Archives for October 2016

Platinum Sells Mactac to LINTEC

by

Platinum Equity has agreed to sell Mactac Americas to LINTEC Corporation in a transaction valued at approximately $375 million. Platinum acquired Mactac in November 2014 from Bemis Company for $170 million. In August 2016, Platinum sold Mactac’s European business to Avery Dennison for $218 million.

Mactac is a producer of pressure sensitive materials used in a range of industries including label printing, graphic design, packaging, digital imaging, retail display, fleet graphics, assembly engineering, automotive assembly, and medical device assembly. Mactac has operations in the United States, Canada and Mexico and is headquartered north of Akron in Stow, OH (www.mactac.com).

Mactac has experienced a significant turnaround in recent years under Platinum Equity ownership and adjusted EBITDA has grown more than 40% from 2014 to 2015.

“We partnered with Mactac President Ed LaForge and the company’s management team to transform Mactac by identifying and capitalizing on sustainable operational improvements while driving innovative new products and technologies,” said Platinum Equity Partner Louis Samson. “As a result, the company’s financial performance has been superb and the business is well positioned for continued growth and success.”

Mr. LaForge credited operational support from Platinum Equity and the strong commitment of Mactac’s employees for driving the turnaround. “We have achieved remarkable success thanks to a lot of hard work from our employees and a strong partnership with Platinum Equity,” said Mr. LaForge. “Working together, we implemented operational improvements throughout all areas of our business, invested in world-class manufacturing technologies, and just last year alone launched more than 40 new products.”

Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm has completed nearly 175 acquisitions since its founding in 1995. Platinum is based in Beverly Hills with additional offices in New York and London (www.platinumequity.com).

LINTEC, the buyer of Mactac, is a manufacturer of adhesive-related products with operations in 15 countries around the world. The company is headquartered in Tokyo (www.lintec-global.com).

Moelis & Company (www.moelis.com) and Goldman, Sachs & Co. (www.goldmansachs.com) are serving as financial advisors to Platinum Equity. Latham and Watkins (www.lw.com) is serving as Platinum Equity’s legal counsel.

© 2016 Private Equity Professional • 10-25-16

Greenbriar Acquires Frauscher Sensor Technology

by

Greenbriar Equity Group has acquired Frauscher Sensor Technology, a supplier of train tracking products used in the railway signaling industry, in partnership with the company’s management team, led by CEO Michael Thiel.

Frauscher designs and manufactures railway wheel detection and axle counting systems based on inductive and acoustic sensing technologies.  The company’s products are used by system integrators and railway operators to monitor track occupancy across railway networks, and are a core element of railway traffic management systems. Frauscher operates eight subsidiaries across five continents and its products are installed in over 50 countries worldwide. The company is headquartered near Salzburg in St. Marienkirchen, Austria (www.frauscher.com).

Greenbriar will support Frauscher’s expansion into North America, while continuing to support management’s other global strategies. The investment will also be used to accelerate the development of the new Frauscher Tracking Solutions system, which is based on distributed acoustic sensing technology.

“Frauscher has established itself as the clear technology and quality leader in the industry. We are excited to partner with Michael Thiel and his team and look forward to supporting the company during its next growth phase,” said Michael Weiss, Managing Director at Greenbriar. “We are particularly excited about Frauscher’s opportunities to leverage its differentiated product offering within new and existing geographic markets and develop innovative products.”

Greenbriar Equity Group invests from $50 million to $150 million per transaction in the global transportation industry, including companies in aerospace & defense, automotive, freight & passenger transport, logistics & distribution, and related sectors. The firm manages $2.5 billion of committed capital and is based in Rye, NY (www.greenbriarequity.com).

“This is an exciting time for the entire Frauscher organization. We are eager to work with Greenbriar as our new partner to continue to implement our growth strategy. Their extensive experience and relationships in the rail industry will be invaluable as we expand our presence in North America and introduce new technologies into the marketplace,” said Mr. Thiel.

© 2016 Private Equity Professional • 10-25-16

Warren Buys IPC Lydon

by

Warren Equity Partners has acquired a majority interest in IPC Lydon (“IPCL”) from Jay Cashman Inc., a provider of civil and marine contracting services. The acquisition of IPCL is Warren Equity Partners’ third investment of 2016.

IPCL is a provider of maintenance, repair and upgrade services for mechanical systems and process equipment used in airports, distribution centers, power plants, co-generation plants, and wastewater treatment facilities.  The management team at IPCL, led by John Burke and Jim Lydon, has expertise in large-scale baggage handling system maintenance and installation, turbine maintenance, CHP (combined heat and power) plant design and installation, and power plant outage services. IPCL is based south of Boston in Avon, MA (www.ipclydon.com).

“We are tremendously excited to partner with an exceptional management team led by John and Jim, as well as Jay Cashman,” said Scott Bruckmann, Principal at Warren Equity. “IPCL fits directly into our thesis of investing in businesses that provide critical, recurring services to the industrial and infrastructure sectors. We think the Company has a long runway for growth, and we look forward to expanding the platform with management.”

Warren Equity Partners makes control and non-control investments of $5 million to $40 million in North American-based small and middle market companies that are active in the infrastructure, industrial, and building sectors.  The firm was founded by Steven Wacaster, a former partner at Pegasus Capital Advisors, and Henrik Dahlback, a former investment banker at Royal Bank of Canada. The firm is headquartered in Jacksonville Beach, FL (www.warrenequity.com).

Jay Cashman Inc. provides heavy civil and marine contracting services including construction, dredging, and windpower. The company is based south of Boston in Quincy, MA (www.jaycashman.com). Jay Cashman, the Chairman and owner of the company will retain a significant equity interest in the company in partnership with Warren Equity Partners.

