Archives for October 2017

Arsenal Jumps Into Color Concentrates

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Arsenal Capital Partners has completed the acquisitions of Carolina Color Corporation and Breen Color Concentrates in partnership with the management teams of each company.

Now under common ownership, the combination of Breen and Carolina Color creates, according to Arsenal, a leading specialty color and additive concentrate supplier in the plastics market. The combined business has five manufacturing facilities throughout the US.

Carolina Color is a supplier of color concentrates that are used in the plastics industry for products that are sold into a wide variety of end markets. The company, founded in 1967, is family-owned and is based near Charlotte in Salisbury, NC (www.carolinacolor.com).

Breen, a portfolio company of Norwalk, CT-based Capital Partners since February 2014, is also a supplier of color concentrates for the plastics industry with a focus on the wire & cable, packaging, and consumer end markets. The company is based in Lambertville, NJ (www.breencolor.com).

“I am excited about our new partnership with Arsenal and believe they are uniquely positioned to support our next phase of growth and development,” said Matt Barr, Vice Chairman of Carolina Color. “Arsenal has significant experience in the specialty chemical and plastics sectors, as well as a highly knowledgeable team that will help Carolina Color and Breen grow.”

Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million in enterprise value.  Industries of specific interest include specialty industrials and healthcare companies. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

“We are excited to be partnering with great leadership teams that have a long history of delivering continued innovation and sustained growth. This combination represents the next phase of growth for both businesses and is an important milestone in our strategy to build a leading color concentrate business offering customized and proprietary solutions,” said Tim Zappala, a Partner of Arsenal. “We look forward to continue their track records of growth through both organic initiatives, as well as building through strategic acquisitions to further expand the platform’s product and service offering.”

“The combination of Breen and Carolina Color is a perfect fit of two players in the color concentrate space,” said Howard DeMonte, President of Breen. “This combination brings together complementary manufacturing capabilities, broadens our base of technologies, and expands our market reach.”

“Both Carolina Color and Breen are customer-centric organizations, dedicated to providing the highest levels of service and technology,” said Joe Rooney, a Principal of Arsenal. “The combination will have a number of strengths to draw upon as we create a premier platform in the color concentrate space through continued investment in growth and acquisitions.”

Chicago-based Twin Brook Capital Partners (www.twincp.com) was the joint lead arranger and administrative agent for the senior credit facilities that supported Arsenal’s buy of Breen and Carolina Color.

© 2017 Private Equity Professional | October 31, 2017

Mason Wells Adds Ghostline to Pacon

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Pacon Corporation, a supplier of education and arts & crafts products, has acquired the assets of the art and craft division of Carolina Pad and Paper (CPP). Under the terms of the agreement, Pacon acquired CPP’s Ghostline and UCreate branded product lines. Pacon has been a portfolio company of Mason Wells since November 2011.

Carolina Pad and Paper serves the retail market with a variety of art and craft products under the Ghostline and UCreate brands, including construction paper, art pads, and poster board. In addition, CPP sells a line of notebooks, binders, planners, backpacks, and accessories under the Studio C brand name. CPP will continue to manufacture and market the Studio C line of products (www.shopstudioc.com).

Pacon, acquired by Mason Wells from The Van Hoof Companies in November 2011, is a provider of educational and arts & crafts products marketed through retailers, educational distributors, and wholesalers. Pacon sells its products into the school and art markets. In the school market, Pacon is a converter and marketer of consumable school supplies sold under numerous brands, including Peacock, Tru-Ray, and Fadeless to the K-6 market. In the art market, Pacon is a converter and marketer of art papers sold primarily under the Strathmore Artist Papers brand to student, professional, and recreational artists. Pacon was founded in 1951 and is led by Jim Schmitz, President and CEO. The company is based in Appleton, WI (www.pacon.com) (www.strathmoreartist.com).

“Mason Wells was pleased to support the Pacon management team in its acquisition of CPP’s art and craft division,” said Chris Pummill, a Vice President of Mason Wells. “The acquisition enhances Pacon’s market reach and product line. It is yet another example of management’s ability to identify, acquire, and integrate complementary businesses.” CPP’s art and craft business will be moved to Pacon’s facilities in Appleton, WI.

Mason Wells makes investments in Midwest-based companies with revenues of $25 million to $300 million and EBITDAs of $5 million to $30 million. Sectors of interest include consumer packaged goods; packaging materials and converting; outsourced business services; and engineered products and services.  In February 2016, Mason Wells held a final closing of Mason Wells Buyout Fund IV and its related Executive Buyout Fund IV with total commitments of $615 million.  The firm was founded in 1998 and is based in Milwaukee (www.masonwells.com).

