Archives for February 9, 2017

Bregal Sagemount Closes Fund II

by

Bregal Sagemount has held a first and final close of Bregal Sagemount II, LP, at the fund’s hard cap with total commitments of $960 million. The new fund was oversubscribed and exceeded the original $800 million target.

Bregal Sagemount is part of Bregal Investments, the corporate investment business of Cofra Holding AG, a sixth-generation family holding company based in Switzerland. Bregal made the largest capital commitment to Fund II.  Cofra Holding’s other businesses include C&A, a clothing retail organization, and Redevco, a large real estate enterprise. Bregal invests directly in equity capital in public and private situations and in private equity funds. Bregal has invested over $12 billion since its inception. The firm was founded in 2002 and has offices in New York and London (www.bregal.com). Fund II is the first fund from Bregal to seek multiple outside investors, a process that Bregal will continue to execute for future funds. Investment vehicles associated with the firm were the sole investors in Bregal Sagemount’s first fund which closed in June 2012 with $500 million of commitments.

We are very pleased with the significant level of interest in our second fund
 and we’re eager to put this capital to work.

Bregal Sagemount, founded by Gene Yoon in partnership with Bregal Investments in March 2012, makes both equity and junior debt investments. Prior to launching Bregal Sagemount, Mr. Yoon was the Head of Private Equity for Goldman Sachs’ Special Situations Group.

“We are very pleased with the significant level of interest in our second fund and we’re eager to put this capital to work investing in market-leading companies in high-growth sectors,” said Mr. Yoon. “This fundraise underscores the success Bregal Sagemount has realized in its short history, which is a credit to our entire team of experienced and hard-working professionals. We thank our existing and new investors for their support and commitment to Bregal Sagemount, and we will continue to strive to deliver them strong risk-adjusted returns.”

Bregal Sagemount makes control and non-control investments of $25 million to $150 million in companies active in the following sectors: software, digital infrastructure, healthcare IT and services, business and consumer services, financial technology and specialty finance. Bregal Sagemount is based in New York (www.bregalsagemount.com).

“Under the leadership of Gene and his senior team, Bregal Sagemount has executed on its strategy and grown to become one of the premier providers of private capital for growth companies,” said Quentin Van Doosselaere, Co-Chief Executive Officer of Bregal Investments. “We are very proud of their progress and are confident they will continue to build upon their consistently strong track record. Importantly, opening this fund to outside investors is a pivotal step in the evolution of Bregal Investments as a whole as we intend to enlarge the size and depth of our limited partner base for our other fund vehicles as well.”

MVision Private Equity Advisers (www.mvision.com) was the fundraising adviser to Bregal Sagemount.

© 2017 Private Equity Professional | February 9, 2017

Altus Buys MAX Environmental

by

Altus Capital Partners has acquired MAX Environmental Technologies in partnership with industry executive Bob Shawver who becomes the company’s new CEO. The seller was the company’s current owner, L. William Spencer.

MAX Environmental provides hazardous and non-hazardous waste transportation, processing, and disposal for companies operating in the manufacturing, energy, and infrastructure sectors. The company was founded in 1957 and acquired by Mr. Spencer in 1995. MAX Environmental is based in Pittsburgh with processing facilities in Bulger, PA and Yukon, PA (www.maxenvironmental.com).

Located just east of Pittsburgh, MAX’s Yukon site is the easternmost hazardous waste processing and disposal facility in the United States and strategically located to serve the industrial and government hazardous waste opportunities along the East Coast. The company’s Bulger facility is located in the heartland of the Marcellus and Utica Shale gas plays, positioning this facility for disposal services for the oil and gas market.

Mr. Shawver was previously the President and CEO of MHF Services (a portfolio company of Relativity Capital) from June 2009 to May 2015. MHF is a Pittsburgh-based provider of packaging, transportation and logistics for generators and shippers of radioactive, hazardous, and non-hazardous waste, materials, and byproducts.  Relativity Capital sold MHF to Energy Solutions, a portfolio company of Energy Capital Partners, in May 2015. Prior to his tenure at MHF, Mr. Shawver served for 20 years as executive vice president and CFO of Duratek, a $300 million publicly traded radioactive materials services and technology firm.

“We are excited to partner with Bob Shawver and his management team in executing its growth plan for MAX Environmental. We look forward to working with and supporting them as they strive to create a premier provider of environmental and waste management solutions,” said Heidi Goldstein, a Partner at Altus.

“I’m delighted to have the opportunity to leverage my 25 years of experience working in the environmental industry to lead the company in its next phase of growth,” said Mr. Shawver. “With Altus as our new partner, we will continue to invest in the business, its infrastructure, and related growth opportunities.”

Altus Capital Partners invests in corporate divestitures, management-led buyouts, and privately-held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm is headquartered in Wilton, CT with an additional office near Chicago in Lincolnshire, IL (www.altuscapitalpartners.com).

