Archives for August 10, 2017

SK Capital to Acquire Perrigo API

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SK Capital has signed an agreement to acquire Perrigo API, the active pharmaceutical ingredients business of publicly-traded Perrigo Company. The transaction is expected to close during the fourth quarter and the company will be renamed prior to closing.

Perrigo API is a developer and manufacturer of generic active pharmaceutical ingredients (APIs) and finished dose forms (a tablet, capsule or solution that contains an API) for the branded and generic pharmaceutical industries. The business was founded in 1987 and has operations primarily located in Israel with supporting functions in the US and India (www.perrigo.com/api).

As part of the agreement, Perrigo and SK Capital have agreed to enter into a long-term supply agreement for Perrigo API to supply multiple existing commercial and pipeline APIs to Perrigo.

“Perrigo API is a proven industry leader with strong innovation and manufacturing capabilities and a quality and customer-centric culture,” said Aaron Davenport, Managing Director at SK Capital. “The skills and expertise of the leadership team, dedicated employee-base and the quality of the manufacturing facilities have enabled the business to establish a strong market position.”

SK Capital specializes in the specialty materials, chemicals and healthcare sectors and typically invests equity of $100 million to $200 million in each portfolio company. SK Capital’s portfolio companies generate revenues of approximately $6 billion annually and employ approximately 8,700 people. The firm has more than $1.9 billion of assets under management and is based in New York (www.skcapitalpartners.com).

The buy of Perrigo API complements other companies that SK Capital owns and operates in the active pharmaceutical ingredients and finished dose forms value chain including Noramco, Tasmanian Alkaloids and Halo Pharmaceutical, all of which will continue to operate independently post-acquisition.

Four experienced Israeli pharmaceutical executives will be joining the board of directors of Perrigo API in partnership with SK Capital: Itzhak Krinsky, Meron Mann, Iftach Seri and Arik Yaari. These executives bring decades of experience managing pharmaceutical businesses including various roles as executives with Teva Pharmaceutical and Sun Pharma.

“We believe tremendous value can be created through further investments in people, company culture, processes and technologies,” said Mr. Seri. “We look forward to collaborating with the management team and employees to support their continued growth and building a successful working relationship with Perrigo through our long-term supply agreement.”

Perrigo Company (NYSE: PRGO) is an international manufacturer of private label over-the-counter pharmaceuticals based in Allegan, MI (www.perrigo.com).

RBC Capital Markets and Rothschild acted as SK Capital’s joint buy side advisors on this transaction.

© 2017 Private Equity Professional | August 10, 2017

Wynnchurch Sells Senco

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Wynnchurch Capital has completed the sale of Senco,  a designer, manufacturer and marketer of branded fastening tools and collated staples, nails and screws, to publicly-traded Kyocera Corporation.

Senco’s products are used in a variety of professional fastening segments including home construction and remodeling, furniture, manufactured housing, and pallets and crating. Senco products are sold through professional distribution outlets in more than 40 countries. The company, led by CEO Ben Johansen, is based in Cincinnati (www.senco.com).

“Wynnchurch provided tremendous support, including access to financial and operational resources, which helped management grow the business, drive continuous improvement and execute on our strategy,” said Mr. Johansen. “In addition, Wynnchurch was instrumental in leading and executing several strategic acquisitions, furthering our efforts in becoming a full-service, world class organization.”

Senco was founded in 1935 by Albert Juilfs as the Springtramp Eliminator Company. Springtramps were devices that improved automotive spring action and eliminated a common vibration problem with cars at the time.  In 1947 the company entered the fastener business with the creation of a bag and carton stapler for Federated Department Stores. The company changed its name to Senco in 1951. In May 2009 Senco filed for Chapter 11 bankruptcy protection. Wynnchurch was the stalking horse bidder in the sale process and purchased the company in July 2009.

“Senco represented an opportunity to rejuvenate a company with a strong brand, broad distribution, and differentiated products,” said Frank Hayes, Co-Managing Partner at Wynnchurch. “We are very proud and appreciative of the team’s leadership and accomplishments; significant value creation was driven through improved operational and go-to-market strategies, while also executing on key strategic add-ons.”

Kyocera Corporation (NYSE:KYO), the buyer of Senco, is a supplier of cutting tools, industrial ceramics, electronic components, printers, copiers, solar power generating systems, mobile phones and semiconductor packages. The company was founded as Kyoto Ceramic Company in 1959 and is headquartered in Kyoto, Japan (www.kyocera.com).

Wynnchurch Capital makes investments in middle-market companies that have revenues of $50 million to $1 billion. Sectors of interest include aerospace & defense, automotive, building products, chemicals, food, logistics, energy services & equipment, environmental services, industrial products & services, metals & mining, and paper & packaging. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit (Bloomfield Hills), Los Angeles (El Segundo), and Toronto (www.wynnchurch.com).

