Archives for April 27, 2017

Encore Exits Thanasi Foods

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Encore Consumer Capital has completed the sale of Thanasi Foods, marketer of the Duke’s and BIGS snack brands, to Conagra Brands. Encore invested as a minority partner in Thanasi Foods in 2015 to provide liquidity to some of the company’s early investors.

Thanasi Foods is a considered to be an innovator in the snacking sector and sells flavored sunflower and pumpkin seed products under the “BIGS” brand and smoked meat snacks under the
“Duke’s” brand. Duke’s Smoked Meats is a maker of premium meat snacks, including Duke’s, Smoked Shorty Sausages and Duke’s Brisket & Steak Strips. The brand produces its smoked meat products in small batches using whole ingredients, fresh never-frozen pork and chicken, 100% grass-fed beef, and authentic hardwood smoke pairings (www.dukesmeats.com). BIGS Seeds produces a line of premium, USA-grown seed snacks, including jumbo, fire-roasted in-shell sunflower seeds, sunflower seed kernels, and homestyle-roasted pumpkin seeds (www.BIGS.com). Thanasi Foods was founded in 2003 by Justin ‘Duke’ Havlick and is based in Boulder, CO (www.thanasifoods.com).

“Thanasi Foods’ founder and CEO Justin ‘Duke’ Havlick decided to bring on a strategic and financial partner in 2015 and we are honored that he chose Encore to help the company grow,” said Robert Brown, Managing Director of Encore Consumer Capital. “We could not be more proud of what he and the team have accomplished in building two premier brands in protein-based snacking – Duke’s smoked meat snacks and BIGS seeds.”

Encore Consumer Capital invests exclusively in consumer products companies that have revenues between $10 million and $100 million and where it can utilize its own consumer experience and the expertise of its operating partners at Encore Associates, a strategic advisory firm to the consumer products industry. The firm has raised nearly $600 million in equity capital and invested in 25 platform companies.  Encore was founded in 2005 and is headquartered in San Francisco (www.encoreconsumercapital.com).

“Encore provided strategic guidance to and unwavering confidence in our team to help us execute our vision,” said Mr. Havlick. “What started 13 years ago as a simple passion for fire roasting seeds and slow smoking meats, has grown into two terrific brands that are recognized in households across the US. This is an incredibly exciting time for our brands and our team, and we are looking forward to working with the Conagra Brands team on the next chapter in our journey to take Duke’s and BIGS to another level.”

Conagra Brands (NYSE: CAG) is one of North America’s leading branded food companies. Company owned brand names include Marie Callender’s, Reddi-wip, Hunt’s, Healthy Choice, Slim Jim and Orville Redenbacher’s. The company is headquartered in Chicago (www.conagrabrands.com).

Houlihan Lokey provided strategic and financial advisory services to Thanasi Foods.

© 2017 Private Equity Professional | April 27, 2017

IGP Buys Royal Die & Stamping

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Industrial Growth Partners has acquired Royal Die & Stamping in partnership with the company’s management team.

Royal Die & Stamping (RDS) is a supplier of high-precision electrical connectivity components used in automotive, electrical, life safety and telecommunications applications. Using complex metal alloys the company designs and manufactures battery terminals, eyelet terminals, fuse components, lead frames, and other electrical connectivity-focused products.

RDS was founded in 1938 by Ole Jensen and originally produced metal stampings used in radio and television sets. The company is headquartered in the Chicago suburb of Carol Stream (www.royaldie.com).

According to Industrial Growth Partners (IGP), the company is poised to benefit from secular trends driving more electrical content in automobiles, which have enabled RDS to outperform its core end markets over the past decade. The transaction creates a platform for RDS to accelerate growth in the global automotive market, expand into adjacent markets and pursue selective global acquisition opportunities.

“IGP’s deep experience in the manufacturing sector and over twenty years of experience in helping family-owned businesses like Royal successfully transition to becoming private equity-backed made the firm an ideal equity partner for us,” said Erik Freitag, President of RDS. “We look forward to leveraging the firm’s expertise to strengthen our position in our core markets and to help expand our business globally and into new markets.”