Debt financing for this transaction was provided by members of Pacon’s existing lender group which is led by US Bank.

© 2017 Private Equity Professional | October 31, 2017

Falconhead Sells GPS to Ingersoll Rand

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Falconhead Capital has agreed to sell its portfolio company GPSi Holdings, the parent of GPS Industries, to publicly-traded Ingersoll-Rand.

GPS Industries (GPSi) was acquired by Falconhead Capital in September 2009 after the company had filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code in July 2009. At the time of acquisition, GPSi was a provider of golf cart-mounted global positioning displays which showed distances, playing tips, and advertising messages to golfers.  Today, the company provides a broader range of telematic services (the technology of sending, receiving and storing information relating to remote objects – like vehicles – via telecommunication devices) to fleet managers in a range of industries from luxury motor-coaches to golf cars to school buses. The company’s services and products track more than 75,000 connected vehicles in over 50 countries.  GPSi is headquartered in Sarasota, FL with additional offices in Texas, the UK, Sydney, and Hong Kong (www.gpsindustries.com).

Ingersoll-Rand (NYSE:IR) designs, manufactures, sells, and services industrial and commercial products under the American Standard, ARO, Club Car, Nexia, Thermo King, and Trane brand names. For nearly a decade, Ingersoll Rand has been integrating GPSi products with its Club Car vehicles. The company, with annual revenues of approximately $13.5 billion, was founded in 1872 and has its operational headquarters in Davidson, NC (www.ingersollrand.com).

“We are proud of the growth and development of GPSi under our ownership,” said David Moross, Chairman and Chief Executive Officer of Falconhead. “We have executed on a wide range of initiatives designed to make the company’s technology and service offerings increasingly valuable to customers in a variety of end markets. In particular, our long relationship with Ingersoll Rand is a clear illustration of the value of GPSi and a critical element of our success. Ingersoll Rand’s decision to now acquire GPSi is a strong endorsement of what has been achieved and we are confident that GPSi will continue to reach new heights as part of a leading global company.”

“As a leader in telematics, we are pleased to deepen our capabilities in delivering exceptional customer value and end user experience for Ingersoll Rand customers,” said Dave Regnery, Executive Vice President of Ingersoll Rand. “With GPSi, we are well positioned to help customers maximize the value of their fleets, and to capitalize on the multi-billion dollar market for intelligent mobile assets across trucking, resort, golf, education, rental and other industries.” The GPSi acquisition follows Ingersoll Rand’s 2015 buy of Celtrak, a telematics provider for transport refrigeration.

Falconhead Capital invests in consumer-oriented companies in the sports, media, consumer, lifestyle, and food and beverage sectors that have revenues between $20 million and $150 million and EBITDA between $5 million and $30 million. Typical equity investments range from $10 million to $50 million per transaction and up to $100 million with co-investors. The firm was founded in 1988 and is based in New York (www.falconheadcapital.com).

Piper Jaffray was the financial advisor to GPSi on this transaction.

© 2017 Private Equity Professional | October 31, 2017

US Salt Sold to Metalmark

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Kissner Group, a producer of bulk salt and specialty packaged salt products, has agreed to acquire US Salt from Crestwood Equity Partners. Kissner Group is a portfolio company of Metalmark Capital. The transaction is expected to be completed by the end of 2017.

US Salt is mining and salt production company located in Watkins Glen, NY. The facility produces high-quality food, pharmaceutical and chemical feedstock grade salt. Founded in 1893, US Salt utilizes solution mining to create salt brine from underground deposits lying 2,000 to 2,800 feet beneath the surface. The brine is mechanically evaporated to create evaporated salt, which is nearly 100 percent pure sodium chloride. US Salt’s customers include retailers, distributors and end-users in the consumer food, food processing, water conditioning, pharmaceutical, industrial and agricultural industries (www.ussaltllc.com).

Metalmark Capital, in partnership with Silverhawk Capital Partners, Demetree Salt, and members of the Kissner management team, acquired Kissner Group in May 2015 from TorQuest Partners.

“US Salt is a highly complementary and welcome addition to our company,” said Mark Demetree, Executive Chairman and Chief Executive Officer of Kissner Group. “US Salt, with its leading position in providing evaporated salt to numerous end markets, diversifies our product offering while expanding our ability to meet the needs of our customers.” Upon completion of the transaction, US Salt’s salt refinery in Watkins Glen will remain fully operational and US Salt will continue to operate under its existing name as a subsidiary of Kissner.

Kissner Group is a producer and distributor of bulk rock salt and packaged specialty deicing products. Kissner owns and operates two rock salt mines located in Detroit, MI and Lyons, KS. According to the company, its vertically-integrated supply chain for packaged deicing products makes Kissner one of the most cost-competitive producers and distributors in its industry.  Kissner is headquartered in Overland Park, KS (www.kissner.com).

