BV Investment Partners has agreed to sell TriCore Solutions, a portfolio company since November 2014, to Rackspace, a portfolio company of Apollo Global Management. Lumerity Capital is a co-investor in TriCore alongside BV.
TriCore Solutions is a provider of application and infrastructure management services, focused on enterprise resource planning, database platforms, data warehousing and business intelligence. The company has approximately 275 mid-market to small enterprise customers and is headquartered in Norwell, MA. TriCore was founded in 1999 (www.tricoresolutions.com).
BV has a strong history of investing in the IT services sector. During its ownership of TriCore, BV grew the company within its core markets, expanded into providing support for SAP’s enterprise resource planning products, and expanded into two new managed services markets – business intelligence and data warehousing.
In addition, BV helped TriCore identify and complete several strategic acquisitions during its ownership: In October 2016, the company acquired Database Specialists, a San Francisco-based database managed services company focused on support for Oracle database systems; In May 2016, it invested in REAN Cloud, an Amazon Web Services consulting partner and a provider of cloud strategy, migration and managed services to enterprise and government customers; and in September 2015,TriCore acquired Milwaukee-based SAP managed service provider Group Basis.
“We are pleased to have partnered with Founder and Chairman Bob Forman, CEO Mark Clayman, CFO Art Green, and the entire TriCore team in this investment. The team and company accomplished the growth strategy and objectives we developed in just two and a half years, more than doubling earnings and broadening its addressable market,” said Matt Kinsey, Managing Director of BV. “We are delighted to achieve a successful outcome for our investors through this transaction and excited for the next phase in the company’s growth.”
BV Investment Partners makes investments in companies active in the information and business services, and communications industries. Since its founding in 1983, the firm has invested over $2.9 billion in more than 89 companies. In April 2017, BV Investment Partners held a first and final close for BV Investment Partners Fund IX, LP at its $750 million hard cap, well above its $600 million target. Fundraising for Fund IX began in mid-January 2017. The firm’s earlier fund closed in September 2014 at its hard cap of $487 million. BV Investment Partners is headquartered in Boston (www.bvlp.com).
“Working with BV, we have broadened our reach, expanded our solution set and invested in our team, creating a platform that provided us with sustainable advantages over other competitors in the marketplace. Rackspace’s acquisition is a strong validation of our company’s efforts to build a leading provider of application managed services,” said Mark Clayman, CEO of TriCore.
Lumerity Capital, BV’s co-investor in TriCore, was founded in 2014 by Matt Kim and targets growth equity investments in data infrastructure companies with enterprise values ranging from $50 million to $150 million. Lumerity is based in Greenwich, CT (www.lumerity.com).
Rackspace, the buyer of TriCore, is a San Antonio-based provider of managed cloud computing services (www.rackspace.com). It is a portfolio company of Apollo Global Management.
William Blair was the financial advisor to BV Investment Partners on this transaction.
© 2017 Private Equity Professional | June 1, 2017
Apax Partners has completed its sale of Garda World Security, one of the world’s largest privately owned security and cash services providers, to Rhone Capital, Stephan Crétier (Founder, Chairman and Chief Executive Officer) and other members of the senior management team. In November 2012 Apax acquired the company at an enterprise value of C$1.1 billion.
GardaWorld is a global provider of security and cash logistics services. The company serves clients in countries throughout North America, Europe, Latin America, Africa, Asia and the Middle East. GardaWorld works with clients in a range of sectors and industries including financial institutions, retailers, governments, humanitarian relief organizations and the natural resources, construction and telecommunications industries. The company is based in Montreal and has 62,000 employees (
“We are proud of our partnership with Stephan Crétier and his team as GardaWorld achieved tremendous growth both organically and by executing a disciplined M&A program,” said Ashish Karandikar, a Partner at Apax. “Through Stephan’s leadership, GardaWorld has built the preeminent security services brand name globally, and we are proud of the success we have achieved together. We wish Stephan and Rhône Capital the best during the next phase of the company’s evolution and believe GardaWorld has exceptional opportunities before it.”
Apax invests in the technology and telecom; services; healthcare; and consumer sectors. The firm has eight offices located in London, New York, São Paulo, Munich, Tel Aviv, Mumbai, Hong Kong and Shanghai (
Rhône Capital is a global private equity firm with more than €3 billion under management and a focus on private equity investments in businesses with a pan-European or transatlantic presence. Sectors of interest include business services, chemicals, consumer products, food, industrial, materials, mining, and shipping. The firm is currently investing capital from its €2.6 billion fifth private equity fund which was raised in July 2015. Rhône was founded in 1995 by Robert Agostinelli and Steven Langman and has offices in London and New York (
Newell Brands has signed an agreement to sell its winter sports businesses to Kohlberg & Company for $240 million. The sale of these businesses follows Newell’s acquisition in April 2016 of Jarden Brands. At that time Newell indicated that it would sell assets representing about $1.5 billion in revenue to simplify and strengthen its portfolio.