© 2017 Private Equity Professional | February 9, 2017

Ancor Acquires PMA Photometals

by

Ancor Capital Partners has acquired PMA Photometals, a designer and manufacturer of private-label and branded chemically-etched metal crafting dies used by crafting suppliers and consumers. The company also designs and manufactures industrial nameplates, thin metal parts and architectural signage which includes the ADA relief signage required by Federal law in all public buildings.

Photometals are anodized aluminum media that have been coated with silver salts. When exposed and developed, the image created using film, causes the image to turn black. While the pores of the metal are still open, the company can add anodizing color to the background. Anodizing colors are inorganic and meant for indoor use, otherwise, the plate will eventually revert back to black and silver. The final step is to seal the image inside the metal. This is done with a boiling solution that softens the anodic layer causing it to close the pores. The result is an image captured in the metal rather than on the metal which gives it excellent resistance to solvents, several chemicals and UV. Another advantage to photometals is the ability to capture crisp, minute detail, even photographs. Once film is generated for the graphic required, it can be used over and over again as in nameplates. Repeatability offers short run advantages over more expensive set-ups such as silk screening. PMA Photometals, founded in 1982, has 25,000 sq. ft. of manufacturing space with a capability of expanding to 75,000 sq. ft. The company is based in Phoenix (www.photometals.com).

“Teaming with Ancor enables PMA to effectively pursue significant growth initiatives,” said J. Michael Dywan, PMA President. “PMA takes great comfort that this is the right decision, based on Ancor’s record of success and its focus on a company’s people, passion, process and purpose.”

“We are excited to partner with the management team at PMA to help take the company to the next level,” said Ray Kingsbury, a Partner at Ancor Capital. “We will be investing further in the business to help it grow within several new areas, including fabrics, which will dramatically change the scope of the company.”

Ancor Capital Partners invests in companies with enterprise values of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is has offices in Southlake, TX and Dallas, TX (www.ancorcapital.com).  With the acquisition of PMA Photometals, Ancor now has four manufacturing companies and five healthcare companies in its current portfolio.

Ancor financed the PMA acquisition with Independent Bankers Capital Fund (www.ibcfund.com) which provided subordinated debt and made an equity co-investment. First American Bank (www.firstambank.com) providing the senior financing.

© 2017 Private Equity Professional | February 9, 2017

Waud Forms United Vision Partners

by

Waud Capital Partners has formed United Vision Partners (UVP) to pursue acquisitions in the consumer eye care market. The new holding company has also made its first acquisition with the buy of Minnesota Eye Consultants (MEC). As part of the transaction, all of MEC’s physician shareholders will maintain their current roles with the group and retain ownership through United Vision.

MEC provides surgical and non-surgical eye care services through a network of six offices, including four which operate ophthalmology-focused ambulatory surgery centers.  The group offers comprehensive eye care services, including treatment for cataracts, corneal disease, refractive surgery, glaucoma, oculoplastics and medical optometry.  MEC has a staff of 25 ophthalmologists and optometrists and was founded in 1989 by Dr. Richard Lindstrom. The company is headquartered in the Minneapolis suburb of Bloomington (www.mneye.com).

“After establishing and building a tremendous organization over the last 25 years, we chose to partner with Waud Capital following an extremely selective process,” said Dr. Lindstrom. “The team at Waud Capital shares our commitment to clinical excellence, and we believe their experience successfully supporting leading physician practices is truly unique. This partnership provides us the operating resources and growth capital to continue our commitment to excellence in an evolving healthcare market, in addition to positioning our business for rapid growth and differentiation.”

“Our partnership with MEC is the result of carefully studying the vision market over the last three years and identifying the leading providers of care across the US,” said Chris Graber, Principal with Waud Capital.  “Early in our efforts, it became clear that Minnesota Eye Consultants was one of the industry’s leaders, with a national reputation for quality of care. We’re thrilled to partner with Dr. Lindstrom and the team at MEC and believe that their commitment to clinical leadership and patient experience provide an extraordinary foundation for growth.”

“Our partnership with Minnesota Eye Consultants exemplifies Waud’s approach to identifying differentiated organizations in targeted sectors and partnering with industry leaders in large, fragmented markets,” said David Neighbours, a Partner at Waud Capital. “This is our first investment out of our fourth institutional fund and the investment marks our continued dedication to supporting promising physician practices in the ambulatory care market.”

Waud Capital makes investments from $50 million to $100 million in middle-market companies with enterprise values from $50 million to $250 million that operate in the healthcare services and business and technology services sectors. Since its founding in 1993, Waud Capital has made more than 195 investments, including platform companies and add-on acquisitions. The firm is headquartered in Chicago (www.waudcapital.com).

© 2017 Private Equity Professional | February 9, 2017