Archives for August 10, 2016

Bregal Partners Acquires Hygrade Ocean Products

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Blue Harvest Fisheries, a portfolio company of Bregal Partners, has acquired Hygrade Ocean Products, a processor and distributor of scallops, cod, and other fish products.

Through the buy of Hygrade, Blue Harvest will begin marketing and distributing company-landed scallops, bluefin tuna, and swordfish directly to customers. Hygrade Ocean Products is based in New Bedford, MA (www.hygradeoceanproducts.com).

Blue Harvest Fisheries harvests, processes and sells MSC-certified (Marine Stewardship Council) Atlantic sea scallops and also sells and distributes other seafood products such as bluefin tuna and swordfish. The company owns a fleet of 15 scallop vessels and is headquartered in Naples, FL with operations in Newport News, VA, and Fairhaven, MA (www.blueharvestfisheries.com).

Bregal Partners formed Blue Harvest Fisheries in April 2015 to acquire eight Virginia-based scallop vessels and related shore assets from the Peabody Corporation. Partnering with Bregal on Blue Harvest is Jeff Davis, the former CEO of America Seafoods International, Baader North America, and BlueAqua Seafoods. “By vertically integrating, Blue Harvest can now provide its customers with greater product traceability, quality assurance, and variety,” said Mr. Davis, the CEO of Blue Harvest. “The acquisition of Hygrade is consistent with our strategy of building a vertically integrated premium seafood company.”

“We are pleased to have assisted Blue Harvest with this transformative strategic initiative,” said Scott Perekslis, Managing Partner and co-founder of Bregal Partners. “Blue Harvest is a great example of our firm’s strategy; we seek to partner with seasoned management teams to build world class businesses.”

Bregal Partners invests from $25 million to $90 million of equity in companies operating in the branded consumer products, food, energy services, and healthcare sectors. Target investments typically have from $15 million to $75 million of EBITDA. The firm has $600 million of committed capital funded by a sixth-generation family foundation. Bregal Partners is based in New York (www.bregalpartners.com).

Guggenheim Corporate Funding (www.guggenheimpartners.com) arranged senior financing for this acquisition.

© 2016 Private Equity Professional • 8-10-16

Audax Acquires Door Engineering

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Senneca Holdings, a portfolio company of Audax Private Equity, has acquired Door Engineering, a maker of industrial, commercial, aviation and specialty doors. The buy of Door Engineering is Senneca’s sixth add-on acquisition since it was formed by Audax in September 2014 to acquire Chase Industries from Sentinel Capital Partners.

“Door’s products will deepen our penetration into the emergency response, municipal, commercial, and aviation vertical markets,” said Jeffrey Stark, Chief Executive Officer of Senneca. “They have been making custom specialty doors for over 50 years, and we look forward to continuing that tradition in Minnesota.” Door Engineering is based southwest of Minneapolis in Kasota, MN (www.doorengineering.com).

Senneca Holdings manufactures and distributes doors, including traffic, corrosion resistant, strip, cold storage, fire, and sliding doors. Company owned brand names include Chase, CDS Commercial Door System, Chem-Pruf, Eliason, Enershield, Rubbair, Thermoseal and Tiger. Senneca has ten manufacturing facilities and is headquartered north of Cincinnati in West Chester, OH (www.senneca.com).

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).

© 2016 Private Equity Professional • 8-10-16

Ancor Sells Fleuron to Rowley Company

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Ancor Capital Partners has sold Fleuron Enterprises, a maker of drapery hardware, to Rowley Company.

Fleuron Enterprises designs and manufactures high-end, premium decorative drapery hardware products that are used in the interior design market. Company owned brand names include The Finial Company, Paris Texas Hardware, Gould New York, and Components. The company was founded in 2005 and is headquartered in Dallas (www.fleuron.info) (www.thefinialcompany.com) (www.paristexashardware.com) (www.wwtgould.com).

“Over the course of our ownership, we were able to make two significant acquisitions, including Paris Texas Hardware and Gould, which transformed Fleuron from an entrepreneurial company to a professionally managed enterprise,” said Ray Kingsbury, Managing Director at Ancor. “It is gratifying to see the management team’s accomplishments and the recognition of their ability to contribute to a larger platform company with the opportunity with Rowley.”

Rowley Company is a manufacturer and international distributor of home décor products used for window covering design, fabrication and installation, quilting and upholstery. The company has more than 15,000 SKUs. Rowley was founded in 1962 by R.H. Rowley and has a 100,000 sq. ft. manufacturing, warehousing and headquarters facility in Gastonia, NC and a 10,000 sq. ft. warehouse in Las Vegas, NV (www.rowleycompany.com).

Ancor Capital Partners invests in companies with enterprise values of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is has offices in Southlake, TX and Dallas, TX (www.ancorcapital.com).

© 2016 Private Equity Professional • 8-10-16

Sterling Partners Acquires DBi Services

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Sterling Partners has acquired DBi Services, a provider of outsourced maintenance services to government agencies, railways, utilities and private companies.

Company provided services include lake and pond management, vegetation management, grounds maintenance and landscaping, traffic sign management, roadway maintenance, sign installation and maintenance, pressure washing and graffiti removal, among others. The company has approximately 1,500 employees. DBi was founded in 1978 by Neal and Paul DeAngelo and is headquartered northeast of Philadelphia in Hazleton, PA (www.dbiservices.com).

“The success of an industrial services business is driven by its ability to provide customers with the highest levels of safety, quality and service. DBi has been delivering on that demand for nearly four decades,” said Matt Hankins, Principal at Sterling Partners. “The foundation and platform that Paul and Neal have built is strong, and we’re committed to working with the management team and employees to catalyze DBI’s growth.”

