February 28, 2017
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Archives for February 28, 2017

Driehaus Exits Syntac Coated Products

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Syntac Coated Products, a portfolio company of Driehaus Private Equity since 2013, has been sold to Shurtape Technologies. The combined company has been renamed Shurtape Specialty Coating, LLC.

Syntac Coated Products (SCP) is a designer and manufacturer of specialty, pressure-sensitive tapes for automotive, medical, construction, graphic arts, sound control and product assembly applications. The company’s product portfolio includes single-coated, double-coated, unsupported transfer and self-wound tapes.

The company is comprised of two business units: the industrial coatings operation founded in Connecticut in 2001 and the Syntac Medical Specialties (SMS) division, which the company acquired in 2015. The SMS division specializes in adhesive-based medical products that are used for wound care and patient monitoring.

SCP is led by its founder and CEO Curt Rutsky. Aaron Rutsky is the company’s Vice President and is also the President of the SMS division. SCP, founded in 2001, has approximately 50 employees and operates from a 60,000-square-foot manufacturing facility and headquarters in New Hartford, CT and a new 23,000-square-foot facility in Sarasota, FL (www.syntacusa.com).

Shurtape is a fifth-generation, family owned, business that provides tape products used in the packaging; building and construction; DIY; HVAC; industrial; maintenance, repair and operations (MRO); arts and entertainment; and transportation industries. Products include masking and paper, foil and film, packaging, double-coated, cloth and duct, and other specialty tape products. The company also makes packaging dispensers and equipment for automated and manual packaging applications. Shurtape has production facilities in the United States, Canada, United Kingdom, Germany, Mexico, Peru, United Arab Emirates, and China. The company was founded in 1880 as Shuford Mills (a maker of yarns, cordage and twine) and today has approximately 1,500 employees. The company is headquartered in Hickory, NC (www.shurtape.com).

“The combination of Shurtape and Syntac enhances our ability to support our customers through expanded research and development capacity, broadened production capabilities and global distribution,” said Stephen Shuford, CEO for Shurtape Technologies. “We are excited about the future and look forward to the growth that this merger makes possible for ourselves and for our valued customers.”

Driehaus Private Equity invests from $1 million to $30 million in companies that have revenues of at least $5 million. The firm was founded in 2011 by Richard Driehaus, the founder, chief investment officer, and chairman of Driehaus Capital Management. Driehaus Private Equity is based in Chicago (www.driehauspe.com).

Blaige & Company was the financial advisor to Syntac Coated Products. “Syntac’s value-added niche and strong financial performance allowed our team to position Syntac to achieve a premium valuation and to deliver a wide range of potential partners and deal structures, such that the optimal growth partner was identified,” said Thomas Blaige, Chairman and CEO. Blaige & Company specializes in the packaging, plastics, and chemicals sectors. The firm was founded in 2003 and has offices in Chicago and Miami (www.blaige.com).

“With the Blaige process, we had the benefit of multiple attractive offers for Syntac. Shurtape’s strong market position and unique culture tied to its roots of 130 years as an independent family business made them a perfect partner for Syntac,” said Curt Rutsky.

Charlotte-based investment bank North Inlet Advisors (www.northinletgroup.com) was the financial advisor to Shurtape.

© 2017 Private Equity Professional | February 28, 2017

Branford Castle Keeps Rumbling

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Branford Castle Partners, has acquired Surface Preparation Technologies, a provider of rumble strips and related roadway safety services.

Surface Preparation Technologies (SPT) has installed more than 150,000 miles of rumble strips across 49 states. The company designs and manufactures its own fleet of rumble-strip machines, or “mills” which it believes run significantly faster and are more durable than competitors’ machines. The company’s mills can achieve speeds of up to 360 cuts per minute, or over 20 miles of asphalt rumble strips in a single eight hour shift. This is, according to the company, four times faster than its closest competitor. Faster cut times lead to less time lost for traffic control, more efficient road clean up, and can lead to early completion incentives. SPT was founded in 1988 and is led by CEO Steve Burke. The company is based in Mechanicsburg, PA (www.rumblestrips.com).

“Rumble strips are vital highway and roadway safety features that alert inattentive drivers of potential danger, and are a proven and cost-efficient measure to keep travelers safer by reducing the risks of crossover and run-off traffic accidents,” said Mr. Burke.

“SPT has established itself as the national leader in the rumble-strip market, with a reputation among its customers for outstanding service and reliability,” said Eric Korsten, Managing Director.  “We are especially excited to work on this investment with Abacus Finance Group, which is providing senior debt financing, and Brookside Mezzanine Partners, which is providing mezzanine debt financing.  Of particular note, both of our lender partners have also made equity co-investments in the transaction.”

Branford Castle invests in companies that have enterprise values of up to $75 million and also have from $1.5 million to $15 million of EBITDA. Sectors of interest include consumer goods and services; industrial and manufacturing; value-added commercial distribution; business services; and marine products and services. Between its founding in 1986 to 2016, Branford Castle operated as a family office.  In October 2016 the firm held a final close of its first fund that was open to outside investors. The buy of SPT is the second platform investment for this fund, following the July 2016 acquisition of Earthlite Massage Tables – a maker of spa, massage and other wellness equipment.

