Archives for August 26, 2016

Crutchfield Capital Adds New Director

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Crutchfield Capital, a middle-market investment bank, has hired William (Bill) Cornelius as a new Director.

Mr. Cornelius has 12 years of investment banking, principal investing, commercial banking, and business operations experience. Before joining Crutchfield, he was a partner at Trinity Duke Partners, an investment firm based in Houston. While he was at Trinity Duke he was the president of Southern Brush Pipeline Services, a provider of GPS data and surveying services. Prior to Trinity Duke, he was a consultant at The Boston Consulting Group from August 2011 to May 2013. Mr. Cornelius has a BBA degree from Baylor University and an MBA degree from Duke.

“We are delighted to have Bill – an experienced banker, business owner, and investor with deep contacts in the Houston area – join our leadership team. Bill brings a wealth of personal and professional relationships to our firm, and we expect him to be an exceptional advocate for our clients,” said Eric Roddiger, Managing Director.

Crutchfield Capital is a middle-market investment banking firm offering corporate finance advisory services to public and private companies, financial sponsors, and private investors. The firm was founded in 1991 and is based in Houston (www.crutchfieldcapital.com).

© 2016 Private Equity Professional • 8-26-16

Guardian Acquires Carson-Dellosa

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Guardian Capital Partners has acquired Carson-Dellosa Publishing, a provider of K-8 supplemental educational products. Guardian partnered with the senior management team of the company who will continue operating the company.

Carson-Dellosa products include digital and print workbooks, test-prep, hands-on learning materials and classroom décor and resources. The company’s products are sold under the Spectrum, Summer Bridge, and Carson-Dellosa Education brands. Carson-Dellosa’s products are used in over 1,000 schools and can be purchased at over 10,000 retail locations in addition to its direct-to-consumer e-commerce platform. The company was founded in 1976 by Stephen Carson, Patti Carson and Janet Dellosa. Carson-Dellosa, led by CEO Al Greco, is headquartered in Greensboro, NC (www.carsondellosa.com).

“Carson-Dellosa has a backbone of extraordinary content and distribution,” said Scott Evans, a Managing Partner of Guardian. “Whether in print or digital format, and whether to complement teacher curriculum or solve for student needs for reinforcement or enrichment, Carson-Dellosa is a leading product of choice.”

Guardian Capital Partners makes control investments in lower middle market private companies located primarily in the United States that have annual revenues between $20 million and $100 million.  Sectors of interest include consumer products, niche manufacturing and specialty business services. The firm is based in Wayne, PA, a suburb of Philadelphia (www.Guardiancp.com).

“The management team of Carson-Dellosa has a great vision for growth,” said Adrian Ironside, a Principal of Guardian. “We are excited to further develop and accelerate these strategies and build upon the company’s strong legacy of success.”

Wells Fargo provided senior financing and Patriot Capital provided mezzanine financing in support of the transaction.

© 2016 Private Equity Professional • 8-26-16

Investors Management Acquires RiseMark Brands

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Investors Management Corporation (IMC) has acquired RiseMark Brands, an Omaha-based in-home senior care franchisor.

According to IMC, RiseMark is one of the nation’s leading in-home senior care franchise companies.  Through its Right at Home brand, RiseMark provides companion care, personal care, skilled nursing, and Alzheimer’s and dementia care in the US and seven international territories.  Through its IKOR brand, RiseMark provides life management, healthcare and financial advocacy, and personal guardianship services in the US. The company was founded in 1995 and is based in Omaha (www.rightathome.net).

Allen Hager, the founder and executive chairman of RiseMark, will retain an ownership position in the company and will continue to lead RiseMark along with President and Chief Executive Officer Brian Petranick. “We have found a stable and responsible partner in IMC offering an ownership platform that will enable RiseMark to continue to provide an industry-leading continuum of care for seniors and the disabled,” said Mr. Hager. “Through this partnership, I am confident that there will be new strategic initiatives that will help us keep a firm grasp on our position as industry leaders.”

