Archives for October 2016

New State Closes Institutional Fund

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New State Capital Partners has closed its first institutional investment fund, New State Capital Partners Fund, LP, with $131 million in committed capital.  Investors include pension funds, foundations, and family offices. With the closing, New State now has over $370 million of assets under management.

New State invests from $10 million to $45 million of equity in companies with $8 million to $25 million of EBITDA. Sectors of interest include healthcare, business services, and industrials. The firm was founded in 2013 by Dave Blechman, a former Managing Director at H.I.G. New State is headquartered near New York City in Larchmont, NY (www.newstatecp.com).

“We are humbled by the strong response to our latest institutional investment fund, and believe that our investments underscore New State’s strength in partnering with growing business while fostering entrepreneurial spirit at all levels,” said Mr. Blechman. “We look forward to identifying new opportunities that can benefit from our nimble, cooperative approach.”

New State Capital currently has five companies in its portfolio: LLMS, the parent company of Bridges Recovery Center and Infinity Malibu, provides treatment services for clients facing substance abuse disorders. LLMS is based in Van Nuys, CA (www.bridgesrecoverycenter.com) (www.infinitymalibu.com); NWN, a provider of IT services and staffing based in Waltham, MA (www.nwnit.com); United Medical Systems, a provider of shared and mobile medical services to hospitals, surgery centers and physician offices, based in the Boston suburb of Westborough (www.ums-usa.com); Gautier Steel, a Johnstown, PA-based operator of three plate and flat bar rolling mills and a specialty metals (stainless steel, and nickel based and titanium alloys) rolling mill (www.gautiersteel.com) (www.gautierspecialty.com); and Central Conveyor Company, a designer and installer of material handling and storage retrieval systems based near Detroit in Wixom, MI (www.centralconveyor.com).

In June 2016 – during the raising of Fund IV – Steve Larned joined the firm as a partner. Mr. Larned has more than 30 years of experience in executive management, strategy consulting and private equity operations across a range of industries, including healthcare, technology services, information/business services, manufacturing and distribution.  Prior to joining New State, Mr. Larned was a Senior Operating Executive at Welsh, Carson, Anderson & Stowe (WCAS) from 2008 to 2016.

Mr. Larned will oversee New State’s behavioral health platform led by its investment in LLMS. “We identified behavioral healthcare as a fast-growing healthcare segment, but one that is very fragmented. More people are struggling with addiction today, but fortunately, many are seeking treatment, which is increasingly covered by health plans. Bridges and Infinity Malibu have stellar reputations for delivering consistent, high quality care, making them an ideal cornerstone of our new platform. We look forward to growing this platform, giving it the geographic footprint needed to become a high quality, scale asset in this space. This is an exciting time to join New State, and I look forward to working with the New State team as we make investments in the behavioral health field and across New State’s other core sectors,” said Mr. Larned.

Prior to his time at WCAS, Mr. Larned was a senior executive at Dell and he started his career at Bain & Company. He has an undergraduate degree in Economics from Duke and an MBA from Harvard.

© 2016 Private Equity Professional • 10-6-16

NXT Closes Up Latest Fund

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NXT Capital has held a final closing of NXT Capital Senior Loan Fund IV, LP with approximately $312 million of equity commitments. The new fund received commitments primarily from US and international institutional investors including public and private pension plans, insurance companies and foundations.

When coupled with targeted leverage, the new fund will have more than $900 million of capital to invest. Wells Fargo is the administrative agent for a $425 million syndicated credit facility that is expected to be increased to approximately $600 million in the fourth quarter and provide the balance of Fund IV’s investment capacity.

Fund IV, which has had three successive closings since its launch, invests in senior debt transactions directly originated and underwritten by NXT Capital’s corporate finance group. The investment strategy is focused on senior secured loans, including straight senior, stretch senior, unitranche and selectively, second lien loans, made primarily to private equity-sponsored middle market companies across a wide range of industries in the United States.

With this closing, NXT Capital now has third-party capital commitments of over $5 billion. “The interest we have seen from new and existing investors further demonstrates the appeal of middle market loans to institutional investors,” said NXT Chairman and CEO Robert Radway. “NXT Capital Senior Loan Fund IV further strengthens our position as a leading provider of leveraged finance to the middle market and enhances our ability to meet the financing needs of our clients.”

