Archives for July 7, 2017

Dubin Clark Exceeds Target

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Middle market investor Dubin Clark & Company has closed its second fund, DCCP Fund II, LP. The new fund was oversubscribed and exceeded its $100 million target. Limited partners in the new fund include endowments, pensions, insurance companies, fund‐of‐funds, family offices, and high‐net‐worth individuals.

“We are pleased with the success of our fundraising effort, and excited to be partnering with some of the most capable, industry‐leading institutional investors out there,” said Tom Caracciolo, Managing Partner of Dubin Clark. “Our investors recognized and responded to our ability to source attractive opportunities and create value through both organic growth initiatives and add‐on acquisitions.”

Dubin Clark invests in companies that have from $10 million to $100 million in sales and at least $2 million of EBITDA. Sectors of interest include manufacturing, value-added distribution, and services. With the closing of the new fund, Dubin Clark now has more than $270 million of capital under management. The firm was founded in 1984 and has offices in Boston, MA and Ponte Vedra Beach, FL (www.dubinclark.com).

Fund II has already made four platform investments and has also completed three add‐on acquisitions. The four platform companies are: BBJ Rentals, a provider of special event linen rental products and services to weddings, social and corporate events; CE Rental, a full‐service special event rental company servicing the Mid‐Atlantic region; Advanced Pavement Group, a provider of maintenance and repair services to commercial parking lots and related areas for property managers and owners of apartment complexes, strip malls and other commercial and retail establishments; and Daystar Products International, a manufacturer of lift and leveling kits and other automotive performance aftermarket parts for off‐ and on‐ road trucks, Jeeps, and multi‐purpose vehicles.

“Our approach has always been centered on one fundamental concept – it’s all about people,” said Brent Paris, Managing Partner of Dubin Clark. “We are excited to have an exceptional group of investors who understand the merits of this approach, and look forward to continuing to partner with talented management teams to institutionalize and grow our businesses, and deliver strong investment returns for our limited partners.”

NovaFund Advisors (www.novafundadvisors.com), a private placement and advisory firm based in Darien, CT, assisted with this fundraise. Willkie Farr & Gallagher (www.willkie.com) provided legal services.

© 2017 Private Equity Professional | July 7, 2017

TPG Acquires Blue Man Group

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Cirque du Soleil, a producer of live artistic entertainment and a portfolio company of TPG since April 2015, has agreed to acquire Blue Man Productions from Chris Wink, Phil Stanton, and the GF Capital Private Equity Fund.

Blue Man Group was created in 1991 by three long-time friends from New York City: Chris Wink, Phil Stanton and Matt Goldman. The three founders collaborated and created a ground-breaking performance centered on a bald and blue character they called Blue Man. Today, Blue Man Productions is a global entertainment company best known for the award-winning Blue Man Group show, performed in over 20 countries and seen by more than 35 million people worldwide since 1991. The Blue Man Group show is a combination of art, music, comedy and technology and appeals to a broad range of age groups and cultural backgrounds. Blue Man Productions is based in New York (www.blueman.com).

According to TPG, the acquisition of Blue Man widens Cirque du Soleil’s audience pool, adding to their portfolio six resident productions (New York, Boston, Las Vegas, Chicago, Orlando and Berlin) as well as two touring productions – one international and one in North American.

“We want to broaden our horizons, develop new forms of entertainment, reach out to new audiences and expand our own creative capabilities. Today, we are taking a decisive step towards materializing these ambitions,” said Daniel Lamarre, President and CEO of Cirque du Soleil. “We are extremely excited to welcome the iconic Blue Man Group to our portfolio of shows. Their unbridled creativity makes them a perfect cultural fit for Cirque du Soleil. Our extensive marketing research also confirms that Blue Man Group is a strong ‘love brand’ with a solid fan base – something else our two brands have in common.”

“We find ourselves on the brink of our next chapter, and we have big ideas for the future,” said Mr. Wink. “Only a global creative powerhouse like Cirque du Soleil could help us achieve our vision. Their commitment to artistic quality and originality is unparalleled and their creative resources are vast. It is an honor to join forces with their organization.”

Cirque du Soleil (“Circus of the Sun”) is a Canadian entertainment company. The company is considered to be one of the largest theatrical producers in the world and will produce 18 international shows in 2017 with annual revenues estimated at more than $800 million.  The company has approximately 4,000 employees, including 1,300 performing artists from close to 50 different countries. Cirque du Soleil was founded in 1984 by two former street performers, Guy Laliberté and Gilles Ste-Croix, and is headquartered in Montreal (www.cirquedusoleil.com).

TPG was founded in 1992 and makes investments throughout North America, Europe, Asia and Australia.  Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare.  In May 2016, TPG held a final close of its latest fund, TPG Partners VII, LP, with $10.5 billion in commitments. The firm has offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, Istanbul, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Singapore, and Tokyo (www.tpg.com).

Goldman Sachs & Co. was the financial advisor to Blue Man Group.

© 2017 Private Equity Professional | July 7, 2017

Swander Sells Lavo

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Swander Pace Capital has sold Lavo, a manufacturer and marketer of laundry detergent, household cleaners, fabric softeners and bleach, to KIK Custom Products, a portfolio company of Centerbridge Partners since July 2015.