“With US Salt, we will have increased financial scale and flexibility with non-weather correlated and non-seasonal cash flow to supplement our existing de-icing business,” added Mr. Demetree. “I’ve known the leadership at US Salt for some time, and I look forward to welcoming them to the Kissner team as we enter our next phase of growth together.”

Metalmark Capital was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. Sectors of interest include healthcare, energy and industrials. Metalmark Capital manages funds with $3.7 billion in aggregate capital commitments. The firm is based in New York (www.metalmarkcapital.com).

Crestwood Equity Partners (NYSE: CEQP), the seller of US Salt, is a publicly traded master limited partnership that owns and operates midstream energy assets located primarily in the Marcellus Shale, Bakken Shale, Delaware Permian Basin, PRB Niobrara Shale, Barnett Shale and Fayetteville Shale. The firm is based in Houston (www.crestwoodlp.com).

© 2017 Private Equity Professional | October 31, 2017

New Plastics Platform Launched

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Lee Equity Partners and BlackBern Partners have joined with plastics industry executive Brian Jones to form Westfall Technik.

Westfall Technik is led by Brian Jones, the former President and CEO of Nypro, a large custom injection molder. In addition to Mr. Jones, Perry Morgan is the company’s Chief Financial Officer and Rick Shaffer is a Managing Director. Westfall Technik is based near Phoenix in Chandler, AZ (www.westfall-technik.com).

“We are excited to support Brian and the team as they execute on their vision to create a market leading plastics solutions provider. We look forward to continuing their long-term track record of success in delivering high-performance results through Westfall Technik,” said Rahul “Billy” Nand, Partner at Lee Equity.

Concurrent with the formation of Westfall Technik, the company has completed its first acquisitions with the buys of Fairway Injection Molds and Integrity Mold.

Fairway Injection Molds is a manufacturer of multi-cavity injection molds. Products include single-face molds, stack molds, high-speed unscrewing molds, and multi-shot molds where multiple resins and/or colors are utilized. The company was founded in 1977 and is based near Los Angeles in Walnut, CA (www.fairwaymolds.com).

Integrity Mold, a portfolio company of Montage Partners since December 2015, is a manufacturer of plastic injection molded parts, integrated assemblies, and injection molding tool fabrication. The company’s customers are active in the medical, consumer durables, transportation and construction industries. Integrity Mold was founded in 2005 and is headquartered in Tempe, AZ (www.intmold.com).

“It is a great privilege to partner with Lee Equity in sponsoring Brian and his team’s ambitious business plan. It is equally rewarding to have well respected businesses like Fairway and Integrity share in the Westfall vision,” said Jonathan Bernstein, Managing Member at BlackBern Partners.

Lee Equity Partners focuses on control buyouts and growth capital financings, typically investing $50 million to $100 million of equity per transaction. Target companies have enterprise values of $100 million to $500 million and are located in the United States. Sectors of interest include business services; consumer and retail; distribution and logistics; financial services; healthcare services; and media. The firm is based in New York (www.leeequity.com).

BlackBern Partners invests in mature operating companies in the lower middle market. The firm was founded in 2010 by Ian Black and Jonathan Bernstein and is based in New York (www.blackbernpartners.com).

© 2017 Private Equity Professional | October 26, 2017

Kayne Hits Fund IV Hard Cap

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Kayne Partners has held a final close of Kayne Partners Fund IV LP at the hard cap of $385 million.

Fund IV, which was substantially oversubscribed, will maintain the same focus as its three predecessor funds in providing growth capital of $5 million to $30 million to entrepreneurs and management teams of high growth enterprise software and technology-enabled businesses. Typical target investments will be based in North America and have $5 million to $40 million of revenue. Sectors of interest include security & compliance, supply chain & logistics, business & financial services, industrials, healthcare and media & telecom.

“We are thrilled by the overwhelmingly positive market feedback we received from investors wanting access to high growth technology companies. This interest is an acknowledgment of our Kayne Partners’ investment strategy and a testament to the strength of our team,” said Dave Walsh, Managing Partner. “We are grateful for the trust and support from our existing long-time investors, and are excited to welcome a new group of premier limited partners from the family office, registered investment advisor, and institutional investor communities.”

The closing of Fund IV brings Kayne Partners’ total cumulative commitments to over $740 million since inception. The new fund has already closed on three investments and Kayne Partners now has 20 active portfolio companies.