“Fund IV offers institutional investors proprietary access to middle market loans through NXT’s strong origination capability and further solidifies NXT as a leading middle market asset manager,” said Kelli O’Connell, Head of NXT Capital’s Asset Management Group.

NXT Capital provides structured financing of up to $150 million with a hold size up to $50 million to middle-market companies through its corporate finance and real estate finance groups. The firm is based in Chicago with offices in Atlanta, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco (www.nxtcapital.com).

© 2016 Private Equity Professional • 10-6-16

PNC Backs Strattam Capital

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PNC Bank Canada has completed a C$17 million financing for Doxim Solutions, a portfolio company of Strattam Capital and a provider of customer communications management software to the financial services industry. The PNC financing included a C$1.9 million senior secured revolver with a C$15.2 million senior secured term loan.  The company will use the funds to refinance existing debt and for working capital needs.

Doxim’s products are used by financial institutions – banks, credit unions and wealth management firms – to communicate with clients and improve selling activities. Specific uses include automated account opening, loan origination, and targeted omni-channel customer communications. Doxim is led by founder and CEO Chris Rasmussen and is based near Toronto in Markham, ON (www.doxim.com).

Strattam Capital invested in Doxim in September 2014. In September 2015, Doxim completed the add-on acquisition of Roler Data, a provider of electronic document services – composition, processing, delivery and archiving – to financial customers. Then in May 2016, Doxim completed a second add-on acquisition with the buy of DigitalMailer, a provider of digital customer communications products used by credit unions and community banks.

Strattam Capital makes control investments in enterprise software, digital infrastructure, and tech-enabled services companies with enterprise values between $20 million and $150 million. The firm has offices in San Francisco and Austin (www.strattam.com).

PNC Bank, headquartered in Pittsburgh (www.pnc.com), is a member of The PNC Financial Services Group (NYSE: PNC). The bank’s services in Canada – commercial deposit, treasury management, lending (including asset-based lending) and leasing products and services are provided by PNC Bank Canada.

© 2016 Private Equity Professional • 10-6-16

Incline Acquires Ned Stevens

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Incline Equity Partners has made an investment in gutter and outdoor cleaning services company Ned Stevens.

Ned Stevens provides year-round, full-service residential gutter cleaning, soft wash, and related residential services, including gutter maintenance, installation, and repair. The company serves approximately 63,000 customers annually in 13 states from nine office locations. Ned Stevens was founded in 1965 by, of course, Ned Stevens, a milkman who was often asked by his route customers to help out with work around their homes, specifically gutter cleaning. Today, the company is headquartered near New York City in Fairfield, NJ (www.nedstevens.com).

“The Ned team has built a fantastic, financially strong company that has experienced significant growth over the past few years,” said Jack Glover, a Partner with Incline.  “They are a market-leading provider of a non-discretionary service, providing financial stability through economic cycles.  There are multiple avenues for future growth, and we are excited to be their chosen partner.”

Incline invests from $15 million to $30 million in support of recapitalizations, buyouts and corporate divestitures of lower middle market companies that have an EBITDA greater than $5 million and an enterprise value between $30 million and $125 million. Sectors of interest include value-added distribution, specialized light manufacturing, and business and industrial services.  Incline was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).

“Bringing another owner to the table was a big decision for our team and for the overall business,” said CEO Rob Rapuano. “Picking the right group to guide us through the transition was critical.  We were looking for a partner with deep, service-related experience that also had a proven track record of working with companies receiving institutional capital for the first time.  Incline hit all of those marks and more.  In addition to their relevant experience, we quickly realized their approach to doing business was much like ours, and they were the right fit culturally as well.”

Just yesterday – in a related sector move – Incline acquired Jan-Pro, a franchise-based commercial cleaning system, from Webster Capital. Jan-Pro’s franchise network is comprised of master franchises with exclusive geographic markets who support independently owned unit franchises that perform cleaning services for its customers. Jan-Pro’s franchisees service light commercial businesses with footprints of less than 50,000 square feet such as automotive dealerships, fitness centers, banks, religious facilities, preschools and medical offices. The company is headquartered in the Atlanta suburb of Alpharetta (www.Jan-Pro.com).

