Archives for September 1, 2016

LongueVue and Ironwood Exit St. George Logistics

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LongueVue Capital and Ironwood Capital have sold St. George Logistics to Wind Point Partners.  LongueVue and Ironwood acquired St. George in 2012.

To acquire St. George Logistics, Wind Point has partnered with logistics executives Chris Jamroz and Hessel Verhage. This is expected to be the first acquisition in the development of a larger logistics platform by Wind Point. The firm has been an active investor in transportation, logistics and route-based businesses with previous investments in Dicom Transportation Group, Railworks Corporation and AIR-serv Group.

St. George is a provider of container freight station (CFS) services for ocean cargo imported into the United States.  The company also provides logistics services, including distribution, warehousing, air container freight stations and transportation services. According to Ironwood Capital, St. George operates the largest network of independent CFS facilities in North America – its ocean CFS handles over 50,000 containers per year – with proximity to all major ports and metropolitan areas for ocean or air cargo.  The St. George customer base includes freight forwarders, neutral NVOCCs (non-vessel operating common carriers), retailers, consumer packaged goods companies, and other businesses. The company is headquartered near Newark in South Kearny, NJ with additional facilities located in the nation’s largest ports and metropolitan areas, including Los Angeles, Houston, Chicago, Atlanta, Savannah and Charleston (www.stgusa.com).

“With 15 port and inland facilities totaling 2.2 million square feet, as well as a national network of 66 partner facilities, St. George maintains a leading role in providing mission-critical import/export and value-added warehousing and distribution services to its base of customers,” said Konrad Salaber, a Principal with Wind Point. “We are excited to acquire St. George in partnership with Chris and Hessel, two top caliber global executives with proven track records of value creation.”

Wind Point invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. Wind Point Partners was founded in 1984 and is based in Chicago (www.wppartners.com).

Mr. Jamroz will serve as CEO of St. George’s holding company and Mr. Verhage will serve as President and COO. Mr. Jamroz most recently served as the President and COO of GardaWorld Cash Services, a division of private-equity backed GardaWorld Security. During his tenure, he helped grow GardaWorld into North America’s largest cash logistics company with over C$1.1 billion in annual revenues. Mr. Hessel is the former President of Global Freight Forwarding at UTi Worldwide, where he managed a $2.7 billion P&L. Prior to UTi, he served as CEO and President of Global Link Logistics, a private-equity backed freight forwarder focused on Pan-Pacific trade lanes.

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. Ironwood Capital is headquartered in Avon, CT (www.ironwoodcap.com). “We are proud to have played a part in St. George’s development from a niche business in the logistics space to one at the forefront of its industry,” said Roger Roche, Senior Managing Director at Ironwood Capital.

LongueVue Capital makes equity and debt investments in lower middle-market companies that have up to $100 million of revenue. Sectors of interest include manufacturing, business services, energy services, and third-party logistics. The firm was founded in 2001 and is based in New Orleans with additional offices in New York and Salt Lake City (www.lvcpartners.com).

Financing for the transaction was provided by NewStar Financial, Fifth Third Bank, Sun Life Assurance Company of Canada, and Oaktree Capital Management.

© 2016 Private Equity Professional • 9-1-16

Vector Sells Gerber Technology to AIP

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Vector Capital has sold its portfolio company Gerber Technology to American Industrial Partners. Vector Capital acquired Gerber Technology through a $283 million take-private transaction in August 2011.

Gerber’s products include computer aided design (CAD) software for pattern design and grading, product lifecycle management (PLM) software for product portfolio management, and automated systems for material preparation and production. The company’s customers – totaling more 78,000 – are active in the aerospace, construction, furniture, fashion & apparel, transportation, technical textiles, packaging, wind energy, and sign & graphics industries. Gerber is led by CEO Michael Elia and is headquartered northeast of Hartford in Tolland, CT (www.gerbertechnology.com).

“With the support of Vector, we have invested to broaden our product offerings and expand our global reach to provide customers with automation solutions that reduce their time and expense to market. Vector has been a great partner in transforming Gerber into a world-class leader in automation solutions,” said Mr. Elia.

Vector Capital invests in spinouts, buyouts and recapitalizations of private or public technology businesses. The firm is based in San Francisco (www.vectorcapital.com).

“Gerber is a great example of Vector’s long history of identifying strong, innovative businesses and partnering with management to grow and transform them in attractive niche markets,” said Aalok Jain, a Principal at Vector Capital. “We are proud of what Gerber has accomplished under the leadership of Mike Elia and wish American Industrial Partners and the company continued success.”

American Industrial Partners makes equity and debt investments in North American-headquartered industrial companies that have revenues from $100 million to $750 million. Transaction values are typically less than $500 million. The firm was founded in 1989 and is headquartered in New York (www.americanindustrial.com).

