Archives for November 6, 2017

Abacus Backs Thompson Street

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Abacus Finance Group was the Administrative Agent and Sole Lender in support of Thompson Street Capital Partners’ recent acquisition of Palisade Corporation.

Palisade is a provider of analysis software, under the @RISK and the DecisionTools Suite brands, which enable Microsoft Excel and other software platforms to perform risk modeling and decision analysis. Palisade’s customers, which include 93 companies in the Fortune 100, are active in a wide range of industries including finance, oil and mineral exploration, real estate, heavy manufacturing, pharmaceuticals, and aerospace.

Palisade, led by CEO Randy Heffernan, was founded in 1984 and is headquartered in Ithaca, NY (www.palisade.com).

“After multiple transactions with Abacus, we know them well, and once again they closed quickly – in large part because of their knowledge of the software sector,” said Thompson Street Vice President Stefan Sigurdson.

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.  Since its inception in June 2011, Abacus has closed over $1.9 billion in financings. Abacus is headquartered in New York and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).

“Thompson Street is a top sponsor with deep expertise in software,” said Tim Clifford, President and CEO of Abacus. “It is a firm with which we have had one of our longest relationships, and one which values our flexibility and our ability to close quickly – key elements of what we call our Total Partnership Approach™.”

Other Abacus team members involved in the transaction included Jonathan Choa and Brian Green.

Thompson Street invests from$25 million to $150 million in companies with EBITDA between $5 million and $20 million. Sectors of interest include healthcare and life science services, software and technology services, business services, and engineered products. Since its founding in 2000, Thompson Street has acquired more than 100 companies. In July 2018, the firm held a final closing of its fifth fund, Thompson Street Capital Partners V LP, at the hard cap of $1.15 billion. Thompson Street is headquartered in St. Louis (www.tscp.com).

© 2018 Private Equity Professional | December 14, 2018

NXT Closes New Senior Fund

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NXT Capital has held a final close of NXT Capital Senior Loan Fund V LP with $415 million in equity commitments. The group’s earlier senior loan fund closed in October 2016 with $312 million of equity commitments.

The new fund – which had an original target of $350 million – received commitments from US and foreign institutional investors, including public and private pension plans, insurance companies, foundations and asset managers. When coupled with leverage, Fund V will have approximately $1.2 billion of available capital to invest. Wells Fargo Bank, as with earlier funds, is the administrative agent for Fund V’s syndicated credit facility.

Fund V will invest in senior debt transactions directly originated and underwritten by NXT Capital’s corporate finance group. Targeted investments include senior secured loans, including straight senior, stretch senior and unitranche loans made primarily to private equity sponsored middle-market companies across a range of industries in the US.

The addition of Fund V increases third-party capital commitments to NXT Capital’s asset management platform to over $5.7 billion. “Fund V is a significant milestone in the continued growth of NXT Capital’s asset management platform,” said Robert Radway, Chairman and CEO. “As the largest fund we’ve raised to date, it provides further evidence that investors recognize NXT’s leadership position in the middle market private debt space and the value of NXT’s long-standing relationships with private equity sponsors, robust origination network and disciplined underwriting and portfolio management processes.”

NXT Capital provides structured financing of up to $150 million with a hold size up to $50 million to middle-market companies through its corporate finance and real estate finance groups. The firm is headquartered in Chicago with offices in Atlanta, Dallas, Los Angeles, Nashville, New York, and Phoenix (www.nxtcapital.com).

© 2017 Private Equity Professional | November 6, 2017

Wind Point Becoming Pork Rind King

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Evans Food Group, a portfolio company of Wind Point Partners, has acquired Gaytan Foods, a maker of pork rind products.

Evans Food Group is a producer of branded and private label finished pork rinds and pork rind pellets. Pork rind is the skin (rind) of a pig. When fried or roasted, the pork rinds are sold as a snack food. Evans was founded in 1947 and is headquartered in Chicago with five production facilities in Chicago, IL; Arlington, TX; Portsmouth, OH; Ontario, CA; and Saltillo, Mexico (www.evansfood.com).

Sales of pork rinds are growing at more than 15% per year. The product is higher in protein than other crunchy snack foods and are a good “high-protein, low-carbohydrate” alternative.  They are also a favorite snack food of the Hispanic demographic.

Wind Point Partners acquired Evans in April 2016. The firm partnered on this transaction with Jose Luis Prado, the former President of Quaker Oats North America. Earlier, he was the president and CEO of Grupo Gamesa-Quaker in Mexico and he also held senior positions in sales, finance and general management at PepsiCo in Latin America and Europe. Wind Point has considerable experience in the consumer products and food space. The purchase of Evans was the firm’s 7th platform investment in the food space over the last decade.

Gaytan Foods was founded in 1935 and has a 64,000 square foot facility near Los Angeles in City of Industry, CA (www.gaytanfoods.com).

“I am delighted to welcome Ryan Gaytan, a third-generation owner, and the entire Gaytan team into the Evans family,” said Mr. Prado. “Both companies share a passion for delighting our consumers with great products and being great partners to our customers for many decades.  In this new phase, we are confident that together we will be able to accelerate growth and create value for all our stakeholders.”