© 2016 Private Equity Professional • 10-6-16

Comvest Sells Convey Health to New Mountain

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Comvest Partners has sold its portfolio company Convey Health Solutions to New Mountain Capital.

Comvest first invested in Convey in July 2009 when it completed the take private of NationsHealth, a provider of home delivery of diabetes supplies and insulin pumps, medications and other medical products and a provider of marketing, enrollment and member service to insurers offering Medicare Part D prescription drug plans and other Medicare insurance coverage. In December 2012, Comvest sold the medical products operations of the company to publicly-traded Alere, and changed the name of the company from NationsHealth to Convey Health Solutions.

Today, Convey Health Solutions provides healthcare technology and business process outsourcing services that support Medicare prescription drug plans, Medicare Advantage plans, and other related provider benefit programs. Services include eligibility and enrollment processing, member services, premium billing, payment processing, reconciliation, and other related services. The company, led by CEO Stephen Farrell, is headquartered in Fort Lauderdale and has additional offices in Florida, Arizona, Illinois, and the Philippines (www.conveyhealthsolutions.com).

“Steve Farrell and the rest of Convey’s management team have been great partners,” said Michael Falk, Chairman and Managing Partner at Comvest Partners. “During our ownership period, we were able to transition the company from principally a Medicare focused durable medical equipment company to a provider of technology solutions for government-sponsored health insurance plans.”

Comvest Partners provides debt and equity to middle-market companies. For debt investments the firm will invest from $10 million to $50 million per transaction in companies with at least $15 million of revenue and EBITDA of at least $3 million. For equity investments the firm will invest from $35 million to $125 million of equity per transaction in companies with $50 million to $1 billion of revenue that have positive or negative EBITDA. Comvest is based in West Palm Beach (www.comvest.com).

“With Comvest’s support and financial stewardship, Convey’s business has grown significantly over the last few years,” said Mr. Farrell. “We enjoyed working with the Comvest team and appreciate the strategic guidance they have provided to the company.”

New Mountain currently manages over $15 billion of private and public equity funds. The firm is an industry generalist but has specific expertise in education, health care, software, business services, logistics, specialty chemicals, federal services, media, consumer products, financial services and insurance, environmental services, infrastructure and energy.  New Mountain was founded in 1999 and is headquartered in New York (www.newmountaincapital.com).

Houlihan Lokey (www.HL.com) was the financial advisor to Convey Health on this transaction.

© 2016 Private Equity Professional • 10-6-16

Prospect Sells Kronos to Grey Mountain

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Prospect Partners has sold its interest in Mediterranean food manufacturer and distributor Kronos Foods to Grey Mountain Partners. Prospect Partners formed Kronos Foods in December 2004 to acquire Kronos Products and its affiliated distribution company from CM Equity Partners.

Founded in 1975, Kronos began as a small seller in Chicago’s Fulton Street market district. It has since, through new products and growth in distribution, become a differentiated manufacturer of Mediterranean and other premium foods, with distribution nationwide through foodservice channels and major retailers, including broadline and specialty distributors, club stores, mass merchants and grocery chains. The company’s products include gyros meat, pita/flatbreads, hummus, sauces, and desserts primarily under the Kronos and Sinbad Sweets brands. Kronos also produces custom products for quick service retail, fast-casual, and family dining restaurant chains. Kronos is based in the Chicago suburb of Glendale Heights (www.kronosfoodsinc.com).

“Kronos has achieved substantial growth through the leadership of its management team, led by CEO Howard Eirinberg,” said Lou Kenter, a Founding Principal of Prospect Partners. “We were fortunate to support significant growth initiatives that included a new state-of-the-art 208,000-sq-ft facility in Glendale Heights, extending the product line, and expanding nationwide distribution. The Kronos team did a great job executing the plan and building on the Kronos brand to become the leading company in the Mediterranean food category.”

Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues of less than $75 million.  Areas of interest include niche manufacturing, distribution, and specialty service markets. Since 1998, Prospect Partners has built 48 platforms by investing in more than 140 businesses. The firm has $470 million of capital under management and is based in Chicago (www.prospect-partners.com).