“We chose to partner with Warren Equity due to their understanding of the industrial services sector and excitement about scaling the business,” said Mr. Cashman. “We look forward to capitalizing on their expertise and capabilities as we enter this next phase of growth and continue to expand our footprint.”

© 2016 Private Equity Professional • 10-25-16

McNally Invests in Avionics Maker

by

McNally Capital has made an investment in Genesys Aerosystems, a provider of avionics systems for military and civil aircraft manufacturers and operators. Genesys’ existing management team will retain a majority interest in the company.

Genesys Aerosystems’ products include 3D Synthetic Vision Electronic Flight Instrument Systems, S-TEC Analog and Digital Autopilots, HeliSAS Helicopter Autopilot and Stability Augmentation System, as well as other sensors and components. The company offers its systems as stand-alone components or integrated to provide entire cockpit solutions. Genesys Aerosystems, led by President and CEO Roger Smith, is headquartered west of Dallas in Mineral Wells, TX (www.genesys-aerosystems.com).

“We have partnered with McNally Capital because of their tremendous expertise, track record of partnering with management teams to drive growth, and capital resources. We believe they are the best partners to help grow our business over the long term,” said Mr. Smith.

“We are excited to partner with the Genesys management team in support of their strategy to expand their offerings, build additional capabilities, and grow the business,” said Ward McNally, Managing Partner at McNally Capital. “Our partnership with the Genesys management team is consistent with our strategy of partnering with the owners and managers of high quality businesses to help them achieve their long term growth objectives.”

McNally Capital works with family offices to help them make and manage their investments in private companies and private equity funds. The firm also acts as a principal investor and can partner with high net worth family offices to invest in companies with EBITDA’s from $2 million to $25 million. Sectors of interest include industrials, food, packaging, distribution, logistics, consumer and healthcare. McNally Capital is based in Chicago (www.mcnallycapital.com).

“Genesys has established a leadership position within numerous avionics segments by developing innovative and customizable solutions that address critical customer needs. By continuing to invest in its offerings, Genesys is well positioned to expand its unique technologies and product portfolio,” added Brett Mitchell, a Principal at McNally Capital.

© 2016 Private Equity Professional • 10-25-16

Atlantic Street Closes Fund III

by

Atlantic Street Capital has closed Atlantic Street Capital III, LP with $210 million of committed capital, just beating the firm’s target raise of $200 million. Fund III received support from its existing investors and also added a number of new limited partners.

“Atlantic Street has built a successful track record and our third fund is a significant endorsement of our ability to leverage proven operating experience to drive transformations of our portfolio companies,” said Peter Shabecoff, Atlantic Street’s founder and Managing Partner. “With the completion of our latest fund we are now very well positioned to continue investments in our target industries as we work collaboratively with management teams to accelerate growth and create exceptional strategic value for all stakeholders.”

Atlantic Street Capital invests from $10 million to $30 million in middle market companies with EBITDA from $4 million to $12 million. Sectors of interest include consumer products and services, transportation and logistics, business services, and basic manufacturing. The firm was founded in September 2006 and is based in Stamford, CT (www.atlanticstreetcapital.com).

Atlantic Street has 15 investment professionals and just last month added three new investment professionals with the hirings of George Parry and M. Kurt Lentz as Principals of the firm, and Sarah Robson as Vice President of Business Development. “We remain enthusiastic about the rich pipeline of prospective investments we have identified for Fund III,” said Managing Partner Andy Wilkins. “We are confident we have the right team to execute our differentiated value creation strategy that will transform middle market companies and deliver value for our investors.”

New York-based law firm Morrison Cohen (www.morrisoncohen.com) served as legal counsel for Atlantic Street Capital on this fundraise.

© 2016 Private Equity Professional • 10-20-16

With New Fund Raised, Arsenal Adds Healthcare Operating Partner

by

Arsenal Capital Partners has hired David Spaight as an Operating Partner within the firm’s Healthcare Group. Earlier this week, Arsenal Capital Partners held a final close of Arsenal Capital Fund IV LP at its $1.3 billion hard cap. The firm’s previous fund, Arsenal Capital Partners III LP, was raised in 2012 with $875 million of committed capital.

Mr. Spaight was most recently Chairman and Chief Executive Officer of contract research organization WIL Research Company. In April 2016, Mr. Spaight led the $585 million sale of WIL Research to publicly-traded Charles River Laboratories (NYSE: CRL). Prior to his time at WIL Research, which began in 2010, Mr. Spaight held numerous senior executive positions at a number of biopharma services and life sciences companies including MDS Pharma Services, ThermoFisher, and PerkinElmer. Mr. Spaight received his MBA and a BS in Chemistry from the University of Michigan.

“This is a uniquely exciting and important time to be working within the healthcare industry,” said Mr. Spaight. “Significant opportunities exist to improve the efficacy of patient care by improving the workflow of pharmaceutical research and development and provider operations. Our team and our Arsenal portfolio companies are committed to this important work. I joined Arsenal with a shared enthusiasm for these endeavors.”

Arsenal 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; healthcare; transportation and logistics; power generation; aerospace and defense; and process industry components and services. The firm has offices in New York and Shanghai (www.arsenalcapital.com).

“Arsenal has an established track record of building world-class businesses that drive process improvements in key sectors of healthcare. In particular, we have made a number of investments in businesses that help improve the safety and productivity of pharmaceutical and biotechnology research and development. We are confident David will make a major contribution to this important mission,” said Stephen McLean, Arsenal Partner and co-Head of Arsenal’s Healthcare Group.

© 2016 Private Equity Professional • 10-20-16