“The merging of Gaytan and Evans, with the support of Wind Point, will create solid operational, distribution, and scale efficiencies that will fund our growth,” said Mr. Gaytan. “Leveraging Evans’ national brands and investment in technology with Gaytan’s expertise in the Hispanic segment will be a win-win for our customers and team members. I am excited to remain actively involved in the continuing combined businesses and I am as committed as ever to ensuring the success of all our stakeholders.”

“We are excited about the combination of Evans and Gaytan.  Both companies share similar values and cultures.  From a strategic perspective, the acquisition of Gaytan will enhance our presence and manufacturing capability in the important west coast market,” said Joe Lawler, a Principal with Wind Point Partners.

Wind Point invests from $30 million to $150 million in companies with revenues from $100 million to $500 million and EBITDAs of at least $10 million. Industries of interest include business services, consumer products, healthcare and industrial products. Wind Point was founded in 1984 and is based in Chicago. Last month, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and marks the largest fund closing in Wind Point’s history (www.wppartners.com).

BMO Harris Bank and Antares Capital led the financing for this transaction.

© 2017 Private Equity Professional | November 6, 2017

Peak Rock Acquires Strike King

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Lew’s Holdings, a portfolio company of Peak Rock Capital, has acquired Strike King Lure Company.

Strike King is a supplier of branded fishing lures, sunglasses, and other fishing accessories. The company’s products include wire baits, hard and soft plastic lures, terminal tackle, and sunglasses. The company was founded in 1964 and is headquartered southeast of Memphis in Collierville, TN (www.strikeking.com).

“We are thrilled to have the opportunity to invest in the combination of the Lew’s and Strike King brands,” said Peter Leibman, Managing Director of Peak Rock. “The brands and product lines are highly complementary, and we’re excited to further support the rapid growth of the overall company, while seeking additional acquisitions.”

Lew’s Holdings was formed by Peak Rock in November 2016 to acquire Do Outdoors (DBA Lew’s Fishing). Lew’s Fishing supplies fishing equipment and tackle through the mass market, sporting goods, and specialty outdoor channels. The company’s product portfolio includes rods, reels, and related fishing accessories. Company-owned brand names include Lew’s, Strike King, Mr. Crappie, Hunters Specialties, and Buck Bomb. The company was founded in 2009 and is headquartered in Springfield, MO (www.lews.com).

“Similar to Lew’s, Strike King has been tremendously successful because of its focus on product innovation, outstanding marketing, and exceptional service to its retail partners and consumers,” said Gary Remensnyder, CEO of Lew’s. “John Barns and Allan Ranson along with their dedicated employees, pro staff, and manufacturing partners have done a fantastic job driving growth at the company, and we are excited that John and Allan will remain involved with the company going forward.”

As part of this transaction, Ken Eubanks will become president of Lew’s while continuing in his current role as CEO of Hunters Specialties, a Cedar Rapids-based manufacturer and supplier of branded hunting products, including scent control products, game calls, attractants, wildlife management products, and general hunting accessories. Hunters Specialties (www.hunterspec.com) has been a portfolio company of Peak Rock since April 2014.

Peak Rock makes debt and equity investments of $20 million to $150 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $25 million to $500 million. Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing, metals, and media. The firm is based in Austin (www.peakrockcapital.com).

MidCap Financial (www.midcapfinancial.com) provided financing for this transaction.

© 2017 Private Equity Professional | November 6, 2017

LFM Buys Medix Specialty Vehicles

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LFM Capital has acquired Medix Specialty Vehicles, a manufacturer of ambulances serving both the private and fire service side of the industry.

Medix Specialty Vehicles sells its ambulance products (Type I, Type II, and Type III) through a national network of independent dealers. The company is led by its President Tom Moleski and has four facilities aggregating to 123,000 square feet of production space. Medix was founded in 2001 and is headquartered in Elkhart, IN (www.medixambulance.com).

“The addition of LFM’s resources to the Medix management team gives us a platform to grow in new ways, improves our already best-in-class service to our clients and dealers, and opens doors for our employees,” said Mr. Moleski. “I am especially proud that this new partnership also allowed for Medix’s executive management team members to invest in the company – setting Medix on a solid foundation for years to come.”

“Medix is a well-positioned company in an area of healthy, long-term demand, and we look forward to partnering with the Medix team to chart and execute the next stage of their growth,” said LFM Managing Director Dan Shockley.

LFM Capital is based in Nashville and invests in US-based manufacturing and industrial services companies that have revenues from $10 million to $100 million and enterprise values from $15 million to $75 million.  LFM was formed in May 2014 by Steve Cook, Executive Managing Director; Rick Reisner, Managing Director; and Dan Shockley, Managing Director. The firm closed its first fund, LFM Capital Partners LP, with $110 million in capital commitments in October 2014 (www.lfmcapital.com).

© 2017 Private Equity Professional | November 6, 2017