“With this second deal, we are moving efficiently to deploy our investors’ capital, and we are working hard to close additional acquisitions in the near future,” said John Castle, a Managing Partner of Branford Castle.  “As was the case with Earthlite, SPT’s management team invested in the transaction alongside Branford Castle and will continue to lead the company.”

Branford Castle is headquartered in New York (www.branfordcastle.com).

© 2017 Private Equity Professional | February 28, 2017

Blue Point Adds On to Premier Needle

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Premier Needle Arts, a portfolio company of Blue Point Capital Partners, has acquired Crafts Americana Group.

Crafts Americana Group (CAG) is a supplier of knitting, crochet, quilting, sewing and other hobbyist products. The company operates through three divisions: (1) The Artist’s Club sells decorative painter supplies including tole painting books, project surfaces, paints brushes and tools; (2) Connecting Threads sells products used by quilters including quilting books, fabrics, notions and supplies; and (3) Knit Picks sells yarn, books, patterns, and needles and supplies for knitters. Crafts Americana was founded in 1975 by Donna Santos and sold to Bob and Kelley Petkun in 1990. Today, the company is led by CEO Matt Petkun and is headquartered in Vancouver, WA (www.craftsamericana.com) (www.ArtistsClub.com) (www.ConnectingThreads.com) (www.KnitPicks.com).

Premier Needle Arts (PNA) is a provider of sewing, quilting, knitting and fiber art supplies and products to a global network of independent quilting stores, sewing retailers, quilting distributors and dealers and consumers.  Three companies operate under the Premier Needle Arts holding company:  (1) Handi Quilter (North Salt Lake, UT) creates and builds both branded and private-label longarm quilting machines, and produces quilting tables and frames, as well as longarm quilting accessories, scissors, rulers, templates and patterns; (2) Superior Threads (St. George, UT) is a supplier of 43 lines of premium threads used in quilting and sewing; and (3) Quilt Pro Systems (Dallas, TX) provides digital products that enable quilters to digitally and electronically design and audition their projects. Premier Needle Arts, led by CEO Mark Hyland, is headquartered in North Salt Lake, UT (www.premierneedlearts.com).

PNA was formed by Blue Point when it acquired Handi Quilter from High Road Capital Partners in December 2014. The buy of CAG is the third add-on acquisition for PNA under Blue Point ownership. “From the onset, Blue Point’s focus was to turn PNA into a multifaceted business, and pursue acquisition opportunities in related quilting and other niche hobby fiber arts categories.  CAG’s product offering supplements and is a natural fit with PNA,” said Sean Ward, a Partner with Blue Point.

According to Blue Point, the acquisition of CAG provides growth and synergy opportunities which can be achieved by leveraging Blue Point’s domestic operational capabilities, as well as digital marketing and e-commerce resources.  Blue Point also brings strategic Shanghai resources to assist with sourcing and supply chain initiatives.

Blue Point Capital Partners is a lower middle market private equity firm that invests in manufacturing, distribution and service businesses that have from $20 million to $300 million in revenue. The firm has over $825 million in committed capital and has offices in Cleveland, Charlotte, Seattle, and Shanghai (www.bluepointcapital.com).

© 2017 Private Equity Professional | February 28, 2017

Peyser Joins Harvest Partners SCF

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Harvest Partners SCF, the non-control private equity strategy of Harvest Partners, has added Chris Peyser to its team as a Senior Associate. HP-SCF targets private equity-like returns while assuming risks more characteristic of debt investments. Mr. Peyser will be responsible for evaluating, structuring, executing and monitoring portfolio investments.

“We have great confidence in Chris’s abilities and are very pleased that he has joined our team. We look forward to his contributions to our investment program,” said Jay Hegenbart, Senior Managing Director and Portfolio Manager.

Prior to joining HP SCF, Mr. Peyser was a Senior Associate at Kelso & Company, where he focused on leveraged buyout transactions. He began his career at Bank of America Merrill Lynch. Mr. Peyser has an AB in Politics from Princeton University.

Harvest Partners SCF targets investments of $20 million to $250 million in companies where the business owners need equity capital but do not wish to dilute or sell their ownership. Target companies have revenues of $100 million to $750 million and operate in the business and consumer services; healthcare services; industrial services; manufacturing; and distribution sectors.

Since founding in 2014, HP SCF has completed nine structured equity investments totaling approximately $263 million. These investments include: GPM Investments, Roland Foods, OTG Management, Dental Care Alliance, LAZ Karp Partners, Arctic Glacier Holdings, Packers Holdings, Athletico Physical Therapy and AxelaCare Holdings.

HP SCF is actively seeking new investment opportunities and is headquartered in New York (www.hp-scf.com).

© 2017 Private Equity Professional | February 28, 2017

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