Kayne Partners (www.kaynepartners.com) is the growth private equity group of Kayne Anderson Capital Advisors, an alternative investment firm with $24.5 billion in assets under management. The firm focuses on niche investing in energy, energy infrastructure, growth equity, specialty real estate and middle market credit. Kayne Anderson Capital Advisors was founded in 1984 and is headquartered in Los Angeles with offices in Boca Raton, Houston, New York, Chicago, Denver, Dallas and Atlanta (www.KayneCapital.com).

© 2017 Private Equity Professional | October 26, 2017

Sterling Adds on to Safe Fleet

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Safe Fleet, a portfolio company of The Sterling Group, has acquired COBAN Technologies, a supplier of body cameras and in-car video products used in law enforcement applications.

Thousands of COBAN’s systems have been deployed by hundreds of police departments across the United States, ranging from small departments with a few vehicles, to large, multi-precinct cities such as Los Angeles and Chicago.

COBAN was founded in 2002 and is based in Houston (www.cobantech.com).

Safe Fleet was formed in October 2013 when Sterling acquired R•O•M Corporation (ROM) and Specialty Manufacturing (SMI). Both ROM and SMI were portfolio companies of Century Park Capital Partners. Today, Safe Fleet owns a portfolio of brands that are used in the emergency services, bus and rail, recreational vehicle, truck and trailer, work truck, industrial and military markets. The company has approximately 1,000 employees and 10 manufacturing locations. Safe Fleet is headquartered south of Kansas City in Belton, MO (www.safefleet.net).

“COBAN is an excellent addition to Safe Fleet’s portfolio.  We believe the combination of COBAN’s position in law enforcement with Safe Fleet’s leading video positions in the school and transit bus, fire, waste, and commercial markets establishes Safe Fleet as the largest global provider of video solutions to the fleet market,” said John Knox, CEO of Safe Fleet.  “Safe Fleet/COBAN is now the only video provider able to comprehensively supply common and integrated video solutions to all first responder departments as well as all municipal fleet markets.”

The buy of COBAN is the ninth add-on acquisition that Safe Fleet has completed under Sterling’s ownership and the company’s fifth acquisition in the video and telematics sector.  “The partnership with COBAN further strengthens Safe Fleet’s robust family of technology and safety solutions for a growing list of fleet end markets,” said Gary Rosenthal, a Partner at The Sterling Group.

The Sterling Group invests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $750 million.  The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires.  Sterling was founded in 1982 and is headquartered in Houston (www.sterling-group.com).

© 2017 Private Equity Professional | October 26, 2017

Audax Keeps Building Medical Products Platform

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Katena Products, a portfolio company of Audax Private Equity, has acquired Rhein Medical. Audax acquired Katena from Cortec Group in June 2015.

Rhein Medical is a manufacturer of ophthalmic surgical instruments and devices that are used in cataract and refractive surgery, glaucoma and corneal procedures. The company was founded in 1988 by John Bee and Carl Wortham and is headquartered in St. Petersburg, FL (www.rheinmedical.com).

Katena Products is a provider of surgical instruments, biologics, medical devices and optical lenses to physician offices, hospitals and ambulatory surgery centers. The company sells its products in more than 110 countries through a US-based sales force and an international distributor network. Katena is headquartered near Newark in Denville, NJ (www.katena.com).

“The acquisition of the Rhein Medical product line is an important addition to Katena’s product portfolio. The combination of these two renowned brands will bring internal synergies as well as offer physicians a more complete resource for handheld instrumentation,” said Mark Fletcher, CEO of Katena Products.

Audax makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).

© 2017 Private Equity Professional | October 26, 2017

Framework and Tecum Acquire Gibraltar Cable Barrier

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Framework Capital and Tecum Equity Partners have acquired Gibraltar Cable Barrier Systems, a maker of road safety products and a division of Gibraltar Materials.

Gibraltar Cable Barrier is a provider of both three and four cable high-tension barrier systems that are used to contain and redirect errant vehicles from road hazards. The company’s systems are installed in every state in the United States and on 3 continents. As part of the transaction, the company will continue to use the Gibraltar Cable Barrier Systems brand. Gibraltar Cable Barrier, led by its President Ron Faulkenberry, is headquartered 50 miles northwest of Austin in Marble Falls, TX (www.gibraltarglobal.com).

“Gibraltar has an established track record of building great products. Our cable barrier system is viewed as the gold standard among high tension cable barriers and we are excited about this partnership that will facilitate our continued growth,” said Mr. Faulkenberry.

“Ron and the management team are world-class, which is to be expected because the Gibraltar Cable Barrier System is the preferred system of states and roadway contractors both domestically and internationally. We look forward to working alongside the team to create a bright future,” said Jerry McGee, Managing Director of Framework Capital.

