises.

“Blake has been a key member of our team and has been instrumental in instituting best practices, particularly at the portfolio company level, to grow the value of our investments over the past nine years.  We would like to congratulate him on this well-deserved promotion,” said Trinity Hunt Partner Dan Dross.

Trinity Hunt’s newest hire, Garrett Greer, joins the firm from middle market private equity firm Lone Star Investment Advisors where he was a vice president. Mr. Greer will be active at Trinity Hunt in sourcing new transactions, deal processing and portfolio company growth initiatives. He was previously with Insight Equity, American Capital, and Imperial Capital.  Mr. Greer has a Bachelor of Business Administration and a Masters in Professional Accounting from the University of Texas, as well as a Master of Business Administration from Northwestern University.

“We are also pleased to welcome Garrett as another experienced addition to Trinity Hunt’s investment team and feel he will expand our firm’s deal execution, portfolio company management, and overall capabilities,” said Mr. Dross.

Trinity Hunt invests in companies that have EBITDAs between $4 million and $25 million. Sectors of interest include B2B business services, niche manufacturing, industrial services, non-cyclical consumer, and health care services. Trinity Hunt is based in Dallas (www.trinityhunt.com).

© 2016 Private Equity Professional • 6-29-16

Monomoy Closes Above Target

by

Monomoy Capital Partners has held a final close on its third fund with $767 million of total commitments. The target for Fund III had been $650 million. Acalyx Advisors and Lazard Frères & Co. acted as placement agents for Monomoy during this fundraise.

Limited partners in the new fund include endowments, foundations, pension plans, insurance companies, family offices and funds of funds. “We are both humbled and energized by this tremendous vote of confidence from existing and new limited partners,” said Partner and Co-CEO Dan Collin.

Monomoy makes control investments of debt and equity of $25 million to $150 million in companies with $100 million to $600 million in annual sales. Sectors of interest include manufacturing, distribution, and consumer products.  “Our distinctive approach to value creation makes Monomoy a strong private equity partner for any middle market business,” said John Stewart, a Monomoy Partner and head of the firm’s operations group.

Over the past eleven years, Monomoy has acquired over 40 middle market companies from a variety of sellers (including family owners, public companies, lenders and financial sponsors) in a wide range of special situations (including bankruptcy, asset sales, equity sales and restructurings).

“We continue to believe that we are entering a very good economic environment for the Monomoy investment thesis, and we remain committed to providing capital to middle market businesses that can benefit from strategic, operational or financial improvement,” said Justin Hillenbrand, a Monomoy Partner and Co-CEO.

With closing of the fundraise, Monomoy hired Acalyx Advisors (www.acalyx.com) to provide the firm with investor relations advisory services. John Muno and Katie St. Peters of Kirkland & Ellis (www.kirkland.com) provided legal counsel to Monomoy.

Monomoy Capital Partners is headquartered in New York (www.mcpfunds.com).

© 2016 Private Equity Professional • 6-28-16

Warburg Pincus Gets New MD

by

Warburg Pincus has named Mark Begor as a Managing Director in the firm’s industrial and business services group. Mr. Begor will be responsible for creating operating improvements at portfolio companies and identifying and evaluating new investment opportunities.

“Mark is an excellent addition to the firm’s industrial and business services team and broader Warburg Pincus organization,” said James Neary, a Managing Director and Co-Head of the Industrial and Business Services group.

Before coming to Warburg Pincus, Mr. Begor was with General Electric for 35 years and was most recently the President and CEO of GE Energy Management. “Mark has deep and broad operating and financial experience, and will bring tremendous insights to our portfolio company management teams seeking to accelerate growth and improve operations,” said David Barr, Managing Director and Co-Head of the Industrial and Business Services group.

Other operating roles that Mr. Begor held at GE included multiple senior positions at GE Capital, as chief financial officer of NBC Universal, and as GE’s head of investor relations. Beyond his operating experience, Mr. Begor oversaw a large number of acquisitions and dispositions during his GE career. Mr. Begor’s educational background includes a BS in finance and marketing from Syracuse and an MBA from Rensselaer Polytechnic.

