May 3, 2017
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Archives for May 3, 2017

Atlantic Street Buys GAT

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Atlantic Street Capital has made a majority investment in GAT Airline Ground Support, a provider of outsourced airline services at airports across the United States.

GAT Airline Ground Support was founded in 1965 and was the first FBO (fixed-base operator) in Mobile, AL. FBO’s are organization granted the right by an airport to provide aeronautical services such as fueling, hangaring, tie-down and parking, aircraft rental, aircraft maintenance, flight instruction, and similar services. Today, GAT offers a portfolio of services at 37 airports throughout the United States, including ramp services (aircraft ground handling; cabin appearance; cargo management; baggage handling; and aircraft towing), passenger handling (ticketing and check-in; baggage check-in; and gate & boarding), and other ancillary services (ground support equipment maintenance and fueling; lavatory and water services; deicing; and janitorial services). GAT has approximately 2000 employees and is headquartered in Mobile (www.gatags.com).

Atlantic Street acquired its majority interest in GAT from the founding Raines family. Boe Strange, Chief Executive Officer of GAT, will continue in his current position and remain a significant shareholder in the company.

“Ground operations represent mission critical services for airlines from an operational efficiency and safety standpoint. Carriers select outsource partners with strong performance records, and GAT has one of the best track records in the business,” said Peter Shabecoff, Atlantic Street Capital founder and Managing Partner. “We have looked at several ground services companies over the last several years and believe the team at GAT is well-positioned to take advantage of the trends and opportunities in the market.”

Atlantic Street Capital invests from $10 million to $30 million in middle market companies with EBITDA from $4 million to $15 million. Sectors of interest include consumer products and services, transportation and logistics, business services, and basic manufacturing. The firm was founded in September 2006 and is based in Stamford, CT (www.atlanticstreetcapital.com).

© 2017 Private Equity Professional | May 3, 2017

H.I.G. Expands ACG Materials

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ACG Materials, a portfolio company of H.I.G. Capital, has acquired North Florida Rock, a miner and processor of limestone products. The buy of North Florida Rock is the sixth add-on acquisition that ACG has completed since H.I.G. acquired the company at the end of 2012.

North Florida Rock’s products are used in infrastructure, agriculture and building products applications. The company owns and operates a quarry near Tallahassee in Marianna, FL and ships rocks across the Florida Panhandle, Alabama, and Georgia.

ACG Materials is a diversified minerals miner and processor with 20 mines, 4 downstream processing facilities and over 500 million tons of reserves across Oklahoma, Texas, Nevada, Washington and British Columbia. The company supplies varying grades of gypsum, anhydrite, limestone, caliche, sand & gravel, and aggregate products that serve industries such as building products (wallboard, plasters, decorative home goods), agriculture (fertilizer), infrastructure (roads, bridges), oil & gas (roads and well pads) and food & pharmaceuticals (animal feed, beer, baked goods). ACG Materials was founded as Harrison Gypsum in 1955 and is headquartered in Norman, OK (www.acgmaterials.com).

H.I.G. Capital acquired ACG Materials in 2012.  In 2013 the company acquired several aggregates sites in South Texas and expanded again in 2014 to give the company 12 operating pits in the region. In 2014 the company also acquired MK Crushing, with locations in Oklahoma and Kansas, to add to its limestone reserves. In January 2015, ACG acquired JA Jack (www.jajack.com), a Seattle-based limestone producer that specializes in high-quality limestone products such as grits and flours. In August 2015, ACG completed the buy of Art Wilson Company (www.awgypsum.com). Art Wilson mines, processes, and markets anhydrite, gypsum and limestone products used in agricultural, industrial, and commercial applications across Nevada, California, Washington, Oregon, and Idaho.

“We are pleased to support ACG Materials in its acquisition of North Florida Rock,” said Keval Patel, a Managing Director of H.I.G. Capital. “The investment further establishes ACG as a national, pure-play industrial minerals and aggregates provider and continues our strategy to expand ACG’s geographic reach and end market diversification. The Southeastern US remains a key expansion area for ACG and, as the market leader across the Florida Panhandle, North Florida Rock will help accelerate our growth in this region.”

“We are excited about the strategic expansion of our operations into the Southeastern US,” said Paul Harrington, CEO of ACG Materials. “North Florida Rock not only allows us to grow outside our core Oklahoma, Texas, and Pacific Northwest markets, but also significantly expands our customer footprint and portfolio of limestone products within our expertise of mineral processing.”

H.I.G. specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. has more than $20 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

© 2017 Private Equity Professional | May 3, 2017

Riverside Acquires Countrywide Grounds Maintenance

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The Dwyer Group, a franchising platform company of The Riverside Company, has completed the add-on acquisition of Countrywide Grounds Maintenance, a provider of commercial groundskeeping services in the UK. This is the 10th add-on acquisition Riverside has completed for Dwyer Group, which recently reached $1.5 billion in system-wide sales, and the second add-on acquisition in as many months.

Countrywide Grounds Maintenance offers commercial grass cutting, landscape maintenance, sports grounds maintenance and winter services (salting and snow removal). The company was founded in 1985 by Martin Stott and has more than 50 franchisees that maintain thousands of sites for customers across the UK. The company is based south of Manchester in Cheadle Hulme, UK (www.countrywidegrounds.com).