Framework Capital invests in manufacturing, industrial and energy services companies. The firm is headquartered in Houston with an additional office in Newport Beach, CA (www.frameworkcapitalpartners.com).

“We are excited about our new partnership with both Framework Capital and Gibraltar. We look forward to continuing to provide one of the world’s best-engineered cable protection systems and to continue to make highway and roadway infrastructures safer in a more cost-effective manner,” said Stephen Gurgovits, Jr., Managing Partner of Tecum Equity.

Tecum Equity is a committed fund backed by a family office, Western Allegheny Capital, focused on control equity acquisitions. The firm invests from $5 million to $20 million in businesses with more than $10 million of revenue and $2 million to $7 million of EBITDA. Tecum Equity is based in the Pittsburgh suburb of Wexford (www.tecum.com).

© 2017 Private Equity Professional | October 25, 2017

MSouth Buys TRP Construction Group

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MSouth Equity Partners has acquired TRP Construction Group, a maker of traffic control products.

TRP Construction Group is a provider of thermoplastic striping, painting and markers, rumble strips and other traffic control services. The majority of the company’s revenue is derived directly or indirectly from the Texas Department of Transportation and other local municipalities. TRP serves its customer base via two facilities in Ft. Worth, TX (headquarters) and Austin, TX.

“We are very excited about our investment in TRP Construction Group,” said Bart McLean, an MSouth Partner. “The management team has had tremendous success over the past several years and has elevated TRP to one of the premier highway construction and maintenance platforms in their addressable markets. We are looking forward to our partnership with management and to continuing to build the business.”

MSouth invests from $10 million to $50 million in companies that have from $5 million to $20 million in EBITDA and are valued from $25 million to $150 million. Sectors of interest include business services, healthcare, manufacturing, media and telecommunications, and specialty distribution. MSouth has $1.3 billion of capital under management across three funds and is headquartered in Atlanta (www.msouth.com).

Monroe Capital (www. monroecap.com) was the sole lead arranger and administrative agent on the funding of a senior credit facility to support this transaction.

© 2017 Private Equity Professional | October 25, 2017

Charlesbank Hits Fund IX Hard Cap

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Charlesbank Capital Partners has held a final closing of Charlesbank Equity Fund IX LP at its hard cap of $2.75 billion. Fundraising began in June 2017.

Investors in Fund IX include public and corporate pension funds, endowments, foundations, family offices, sovereign wealth vehicles and financial institutions.

“We are privileged to have such a world-class group of limited partners, and we are especially grateful for the ongoing support of our returning investors,” said Michael Eisenson, Managing Director and Co-Chairman of Charlesbank. “Many of them have been with us for multiple funds, and their long-term conviction in Charlesbank has been key to our success.”

Charlesbank will invest between $50 million and $250 million in each Fund IX portfolio company and will also make opportunistic credit investments. Additionally, an overage allocation program established simultaneously with commitments from Fund IX investors will allow Charlesbank to commit larger amounts per transaction if needed.

“The in-depth dialogue with our limited partners through the fundraising process always results in enriching perspectives that help make us a better steward of their capital, and we are truly gratified by the strong support we have received,” said Michael Choe, Charlesbank’s CEO. “We are as committed as ever to deliver continued strong results by maintaining the disciplined and fundamentals-focused investment approach that has guided Charlesbank since its inception.”

Charlesbank invests in management-led buyouts and growth capital financings in companies with enterprise values of $150 million to $1.5 billion. Sectors of interest include consumer, industrial, industrial services and distribution, TMT and business services.

Over its 19-year history, Charlesbank has invested more than $4.5 billion in more than 50 middle-market companies. The firm has a team of 58 people and maintains offices in Boston and New York (www.charlesbank.com).

© 2017 Private Equity Professional | October 25, 2017

Stellex Takes Aim at Automotive

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Stellex Capital Management has partnered with Bruce Swift, an executive with over 30 years of senior management experience in the automotive industry, to pursue an acquisition strategy in the manufacturing and automotive space.

Stellex invests from $25 million to $100 million per transaction in companies experiencing some form of financial, operational or industry-driven distress. Target companies will typically have an enterprise value of $50 million to $500 million and will be located in the United States or Europe. Sectors of interest include automotive, aerospace, building products, defense, industrial equipment, metal fabrication and transportation.

“Our primary focus areas are the manufacturing and industrial service businesses where we have significant experience investing over several economic cycles and maintain longstanding relationships with key industry participants,” said Ray Whiteman, a Managing Partner of Stellex.

In July 2017, Stellex closed its debut fund, Stellex Capital Partners LP, at $870 million, exceeding its $750 million target. Stellex’s founding partners – Ray Whiteman and Michael Stewart – have worked together for over 14 years. Prior to forming Stellex in 2014 they were both partners of The Carlyle Group and co-heads of Carlyle Strategic Partners.