Swander Pace acquired Lavo in July 2008 and today, according to the firm, Lavo is the leading independent manufacturer and marketer of laundry and cleaning products in Canada. Products include bleaches, liquid detergents, liquid fabric softeners, fabric softener sheets, all-purpose cleaners, glass and surface cleaners, cream cleansers, and powder cleansers. Lavo sells its products through grocery stores, pharmacies, mass retailers, and warehouse clubs. Company owned brand names include La Parisienne, Hertel, Springtime, Old Dutch, Arctic Power, and ABC. Lavo also offers private label laundry products and sells bulk bleach to the industrial sector. The company has approximately 425 employees and has a 135,000 square-foot manufacturing facility in Montreal which is also the company’s headquarters (www.lavo.ca).

“The strong heritage of these brands and world class capabilities served as the foundation of our growth strategy,” said Roger Dickhout, Chief Executive Officer of Lavo. “Our ability to leverage best practices from other Swander Pace companies, continue to build the company’s core competencies, capitalize on growth opportunities, and successfully integrate the Arctic Power and ABC brand acquisitions were critical drivers of value creation. We are pleased that KIK can help create future opportunities for the company.”

 KIK Custom Products is a contract and private label manufacturer of consumer products in the laundry, household cleaners, personal care, automotive, spa and pool, and over-the-counter medicated and pharmaceutical categories. The company is based north of Toronto in Concord, Ontario (www.kikcorp.com).

“We are grateful to the Lavo team and all of our employees for their hard work and contributions during our ownership,” said Andrew Richards, Managing Director of Swander Pace. “We look forward to watching the team continue to grow and flourish as part of the KIK organization.”

Swander Pace invests in middle-market consumer products companies including branded and non-branded manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $500 million in revenues. Swander Pace has raised over $1.3 billion of equity capital through five private equity funds and has led investments in more than 45 consumer products companies.  Swander Pace was founded in 1996 and has offices in San Francisco; Bedminster, NJ; and near Toronto in Burlington, ON (www.spcap.com).

Centerbridge Partners invests from $50 million to $300 million in US based leveraged buyouts and distressed securities. The firm has $25 billion of capital under management and is headquartered in New York with an additional office in London (www.centerbridge.com).

Sawaya Segalas & Co. (www.sawayasegalas.com) was the financial advisor to Lavo and Swander Pace Capital.

© 2017 Private Equity Professional | July 7, 2017

White Wolf Adds to Staffing Platform

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NSC Technologies, a portfolio company of White Wolf Capital since November 2016, has acquired Superior Resource Group (SRG), a provider of contract engineering services, such as skilled trades staffing and direct placements, to a range of clients in a variety of industries.

NSC provides staffing and workforce management services – including both direct hires and contingent employees – to a wide range of markets including defense, marine, energy and industrial. The company was founded in 2000 by Paul Rodriguez and he has continued as the President and CEO of the company under White Wolf ownership. NSC has offices in Bremerton, WA; Honolulu, HI; San Diego, CA; Jacksonville, FL; Mobile, AL; Houma, LA; and is headquartered in Portsmouth, VA (www.nsc-tech.com).

According to White Wolf, this transaction will allows both NSC and SRG to expand their service offerings to their clients. “We are really excited about this acquisition and look forward to partnering with SRG’s management team. NSC is committed to providing the necessary resources and capital to support further growth and expansion,” said Mr. Rodriguez.

SRG is based in Green Bay, WI (www.superior-rg.com).

NSC is seeking add-on acquisitions of both regional and national providers of skilled-labor staffing and workforce management services that have revenues of $5 million to $50 million. Contact Elie Azar, Managing Director, at [email protected].

White Wolf makes investments in companies with $10 million to $100 million in revenues and up to $10 million in EBITDA.  Industries of specific interest include manufacturing, business services, information technology, security, aerospace and defense. The firm was founded in 2011 and is based in New York (www.whitewolfcapital.com).

© 2017 Private Equity Professional | July 7, 2017

Ashland Buys Boccella Precast

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Ashland Capital Partners has acquired Boccella Precast, a manufacturer of structural precast concrete products.

Boccella’s pre-stressed hollow core concrete plank products are used predominantly in the Northeast and Mid-Atlantic regions of the United States, with a focus on the New York City market. The company’s products are used in a variety of applications including the construction of affordable housing, dormitories, apartment buildings, condominiums, hotels and educational facilities. Boccella was founded in 1969 and is headquartered bear Philadelphia in Berlin, NJ (www.boccellaprecast.com).

Main Street Capital also participated in this transaction by funding $18.6 million in a combination of first-lien, senior secured term debt and a direct equity investment. In addition, Main Street is providing Boccella an undrawn credit facility to support its working capital needs. Main Street (NYSE:MAIN) provides long-term debt and equity capital to middle market and lower middle market companies that have annual revenues ranging from $10 million to $150 million. The firm is based in Houston, TX (www.mainstcapital.com).

Ashland Capital Partners invests in companies with annual revenues of at least $10 million and cash flows of at least $3 million. Sectors of interest include industrial manufacturing and services; distribution and logistics; and business services. The firm was co-founded by John Lorentzen and Jim Lynch and is based in Chicago (www.ashlandcap.com).

© 2017 Private Equity Professional | July 7, 2017