Sterling Partners focuses on investing growth capital in small and mid-market companies in industries with positive, long-term trends, including education, healthcare, and business services. Sterling manages over $5 billion in institutional capital. The firm was founded in 1983 and has offices in Chicago, Baltimore, and Miami (www.sterlingpartners.com).

“This is an exciting new chapter for our company and all our stakeholders. Today, I have the same passion and excitement about DBi’s future as I did 38 years ago. We’ve found a great cultural fit and a committed financial partner whose long-standing history of working with founders to accelerate growth tightly aligns with our family-oriented culture and mission,” said Paul DeAngelo, DBi’s Co-Founder and President.

Moelis & Company (www.moelis.com) was the financial advisor to DBi and Morgan, Lewis & Bockius (www.morganlewis.com) served as legal counsel. McGuireWoods (www.mcguirewoods.com) and Katten Muchin Rosenman (www.kattenlaw.com) served as legal advisors to Sterling.

© 2016 Private Equity Professional • 8-10-16

ABRY and NSM Insurance Team Again

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ABRY Partners has entered into a joint venture agreement with NSM Insurance Group and AIG whereby AIG will contribute its controlling equity ownership of NSM into the new joint venture, which will be majority owned by ABRY. This is the second go-around for ABRY and NSM. ABRY Partners sold its controlling equity interest in NSM Insurance to AIG in April 2015 after acquiring the company in January 2012.

NSM Insurance Group develops, markets, and underwrites industry-specific insurance programs. The company’s insurance programs include social services and behavioral health; catastrophic driven property; collector cars; workers’ compensation; aviation; sports and fitness; microbreweries; and professional liability for lawyers, dentists, architects and engineers. Premiums for the company in the latest fiscal year were $500 million. NSM Insurance Group is based outside of Philadelphia in Conshohocken, PA (www.nsminc.com).

“We are excited to be partnering with NSM and AIG to build the world’s leading specialty managing general agent platform,” said Brent Stone, a Partner at ABRY. “The combination of NSM’s expertise driving consistently profitable premium, ABRY’s proven ability to grow businesses both organically and through acquisition and AIG’s underwriting capabilities creates and opportunity to drive significant and sustained value for all parties involved.”

ABRY and NSM are actively seeking add-on acquisitions of in the US and the UK of niche insurance programs, existing books of business, managing general agents, and agencies. “ABRY Partners enhances our ability to seek out new opportunities for growth through acquisition, organic program development and other direct and risk-bearing businesses,” said Geof McKernan, CEO, NSM Insurance Group. “We have grown our operations for 26 years and in the last 10 years we have completed over 16 acquisitions and launched 8 new insurance programs.”

ABRY invests in the media, communications, and business and information sectors. The firm is currently managing $4.3 billion of total capital and investing out of a $1.9 billion private equity fund, a $950 million senior equity fund and a $1.5 billion senior debt fund. ABRY was founded in 1989 and is headquartered in Boston (www.abry.com).

© 2016 Private Equity Professional • 8-10-16

North Castle Closes Fund VI

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North Castle Partners has held a final closing for North Castle Partners VI, LP with $300 million of committed capital. The new fund was oversubscribed and reached its close in just over six months of fundraising.

“We welcome our new investors to North Castle and are gratified to receive the support of our returning investors, who increased their commitments by approximately 25%,” said Chip Baird, North Castle CEO and Founder.

North Castle makes control investments in consumer-driven product and service companies located in North America with enterprise values ranging from $50 million to $500 million.  Sectors of interest include beauty and personal care; consumer health; fitness, recreation and sports; home and leisure; and nutrition.  North Castle is headquartered in Greenwich, CT (www.northcastlepartners.com).

Fund VI already has two portfolio companies. In April 2016, North Castle acquired JTL Enterprises (DBA HydroMassage) a designer, manufacturer, marketer and seller of dry hydrotherapy massage systems. HydroMassage offers products in a bed and lounge format, both of which deliver a full body massage while allowing users direct control over the massage. HydroMassage products are located in fitness centers, chiropractor and medical offices, and other formats receptive to wellness services. According to North Castle, the company is a pioneer in its category and maintains the #1 market share in North America.  HydroMassage is headquartered in Clearwater, FL (www.hydromassage.com).

In May 2016, North Castle acquired SLT Group (DBA Strengthen, Lengthen and Tone), an operator of fitness studios that offer 50-minute workouts combining low-impact Pilates movements with intense cardio and strength training exercises. These types of programs are often referred to as “Pilates on steroids”. SLT currently operates 11 studios in the New York/New Jersey metropolitan area (www.sltnyc.com).

“We are pleased by the level of interest from new and returning investors in North Castle and in the healthy, active and sustainable living consumer product and services marketplace,” said Alison Minter, Managing Director. “Our investments in HydroMassage and SLT are the most recent examples of how changing views toward healthier lifestyles are creating attractive businesses and investment opportunities,” added Ms. Minter. “As the original private equity firm in the healthy living space, our focus has resulted in unparalleled market expertise, network and knowledge in the fitness, nutrition, consumer health and beauty & personal care industries.”

“The foundation of the North Castle approach is to partner with exceptional management teams and industry professionals to unlock the full potential performance of companies in the healthy, active and sustainable living sector. We believe Fund VI is off to a great start with the investments in HydroMassage and SLT,” concluded Mr. Baird.

© 2016 Private Equity Professional • 8-10-16