From 2005 to 2012, Mr. Swift was the Chief Executive Officer of Diversified Machine, a vertically-integrated supplier of chassis and powertrain components and modules to automotive OEMs and Tier 1 suppliers. Diversified Machine was a portfolio company of Carlyle Group from 2005 to 2011 until its sale to Platinum Equity. During his tenure at Diversified Machine, the company realized six-fold growth through organic growth and add-on acquisitions.

“We are excited about teaming with an experienced executive like Bruce and leveraging his expertise in the space as we initiate a search for acquisitions that align with our investment acumen and goals. We have known Bruce for over a decade, since Ray and I partnered with him to build Diversified Machine,” said Michael Stewart, a Managing Partner of Stellex. “We plan to deploy at least $100 million of equity into this strategy with Bruce.”

Prior to Diversified Machine, Mr. Swift was President of Metaldyne Driveline Division, an $800 million business unit of Metaldyne Performance Group, comprised of 19 manufacturing facilities in five countries with 3,600 employees. Metaldyne produces and sells components for use in powertrain and safety-critical platforms worldwide. Mr. Swift also held a number of executive purchasing positions at Ford Motor Company and began his career in the automotive industry at Honda of America, where he was responsible for the North American supply base expansion and localization of vehicle parts and systems.

“I am looking forward to collaborating with Ray, Mike and the Stellex team in identifying attractive opportunities within the automotive space and applying my experience in the industry to help support and grow these investments,” said Mr. Swift.

Stellex Capital Management has offices in New York and London (www.stellexcapital.com).

© 2017 Private Equity Professional | October 24, 2017

Ridgemont Invests in Service Management Group

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Ridgemont Equity Partners has made an investment in Service Management Group, a provider of a consumer and brand data.

Service Management Group (SMG) is a market research company that provides data on customer experience, employee engagement and brand research to more than 450 brands in the restaurant, retail, grocery, convenience, travel and entertainment, professional services and healthcare industries. The company collects consumer information through more than 200 million surveys annually across a range of collection points including on-location, on-line, and through contact centers. SMG was founded in 1991 by Andy Fromm and Bill Fromm and is headquartered in Kansas City (www.smg.com).

“SMG is the clear market leader in measuring and analyzing customer experience and employee engagement in restaurant and retail settings, which is mission-critical data for the company’s customers,” said Kurt Leedy, a Principal at Ridgemont. “The company does an outstanding job serving its clients and has ample white space for future growth. We are excited to have SMG join the Ridgemont portfolio and look forward to partnering with SMG leadership to continue their growth and success.”

Ridgemont focuses on middle market buyout and growth equity investments of $25 million to $100 million. The firm invests in the following sectors: basic industries and services, energy, healthcare, and technology and telecommunications. The firm is headquartered in Charlotte with an additional office in Dallas (www.ridgemontep.com).

“Our partnership with Ridgemont marks the beginning of an exciting new chapter for SMG,” said Andy Fromm, CEO of SMG. “Ridgemont brings more than twenty years of investment experience and shares our vision for helping brands create experiences that improve people’s lives. Together we will take on new growth initiatives while remaining committed to offering the best software platform and most actionable insights to our clients.”

William Blair (www.williamblair.com) was the financial advisor to SMG

© 2017 Private Equity Professional | October 24, 2017

Blue Wolf Closes Fund IV

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Blue Wolf Capital Partners has held a final closing of Blue Wolf Capital Fund IV LP with $540 million of capital commitments. The new fund was oversubscribed and closed at its hard cap.

Blue Wolf invests in companies in which management of relationships with complex constituencies – such as government and labor – can change organizations and create value. Sectors of specific interest to Blue Wolf include healthcare, building products, forest products, energy services, and defense and government services. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. The firm focuses its efforts on companies based in the United States and Canada.

“All of us at Blue Wolf appreciate the support our previous investors have shown by joining us in our new fund and are happy to welcome a select group of new long-term partners. We have a robust pipeline of investment opportunities and look forward to putting this capital to work,” said Adam Blumenthal, Managing Partner of Blue Wolf.

With the closing of Fund IV, Blue Wolf now manages over $1.2 billion in capital and capital commitments. The firm’s earlier fund, Blue Wolf Capital Fund III LP, which closed in July 2013 with $300 million of capital commitments, has invested in ten platform companies.

Blue Wolf Capital Partners is headquartered in New York (www.blue-wolf.com).