Warburg Pincus has more than $40 billion in assets under management and has raised 15 private equity funds since its founding in 1966. In November 2015, the firm reached a final close of Warburg Pincus Private Equity XII, LP at the hard cap of $12 billion. Warburg Pincus is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo and Shanghai (www.warburgpincus.com).

© 2016 Private Equity Professional • 6-28-16

Arlington Acquires EOIR Technologies

by

Arlington Capital Partners has acquired EOIR Technologies, a provider of information technology services to the US department of defense and government intelligence agencies. EOIR has been a portfolio company of The White Oak Group since March 2008.

EOIR’s services include cloud computing; big data analytics; data visualization; C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance), smart sensing, training and simulation, and rapid prototyping of sensors, vehicle situational awareness kits, and vehicle-based target acquisition systems. EOIR has approximately 400 employees in 11 US offices as well as client sites domestically and overseas. The company is headquartered in Fredericksburg, VA (www.eoir.com).

Arlington is one of the most active private equity firms in the government sector, having completed more than twenty transactions over the past five years. Arlington’s current portfolio include Endeavor Robotics – a provider of ground-based robots for use in dangerous and hostile environments; MicroPact – a provider of case management and business process management software; and Quantum Spatial, a geospatial analytics firm.

Arlington Capital Partners will use EOIR to build a national security platform. “As an early mover in smart sensors, video analytics and directed energy research, EOIR is well-positioned to address the country’s key technical priorities,” said Michael Lustbader, a Managing Partner at Arlington. “We plan to grow the company through complementary strategic acquisitions to create a mid-sized, agile platform that is focused on delivering differentiated solutions to the national security community.”

Arlington Capital Partners has $1.5 billion of committed capital and invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology; aerospace and defense; healthcare; and business services and software.  The firm is based in Chevy Chase, MD (www.arlingtoncap.com).

“EOIR is pleased to be partnering with Arlington, a firm with a long and successful history investing in our sector,” said Peter Cannito, who has been promoted to chief executive officer of EOIR with the closing of the transaction. Mr. Cannito had been the company’s chief operating officer. Dr. Joe Mackin, EOIR’s former CEO, becomes a member of the EOIR Board.

“This ownership transition presents a variety of exciting new opportunities for EOIR to continue our rapid growth through increased investments in corporate infrastructure, internal research and development and targeted new capabilities attained through strategic acquisitions,” said Dr. Mackin. “I look forward to continuing to advise the company through its next phase of growth and continuing to serve our customers.”

The White Oak Group, the seller of EOIR, invests in lower middle market companies in the service and technology industries that derive a majority of their revenue from government contracting.  Sectors of interest include aerospace and defense; power technology services; and environmental technology and services. The firm is based in Atlanta (www.thewhiteoakgroup.com).

© 2016 Private Equity Professional • 6-28-16

Vestar Sells Sun Products

by

Sun Products Corporation, a portfolio company of Vestar Capital Partners, has signed an agreement to be acquired by Henkel for €3.2 billion ($3.6 billion). With the acquisition, Henkel will become the second largest seller of laundry products in North America.

Sun Products is a provider of laundry detergent, fabric softeners and other household products. Brand names include All, Snuggle, Wisk, Sun, Surf, and Sunlight. The company employs approximately 2,000 people and has manufacturing facilities in Salt Lake City, UT and Bowling Green, KY. The company has annual revenues of approximately $1.6 billion and is headquartered near Stamford in Wilton, CT (www.sunproductscorp.com).

Sun Products was formed by Vestar in September 2008 when it acquired the laundry business of Unilever in the United States, Canada and Puerto Rico for approximately $1.5 billion. The acquired assets included the All, Wisk, Sunlight, Surf, and Snuggle brands. The acquired Unilever laundry assets were merged with Huish Detergents, which had been a portfolio company of Vestar since April 2007.