The winter sports businesses (WSB) is comprised of Völkl skis, K2 skis, Marker bindings, Dalbello boots, Madshus cross country skis, Line skis and accessories, Full Tilt boots, Atlas gloves, Tubbs snowshoes, Ride Snowboards and BCA outdoor safety equipment.
Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (
Newell Brands (NYSE: NWL) is a global consumer goods company with a large portfolio of well-known brands, including Paper Mate, Sharpie, Parker, Elmer’s, Coleman, Jostens, Rawlings, Oster, Sunbeam, Mr. Coffee, Baby Jogger, Calphalon, and Rubbermaid among many others. The company is based in Hoboken, NJ (
Pelican Energy Partners has a made a growth equity investment in Johnson Specialty Tools in partnership with Craig Johnson, the company’s President.
Johnson Specialty Tools (JST) specializes in the rental of drilling support equipment such as pre-mix mud tanks, mud vacs, transfer pumps, drill pipes, power washers and other similar equipment. The company’s equipment is typically used for containing, controlling and managing both oil and water-based mud on drilling locations. In October 2015, JST acquired Texas Equipment Rental which provides equipment and services to a number of energy companies in the Permian Region, the Eagleford Region and the East Texas/North Louisiana Region. JST is headquartered in Houston with additional locations in Pleasanton, TX and Midland, TX. The company was founded by Craig Johnson and his son Brett Johnson in December 2014 (
Pelican Energy Partners invests in small to middle-market, high growth potential energy service and equipment companies. Target companies typically have annual EBITDA between $1 million and $10 million. The investment in JST represents Pelican’s fourth Fund II investment in addition to Epic Industrial Solutions, Global Heat Transfer, and Quinn Artificial Lift Services. Fund II closed in July 2016 with $210 million of capital. Pelican Energy Partners is based in Houston (
Irving Place Capital has agreed to sell its portfolio company Chromalox, a thermal technology company, to Spirax-Sarco Engineering for $415 million in cash. Irving Place acquired Chromalox in December 2012 from Sentinel Capital Partners.
Chromalox manufactures electric heat and control products, including heating components, immersion heaters, circulation systems, heat transfer systems, boilers, industrial and comfort air heating, heat trace cables, sensors, and precision electronic controls. The company has 634,000 sq. ft. of manufacturing, engineering, warehousing, and sales locations in North America, Europe, and Asia. Chromalox was founded in 1917 and is headquartered in Pittsburgh (
Spirax-Sarco Engineering (LSE:SPX) is manufacturer of steam management systems and peristaltic pumps (a type of positive displacement pump which uses flexible tubes and displacement rotors) and associated fluid path technologies. The company serves the food, pharmaceutical, chemical and environmental industries. Revenues in 2016 were approximately $970 million. Spirax-Sarco is based in Cheltenham, UK (
Irving Place invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (
Good Sportsman Marketing (GSM), a portfolio company of Huron Capital, has closed on two add-on acquisitions with the buys of Eugene, OR-based Bullseye Camera Systems, and Scent Web from Beaverton, MI-based A-Way Hunting Products. These buys represent the second and third add-on acquisitions for GSM since Huron Capital’s initial investment in June 2016.
Scent Web has a patented foam spray delivery mechanism for dispensing deer scent attractants. According to GSM, Scent Web is over 300% more potent than other scents and lasts up to five times longer in the field. This acquisition represents GSM’s initial expansion into the scent and attractants markets. Scent Web will become part of GSM’s Hunting Made Easy brand (
Bullseye Camera Systems, the second add-on acquisition, designs, assembles and distributes target shooting camera systems. Using Bullseye’s camera system and its proprietary software application, shooters can view targets from long distances from mobile device as well as utilize several interactive features of the software for a unique experience at the gun range (
“We’re thrilled to add not one but two more acquisitions to GSM. Eddie and the GSM team have proven the ability to drive growth across their portfolio of products, and we look forward to seeing the potential of these new products through GSM’s distribution,” said Sean Roberts, a Principal at Huron Capital. “We are excited about the future for both Scent Web and Bullseye, and are eager to pursue additional acquisitions as we expand the GSM platform.”