© 2017 Private Equity Professional | October 24, 2017

Breakwater Expands Executive Team

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Breakwater Management has added two new members to its team with the hirings of Darrick Geant as Managing Director and Joe Kaczorowski as Managing Director and Chief Financial Officer.

“We’ve known both Darrick and Joe for many years, and are excited to have such talented professionals join our team,” said Eric Beckman, Managing Partner of Breakwater. In his new position, Mr. Geant will be active in origination, execution and monitoring of Breakwater’s investments.  Mr. Kaczorowski is responsible for financial, legal, tax and general administration of Breakwater, its funds and its portfolios. He also serves as Head of Portfolio Management and as Breakwater’s Chief Compliance Officer.  Both Mr. Geant and Mr. Kaczorowski will serve on the firm’s investment committee.

“Darrick’s extensive leverage finance experience and Joe’s deep finance and operating expertise, both within investment firms and at private companies, will be hugely additive to Breakwater’s business,” said Managing Partner Saif Mansour.

Prior to joining Breakwater, Mr. Geant was a Managing Director at Goldman Sachs, where he co-led its middle market leveraged finance group.  Earlier in his career he worked at Barclays Capital, where he helped found the Los Angeles office and build the firm’s North American leveraged finance platform. Before Barclays Capital he was at DLJ and Credit Suisse as an investment banker focused on capital markets and advisory transactions.

Before joining Breakwater, Mr. Kaczorowski was the President of Grosvenor Park Media, an alternative lender focused on the media and entertainment industry.  Earlier in his career Mr. Kaczorowski served as President and Chief Financial Officer of HOB (House of Blues) Entertainment, a private equity-sponsored music and hospitality company that was sold to Live Nation Entertainment.  Mr. Kaczorowski began his career with CPA firm Kenneth Leventhal & Company. In addition, he has served on the Board of Directors for two publicly-traded companies, Napster and Roxio.

Breakwater specializes in direct investments in small to lower middle market growth businesses with annual sales ranging from $10 million to $200 million. The firm looks to generate both current income and capital appreciation through secured debt investments and equity participation rights, primarily in growth-oriented companies across a variety of industries. Breakwater is headquartered in Los Angeles (www.breakwaterfunds.com).

© 2017 Private Equity Professional | October 24, 2017

Green Creative Sold to Harbour Group

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Fulton Capital and Merit Capital Partners have sold Green Creative, a developer and manufacturer of light-emitting diode (LED) lighting, to the Harbour Group. Fulton and Merit acquired the company in partnership with the company’s founders in December 2015.

Green Creative products are sold to the commercial, industrial, and specification markets (the specification market is composed of interior designers and architects that specify the use of a particular product on building projects). Many of Green Creative’s customers are commercial retailers and hospitality chains. Green Creative is headquartered and manages product sales and distribution through its offices in South San Francisco and oversees research & development, sourcing, manufacturing, packaging and marketing of the company products from its facilities in Hong Kong and Shanghai (www.gc-lighting.com). The company was founded in 2010 by Cole Zucker and Guillaume Vidal.

In April 2017, Harbour Group acquired ILP (Industrial Lighting Products) from Pfingsten Partners. ILP is a manufacturer of a variety of high efficiency LED, fluorescent, and induction commercial lighting fixtures used in warehouses, manufacturing facilities, offices, schools and parking lots throughout the country. Products include high bay, wet location, stairwell, and outdoor fixtures, as well as retrofit kits. ILP has more than 180 employees and produces more than 20,000 fixtures per month. The company has a 75,000 square foot manufacturing and headquarters facility in Sanford, FL (north of Orlando) and a 15,000 square foot facility in Reno, NV (www.ilp-inc.com).

Green Creative and ILP will remain as separate portfolio companies within Harbour Group and Cole Zucker and Guillaume Vidal, the co-founders of Green Creative, will continue their leadership roles in the business. “The two brands will remain independent and constitute the foundation for Harbour Group’s foray into the lighting industry,” said Jeff Fox, Harbour Group’s Chairman and Chief Executive Officer. “As sister companies, Green Creative and ILP bring an industry-leading team and product offering to the market.”

“Under the same group, the companies have highly complementary offerings with minimum overlap,” said Jason Hendren, the founder of ILP. “Combining Green Creative’s lamp, commercial and residential downlight, and track products with ILP’s industrial, commercial, and outdoor products allows our channel partners to complete an entire project with a unique product mix.”

Harbour Group invests in North American-based companies with valuations from $30 million to $500 million. Areas of interest include product-oriented businesses that are generally either a provider of proprietary products or are a niche, value-added distributor. Since its founding in 1976, Harbour Group has acquired 196 companies in 41 different industries. The firm is based in St. Louis (www.harbourgroup.com).