Henkel (GSI: DAX) operates through three business units: laundry and home care; beauty care; and adhesive technologies. Major brands owned by the company include Dial soaps, Persil and Purex laundry detergents, Right Guard antiperspirants, Got2b hair gels, and Loctite adhesives. Henkel employs about 50,000 people and has annual revenues of €18.1 billion ($20.1 billion) and adjusted operating profit of €2.9 billion ($3.2 billion).  Henkel was founded in 1876 and is headquartered in Düsseldorf, Germany (www.henkel.com).

“This transaction is a major strategic move for Henkel. North America is one of the most important regions for us worldwide. With the acquisition of Sun Products we will improve our position in the US – the world’s largest laundry care market – and Canada,” said Henkel CEO Hans Van Bylen.

Vestar specializes in management buyouts and growth capital investments. The firm targets equity investments in the range of $50 million to $150 million in US-based middle-market companies with enterprise values ranging from $250 million to $1 billion. Sectors of interest include consumer; diversified industries; healthcare; and financial services.  Since the firm’s founding in 1988, Vestar has completed more than 75 investments in companies with a total value of more than $40 billion. Vestar has offices in New York, Boston, and Denver (www.vestarcapital.com).

© 2016 Private Equity Professional • 6-28-16

Roark Joins Castanea in Drybar

by

Roark Capital Group has acquired a minority interest in Drybar, a retail provider of hair styling services. Drybar has been a portfolio company of Castanea Partners since January 2012.

Drybar operates retail hair salons that specializing in providing hair blowouts – washing, blow drying, and styling. Drybar does not provide hair cutting or coloring services. The company has 60 locations across the country, including New York, Los Angeles, San Francisco, Chicago, Dallas, Philadelphia, Washington DC, and Las Vegas (opening on July 1). Drybar also sells hair care products and styling tools at its stores, as well as online and through retail partners. The company was founded in 2009 by Alli Webb and is headquartered in Irvine, CA (www.thedrybar.com).

“Drybar is an innovative and differentiated brand with a tremendous track record of growth,” said Steve Romaniello, Managing Director at Roark Capital. “We look forward to supporting the team and the continued growth of the Drybar brand.”

Roark Capital Group invests in consumer and business services companies, with a focus on the franchise, food and restaurant, specialty retail, health and wellness, consumer and business services sectors. Roark’s current portfolio company brands include Anytime Fitness, Arby’s, Batteries Plus Bulbs, Corner Bakery, Driven Brands, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s), Hardee’s,  Massage Envy, Miller’s Ale House, Orangetheory Fitness, Pet Supermarket, Pet Valu, Waxing the City, and Wingstop. The firm is based in Atlanta (www.roarkcapital.com).

“The Drybar team has built a category-defining brand through a commitment to people, culture and core values,” said Erik Morris, Managing Director at Roark Capital. “We are thrilled to be partnering with the founders, management, the board and Castanea Partners in continuing to build such an amazing brand.”

Castanea Partners invests from $15 million to $75 million in companies that operate in the consumer brands, marketing services, and information services sectors. The firm is currently investing from its $600 million fourth fund that invests in companies with enterprise values up to $250 million. Castanea is headquartered near Boston in Newton, MA (www.castaneapartners.com).

Piper Jaffray & Company (www.piperjaffray.com) was the financial advisor to Drybar for this transaction.

© 2016 Private Equity Professional • 6-28-16

Snow Phipps Adds-on to Teasdale Foods

by

Teasdale Foods, a portfolio company of Snow Phipps, has acquired Mesa Foods. Snow Phipps acquired Teasdale Foods in October 2014 from Palladium Equity Partners.

Mesa Foods is a manufacturer of private label flour and corn tortillas, flatbreads, tacos shells, taco kits and pre-cut uncooked tortilla chips. Customers include restaurants, grocery stores, and foodservice distributors. The company was founded in 1984 and is headquartered in Louisville (www.mesafds.com).

Mesa is the third follow-on acquisition that Teasdale has completed under Snow Phipps ownership. In October 2015, Teasdale acquired Jardine’s Foods, a producer of natural and organic sauces including salsas, dips, quesos, BBQ and hot sauces. In December 2015, Teasdale acquired Casa Fiesta, a provider of Mexican foods in the beans, peppers, sauces, corn products and seasonings categories.