Robert W. Baird & Co. (www.baird.com) was the financial advisor to Gerber Technology and Vector Capital.

© 2016 Private Equity Professional • 9-1-16

Tillery Capital Buys Electromedical Products

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Tillery Capital has acquired Electromedical Products International, a manufacturer of cranial electrotherapy stimulator (CES) devices used to treat anxiety, insomnia, depression and pain. This transaction closed on June 30, 2016.

Electromedical’s products, sold through independent representatives and distributors under the Alpha-Stim brand name, are handheld and noninvasive devices and are designed for use in medical facilities, physician offices and at home. Electromedical is based west of Fort Worth in Mineral Wells, TX (www.alpha-stim.com).

Tillery Capital is a family-office that invests in lower middle-market companies that have EBITDA of $2 million to $10 million. Sectors of interest include: agriculture products and equipment; livestock/animal health products and services; healthcare device manufacturers; healthcare services; niche manufacturing; niche software businesses; specialty chemicals; and commercial and industrial service companies. Tillery Capital is based in Charlotte, NC (www.tillerycapital.com).

Dallas-based investment bank Generational Equity (www.genequityco.com) was the financial advisor to Electromedical Products International. The Generational Equity team was led by Managing Director Michael Goss and Vice President Bryan Gooden.

© 2016 Private Equity Professional • 9-1-16

Renovus Buys Better Communications

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The Ariel Group, a portfolio company of Renovus Capital Partners, has acquired Better Communications.

Better Communications provides training services to improve the business writing of financial, technical, and scientific teams and consultants. The company was founded by Deborah Dumaine in 1978 and is based in the Boston suburb of Waltham, MA (www.bettercom.com).

“I’ve known The Ariel Group for two decades and have the utmost respect for their outstanding work, integrity, and customer service,” said Ms. Dumaine. “I can’t think of a better partner to expand our mission: clear writing for a complex world.”

The Ariel Group is a provider of training programs that teach leadership and communications skills to mid- and senior-level executives. Using techniques from the theater, Ariel trains managers on how to connect with their audience, whether it is a key client, a colleague or an employee. Customers include American Express, Capital One, Coca-Cola, Harvard Business School, Procter & Gamble, Thyssen-Krupp, and a mix of other Fortune 1000 corporations and MBA programs. The company is led by CEO Sean Kavanagh and is based in Lexington, MA (www.arielgroup.com).

This is the second add-on acquisition by The Ariel Group since being acquired by Renovus in October 2012. In October 2013, Ariel acquired The Baron Group, a provider of sales and sales management training programs to professionals in the banking, professional services, insurance, consumer products, manufacturing, technology, pharmaceuticals and advertising sectors. The Baron Group is based in Westport, CT (www.barongroup.com).

Renovus Capital Partners invests from $10 million to $30 million in education related companies that have $2 million to $10 million of EBITDA. The firm is currently investing its first fund, a $185 million SBIC fund focusing on small and mid-sized businesses within the education and training sector. Renovus was founded in 2010 and is based in the Philadelphia suburb of Wynnewood, PA (www.renovuscapital.com).

© 2016 Private Equity Professional • 9-1-16

DeSilva+Phillips Keeps Adding to Team

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Media-focused investment bank DeSilva + Phillips has announced that John Matthews, a long-time senior advisor to the firm, will assume a more active role as a new managing director.

As a managing director, Mr. Matthews will concentrate his activities in the following sectors: advertising technologies, financial technologies, digital media, customer intelligence & experience, and enterprise software.

For the past five years, Mr. Matthews has been active with DeSilva + Phillips as a strategy advisor, providing advice to media and technology companies. Mr. Matthews was previously a founder of several technology advisory firms where his clients included McKinsey & Company, Boston Consulting Group, Accenture, 3i, General Atlantic, BBC, Hewlett-Packard, FiServ and Fair Isaac.

“John has been an invaluable resource, helping us stay on top of the  complex landscapes of ad tech and fintech as well as emerging areas such as artificial intelligence, and I’m delighted he is now joining us on a full-time basis,” said Reed Phillips, Managing Partner.

Mr. Matthews’ promotion marks the fourth senior personnel addition to the DeSilva + Phillips team since June. Kerry Hatch joined the firm as a Managing Director in August and Jack Griffin and Colin Morrison joined the firm as Senior Advisors in June and August, respectively.

DeSilva + Phillips provides M&A advisory services for digital and traditional media, advertising, marketing services, information services, education and healthcare. The firm was founded in 1996 and is based in New York (www.desilvaphillips.com).

© 2016 Private Equity Professional • 9-1-16