Industrial Growth Partners invests in North American-based manufacturing and manufacturing services companies that have histories of profitability and revenues of up to $250 million. Sectors of specific interest include industrial components and equipment; electronic equipment; process instrumentation and controls; analytical instruments; fluid control, filtration and pumps; specialty chemicals; energy equipment and services; plastics and synthetic materials; healthcare and safety equipment; manufacturing services and testing; and aerospace and defense components. IGP was founded in 1997 and is based in San Francisco (www.igpequity.com).

The buy of Royal Die & Stamping is the fourth platform investment for IGP’s fifth fund.

© 2017 Private Equity Professional | April 27, 2017

Corinthian Buys Eastern Wholesale Fence

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Corinthian Capital has acquired Eastern Wholesale Fence Co., a manufacturer and distributor of residential and commercial fence products.

Eastern Wholesale Fence (EWF) supplies a full line of wood, vinyl, and chain-link fences; aluminum and steel ornamental products; welded mesh, guide rail, and post and rail fences. Company owned brand names include EverStrong, Grand Illusions, System21, Eastern White Cedar, Eastern Ornamental, and Eastern Chain-Link. EWF was founded in 1971 by Peter Williams, Sr. and is headquartered on Long Island in Medford, NY (www.easternfence.com). Post-closing, Peter Williams, Jr. remains as Eastern’s CEO and he has a meaningful ownership stake in the business. Peter Williams, Sr. has retired from the day-to-day operations of the company.

“We are excited to be backing a strong, well-established management team at Eastern Fence, led by long-time CEO Peter Williams, Jr.,” said C. Kenneth Clay, Executive Managing Director of Corinthian Capital.

Corinthian Capital targets investments in North America-based niche market leaders in the manufacturing, distribution, service and consumer products segments that have revenues between $50 million and $250 million and EBITDA between $10 million and $30 million. The firm was founded in 2005 and is based in New York with an additional office in Boston (www.corinthiancap.com).

The DAK Group was the exclusive investment banker and financial advisor to EWF, initiating and managing the transaction. The DAK Group team included President Alan Scharfstein, Managing Director Steve Raymond, and Director Ari Fuchs. “With this transaction Eastern Wholesale Fence’s founders have been able to monetize the exceptional business that they have built, while gaining a strategic partner to help them accelerate their industry leadership position,” said Mr. Scharfstein. The DAK Group is headquartered in Rochelle Park, NJ with additional offices in New York and Philadelphia (www.dakgroup.com).

© 2017 Private Equity Professional | April 27, 2017

Windjammer Buys Vital Records

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Windjammer Capital Investors has acquired Vital Records Control in partnership with CEO Danny Palo and other members of the company’s senior management team.

Vital Records Control (VRC) provides information management services including offsite records storage, open-file records storage, climate controlled storage, release of information services (on-site or off-site), vaulting services for media backups, electronic vaulting, destruction services including mobile shredding, imaging services including microfilming, records inventorying/indexing services, and packing services on-site at the customer’s location.

VRC services hundreds of Fortune 500 companies and thousands of regional, state, and local companies throughout the country with a concentration in the southeastern US. The company, founded in 1988, is headquartered in Memphis (www.vitalrecordscontrol.com).

“VRC’s management team built a well-respected business in its markets which has grown steadily over the past 25 years,” said Jeff Miehe, Managing Director at Windjammer. “VRC’s high levels of customer service and its leading technology platform have enabled it to develop leading positions in mid-size markets throughout the Southeast.  We are extremely excited about the opportunity to partner with CEO Danny Palo and VRC’s management team.”

Windjammer makes control investments of $50 million to $200 million in middle market businesses with EBITDAs from $10 million to $50 million. Sectors of interest include niche manufacturing, value-added distribution and business services.  Windjammer is currently investing from its $726 million Windjammer Senior Equity Fund IV, which closed in March of 2013.  The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).

VRC is the seventh platform investment in Windjammer’s Senior Equity Fund IV.  The firm is actively seeking add-on acquisitions for VRC in the document storage, shredding, and imaging sectors.

“We’re enthusiastic about our new partnership with Windjammer and their support of our customer-focused approach to the market,” said Mr. Palo. “We look forward to leveraging Windjammer’s resources to help accelerate our growth into new and adjacent markets, strengthen our position in existing markets, and provide our customers with additional services related to their information governance needs.  Windjammer’s operational and strategic resources will be extremely valuable as we embark on the next phase of growth for our company.”

© 2017 Private Equity Professional | April 27, 2017