Today, Teasdale Foods is a provider of private label and branded beans, hominy, peppers, sauces, corn products and seasoning products to the retail, foodservice, wholesale, industrial and international channels. Brands include Teasdale, Casa Fiesta, Viva Mexico, Mexene, D.L. Jardine’s, 7J and Sontava!. Teasdale operates facilities in Atwater, CA; Hoopeston, IL; Greeley, CO; and Buda, TX. The company was founded in 1930 and is headquartered in Dallas (www.teasdalefoods.com).

The acquisition of Mesa builds Teasdale’s national footprint and creates a one-stop shop of Hispanic inspired food products. Mesa Foods will operate as a division of Teasdale with the existing management team continuing on with the business. “Mesa adds tortillas to our portfolio, which are a core part of Hispanic snacking favorites such as quesadillas, wraps, fajitas, burritos and enchiladas,” said Chris Kiser, Teasdale’s CEO. “Teasdale now offers all the product categories necessary to help bring the best of Hispanic food to consumers.”

“We are pleased to have executed on a number of Teasdale’s unique growth opportunities and look forward to our continued expansion,” said Peter Shea, Teasdale’s Chairman and Snow Phipps’ Operating Partner. “Mesa rounds out Teasdale’s product offering and will allow us to drive further growth by providing customers with best in class products, service, innovation and market insights.”

Snow Phipps makes control investments in companies primarily located in North America with enterprise values ranging from $100 million to $500 million that require equity investments ranging from $40 million to $100 million. The firm has $1.5 billion of assets under management and was co-founded by Ian Snow and Ogden Phipps in April 2005. Snow Phipps is headquartered in New York (www.snowphipps.com).

© 2016 Private Equity Professional • 6-23-16

BV Partners Up With C.F. Stinson

by

BV Investment Partners has made an investment in C.F. Stinson, a designer and marketer of textiles used in the commercial interiors industry.

BV is investing in partnership with Keith and Glenn Stinson, the third generation of family ownership, who will continue to run the business and maintain a significant ownership interest in the company. “As third-generation family owners, my brother and I were careful in selecting a financial partner that aligns with our culture, values and vision for the future.  It is clear to us we have found this in BV and we look forward to collaborating with the BV team to continue to accelerate the growth of C.F. Stinson,” said Keith Stinson, President and CEO.

Central to C.F. Stinson’s business strategy is a patented, technology-enabled sample system developed by its wholly owned subsidiary, Sample Technologies.  This system allows customers to access Stinson’s fabrics, and order samples which are integral to the design and specification process. C.F. Stinson was founded in 1952 and is based in the Detroit suburb of Rochester Hills (www.cfstinson.com).

In September 2014, BV Investment Partners held a final close of BV Investment Partners Fund VIII with $487 million of committed capital. “Stinson is the Fund VIII’s third investment with a tech-enabled distribution theme and has a number of attractive characteristics that align well with BV’s investment strategy and philosophy.  The company is mission critical to its suppliers and customers, uniquely positioning it within the textile supply chain,” said Andrew Davis, Managing Director of BV. “Furthermore, Stinson serves diverse commercial markets including the attractive hospitality and healthcare industries, with a substantial percentage of its business derived from the growing demands of the US healthcare delivery industry. 

BV Investment Partners makes investments in companies active in the information and business services, and communications industries. Since its founding in 1983, the firm has invested over $2.7 billion in more than 84 companies.  BV Investment Partners is headquartered in Boston (www.bvlp.com).

© 2016 Private Equity Professional • 6-23-16

Turnbridge Recaps DeBusk Services Group

by

Turnbridge Capital has completed an equity recapitalization DeBusk Services Group, a provider of industrial cleaning services in the energy sector.

DeBusk Services Group (DSG) provides mechanical and industrial cleaning services to refining and petrochemical facilities. Services include hydro-blasting, hydro-cutting, chemical cleaning, transportation, tank cleaning, and vacuum services. DSG was founded in May 2012 by its CEO Andrew DeBusk. The company operates 16 facilities across the country and is headquartered in the Houston suburb of Pasadena, TX (www.debusksg.com).