Green Creative was Fulton Capital’s fifth specialty distribution platform and its third investment in the lighting industry.

Fulton Capital invests in small and mid-sized companies with revenues between $20 million and $100 million and EBITDA between $2 million and $10 million. Transaction values range from $10 million to $70 million. Sectors of interest include niche manufacturing, logistics, distribution, and service businesses. Fulton Capital is led by its founders Phillip Gerber and David Schlossberg and is headquartered in the Chicago suburb of Northbrook (www.fulton-capital.com).

Merit Capital Partners invests mezzanine and equity capital of $15 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. Merit was founded in 1993 and is based in Chicago (www.meritcapital.com).

© 2017 Private Equity Professional | October 23, 2017

American Securities Exits Royal Adhesives

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American Securities has completed the sale of Royal Adhesives & Sealants to publicly-traded H.B. Fuller Company for approximately $1.6 billion. Royal has been a portfolio company of American Securities since June 2015 when the company was acquired from Arsenal Capital Partners.

Royal Adhesives & Sealants is a producer of proprietary, high-performance adhesives and sealants and other formulated products that are used in aerospace and defense, construction, specialty packaging, automotive and industrial applications. The company, led by President and CEO Ted Clark, is headquartered in South Bend, IN (www.royaladhesives.com).

H.B. Fuller Company (NYSE: FUL) is a manufacturer of adhesives, sealants, and other specialty chemical products that are used in electronics, disposable hygiene, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer applications. The company has annual revenues of approximately $2.1 billion and is headquartered near Minneapolis in Vadnais Heights, MN (www.hbfuller.com).

“We are pleased to have supported Ted and the entire Royal management team to drive organic growth through new business wins and growth through accretive acquisitions during our partnership with the company,” said Scott Wolff, a Managing Director of American Securities.

American Securities invests in businesses with $200 million to $2 billion of revenue and $50 million to $300 million of EBITDA.  Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $15 billion of capital under management and has offices in New York and Shanghai (www.american-securities.com).

© 2017 Private Equity Professional | October 23, 2017

Quad-C Acquires AIT Worldwide

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Quad-C Management has made an investment in AIT Worldwide Logistics, a provider of air and sea freight, ground distribution, warehouse management and other supply chain services. Quad-C is partnering with AIT’s executive management team, who are maintaining significant ownership in the company.

AIT Worldwide has approximately 1,000 employees and is headquartered near Chicago in Itasca, IL with major international offices in Amsterdam and Hong Kong and an additional 50 offices worldwide (www.aitworldwide.com).

“We are thrilled to join forces with a firm that has such a high level of respect for our core values,” said Vaughn Moore, President and CEO, AIT Worldwide. “After a deliberate process, we selected Quad-C because they aligned well with both our culture and our strategic growth plan. They clearly appreciate our strong corporate identity, and they support our vision to become the global logistics provider respected for delivering a world-class experience.”

Quad-C invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. Sectors of interest include business services, consumer, general industrial, healthcare, specialty distribution and transportation and logistics. In March 2017, Quad-C closed its latest fund, Quad-C Partners IX LP, at an oversubscribed $1.1 billion. The final close was above the target of $800 million and was at the hard cap. Quad-C is headquartered in Charlottesville, VA (www.quadcmanagement.com).

“Over the past 35 years, AIT has developed a sterling reputation in transportation and logistics, a core area of specialization at Quad-C,” said Tom Hickey, a Partner at Quad-C. “The company’s ability to deliver supply chain efficiencies across nearly every industry represents a compelling value proposition for its global client base, and AIT’s management team has a proven track record of driving profitable growth. We are excited to assist AIT and support the company’s next stage of expansion.”

Other investments in the transportation and logistics sector for Quad-C include: A. Stucki Company (acquired in 2010 and exited in 2015), a supplier of new and reconditioned railcar components; NGL (acquired in 2012), a non-asset based third-party logistics company providing Next Flight Out, warehousing and distribution, service parts logistics, transportation management and ground courier services; and Worldwide Express (acquired in 2013 and exited in 2017), a franchisor with 100 independently owned franchise offices across the US, serving small-to-medium-sized businesses by providing various asset-light logistics services.

“AIT represents a solid addition to our transportation and logistics vertical,” said Michael Brooks, a Principal at Quad-C. “AIT has expanded organically in Canada, China, Europe, Mexico and Vietnam and we look forward to helping the company further achieve its worldwide growth objectives.”

Harris Williams & Co. was the financial advisor to AIT on this transaction. The transaction was led by Jason Bass, Frank Mountcastle, Jeff Burkett and Jonathan Meredith of Harris Williams & Co.’s Transportation & Logistics Group.

© 2017 Private Equity Professional | October 23, 2017