The Dwyer Group, acquired by Riverside in August 2014, is now the owner of 16 service-based franchise organizations: Aire Serv, Glass Doctor, The Grounds Guys, Five Star Painting, Molly Maid, Mr. Appliance, Mr. Electric, Mr. Handyman, Mr. Rooter, ProTect Painters, Rainbow International, Locatec, Window Genie, Neighborly, Bright & Beautiful, and Countrywide Grounds Maintenance. These brands collectively have more than 2,700 franchises throughout North America, UK and Germany. The Dwyer Group was founded in 1981 and is headquartered in Waco, TX (www.dwyergroup.com).

“Countrywide is a proven success story that expands Dwyer’s footprint and service offerings in the UK,” said Riverside Managing Partner Suzy Kriscunas. “This opens new avenues with customers and prospects while delivering cross-selling opportunities for franchisees.”

Dwyer continues to diversify its suite of service concepts, and remains an active acquirer. “We have an exceptional platform in Dwyer, and we’re eager to keep supporting Dwyer and its more than 2,700 franchises globally,” said Riverside Vice President Jason Fulton.

Working with Ms. Kriscunas and Mr. Fulton on the transaction for Riverside were Partner Sarah Roth, Senior Associate Chase Eckert, Associate Ryan Collins, Associate Connor Ryan and Operating Partner Tom Anderson.

Madison Capital, GE Capital, NXT Capital, NewStar Financial, Midcap Financial and Ares Capital provided financing for the transaction.

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 460 transactions. The firm’s international portfolio includes more than 80 companies. The firm is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).

© 2017 Private Equity Professional | May 3, 2017

Revelstoke Adds Operating Partner

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Denver-based Revelstoke Capital Partners has expanded its team with the addition of Eric Shuey as an Operating Partner.

“We are thrilled to have Eric as part of the Revelstoke team and we look forward to working closely with him to build value in our existing portfolio companies and to identify new and exciting investment opportunities,” said Simon Bachleda, Managing Partner at Revelstoke.

Mr. Shuey has more than 25 years of private equity investing, corporate finance and executive management experience in the healthcare industry. He previously served as a senior executive at Fresenius Medical Care, a company that produces medical supplies that are used to facilitate or aid renal dialysis, where he was involved with strategic initiatives, acquisitions and partnerships.

Earlier in career, Mr. Shuey was part of the senior management team of Liberty Dialysis that grew the company into a national provider of dialysis services prior to its sale to Fresenius in early 2012. He is also an active investor, founder and board member of healthcare services businesses and has served on the boards of Apixio; MedeAnalytics; National Cardiovascular Partners; Partners Surgical; Remedy Partners; and Sound Physicians. Mr. Shuey previously served as a Director at DB Capital Partners, the private equity arm of Deutsche Bank responsible for over $10 billion in assets, and as a Principal at Aurora Capital Group, a $1 billion private equity firm.

Mr. Shuey is currently on the board of directors of Encore Rehabilitation Services, a portfolio company of Revelstoke since January 2015. Encore – based in the Detroit suburb of Farmington Hills – is a regional provider of rehabilitative therapy services (physical, occupational and speech) and compliance and revenue cycle support services to skilled nursing facilities, assisted living facilities and home health agencies (www.encorerehabilitation.net).

Revelstoke invests from $10 million to $250 million in companies that have at least $5 million of EBITDA.  Sectors of interest include healthcare services and products; transportation and logistics; specialty distribution; energy and energy services; building products; business and outsourced services; marketing services; financial services; industrial services; and medical technology. The firm was founded in 2013 and is headquartered in Denver (www.revelstokecp.com).

© 2017 Private Equity Professional | May 3, 2017

New Hire at ParkerGale

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ParkerGale Capital has hired Jake Petoskey as a new Principal. Mr. Petoskey will be active with investment due diligence and working with portfolio companies to identify and implement operational improvements and new growth initiatives.

“Our operating impact on the portfolio is a key to our success, so we are excited to add Jake to our team. His private equity operations skills and roll-up-your-sleeves approach are a perfect match for ParkerGale and the small tech companies we buy,” said Jim Milbery, founder and Partner at ParkerGale Capital.

Prior to joining ParkerGale, Mr. Petoskey worked at Welsh, Carson, Anderson & Stowe (WCAS) for over five years as a Senior Associate where he led various operating initiatives across the firm’s healthcare and technology companies. Before joining WCAS, he spent three years at Capgemini Consulting as a management consultant.  Mr. Petoskey has a BA in Supply Chain Management from Michigan State University.

ParkerGale makes control investments in founder-owned, profitable technology companies with subscription or transaction-based revenue models. The firm was founded in 2014 by five former members of Chicago Growth Partners – Devin Mathews, Dave Chandler, Jim Milbery, Kristina Heinze and Ryan Milligan. ParkerGale is headquartered in Chicago (www.parkergale.com).

In November 2016 ParkerGale closed its debut fund above target at $240 million. The new fund has a balanced mix of limited partners that included family offices, pensions, managed accounts, endowments and funds of funds.

© 2017 Private Equity Professional | May 3, 2017

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