Investors Management Corporation invests in companies across a range of industries that have from $5 million to $25 million of EBITDA. The firm was founded in 1971 by James Maynard, the founder of the Golden Corral chain of family style restaurants. IMC is based in Raleigh, NC (www.investorsmanagement.com).

“We are excited to welcome RiseMark into the IMC family of companies,” said Quinton Maynard, chairman and CEO of IMC. “We feel that RiseMark’s mission to improve the quality of life for those they serve is meaningful and worthwhile and one that we can proudly support for years to come.”

Investment bank McLean Group was the financial advisor to RiseMark Brands. Madison Capital provided financing for the transaction.

© 2016 Private Equity Professional • 8-26-16

Ironwood Capital Invests in Turbine Technologies

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Ironwood Capital Connecticut, a unit of Ironwood Capital, has made a mezzanine debt investment in Turbine Technologies.

Turbine Technologies is an aerospace and industrial gas turbine manufacturing company. The company’s capabilities include electrical discharge machining, wire electric discharge machining, high speed hole and 5 axis milling services. Products include turbine blades, vanes, shrouds, combustion liners, engine cases, and ring segments. Customers include, among others, General Electric, Pratt & Whitney and Lockheed Martin. Turbine Technologies, led by its President and CEO Tyler Burke, is based west of Hartford in Farmington, CT (www.turbinect.com).

“Turbine Technologies has been doing business in Connecticut for over 50 years, and is a great fit for us,” said John Strahley, a Managing Director at Ironwood Capital “They are experts in their field and widely recognized for their highly technical electric discharge machining, high speed hole and 5-axis milling services.  As leaders in Connecticut’s aerospace manufacturing industry, the company’s future is bright and we are excited to help the team execute their strategy.”

Ironwood Capital provides non-control growth capital to middle market companies. Investments take the form of subordinated debt and preferred stock in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts. Ironwood Capital Connecticut works exclusively with Connecticut-based companies seeking capital from equity through senior debt. Ironwood Capital has more than 20 professionals and is headquartered in Avon, CT (www.ironwoodcap.com).

© 2016 Private Equity Professional • 8-26-16

Odyssey Acquires Aero Precision

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Odyssey Investment Partners has acquired Aero Precision Industries, a subsidiary of Greenwich AeroGroup, which is a portfolio company of Berkley Capital.

Aero Precision is a distributor of OEM aerospace parts for the military aftermarket. Customers include foreign militaries, MRO facilities and the US government.  The company supplements its military parts distribution business with brokered repair services as well as with parts distribution within the commercial aviation and space markets. Aero Precision, led by its president Frank Cowle, is headquartered east of San Francisco in Livermore, CA with additional locations in San Francisco, Austin, and Tokyo (www.aeroprecision.com).

Greenwich AeroGroup provides aviation services, including MRO, CRO (component repair and overhaul), parts distribution and manufacturing services for business, commercial and military aircraft. The company acquired the operations that comprise Aero Precision in 2009 (DAC International and NASAM) and 2013 (Aero Precision). Greenwich AeroGroup is based in Wichita (www.greenwichaerogroup.com).

Odyssey Investment Partners makes control investments in middle-market companies in a variety of industries including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has approximately $4 billion of capital under management and has offices in New York and west of Los Angeles in Woodland Hills, CA (www.odysseyinvestment.com).

Berkley Capital is the private equity investment vehicle of W. R. Berkley Corporation, a Fortune 500 property and casualty insurance company. The firm makes both buyout and growth equity investments. Typical buyout investments will have EBITDAs from $5 million to $25 million and require equity investments of $10 million to $75 million. Growth equity investments can be as small as $5 million. Sectors of interest include financial, healthcare, aviation and business services. The firm is based in Miami (www.berkleycapital.com).

BlackArch Partners was the financial advisor to Berkley Capital. BlackArch was founded in 2010 by Kelly Katterhagen, Matt Salisbury, Drew Quartapella, and Bram Hall. The firm is headquartered in Charlotte with an additional office in Houston (www.blackarchpartners.com).

© 2016 Private Equity Professional • 8-26-16