“Senco is an iconic brand in the Pro-Trades channels,” said Steve Welborn, Managing Director at Wynnchurch. “We are delighted to have worked closely with the management team in restoring its legacy, and are proud of the growth and accomplishments achieved in partnership with management during our ownership period.”

Lincoln International was the financial advisor to Senco and Vedder Price was the company’s legal advisor.

© 2017 Private Equity Professional | August 10, 2017

Gabelli Private Equity Partners Formed

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Gabelli Private Equity Partners (GPE) has been formed by Associated Capital Group (ACG) to invest in leveraged buyouts and restructuring of small and mid-sized companies. ACG will fund the activities of the new firm with up to $150 million of capital.

“GPE is a logical extension of Gabelli’s investment platform based on our 40-year history of valuing companies on a private market value basis,” said Doug Jamieson, President and Chief Executive Officer of ACG. “As further background, in the mid-80’s, we launched a private equity fund, Gabelli-Rosenthal, which had in excess of $300 million of capital.”

Publicly-traded Associated Capital Group (NYSE: AC) provides alternative investment management services and institutional research services. Gabelli & Company Investment Advisers (GCIA) is a subsidiary of the company which in turn owns Gabelli & Partners which serves as the general partner or investment manager to different types of investment funds. Associated Capital was founded in November 2015 when it was spun out from publicly traded GAMCO (NYSE: GBL), an investment adviser and brokerage firm. GAMCO was founded in 1977 as the Gabelli Asset Management Company by Mario Gabelli.

Gabelli & Partners is based in Rye, NY (www.gabellipartners.com).

© 2017 Private Equity Professional | August 10, 2017

Sverica Acquires Women’s Health USA

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Sverica Capital Management has acquired a majority interest in Women’s Health USA. This acquisition marks Sverica’s fourth investment from its fourth fund which closed at its $275 million hard cap in March 2016.

Women’s Health USA (WHUSA) is a national physician practice management organization focused on women’s health, including obstetrics, gynecology and in vitro fertilization. The company provides physician practices with a full suite of management services including revenue cycle management, payor contracting, electronic medical records and technology management, finance and accounting, and risk management. The company was founded by its CEO Robert Patricelli in 1997 and is based in Avon, CT (www.whusa.com).

“We were attracted to WHUSA because of their joint venture model which allows physicians to remain autonomous but also leverage all the resources and expertise of a national practice management platform,” said Gregg Osenkowski, a Vice President at Sverica.

“Our new partnership with Sverica will give WHUSA the capital and backing to grow faster and to be more supportive of women’s health physicians who are looking to remain independent but at the same time be part of a national network of high quality professionals,” said Mr. Patricelli.

Sverica invests from $10 million to $40 million in US or Canadian-based companies with enterprise values under $100 million. Sectors of interest include IT & business services, healthcare services and high value industrial. Sverica was founded in 1993 and has raised over $700 million of capital across four funds.  The firm has offices in Boston and San Francisco (www.sverica.com).

© 2017 Private Equity Professional | August 10, 2017

Western Reserve Expands Team

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Western Reserve Partners has expanded its investment banking team with the addition of three new professionals.

Western Reserve is a Cleveland-based investment bank that predominantly serves middle market companies with M&A advising, capital raising and other financial services. The firm’s sectors of focus include industrial, business services, consumer, health care, technology and real estate (www.wesrespartners.com).

The three new hires are Brennan Igoe, Vice President; John Paul Siemborski, Vice President; and Robert Exler, Analyst.

Mr. Igoe previously worked at Harris Williams & Co. in the technology, media, and telecom group, with a focus on software M&A transactions. He also has prior experience as a consultant at Harbor Research and as a Product Manager for TigerLogic Corporation.  Mr. Igoe holds a Master of Business Administration from Dartmouth College and received his Bachelor in Economics from Yale University.

Mr. Siemborski has 11 years of financial advisory experience, most recently serving in the transaction advisory services practice of Ernst & Young. He earned a Bachelor of Business Administration and a Master of Science in Accountancy from Loyola University Chicago.

Mr. Exler joins Western Reserve after serving as an Analyst Intern for the firm last summer. He earned a Bachelor of Science in Finance and Chemistry from John Carroll University.

Western Reserve was acquired by Citizens Bank (NYSE: CFG) in May 2017. The bank has been actively expanding its capital markets activities since it went public in September 2014. Between 1988 and 2014, Citizens was a wholly owned subsidiary of The Royal Bank of Scotland which sold its remaining 21% stake in the company in October 2015. Today, Citizens (www.citizensbank.com) is ranked as the 20th largest bank in the United States.

© 2017 Private Equity Professional | August 10, 2017