Archives for August 29, 2017

Sverica Keeps Building Resonetics

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Resonetics, a portfolio company of Sverica Capital Management, has acquired Aduro Laser, a manufacturer of laser micro-machined medical grade components used in the medical device industry specifically in the heart, peripheral vascular and minimally invasive surgery markets.

Aduro’s business model and proprietary technology allow the company to shorten lead times which enables its customers to iterate rapidly and reduce time to market. The company was founded in 2013 by Grayson Beck and Demian Backs and is based near Sacramento in Davis, CA (www.adurolaser.com).

Resonetics provides laser micro-machining manufacturing services for medical device and diagnostic companies, as well as other markets requiring laser processing of polymers and glass. According to Sverica, the company offers the world’s largest capacity for laser micro-machining polymers in ultra-violet wavelengths. The company also designs, builds and services purpose-built laser workstations to meet specific customer needs. Resonetics has approximately 275 employees and is headquartered in Nashua, NH (www.resonetics.com).

“We are very excited to partner with Grayson Beck and Demian Backs, who have created a disruptive business model in Aduro,” said Tom Burns, Resonetics CEO. “We share a similar culture with an emphasis on innovation, speed and customer satisfaction. Resonetics will expand capacity with a new facility, additional equipment and more engineering resources to keep lead times the best in the industry.”

The acquisition of Aduro Laser is the second add-on completed by Resonetics since being purchased by Sverica in 2014. The first add-on was completed in November 2015 with the buy of Kettering, OH-based Mound Laser, a manufacturer of laser micro-machined metal components used in the medical device and defense industry. “We are excited to continue to build the capabilities of the premier pure-play laser micro-machining company in the medical device manufacturing industry,” said Dave Finley, Managing Director at Sverica. “Resonetics was acquired in 2014 as a single-location, polymer-focused laser processor of components. Less than three years later, we have entered the metals segment of the industry and service customers globally through six locations. Resonetics is a textbook example of what Sverica strives to do in lower-middle-market investing.”

Sverica invests from $10 million to $40 million in US or Canadian-based companies with enterprise values under $100 million. Sectors of interest include information technology & business services, healthcare services and high value industrial products. 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 29, 2017

Century Park and Akoya Exit ICM Silicones

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Century Park Capital Partners and Akoya Capital Partners have sold ICM Silicones Group to CHT Group, a specialty chemicals conglomerate headquartered in Germany.

ICM is a formulator and manufacturer of specialty silicone materials. The company’s product catalog includes over 800 proprietary formulations spanning emulsions, elastomers, antifoams, gels and gums. ICM sells its specialty silicone products to over 2,000 customers operating in the automotive, cosmetics, electronics, food processing, industrial, personal care and thermal management end markets. ICM was founded in 1989 and is led by CEO Levi Cottington. The company is headquartered in the southwestern Michigan city of Cassopolis and has additional manufacturing operations in Richmond, VA; Bridgwater, UK; Milan, Italy and Tianjin, China (www.icm-silicones.com).

In 2012, Century Park acquired majority control of ICM in partnership with Akoya from Ken Charboneau, a former Dow silicones chemist who founded the company in 1989. During the term of Century Park’s and Akoya’s ownership, ICM’s revenues and earnings increased approximately threefold though a combination of organic growth and add-on acquisitions.  The first add-on acquisition was the buy of Path Silicones, a manufacturer of a complementary range of silicone polymers. Then in April 2014, ICM acquired the Amber Chemical Company, a UK-based maker of silicone emulsion and elastomer applications. At the time of the acquisition, Amber Chemical had five operating subsidiaries: QSi (Richmond, VA); Siovation (Lawrenceville, GA); Treco (Milan, Italy); ACC Silicones (Bridgwater, UK); and ACC Silicones (Tianjin, China). The buy of Amber Chemical greatly expanded ICM’s geographic and end market reach and bolstered its already strong presence in specialty emulsions. Century Park and Akoya also invested in ICM’s infrastructure and in January 2016 the company opened two new research and development laboratories in Cassopolis and Tianjin.

“Century Park and Akoya have been invaluable partners for ICM. Their support of large investments in new labs, people and R&D resources, as well as add-on acquisitions, allowed ICM to become the global leader it is today,” said Mr. Cottington.

“ICM has grown into a truly global silicones player that can meet the formulation needs of the industry’s most demanding end customers.  We are proud to have helped build one of the largest independent silicone specialty chemical formulators in the world,” said Martin Sarafa, Managing Partner with Century Park.

Century Park invests from $10 million to $40 million in middle-market companies that have revenues of $20 million to $100 million and EBITDA of $3 million to $15 million.  Sectors of interest include chemicals, medical products and services, business services, engineered products, and consumer products. The firm is based near Los Angeles in El Segundo, CA (www.centuryparkcapital.com).