In 1999, Mr. DeBusk founded DeBusk Industrial Services Company which was sold to Inland Industrial Services Group, a portfolio company of Strength Capital Partners, in 2008. In 2013, Inland Industrial was sold by Strength Capital Partners to HydroChem, a portfolio company of Centerbridge Partners.

“Our investment in DeBusk Services Group places us in partnership with an exceptional management team with a proven track record of value creation through organic and strategic growth initiatives,” said Mitch Cox, a partner at Turnbridge Capital. “DSG’s reputation for being a reliable, skilled, and safe provider of both routine and mission critical industrial cleaning and mechanical services has allowed the company to build a blue-chip customer base and experience significant growth that we expect to continue in the future.”

Turnbridge Capital invests in companies that provide services and manufactured products in the upstream, midstream and downstream energy sectors.  Typical transactions involve companies which range in enterprise value from $25 million to $250 million. The firm was founded in 2008 and has offices in Dallas and Houston (www.turnbridgecapital.com).

“Fundamentally, it comes down to partnering with quality people. With that top of mind, the DeBusk Services family is pleased to be joining forces with Turnbridge Capital,” said Mr. DeBusk. “Over the past nine months, we have had the opportunity to lay the foundation for a partnership that will allow the company to meet and exceed the growth targets we have set. It has been a pleasure developing this relationship and we look forward to benefiting from Turnbridge’s wealth of strategic knowledge.”

Brown Gibbons Lang & Company (www.bglco.com) was the financial advisor to DeBusk Services Group on this transaction.

© 2016 Private Equity Professional • 6-23-16

Liberty Hall Buys J&M Machine

by

Accurus Aerospace, a portfolio company of Liberty Hall Capital Partners, has acquired J&M Machine, a Tier II supplier of machined metallic parts and assemblies used in aerospace applications.

Accurus Aerospace was formed as a platform company by Liberty Hall in November 2013. Since its formation, Accurus has completed three acquisitions: Precise Machining & Manufacturing (November 2013); McCann Aerospace Machining (March 2014); and LaCroix Industries (July 2015). J&M will be integrated into the LaCroix Industries division of Accurus.

LaCroix supplies several Boeing commercial aerospace platforms, including the 737, 777 and 787. In addition to expanding Accurus’s content on these aircraft platforms, J&M diversifies Accurus’s customer mix and expands Accurus’s geographic presence in the Pacific Northwest, the core aerospace supply region in the United States.

“The acquisition of J&M provides Accurus with new high-precision machining capabilities inside our LaCroix division, expands our relationship with The Boeing Company and substantively expands Accurus’s geographic presence in the Northwest,” said Rowan Taylor, a partner at Liberty Hall. “The addition of J&M marks the fourth acquisition for Accurus as we continue to execute our strategy to build a leading, fully capable, diversified Tier II aerostructures supplier.” Accurus Aerospace is headquartered in Tulsa (www.accurusaero.com).

Liberty Hall 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).

Philadelphia-based Hamilton Lane (www.hamiltonlane.com) is a co-investor in the Accurus Aerospace platform.

Financing for the buy of J&M Machine was provided by Bank of America Merrill Lynch (www.baml.com), which provided financing for the formation of the Accurus Aerospace platform in November 2013.

Seattle-based investment bank Meridian Capital (www.meridianllc.com) was the financial advisor to J&M Machine.

© 2016 Private Equity Professional • 6-23-16

New Banker at Raymond James

by

Raymond James has added John Barrymore to its consumer investment banking practice as a managing director. Mr. Barrymore will focus on the firm’s efforts in the food, nutrition and consumer health sectors, areas in which he has worked exclusively during his 22-year career.

“John is a highly regarded professional with an exceptional understanding of his focus sectors and a tremendous record of successful transactions,” said Mark Goodman, Managing Director and head of the consumer investment banking practice. “He’s adept at delivering results to clients, and I’m thrilled to welcome him to our team.”