“Prospect Partners has been a terrific partner in every respect. The team shared our entrepreneurial drive and steadfast commitment to product innovation and quality and helped us become the market leader we are today,” said Mr. Eirinberg.

Grey Mountain has approximately $700 million of assets under management and was founded in 2003 by managing partners Rob Wright and Jeff Kuo. The firm invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest include aerospace and defense; building products and materials; business process outsourcing; diversified manufacturing; energy and power; financial services; food and beverage; healthcare services and technology; industrial services; packaging; professional services; specialty chemicals; technology; transportation and logistics; and wholesale distribution. Grey Mountain is based in Boulder with additional offices in Minneapolis and Pittsburgh (www.greymountain.com).

© 2016 Private Equity Professional • 10-5-16

Summit Park Buys Parker Group

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Tennessee Industrial Electronics, a portfolio company of Summit Park, has acquired The Parker Group of Companies.  Summit Park acquired Tennessee Industrial Electronics in September 2014.

The Parker Group of Companies (PGI) provides repair services for printed circuit boards, power supplies, servo motors, welding controls, CNC controls, robotics, elevator controls and other products. PGI’s customers are active in the automotive, plastics, food processing, chemical, paper & printing, packaging and welding industries. PGI was founded in 1986 and operates a 12,500 square foot facility located north of Detroit in Clinton Township (www.parkergroupinc.com).

Tennessee Industrial Electronics (TIE) provides parts and repairs for FANUC computer numerical control (CNC) systems.  FANUC – based in Yamanashi, Japan – is one of the largest makers of industrial robots in the world. TIE has over 75,000 FANUC drives, motors, and controls in inventory and provides next-day delivery to machine tool users throughout the United States.  The company was founded in 1992 and is headquartered southeast of Nashville in La Vergne, TN (www.fanucworld.com).

“PGI’s extensive product knowledge and in-house technical repair capabilities are highly complementary to TIE’s FANUC expertise,” said Tony Wisniewski, CEO of TIE. “PGI will add extensive electronic repair expertise across new key OEMs including Siemens, Allen-Bradley, Okuma, and Baldor, making the company a one-stop-shop for all CNC electronics parts and repairs.”

“We are very pleased to acquire The Parker Group of Companies. Our investment thesis has always been to expand our OEM expertise and our outside sales team. This acquisition accomplishes both, and we look forward to building on each company’s historical success,” said Bob Calton, Managing Partner at Summit Park.

Summit Park makes investments in lower middle market companies in a range of industries that have revenues between $20 and $100 million or EBITDAs between $4 and $10 million. Sectors of interest include business services, outsourced services, light manufacturing, and distribution.  Summit Park is headquartered in Charlotte, NC (www.summitparkllc.com).

© 2016 Private Equity Professional • 10-5-16

Webster Sells Jan-Pro to Incline Equity

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Webster Capital has sold Jan-Pro, a franchise-based commercial cleaning system, to Incline Equity Partners. Jan-Pro was acquired by Webster Capital in September 2008 from J. H. Whitney & Co.

Jan-Pro’s franchise network is comprised of master franchises with exclusive geographic markets who support independently owned unit franchises that perform cleaning services for its customers. Jan-Pro’s franchisees service light commercial businesses with footprints of less than 50,000 square feet such as automotive dealerships, fitness centers, banks, religious facilities, preschools and medical offices. The company, led by President and Chief Executive Officer Eddie Curry, is headquartered in the Atlanta suburb of Alpharetta (www.Jan-Pro.com).

“It has been a pleasure working with the professionals at Jan-Pro and we are proud of the work we have done to help the company thrive during our ownership,” said David Malm, a Co-Managing Partner at Webster.

Webster Capital invests in branded consumer, business-to-business, and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values from $20 million to $100 million. At present, Webster has $600 million under management and is currently investing its third fund which closed in 2014 with $400 million in capital commitments.  The firm was founded in 2003 and is based in the Boston suburb of Waltham (www.webstercapital.com).