“Our partnership is delighted that under our ownership we were able to help ICM aggressively transition itself from a single location regional business to a successful multi-site global enterprise. We are convinced that the best days of ICM are ahead of it,” said Don Stanutz, Akoya Managing Director.

Akoya Capital Partners invests in US-based companies with revenues from $20 million to $200 million and EBITDA of at least $3 million. Sectors of interest include specialty chemicals, industrial products and distribution, consumer foods and products, and professional information services. The firm is headquartered in Chicago (www.akoyacapital.com).

The CHT Group, the buyer of ICM, is a global manufacturer of specialty chemicals. The company has approximately 2,000 employees and operates in more than 120 countries. CHT Group was founded in 1953 and is headquartered near Stuttgart in Tübingen, Germany (www.cht.com).

KeyBanc Capital Markets was the financial advisor to ICM on this transaction.

© 2017 Private Equity Professional | August 29, 2017

AEI Acquires BHI Energy

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AE Industrial Partners (AEI) has acquired BHI Energy, a provider of specialty services and staffing to the power generation, energy and government sectors, from Harvest Partners which acquired the company in November 2010 from Berkshire Partners and Summit Partners. The buy of BHI is the fifth platform investment for AE Industrial Partners Fund I.

BHI Energy is a specialty utility services company that provides onsite services to support the daily operations, routine maintenance and capital investment requirements of nuclear, fossil and renewable power facilities, as well as government decommissioning projects. The company’s staffing services include both professional & technical staffing and recruitment process outsourcing. BHI’s workforce includes more than 8,500 project management and technical, professional and craft employees operating at more than 130 global project locations. The company, led by CEO Bob Decensi, is headquartered south of Boston in Weymouth, MA (www.bhienergy.com).

“We are excited to work with the outstanding team at AEI, and benefit from their deep and unique experience partnering with specialty service providers in our end markets,” said Mr. Decensi. “BHI is well-known for its commitment to safety, quality, customers and employees. AEI brings additional expertise, relationships and financial resources necessary to continue to grow our suite of service offerings we can provide to our customer base.”

AEI invests in the aerospace, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

“With a long history in the nuclear power generation market, growing service offerings in the renewables, transmission and distribution, and oil & gas markets, and a sterling reputation for safety and quality, BHI is truly a premier service provider in the power generation sector,” said Michael Greene, Managing Partner of AEI. “AEI looks forward to partnering with BHI to accelerate its growth in the US power generation and broader infrastructure markets.”

Harvest Partners, the seller of BHI, invests in companies with $20 million to $100 million of EBITDA and total enterprise values of $100 million to $1 billion.  The firm invests in four industry verticals: business services and consumer; healthcare services; industrial services; and manufacturing & distribution. Harvest was founded in 1981 and is based in New York (www.harvestpartners.com).

“We enjoyed working closely with Bob Decensi and the BHI Energy executive team to build a market leading provider of specialty services in the utility and energy sectors,” said Michael DeFlorio, Senior Managing Director of Harvest Partners. “We look forward to watching the company continue to flourish as it enters a new phase of development in partnership with AEI.”

“Harvest has been an exceptionally supportive partner, delivering valuable financial and operational guidance that leaves us well-positioned as we move into our next phase of growth,” said Mr. Decensi.

Robert W. Baird & Co. and Harris Williams & Co. were the financial advisors to BHI on this transaction.

© 2017 Private Equity Professional | August 29, 2017

Blackstreet Exits Distinctive Apparel

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Blackstreet Capital has sold DAI Investment Inc. (DBA Distinctive Apparel International), an owner of apparel brands. The buyer of DAI was not revealed by Blackstreet Capital.

DAI is the owner of five apparel brands including Chadwicks of Boston, Chasing Fireflies, Metrostyle, Territory Ahead and TravelSmith. The company sells its brands direct to consumers through both online and print catalog channels. DAI is headquartered south of Boston in Randolph, MA (www.chadwicks.com) (www.metrostyle.com) (www.territoryahead.com) (www.chasing-fireflies.com) (www.travelsmith.com).

Blackstreet acquired DAI in 2011 and completed the add-on acquisitions of Territory Ahead in 2013 and Chasing Fireflies and TravelSmith in 2016. During its term of ownership, the company made improvements in both operations and profitability. “The DAI management team, led by CEO Aldus Chapin, executed on the acquisition, turnaround and successful revitalization of DAI’s portfolio of iconic brands,” said Murry Gunty, Managing Partner at Blackstreet. “We are excited for the new opportunities available to the team and wish them continued success with their new partners.”

Blackstreet makes control investments of up to $15 million in corporate orphans and “storied” companies in transition that have from $25 million to $150 million of revenue. Sectors of interest include niche manufacturing, consumer and industrial products, value added distribution, specialty retail, business services, healthcare services and devices, media and communications, education and training, and multi-unit restaurants. The firm was founded by Mr. Gunty in 2002 and is based in Chevy Chase, MD (www.blackstreetcapital.com).

© 2017 Private Equity Professional | August 29, 2017