June 8, 2016
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Archives for June 8, 2016

Steve Kunkle Joins Riveron

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riveron nf1Riveron Consulting, a financial consulting firm serving middle-market private equity funds, mezzanine and senior lenders, family offices and public and private companies, has added Steve Kunkle as a new director in the firm’s transaction advisory practice.

steve kunkle nf1Mr. Kunkle has more than 15 years of accounting and financial due diligence advisory expertise across a variety of industries, with a particular depth in the healthcare services space. He will be based in Atlanta and will be active providing M&A accounting advisory services.

“Steve’s leadership and deal experience make him a perfect fit for our team as we expand our advisory footprint,” said Levi Preston, market leader for Riveron’s Atlanta office. “We are confident his expertise will help further client relationships and contribute to our rapid growth in the Southeast.” Riveron’s Atlanta office was opened in September 2014.

Prior to Riveron, Mr. Kunkle held senior positions at Warbird Consulting Partners, Alvarez & Marsal Transaction Advisory Group and PricewaterhouseCoopers. He is a Certified Public Accountant and earned his Bachelor of Science in analytic finance and his Masters of Accountancy at Wake Forest.

Riveron has experience serving a variety of industries including manufacturing, distribution, retail, financial services, technology, and energy. The firm was founded in 2006 and is headquartered in Dallas with additional offices in Atlanta, Chicago, Denver, Houston, Minneapolis, and Washington DC (www.riveronconsulting.com).

© 2016 Private Equity Professional • 6-8-16

Pfingsten Acquires Kith Kitchens

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kith nf1Pfingsten Partners has acquired Kith Kitchens, a manufacturer of kitchen and bath cabinetry. The buy of Kith Kitchens is the second platform investment for Pfingsten’s $382 million fifth fund which closed in March 2016.

kith nf22Kith Kitchens is a maker of semi-custom framed and frameless kitchen and bath cabinets under the Kith and Eudora brand names. The company’s products are sold mainly in the southeastern US through a network of sales representatives and dealers. Kith Kitchens is led by its president Allen “Bo” Knight. The company was founded in 1998 and is headquartered 70 miles northwest of Birmingham in Haleyville, AL (www.kithkitchens.com).

“We are eager to partner with Pfingsten and look forward to the future,” said Mr. Knight. “Pfingsten’s operating capability, conservative capital structure and prior experience in the cabinet industry will provide our company with additional resources and capital to embark on our next phase of growth.”

In June 1998, Pfingsten acquired Norcraft Companies, a manufacturer of framed and frameless kitchen and bathroom cabinetry, based in Eagan, MN. Norcraft was sold in October 2003 to private equity firm Saunders Karp & Megrue. During its ownership of Norcraft, Pfingsten tripled revenue and experienced more than a four-fold increase in annual profit. These increases came from both organic growth and three add-on acquisitions. At the time of the sale to Saunders Karp, Norcraft was the fifth largest cabinet manufacturing business in North America.

scott finegan nf1“The Kith Kitchens team has built an outstanding business focused on semi-custom cabinets with high quality finishes and a wide variety of customizable options,” said Scott Finegan, Managing Director, Pfingsten. “The company is well-positioned to capitalize on continued growth in the southeastern housing market through its customer-centric approach and strong value proposition.”

pfp nf1Pfingsten invests in middle market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million and EBITDA between $3 million and $12 million. Since founding in 1989, Pfingsten has acquired 112 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with additional representative offices in India and China (www.pfingsten.com).

Birmingham, AL-based investment bank Arlington Capital Advisors (www.arlingtoncapitaladvisors.com) served as financial advisor to Kith Kitchens. Paul Hastings (www.paulhastings.com) served as legal advisor to Pfingsten.

© 2016 Private Equity Professional • 6-8-16

Prospect Acquires Consolidated Waste

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waste harmonics nf1Waste Harmonics, a platform company of Prospect Partners, has acquired waste broker Consolidated Waste Management. Prospect Partners acquired Waste Harmonics, a provider of outsourced waste management services, in May 2016. Expedition Capital Partners and the management team of Waste Harmonics co-invested alongside Prospect Partners.

The acquisition of Consolidated Waste Management (CWM) is the first add-on completed by Waste Harmonics. CWM services are used by companies that own, manage, and operate multi-unit businesses – locally, regionally, and nationally – to manage waste and recycling services. The company has offices in Columbus, OH and Hartford, CT (www.consolidatedwm.com).

Waste Harmonics provides outsourced waste management services – pick-up, hauling, recycling, and sustainability – to companies with multiple locations across a wide geographic territory. The company manages all invoicing and reporting and provides analytics that measures volumes, equipment usage, and waste service frequency needs. Waste Harmonics also provides rental waste equipment such as containers and compactors, as well as equipment installation and repair services, and temporary containers for construction waste. The company was founded in 2001 and is headquartered south of Rochester in Victor, NY (www.wasteharmonics.com).

Maneesh Chawla ng5“One of our top objectives is to support management’s ability to make add-on acquisitions of other strong waste brokerage companies that expand Waste Harmonics’ reach and services,” said Maneesh Chawla, a Principal of Prospect Partners. “CWM is a well-run business with loyal customers and a great cultural fit.”

