Archives for October 27, 2016

CenterOak Keeps Adding to Team

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CenterOak Partners, a Dallas-based middle market private equity firm, has hired three new professionals. Joining the firm are Ben Adams, Vice President; Carrie Calhoun, Senior Associate of Business Development and Investor Relations; and Josh Weaver, Associate.

“Ben, Carrie and Josh each bring valuable experience and an impressive track record, whether working in an investment capacity, business development, investor relations or developing expertise in a particular industry or sector,” said CenterOak Managing Partner Randall Fojtasek. “We’re looking forward to working with them and believe they will each make a considerable contribution to our team.”

With these three hires, the staff at CenterOak now totals 22 individuals, including 13 members of the investment team and three operating partners. CenterOak was launched in September 2014 by Mr. Fojtasek, former Co-Founder and Co-Chief Executive Officer of Brazos Private Equity Partners.  He leads the firm alongside former Brazos senior executives Michael Salim, Lucas Cutler, Jason Sutherland and William Henry.

Mr. Adams and Mr. Weaver will be active in supporting the firm’s investment and monitoring activities. Prior to joining CenterOak, Mr. Adams held positions at Intuit, Lindsay Goldberg, TPG Capital, and Morgan Stanley. Mr. Weaver served as an Analyst at Wells Fargo Securities. Ms. Calhoun will support the firm’s investment sourcing activities and relationships with its limited partners. Prior to joining CenterOak, Ms. Calhoun held positions at NGP Energy Capital Management and Credit Suisse.

CenterOak makes equity investments of $20 million to $90 million in companies with enterprise values of $50 million to $200 million. Sectors of interest include: distribution; outsourced industrial services; building products; specialty coatings, chemicals and adhesives; active, outdoor and lifestyle apparel and accessories; food and restaurants; specialty retail; health and personal care; pet products and services; technology-enabled services; information services; and marketing and professional services.  The firm invests in companies across the US but has a specific focus on the Southwest and South.  CenterOak is based in Dallas (www.centeroakpartners.com).

These staff additions follow the August 2016 close of CenterOak Equity Fund I, LP with total commitments at the hard cap of $420 million. The significantly oversubscribed fund had an initial target of $350 million.

© 2016 Private Equity Professional • 10-27-16

Generation Growth Sells Atlantic Precision

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Generation Growth Capital (GGC) has sold Atlantic Precision, an aerospace machining company, to Precision Castparts.

Atlantic Precision (API) uses 3D metal printing and additive manufacturing technologies to provide prototyping and low volume production parts that are used in the aerospace industry. GGC invested in API in October 2014 to help the company execute on a growth and development strategy in additive manufacturing.  API is based in Port St. Lucie, FL (www.atlanticprecision.com).

“When GGC was first introduced to the team at API, we recognized their initial efforts in additive manufacturing could be a real game changer for prototyping and manufacturing in the aerospace markets,” said John Reinke, Managing Director of GGC. “We are proud to have had the chance to work with the team to support their growth and we look forward to watching their continued success as a part of Precision Castparts.”

Precision Castparts (NYSE: PCP) is an industrial goods and metal fabrication company that manufactures investment castings, forged components, and airfoil castings for use in the aerospace, industrial gas turbine, and defense industries. The company is headquartered in Portland, OR (www.precast.com).

“API represented a model investment for GGC. We were able to provide capital and a business support system that helped the company execute on an aggressive investment and growth strategy,” said Cory Nettles, a Managing Director of GGC.

GGC invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).

Imperial Capital (www.imperialcapital.com) was the financial advisor to API on the transaction.

© 2016 Private Equity Professional • 10-26-16

Kohlberg & Company Acquires MarketCast

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Kohlberg & Company has agreed to acquire the ownership interest of RLJ Equity Partners and State Street Global Advisors in MarketCast, a provider of information and data analytics to marketers and researchers in the entertainment industry. RLJ and State Street acquired MarketCast in December 2014 from Shamrock Capital Advisors.

MarketCast works with marketers and researchers at major motion picture studio and production companies to develop and execute marketing strategies.  The company’s services are available worldwide and include materials testing (trailers, TV spots, print ads, etc.), concept and positioning studies, exit polls, recruited audience screenings, tracking studies, and focus groups. Other services include brand and franchise studies, title tests, post-release studies, and attitudes and usage studies.

In August 2015, under RLJ and State Street ownership, MarketCast completed the acquisition of Insight Strategy Group, a New York-based research and strategy agency with practices in lifestyle, consumer goods, retail, and services businesses (www.insightstrategygroup.com).

MarketCast was founded in Boston in the late 1980s by three sociology professors – Joseph Helfgot, Frank Romo, and Michael Schwartz.  Today, the company is headquartered in Los Angeles with offices in New York, Boston and London (www.mcast.com).

Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (www.kohlberg.com).

“The MarketCast management team is highly enthusiastic about this new chapter for the company,” said Henry Shapiro, CEO of MarketCast. “Kohlberg has a 30-year track record of investing in service-based businesses with a focus toward long-term growth. The firm represents a strongly capitalized partner that will enable MarketCast to invest in new products and services, and expand into new and emerging forms of entertainment content, distribution, and marketing.”

“Through its suite of innovative, data-driven products and services, scalable, worldwide infrastructure, and dedication to exceeding customer expectations, MarketCast is positioned to serve the growing demands of the global entertainment marketplace,” said Ahmed Wahla, a Kohlberg Partner. “We see tremendous growth opportunities for MarketCast, both organically and through acquisitions, and look forward to partnering with management in the next phase of the company’s development.”

RLJ Equity Partners invests from $15 million to $30 million in companies valued between $50 million and $250 million. Target companies will have operating profits greater than $7 million and operating margins greater than 10%.  Sectors of interest include aerospace & defense; auto & transportation; business services; consumer retail; general industrial; and media & telecom.  RLJ Equity Partners was founded in 2006 by Robert Johnson in partnership with The Carlyle Group. The firm is headquartered in Bethesda, MD (www.rljequitypartners.com).

The buy of MarketCast by Kohlberg is expected to close by the end of November. “We feel fortunate to have had the opportunity to work with the MarketCast team, and assist the company through a period of rapid expansion and success. We are confident that the company will continue its growth trajectory in partnership with Kohlberg,” said Jerry Johnson, a Managing Director at RLJ.

Ropes & Gray (www.ropesgray.com) represented Kohlberg & Company on this transaction with a team led by private equity partner Christopher Rile that included finance partner Steven Rutkovsky, benefits partner Loretta Richard, tax partner Eric Elfman, intellectual property transactions partner David McIntosh, and business & securities litigation partner Peter Welsh.

Lazard Middle Market (www.lazard.com) was the financial advisor to MarketCast.

© 2016 Private Equity Professional • 10-26-16