Incline, the buyer of Jan-Pro, invests from $15 million to $30 million in support of recapitalizations, buyouts and corporate divestitures of lower middle market companies that have an EBITDA greater than $5 million and an enterprise value between $30 million and $125 million. Sectors of interest include value-added distribution, specialized light manufacturing, and business and industrial services.  Incline was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).

© 2016 Private Equity Professional • 10-5-16

DFW Invests in LRI

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DFW Capital Partners has made an investment in LRI Energy Solutions (LRI), a provider of engineering services to energy and water efficiency projects.

LRI services include design, engineering, project management, analysis and monitoring for energy efficiency projects primarily in the Federal and MUSH (Municipalities, Universities, Schools and Hospitals) markets. Since its founding in 1993, LRI has completed over 650 projects throughout the United States and internationally. The company is based in Annapolis (www.lrienergysolutions.com).

Arborview Capital first invested in LRI in November 2009. “Over the past seven years, LRI has had a strong partnership with Arborview Capital and experienced tremendous growth,” said Stephen Troese, Jr., CEO and Co-founder of LRI. “We are excited about adding a new strategic partner, DFW Capital Partners, and executing the next phase of our growth initiatives where we will continue to drive significant energy and water savings and efficiencies.”

DFW invests from $15 million to $50 million in lower middle-market service companies. Sectors of interest include healthcare and outsourced business and industrial support services.  The firm is headquartered in Teaneck, NJ, and has an additional office in Chevy Chase, MD (www.dfwcapital.com). Douglas Gilbert, Partner, led the transaction for DFW.

LRI is DFW’s first portfolio investment in its newest fund, DFW Capital Partners V, LP, which held its final closing in April 2016 with $360 million in aggregate commitments.

Arborview Capital is a growth equity firm that makes investments in companies across the energy efficiency, resource efficiency and sustainability sectors. The firm is based in Chevy Chase, MD (www.arborviewcapital.com).

© 2016 Private Equity Professional • 10-5-16

Salt Creek Goes Camping

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Salt Creek Capital has acquired Four Wheel Campers, a manufacturer of off-road, overland, and pop-up truck campers.

Four Wheel Campers (FWC) sells its products directly to consumers and through a network of domestic and international dealerships. The company was founded in 1972 by Dave Rowe who sold the company in 1987 to Jack Billings. In 2001, Tom and Celeste Hanagan acquired the company from Mr. Billings. FWC is headquartered near Sacramento in Woodland, CA (www.fourwh.com).

Upon closing of the transaction, Robert Vogl – an Executive Partner of Salt Creek Capital since 2015 – is the company’s new CEO. “I am excited to begin working with the FWC team and continue building upon the company’s well-deserved reputation of quality and innovation cultivated by Tom Hanagan over the past 15 years,” said Mr. Vogl. “Salt Creek was an excellent partner in identifying this opportunity and completing the transaction. Having their continued support will be a valuable asset as we execute on new growth initiatives.”

“There are numerous compelling opportunities to expand the FWC business and brand. Tom Hanagan is an impressive entrepreneur, and we appreciate the opportunity to be involved with the company,” said Daniel Price, a Senior Associate at Salt Creek. “We look forward to working with Robert Vogl and the FWC team as we pursue new growth initiatives.”

Salt Creek invests in executive-led buyouts of companies with up to $100 million in revenue and EBITDA from $750,000 to $5 million. Sectors of interest are varied making the firm nearly industry agnostic but areas of specific interest include manufacturing, business and consumer services, distribution, and franchisors. The firm is based in Menlo Park (www.saltcreekcap.com).

© 2016 Private Equity Professional • 10-5-16

TCF Backs Merger of Thymes and DPM Fragrance

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Thymes, a portfolio company of Castanea Partners, RCP Advisors, Stanfield Capital and Northstar Capital, has acquired DPM Fragrance.

TCF Capital Funding provided secured financing to support the merger of the two companies which have been renamed CURiO, a new platform in the bath, body, and home fragrance market. Castanea Partners and its co-investors acquired Thymes from Stone-Goff Partners in December 2014.