Prior to joining Raymond James, Mr. Barrymore was with Duff & Phelps where he spent the past five years leading the firm’s food and nutrition M&A practice. Earlier in his career, he founded 6Pacific Group, a merchant-banking firm focused on advising and investing in food, nutrition and consumer health companies. His transaction experience includes representing family-held businesses, private equity firms and corporations on buy-side, sell-side and capital raising transactions. Mr. Barrymore has experience in cross-border transactions and maintains active relationships with clients around the world, particularly in Europe, China, Japan and Australia. Prior to founding 6Pacific Group, he held various positions at BMO Capital Markets, Piper Jaffray, and DLJ/CSFB. Mr. Barrymore is a graduate of Southern Methodist University with a bachelor’s degree in Economics and International Studies.

“I am very excited to be joining the highly successful Raymond James consumer investment banking team,” said Mr. Barrymore. “Raymond James has built a powerful global investment banking platform with a broad base of services, resources and industry expertise that I am looking forward to leveraging on behalf of our clients.”

“During his over two-decade career, John has closed nearly 140 transactions and in just the past four years, he was responsible for over 20 transactions that significantly impacted his industry sectors,” said Jim Bunn, co-president Global Equities and Investment Banking at Raymond James. “His addition to our team cements our reputation as a truly global investment bank in the consumer space.”

Other managing directors in the firm’s consumer investment banking practice include Mark Goodman (US Consumer Group Head), Jay Eastman (US Consumer Products/Retail), Brian Boyle (US Food & Beverage), Robert Arnold (US Restaurants), Monika Nickl and Dirk Damegger (European Consumer Banking), and Glenn Gatcliffe (Canadian Consumer Banking).

Raymond James (NYSE: RJF) is a financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. Since 2015, Raymond James has participated in raising $140 billion in capital for its corporate clients and completed more than 450 advisory assignments, including more than 390 M&A buy-side or sell-side advisory assignments. The firm was founded in 1962 and is headquartered in St. Petersburg, FL (www.raymondjames.com).

© 2018 Private Equity Professional | November 27, 2018

Constitution Capital Adds Analyst

by

Dominic Morell has joined Constitution Capital Partners – an investor in lower middle companies – as a new analyst. He will be responsible for screening, evaluating, negotiating and monitoring investments.

This is the second-time around for Mr. Morell who was a summer analyst with the firm in 2015. He is a recent graduate of the State University of New York where he earned a Bachelor’s degree in chemistry with a minor in mathematics and a concentration in finance.

“We are excited to welcome Dominic back to Constitution Capital,” said Daniel Cahill, Managing Partner. “He has already proven a valuable asset to our team in his previous role with the firm, and we’re confident his intimate knowledge of the Constitution Capital investment approach will allow him to have an immediate impact as an analyst.”

Constitution Capital makes fund investments and direct investments in North America-based small to mid-cap opportunities.  The firm’s limited partners are largely institutional investors, family offices and high net worth investors from the US, UK, Europe, South America and Asia. In June 2015, Constitution Capital Partners held a final close of its latest fund, Ironsides III Private Equity Partnership/Co-Investment Fund, LP, with $823 million in capital commitments. The firm is headquartered in Boston (www.concp.com).

“Building on the cohesive team we’ve established is crucial to the success of the firm, allowing us to stay ahead of the curve in sourcing investment opportunities,” said John Guinee, Managing Partner. “In our nearly 10 years of operation, we have strategically grown our team to best serve our investors, and we are pleased to continue this commitment with the addition of Dominic.”

© 2016 Private Equity Professional • 6-22-16

Sterling Builds Industrial Cleaning Platform

by

The Sterling Group has acquired two industrial cleaning and maintenance companies with the simultaneous buys of North American Industrial Services and Evergreen Industrial Services. Together, these companies will have approximately $200 million in annual revenue and a service area that spreads throughout North America.

North American Industrial Services (NAIS) provides high pressure and high volume water-blasting; vacuum truck services; grit blasting; surface preparation; explosives services; tank and vessel cleaning; boiler cleaning; pipe cleaning and restoration; hydro-demolition; and hydro-excavation. NAIS has 23 locations and services companies in the Northeast, Midwest, and Rocky Mountain regions. The company was founded in 1983 as H2O Technologies and today is headquartered north of Albany in Ballston Spa, NY (www.naisinc.com).

