Archives for September 18, 2017

ParkerGale Adds Cici Zheng as Principal

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Cici Zheng has joined ParkerGale Capital as a Principal. Ms. Zheng is the fourth new team member to join ParkerGale since the firm closed its debut fund above target in November 2016 with $240 million of capital.

Ms. Zheng will be active with investment due diligence and will also take a lead role working with portfolio companies on growth strategies by developing and implementing programs that enhance go-to-market activities, clarify product positioning and deliver financial results.

“We are excited Cici has joined our team to help our companies grow faster and compete better,” said Jim Milbery, a co-founder of ParkerGale. “Her skills are a perfect match for what our management teams need and her energy is contagious. Cici brings us a potent mix of experience and her leadership will ensure our companies are well looked after.”

Prior to joining ParkerGale, Ms. Zheng worked at Bain & Company as a Case Team Leader where she advised clients across multiple industries on engagements including private equity due diligence, customer strategy, marketing, and merger integrations. Before joining Bain, she was an Associate at HealthCare Royalty Partners as well as an Analyst at UBS where she was a part of the healthcare investment banking team. Ms. Zheng has a BA in Economics from the University of Pennsylvania and an MBA from Harvard.

ParkerGale makes control investments in profitable technology companies that have at least $2 million of EBITDA. Companies with subscription or transaction-based revenue models are preferred. 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).

© 2017 Private Equity Professional | September 18, 2017

Russell Cassella Joins Revelstoke

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Revelstoke Capital Partners has added Russell Cassella to its team as a new partner of the firm.

“Our team has worked closely with Russ for many years and we value his transaction sourcing, deal execution, and strategic insight immensely,” said Simon Bachleda, Managing Partner and Co-Founder of Revelstoke. “We look forward to having Russ be an integral member of our team and assist us in building great middle market healthcare and business services companies. Russ’s existing relationships with our investment team, operating partners, and portfolio company CEOs will facilitate a quick transition.”

Since January 2014, Mr. Cassella has been a partner with GCM Grosvenor, a large independent alternative asset management firm with approximately $50 billion in assets under management. At GCM Grosvenor, he was active with companies across a variety of industries, including healthcare and business services where he served as a member of the board of directors for numerous portfolio companies. Prior to his time at GCM Grosvenor, Mr. Cassella spent five years with the customized fund investment group (CFIG) of Credit Suisse (in January 2014 GCM Grosvenor acquired the CFIG from Credit Suisse). Earlier in his career he held investment banking, operating, and consulting positions with Deutsche Bank, Diageo, and Deloitte Consulting, respectively. Mr. Cassella has a BS from Carnegie Mellon and an MBA from New York University.

“I have enjoyed my time at GCM Grosvenor and am extremely grateful for the support GCM has shown me throughout my tenure. I look forward to working with Revelstoke and continuing their vision of building a top performing healthcare and business services focused middle market private equity firm,” said Mr. Cassella.

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. Revelstoke has $1 billion of assets under management, and since the firm’s inception in mid-2013, has completed 33 acquisitions, which includes 8 platform companies and 25 add-on acquisitions. The firm is headquartered in Denver (www.revelstokecp.com).

© 2017 Private Equity Professional | September 18, 2017

Frontenac Buys Schlotterbeck & Foss

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Schlotterbeck & Foss, a manufacturer of specialty sauces and condiments, has been acquired by Frontenac in partnership with the company’s management team. Abacus Finance Group provided the senior debt for this transaction and also made an equity co-investment.

Schlotterbeck & Foss (S&F) develops, manufactures and distributes a range of gourmet sauces, marinades, condiments, salsas, ice cream toppings, spreads and salad dressings. The company has some branded products but the bulk of its operations are used for private label manufacturing. S&F manufactures its specialty food products in small batches with natural, non-GMO and organic ingredients in a SQF-certified facility that opened in 2014.

Condiments are S&F’s largest product category and are sold across all channels. The company’s meat and seafood condiments include such products as cocktail sauce, bacon jam, country ketchup, crab cake sauce, horseradish aioli, blue cheese mustard and tartar sauce. S&F also offers salsas with flavors like chipotle corn, chili, harissa sun-dried tomato, mango pineapple and Texas caviar.

S&F was founded in 1866 by Augustus Schlotterbeck and Charles Foss and was operated by three generations of the Foss family until it was sold in 2003 to Paul and Kathie Dioli. Today, S&F is headquartered in Westbrook, ME (www.schlotterbeck-foss.com).

“We have tracked the private label and sauces sectors for some time and S&F is a standout in these sectors providing the highest quality products. We are excited to partner with the company and its leadership team,” said Betsy Williamson, a Principal with Frontenac.

Frontenac invests in lower middle-market businesses that operate primarily in the food, industrial, and services industries. The firm was founded in 1971 and is headquartered in Chicago (www.frontenac.com).

Abacus Finance Group was the Administrative Agent and Sole Lender for $21.7 million in senior secured credit facilities to support this acquisition and the firm also made an equity co-investment. “We have had a great relationship with Abacus team for many years, and we are thrilled to close our first transaction with them,” said Walter Florence, Frontenac Managing Partner.

“It was great to work with the team at Frontenac, and we were impressed with their knowledge of the food industry space,” said Tim Clifford, President and CEO of Abacus. “The assurance of a quick close and our flexibility – key elements of our Total Partnership Approach™ – were all important factors for Frontenac.” Abacus team members involved in the transaction included Aized Rabbani, Rafal Rydzewski and Tim Wong.

“Abacus conducted its due diligence process efficiently,” said Ms. Williamson, “and they were able to close this transaction within a very short timeframe.”

Abacus provides cash flow-based senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million.  New York-based Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).

Lincoln International was the financial advisor to S&F on this transaction.

© 2017 Private Equity Professional | September 18, 2017

H.I.G. Sells Accupac to J.H. Whitney

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H.I.G. Capital has sold its portfolio company Accupac to J.H. Whitney Capital Partners. H.I.G. acquired Accupac in April 2003.

Accupac is a provider of outsourced manufacturing and packaging services to large pharmaceutical and over-the-counter (OTC) personal care product manufacturers. The company specializes in liquid topical and oral care products, including skin creams, toothpastes, moisturizing lotions, mouthwash and other personal care products, many of which require FDA approval. All Accupac manufacturing facilities are FDA registered and cGMP (“Current Good Manufacturing Practice”) compliant. Accupac, led by CEO Paul Alvater, was founded in 1974 and is headquartered northwest of Philadelphia in Harleysville, PA. The company has two manufacturing facilities, one at its headquarters in Harleysville and a 221,000 square foot facility – which began operations in October 2012 and doubled the company’s manufacturing capacity – in Lakewood, NJ (www.accupac.com).

“We have had a great partnership with the Accupac management team and we are proud of the changes made to further position the company for success,” said John Von Bargen, a Managing Director of H.I.G. Capital. “Through substantial investment in people and facilities, with a constant focus on customers, Accupac has developed into a market leader. We look forward to seeing Accupac continue its successful growth with J.H. Whitney Capital Partners.”

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 $22 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City and Rio de Janeiro (www.higcapital.com).

J.H. Whitney invests in small and middle market companies that are active in the consumer, healthcare, specialty manufacturing, and business services sectors. The firm was founded in 1946 and is based in New Canaan, CT (www.whitney.com).

© 2017 Private Equity Professional | September 18, 2017