Waste Harmonics continues to seek acquisitions of other waste brokers and waste services providers. “The support of our new private equity partners, Prospect Partners and Expedition Capital Partners, has already helped us accelerate our growth plans,” said Michael Hess, Waste Harmonics’ President and CEO.

prospect partners nf55Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues of less than $75 million.  Areas of interest include niche manufacturing, distribution, and specialty service markets. Since 1998, Prospect Partners has built 47 platforms by investing in more than 131 businesses. Waste Harmonics becomes the 11th platform company in Prospect Partners III, LP. Prospect Partners has $470 million of capital under management and is based in Chicago with an additional office in Menlo Park (www.prospect-partners.com).

ecp nf55Expedition Capital Partners invests in lower middle market companies that have at least $2 million of EBITDA.  Sectors of interest include business services; consumer products and services; distribution and logistics; education and training; healthcare; infrastructure; manufacturing; and waste & recycling. The firm is led by its managing director Michael Hendrie and is based in Chicago (www.expedition-partners.com).

© 2016 Private Equity Professional • 6-8-16

One Rock Exits Compass Chemical

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compass nf3One Rock Capital has sold its portfolio company Compass Chemical International to Italmatch Chemical Group, a portfolio company of Paris-based private equity firm Ardian.

compass nf44Compass Chemical International (CCI) produces and sells organophosphonates (chemical compounds derived from phosphoric acid), polymers and other specialty additives that are used in water treatment and oil & gas applications. Founded in 1999, CCI operates a production facility in Smyrna, GA (headquarters) and a blending and warehouse facility in Huntsville, TX (www.compasschemical.com).

italmatch nf1Italmatch Chemicals, acquired by Ardian in July 2014, produces lubricant oil additives, detergents, water treatments, oil & gas, plastics and phosphorus derivatives. Customers include major multinationals that are active in the chemical, petrochemical, detergents and oil & gas industries. Italmatch has annual revenues of approximately $390 million and operates six manufacturing plants in Europe (Italy, Spain, Germany and UK) and four in Asia (China and Japan). The company was founded in 1997 by Sergio Iorio, CEO. The company has 400 employees and is headquartered in Genoa, Italy (www.italmatch.it).

Compass is the first Italmatch manufacturing site in the US. “The acquisition of CCI strengthens our presence in the Americas markets in a strategic market segment, where we plan to keep investing in order to consolidate our position among the leading global players,” said Mr. Iorio.

one rock nf1One Rock makes control investments of $10 million to $60 million in companies with potential for growth and operational improvement. Sectors of interest include the chemicals and process industries; specialty manufacturing and healthcare products; business and environmental services; and automotive retail. One Rock has a strategic relationship with Mitsubishi Corporation – the firm’s largest investor – which provides strategic resources to One Rock and its portfolio companies.  One Rock was formed in 2010 by Tony Lee and Scott Spielvogel and is based in New York (www.onerockcapital.com).

Ardian was founded in 1996 and has $55 billion of assets under management. The firm has 12 offices worldwide and is headquartered in Paris (www.ardian.com).

© 2016 Private Equity Professional • 6-8-16

Mason Wells Acquires 3C Electrical

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3c nf1CE Power Solutions, a portfolio company of Mason Wells, has acquired 3C Electrical Company, a provider of engineering, testing, and commissioning services for low, medium, and high voltage systems.  CE Power was acquired by Mason Wells in May 2015.

3c nf333C Electrical’s customers include power generation, industrial, and commercial facilities located in the Northeast, including New England, New York, New Jersey and the surrounding areas.  The company was founded in 1971 by three brothers – Giulio, Angelo and Frederick Cialdea (the “3C’s”) – to service, install and maintain electrical power distribution equipment. Today, the company is led by second generation owner and CEO Jim Cialdea. 3C Electrical is headquartered west of Boston in Westborough, MA (www.three-c.com).

CE Power provides electrical power engineering, testing, and maintenance services to utility power plants, alternative energy facilities, transmission & distribution substations, industrial facilities, and institutional facilities. The company’s core focus is on power systems operating in the 480 volt through 765 kilovolt range.  CE Power is led by CEO Bill McCloy and is headquartered in Cincinnati (www.cepower.net).

mason wells nf2Mason Wells makes investments in Midwest-based companies with revenues of $25 million to $300 million and EBITDAs of $5 million to $30 million. Sectors of interest include consumer packaged goods; packaging materials and converting; outsourced business services; and engineered products and services.  In February 2016, Mason Wells held a final closing of Mason Wells Buyout Fund IV and its related Executive Buyout Fund IV with total commitments of $615 million.  Mason Wells was founded in 1982 and is based in Milwaukee (www.masonwells.com).

© 2016 Private Equity Professional • 6-8-16

KRG Adds-On Again to Convergint

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css nf1Convergint Technologies, a portfolio company of KRG Capital Partners, has acquired Corporate Security Services (CSS). KRG acquired Convergint Technologies in August 2012 and the buy of CSS is Convergint’s fifth transaction of 2016.

CSS serves customers in the New York, New Jersey, and Philadelphia areas. The company’s security services include equipment maintenance, consulting, and engineering & project management. CSS is headquartered in Edison, NJ (www.css-inc.net).

ted nark nf1“The acquisition of CSS strengthens Convergint’s presence in an important market. It is representative of Convergint’s strategy to partner with regional security integrators with very strong reputations for providing high levels of customer service,” said Ted Nark, Managing Director of KRG.

Convergint Technologies is a provider of electronic security, fire and life safety, and building automation systems.  The company was founded in 2001 and has 1,100 employees in 26 cities throughout the US and Canada.  Convergint is headquartered in the Chicago suburb of Schaumburg (www.convergint.com).

krg nf2KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies that have from $10 million to $100 million or more of EBITDA.  Founded in 1996, KRG has $4.5 billion of capital under management and is based in Denver (www.krgcapital.com).

© 2016 Private Equity Professional • 6-8-16

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