Archives for June 23, 2016

Snow Phipps Adds-on to Teasdale Foods

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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

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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

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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

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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