Thymes’ product line includes soaps, lotions and other bath and body products, as well as home fragrance selections such as candles and diffusers. Thymes products are sold in over 5,000 specialty retail locations in the United States and in 18 countries and territories globally. Company owned brand names include Thymes, Goldleaf and Frasier Fir.  The company was founded in 1982 and is headquartered in Minneapolis (www.thymes.com).

DPM Fragrance makes scented candles that are sold through specialty retailers around the world.  Company owned brand names include Capri Blue and Aspen Bay Candles. The company was founded in 1999 by Tom Reed and is headquartered northeast of Jackson in Starkville, MS (www.dpmfragrance.com).

With closing of the transaction Mr. Reed has become a member of CURiOs’ board of directors. “The synergies between DPM and Thymes are amazing – it’s such a great fit. This is a fantastic next step full of potential and opportunity for the entire team – and for our current and future customers,” said Mr. Reed.

“Thymes and DPM each possess industry-leading fragrances and brands and we are excited to support their merger and CURiO’s future growth.” said TCF Capital Funding Senior Vice President Ed Ryczek.

TCF provides cash flow and asset-based lending to lower middle-market businesses.  National in scope, this senior leveraged lending group focuses on providing private equity sponsor-backed cash flow loans and asset-based loans to companies with less than $100 million in revenue and between $2 million and $10 million in EBITDA.  The firm is based just outside of Chicago in Burr Ridge, IL (www.tcfcapitalfunding.com).

© 2016 Private Equity Professional • 10-4-16

Scott Lee Joins BelHealth

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BelHealth Investment Partners has hired Scott Lee as a new Managing Director. Mr. Lee will be responsible for originating, structuring and executing transactions. Mr. Lee has over 10 years of private equity experience in the healthcare sector.

Beginning in 2004, Mr. Lee was an Investment Analyst for Commonwealth Associates and the CARE Capital Group, where he first met and worked with several members of the BelHealth team. Starting in 2006, Mr. Lee served as a Principal at HealthEdge Investment Partners, a lower middle market private equity fund that BelHealth Founder and Managing Partner Harold Blue founded in 2005. He has particular expertise in the post-acute care, healthcare consumer products, contract manufacturing and specialty distribution healthcare sectors. Mr. Lee has a Bachelor of Science degree from the University of Virginia.

“We are thrilled to have Scott join BelHealth. Having worked with Scott for many years, I understand his work ethic, character, and ability to work with the BelHealth team. We are fortunate to have a full pipeline of platform and add-on acquisitions, and we know Scott will fit in seamlessly,” said Mr. Blue. “Scott will immediately begin to execute transactions and add value to our existing portfolio companies. Our culture is entrepreneurial and predicated on speed and efficiency, and, given Scott’s personality and experience, he is a great fit for our team.”

BelHealth Investment Partners is a lower middle market healthcare focused private equity firm.  The firm invests from $20 million to $50 million in companies in three healthcare segments: services, products, and distribution.  BelHealth is based in New York (www.belhealth.com).

“I am excited to reunite with Harold, Dennis and the BelHealth team. The firm has achieved tremendous success since its founding and is well positioned to capitalize on the healthcare tailwinds in the lower middle market,” said Mr. Lee. “I look forward to bringing my experience across healthcare services, products and distribution to BelHealth and supporting the firm’s continued growth.”

© 2016 Private Equity Professional • 10-4-16

Arsenal Sells Kel-Tech to Clariant

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Arsenal Capital Partners has completed the sale of its portfolio company Kel-Tech to Clariant Corporation. Arsenal acquired Kel-Tech in March 2014.

Kel-Tech is a manufacturer and supplier of specialty chemicals and related services used in the drilling, production and transportation of oil and natural gas. The company was founded in 1983 and is headquartered in Midland, TX (www.keltechinc.com).  In March 2014, simultaneous with Arsenal’s buy of Kel-Tech, Kel-Tech acquired Danlin Industries from Hastings Equity Partners. Danlin, like Kel-Tech, is a supplier of specialty chemicals used in oil & gas exploration and production. The company is based in Thomas, OK (www.danlin.us).

“We are pleased to have worked with the Kel-Tech organization in creating a leading player in the oilfield production chemicals market.  During our partnership we successfully integrated Danlin, augmented the organization with management talent, and strengthened the company’s manufacturing facilities,” said Tim Zappala an Arsenal Partner who co-heads the firm’s specialty industrials group.

Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value.  Industries of specific interest include specialty and fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace and defense; and process industry components and services.  Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

“The long term outlook for North American oil production remains positive and Kel-Tech’s relationships and geographic footprint in the major oil basins position them well to take advantage of the industry trends,” said Shawn Abrams, an Industry and Operating Partner in Arsenal’s specialty industrials group.

Clariant Corporation, the buyer of Kel-Tech, is based in Charlotte and operates as a subsidiary of Clariant AG, a publicly-traded specialty chemicals company, based near Basel in Muttenz, Switzerland (www.clariant.com).

© 2016 Private Equity Professional • 10-4-16

Riverside Keeps Growing Franchising Platform

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The Dwyer Group, a franchising platform company of The Riverside Company, has completed the add-on of Cumberland County Glass.

Cumberland County Glass (CCG) provides commercial glass glazing, fabrication, and installation services, primarily involving windows and doors used in new construction of commercial buildings. The company is based in Bowdoinham, ME (www.cumberlandcountyglass.com).

The Dwyer Group is one of the world’s largest franchising companies of trade service brands. CCG will be combined with Dwyer’s existing Portland Glass business, which is also based in Maine. Portland Glass provides repair and replacement services for residential, business and automotive glass needs (www.portlandglass.com).

The Dwyer Group, acquired by Riverside in August 2014, is now the owner of 13 service-based franchise organizations: Aire Serv, Glass Doctor, The Ground Guys, Mr. Appliance, Mr. Electric, Mr. Rooter, Mr. Handyman, Portland Glass, Rainbow International, Five Star Painting, Molly Maid, ProTect Painters, and Locatec.  These brands collectively have more than 2,500 franchises in ten countries.  The Dwyer Group was founded in 1981 and is headquartered in Waco, TX (www.dwyergroup.com).

The buy of CCG is the seventh add-on Dwyer and Riverside have completed since Riverside’s investment in 2014. The firm continues to seek other franchising companies to join Dwyer’s portfolio of service brands.

“We’re excited about the new capabilities CCG offers Portland Glass customers,” said Riverside Vice President Jason Fulton. “Combining these companies allows Portland Glass to offer more comprehensive commercial services and extends CCG’s footprint beyond Greater Portland and into Vermont and New Hampshire.”

Working with Mr. Fulton on the transaction for Riverside were Partner Sarah Roth, Senior Associate Marc Baudry, Associate Ryan Collins and Operating Partner Tom Anderson. Partner Anne Hayes worked on financing the transaction for the firm.

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 440 transactions. The firm’s international portfolio includes more than 80 companies. The firm is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Madison Capital Funding, Ares Capital, Antares Capital, NXT Capital and NewStar Financial provided financing for this transaction.

© 2016 Private Equity Professional • 10-4-16

IGP Buys Test and Measurement Company

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Industrial Growth Partners has acquired SPL, a provider of testing services to the oil and gas industry. The firm acquired SPL through its $800 million fifth fund, Industrial Growth Partners V, LP.

SPL is a provider of hydrocarbon measurement, analysis and reporting services. SPL’s services are used by its oil and gas production and transport customers to evaluate the composition of the hydrocarbons they are producing in order to fine-tune production from wells, market products downstream, meet regulatory reporting requirements, and ensure accurate payment of royalties to leaseholders.  The company’s services are provided through a network of 8 labs and 14 field service locations across the US. SPL was founded in 1944 and is headquartered in Houston (www.spl-inc.com).

Industrial Growth Partners (IGP) intends to grow SPL by expanding its services into new geographies and pursuing strategic add-on acquisitions. “The SPL management team is excited to partner with IGP as we strengthen our market position and continue to aggressively pursue opportunities for growth across all facets of our business,” said Ian Milne, CEO at SPL.”IGP’s experience in the test and measurement markets, knowledge base in the energy sector, and strategic focus make them an ideal equity partner for us.”

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm was founded in 1997 and is based in San Francisco (www.igpequity.com).

© 2016 Private Equity Professional • 10-4-16