Huron invests up to $70 million per transaction in middle market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include specialty manufacturing, business services, consumer goods & services, and healthcare. The firm is led by its senior partners Brian Demkowicz, Michael Beauregard, John Higgins and Peter Mogk. Huron was founded in 1999 and has offices in Detroit and Toronto (
DC Capital Partners has held a final close of its first institutionally-backed private equity fund, DC Capital Partners Fund II, LP at the hard cap of $450 million.
DC Capital makes control investments in middle market, US-based companies that are active in the following government related sectors: intelligence, information technology, security, operations and maintenance, and engineering and construction. The firm was founded by its Managing Partner Thomas Campbell and is headquartered in Alexandria, VA (
Fund II already has two portfolio companies: Owl Computing Technologies (acquired in February 2017) designs, develops, manufactures, and implements cybersecurity systems. Owl was founded in 1998 and is headquartered in Ridgefield, CT (
hardware and software products including communications surveillance systems and data analytic tools for government, military, and law enforcement customers. QRC was founded in 1987 and is headquartered in Fredericksburg, VA (
Great Hill Partners has acquired PartsSource, a provider of software used to procure medical parts and supplies for hospitals, outpatient clinics, and physician offices. The sellers were Ray Dalton, the founder of PartsSource, Polaris Partners and Primus Capital.
“PartsSource’s e-commerce technology has disrupted a workflow that has historically been offline, allowing providers to maintain their facilities efficiently and more cost effectively,” said Mark Taber, a Managing Partner of Great Hill. “We are delighted to partner with Phil Settimi and the entire PartsSource team to help them continue to expand their market leadership.”
Great Hill invests from $25 million to $200 million of capital per transaction to finance the expansion, recapitalization or acquisition of growth companies in a range of sectors in business-to-business and business-to-consumer industries including software, financial and healthcare technology, digital media, e-commerce, and internet infrastructure. Typical transaction sizes range from $25 million to $500 million. In February 2017, Great Hill held a first and final closing of Great Hill Equity Partners VI, LP, at the hard cap of $1.5 billion. The firm was founded in 1998 and is based in Boston (
“We believe PartsSource has tremendous growth potential as procurement teams within healthcare seek ways to digitize their workflows via a one-stop-shop for medical parts and supplies,” said Rafael Cofiño, a Partner with Great Hill.
It was the best of times… or almost the best of times. This is one takeaway – at least from the business seller’s perspective — from completed deal activity in the first quarter of 2017, according to GF Data’s just-released May report.
Completed deal volume in the first quarter was exactly on par with reported volume in the fourth quarter of 2016, and up slightly from year-ago first quarter. “We usually see a drop off in completed deal volume of about 25 percent from the fourth quarter of one year to the first quarter of next,” said GF Data CEO Andrew Greenberg. “The unusually brisk activity in the first months of this year reflects sale processes started in a quite different political and economic environment than the one prevailing now. It will be interesting to see how would-be sellers making decisions today weigh potentially pro-business policies against greater political uncertainty.”
Total Debt in the first quarter averaged 3.9x, in line with the average for all of 2016, but down slightly from aggregate debt loads in the first half of last year. “This is the third quarter in a row in which total debt averaged less than the 4.0x mark that prevailed throughout much of 2015 and the first half of 2016. Whether this is a trend or anomaly remains to be seen,” said B. Graeme Frazier, IV, GF Data’s Co-Founder and Principal:
Gatewood Capital Partners has held a final closing of its first fund, Gatewood Capital Opportunity Fund LP, with more than $220 million in capital commitments. The fund had an initial target of $150 million. Gatewood did not use a placement agent for this fundraise.
“Our investor base includes a broad mix of domestic and international institutional investors, including a number of foundations, family offices, public pension plans, asset managers, insurance companies, and high net worth investors,” said Mr. Yahav. “We look forward to further developing our limited partner relationships and expect to make $500 million to $700 million in capital commitments over the next three years from our fund and co-investors.”
“Gatewood’s approach goes beyond that of traditional fund investors. Over the past decade, our principals have built a ‘partnership culture’ based on strong alignment of interests, a high level of transparency, and a value-add approach to strategic seed investing in private equity and private debt managers,” said Mr. Aviv. “Our differentiated strategy is largely focused on supporting new managers in launching their funds. We do this by providing them with $50 million to $100 million of ‘first close’ LP capital and ongoing marketing support. We strive to maintain discipline and a culture of fiduciary responsibility with all of our underlying managers, while at the same time seeking strong risk-adjusted returns.”
