Archives for February 7, 2017

SK Capital Acquires Niacet

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SK Capital Partners has acquired Niacet Corporation, a producer of specialty ingredients used in food, feed, and pharmaceutical applications.

Niacet is a producer of organic salts that are used for food preservation, antibiotic formulation, dialysis treatment and energy production in the food, feed, pharmaceutical, and technical industries. Niacet currently serves more than 300 customers in 57 countries and employs approximately 190 people. The company has two fully automated manufacturing sites, located in Niagara Falls, NY (headquarters) and Tiel, The Netherlands (www.niacet.com).

SK Capital is recapitalizing Niacet in partnership with Kelly Brannen, who will continue to serve as CEO and retain a significant stake in the company. The Brannen family purchased Niacet from Union Carbide in 1978 and grew the company, according to SK Capital, into the worldwide leader in its core products.

“The Niacet investment is consistent with SK Capital’s strategy of investing in niche market leaders in segments where we have significant industry, operating, and ownership experience and where we can be a strong value-added partner,” said Jack Norris, a Managing Director of SK Capital.

SK Capital specializes in the specialty materials, chemicals and healthcare sectors and typically invests equity of $100 million to $200 million in each portfolio company. SK Capital’s portfolio companies generate revenues of approximately $5 billion annually and employ approximately 8,000 people. The firm currently manages more than $1.9 billion of committed capital and is based in New York (www.skcapitalpartners.com).

KeyBanc Capital Markets (www.key.com) provided committed financing for the transaction. The Valence Group (www.valencegroup.com) – an investment bank specializing in the chemicals and materials sectors – was the financial advisor to Niacet.

© 2017 Private Equity Professional | February 7, 2017

MSCP Acquires Fisher Container

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Morgan Stanley Capital Partners (MSCP) has acquired Fisher Container, a maker of flexible plastic pouches, bags and films. MSCP is partnering with plastics and packaging executive, Kevin Keneally, and the current Fisher management team to acquire the company.

Fisher’s products include shrink packaging, printed rollstock, specialty bags, barrier pouches, industrial bags, and child proof packaging that are used in cleanroom, food and industrial applications. The company is a third generation family business, founded by Don Fisher in 1969. Fisher Container is based in the Chicago suburb of Buffalo Grove (www.fishercontainer.com).

“I am very proud of our family business and have taken great care to find the best partner to take it forward. I have come to know the MSCP team well and am confident that they bring the skills, capabilities, and approach necessary to build and expand on our success,” said Mr. Fischer. Mr. Keneally will become Chief Executive Officer as part of the transaction and will replace Mr. Fisher, who will be retiring.

Mr. Keneally was the CEO of plastic film maker – and Huron Capital owned – Optimum Plastics beginning in June 2012 until the sale of the company in December 2015 to Charter NEX, a blown and cast film extrusion company and a portfolio company of Pamplona Capital Management. Most recently he has been an operating partner with Huron Capital.

“MSCP’s investment in Fisher is the culmination of a multi-year review of the packaging sector, and we believe the company is primed for outsized growth,” said Mark Bye, Managing Director and Operating Partner of MSCP. “We look forward to supporting the management team as they work to further strengthen Fisher’s offerings through improved commercial strategies and operations.”

Morgan Stanley Capital Partners is the middle-market focused private equity business of Morgan Stanley Investment Management which in turn is part Morgan Stanley (NYSE: MS), a financial services firm providing investment banking, securities, wealth management and investment management services (www.morganstanley.com).

© 2017 Private Equity Professional | February 7, 2017

CCMP Adds On to Jamieson Laboratories

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Jamieson Laboratories, a maker of branded vitamins, minerals and supplements and a portfolio company of CCMP Capital Partners, has acquired Body Plus, a maker of natural health and sports nutrition supplements.

Body Plus sells its nutritional therapies and sports supplements through more than 2,000 Canadian retail locations and employs more than 140 people across Canada, with manufacturing based in Toronto and a distribution center near Vancouver in Burnaby, BC. Company owned brand names include Progressive, Progressive Organics, Precision All Natural, Heartland Gold, Waist Away, and Iron Vegan. The company also provides private label manufacturing through its Sonoma Nutraceuticals division (www.bodyplus.ca).

Jamieson Laboratories was founded in 1922 and is Canada’s oldest and largest manufacturer and distributor of vitamins, minerals, concentrated food supplements, herbs and botanical medicines. The company also owns Nutricorp, a private label manufacturer, and women’s natural health brand Lorna Vanderhaeghe Health Solutions.  Jamieson has a manufacturing facility in Windsor, ON (near Detroit) and has its headquarters in Toronto (www.jamiesonvitamins.com). The company was acquired by CCMP in 2014.

“The acquisition of Body Plus will further accelerate Jamieson’s already-strong growth by expanding our reach into the fast-growing sports nutrition and specialty retail channels,” said Mark Hornick, President and CEO of Jamieson.