Evergreen Industrial Services provides many of the same services as NAIs including vapor control and degassing; tank cleaning; high pressure water-blasting; vacuum truck services; hydro-excavation; grit blasting; and waste processing and minimization. Evergreen primarily serves the petrochemical, refining, and midstream energy end markets. The company has nine locations in Texas, Louisiana and California and is headquartered near Houston in LaPorte, TX (www.evergreenes.com).

Mark Neas, the former president of Brand Energy Solutions, a provider of services to the energy, industrial and infrastructure markets, has been named by Sterling as the CEO of the new platform. Brand Energy Solutions was acquired by Clayton, Dubilier & Rice in September 2013 from First Reserve. Phil Hawk, the former CEO and current Executive Chairman of TEAM (NYSE: TISI) – a provider of specialty industrial services (inspection, evaluation and repair) – has been named Executive Chairman of the new platform.

NAIS founders, Frank and Tim Zilka, and Evergreen founder Jon Hodges will continue to run their businesses and have reinvested in the new platform under Sterling ownership. Both NAIS and Evergreen will continue to operate under their current trade names. The name of Sterling’s new platform has not yet been announced.

“Frank and Tim Zilka and Jon Hodges have built exceptional businesses that will be even stronger as one organization,” said Kevin Garland, a Partner at The Sterling Group. “Together, with the addition of several tenured industry executives, we will execute on our collective vision to continue to grow organically and into new markets, offering an expanded ability to serve the new company’s diverse customer base across the United States.”

The Sterling Group targets controlling interests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million.  The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires.  Sterling was founded in 1982 and is headquartered in Houston (www.sterling-group.com).

© 2016 Private Equity Professional • 6-22-16

Audax Sells Neptune-Benson to AEA

by

Audax has sold Neptune-Benson to Evoqua Water Technologies, a portfolio company of AEA Investors. Audax acquired Neptune-Benson in August 2011.

Neptune-Benson is a designer and manufacturer of filtration systems, recirculation components, and filter accessories. The company’s products are sold to commercial and municipal water recreation facilities, resorts, water parks, zoos and aquariums. Neptune was founded in 1956 by Junius and Raymond Gertz and is headquartered southwest of Providence in Coventry, RI (www.neptunebenson.com).

Since Audax’ initial investment in 2011, Neptune completed five add-on acquisitions to add to its product offering and expand the company internationally. “Audax has been instrumental in supporting our organic growth and acquisition strategy,” said Ken Rodi, CEO of Neptune.

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. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).

“Ken and the rest of the Neptune-Benson team have done an exceptional job growing the company organically and through acquisitions to create a clear leader in the filtration space across commercial, industrial, and municipal aquatics industries. We wish Neptune continued success in their next leg of growth with its new partner,” said Geoffrey Rehnert, Co-CEO of Audax.

In January 2014, AEA closed on the acquisition of the water and wastewater treatment operations and assets of Siemens Water Technologies for $870 million. Upon closing of the transaction the company was renamed Evoqua Water Technologies.  Today, Evoqua is a provider of water and wastewater treatment products, systems and services for industrial and municipal customers. The company was founded as US Filter in 1990 and was acquired by Siemens in 2004. Evoqua is headquartered north of Pittsburgh in Warrendale, PA (www.evoqua.com).

Financing for the transaction was provided by Credit Suisse (www.credit-suisse.com/us), Morgan Stanley (www.morganstanley.com), and RBC Capital Markets (www.rbccm.com).

Lazard Middle Market (www.lazardmm.com) was the financial advisor to Neptune and Audax. Goulston & Storrs (www.goulstonstorrs.com) provided legal counsel to Neptune and Audax. Fried, Frank, Harris, Shriver & Jacobson (www.friedfrank.com) was the legal advisor to Evoqua and AEA.

© 2016 Private Equity Professional • 6-22-16