CCMP specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and European companies. The firm typically invests $100 million to $500 million of equity per transaction in companies with enterprise values of $250 million to $2 billion. Sectors of interest include consumer/retail, industrial, chemicals/energy, and healthcare. CCMP is headquartered in New York with additional offices in Houston and London (www.ccmpcapital.com).

“Attracting an iconic Canadian company of Jamieson’s stature is a testament to the innovation of Body Plus’ products, brands and team,” said Norm Danniels, President and Founder of Body Plus. “Through this acquisition, Body Plus will have the resources it needs to grow and meet the needs of its rapidly expanding consumer base.”

Houlihan Lokey (www.HL.com); White Point Capital (Toronto) led by Andrew Durnford; and Bank of Montreal (www.bmo.com) were financial advisors on this transaction.

© 2017 Private Equity Professional | February 7, 2017

KRG Adds On with Post Browning Buy

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Convergint Technologies, a portfolio company of KRG Capital Partners, has acquired Post Browning. KRG acquired Convergint Technologies in August 2012. This acquisition represents Convergint’s first transaction of 2017 and 13th under KRG’s ownership.

Post Browning is a systems integrator providing consultation, installation, and maintenance services to banks and credit unions located in Ohio, Kentucky, Indiana, Michigan, West Virginia, North Carolina, South Carolina, Georgia, Virginia, and Florida. The company was founded in 1978 by Lou Post and Gene Browning and is based in Cincinnati (www.postbrowning.com).

Convergint Technologies designs, installs, and services building systems including electronic security, fire alarm, and life safety systems. The company was founded in 2001 and is headquartered in the Chicago suburb of Schaumburg (www.convergint.com).

“The acquisition of Post Browning expands Convergint’s presence within the physical banking security market and is representative of Convergint’s commitment to partnering with best-in-class regional security integrators to help us better serve our customers,” said Ted Nark, Managing Director of KRG.

KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies that have from $10 million to $100 million or more of EBITDA.  Founded in 1996, KRG has $4.4 billion of capital under management and is based in Denver (www.krgcapital.com).

© 2017 Private Equity Professional | February 7, 2017

Vestar Promotes Three

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Vestar Capital Partners has promoted John Stephens to Co-Head of the firm’s Business Services and Industrial Products Group, Ben Funk to Vice President, and Jonathan Williams to Senior Associate.

Mr. Stephens, a Managing Director of the firm, joined Vestar in 2006. He has been a member of the Business Services and Industrial Products Group for several years and has also served in Vestar’s Consumer group. Before joining Vestar, he was a member of the leveraged finance group at Wachovia Securities and also worked at L.E.K. Consulting. He has a BA from Middlebury College.

“John has brought insightful thinking and outstanding execution to the Business Services and Industrial Products Group,” said Rob Rosner, Co-President of Vestar and a founding partner of the firm as well as head of the Business Services and Industrial Products Group. “His promotion to co-head of the group is a recognition of the value he has delivered to Vestar and our investors.” Nearly half of Vestar’s investments over time have been in the Business Services and Industrial Products sectors, including business services companies such as Institutional Shareholder Services, Presence Marketing, and Duff & Phelps; industrial and commercial products companies such as Mobile Technologies, Argo-Tech, Prestone, AZ Electronic Materials, and Wabtec; and financial services companies such as Triton and Wilton Re.

Mr. Funk, most recently a Senior Associate at Vestar, joined the firm in 2012 as an Associate. Previously he was an analyst at Perella Weinberg Partners, where he focused on a wide range of M&A and restructuring transactions. Mr. Funk has a BS degree in Business Administration from the University of Southern California.

“Ben has shown outstanding performance, diligence, and promise since he joined our firm,” said Brian O’Connor, Managing Director and co-head of the Consumer Group. “Attracting and developing talent has always been a hallmark of Vestar and we consider Ben to be a fine example of the depth of our bench and the strength of our teams at every level.”

Mr. Williams joined Vestar in 2014 as an Associate. Prior to Vestar, he was an analyst at Moelis & Company, where he executed a number of M&A and restructuring transactions across a variety of sectors, including healthcare, telecommunications, and consumer/retail. Mr. Williams has a BA in History from the University of Pennsylvania.

“Since joining Vestar, Jonathan has made a tremendous contribution to the firm and distinguished himself with his energy and dedication,” said Ken O’Keefe, Managing Director and COO of Vestar. “He excels as a member of several Vestar teams and provides essential support for the firm’s initiatives. We congratulate him on his well-deserved promotion.”

Vestar specializes in management buyouts and growth capital investments. The firm targets equity investments from $50 million to $150 million in middle-market companies with enterprise values ranging from $250 million to $1 billion. Sectors of interest include consumer; diversified industries; healthcare; and financial services.  Since the firm’s founding in 1988, Vestar has completed more than 78 investments in companies with a total value of more than $40 billion. Vestar has offices in New York, Boston, and Denver (www.vestarcapital.com).

© 2017 Private Equity Professional | February 7, 2017