Archives for November 2017

LFM Buys Medix Specialty Vehicles

by

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

Wynnchurch Acquires America II

by

Wynnchurch Capital has completed the acquisition of America II Group, a distributor of electronic components.

America II supplies an array of products that are used in applications across many end-markets including industrial controls and sensors, medical devices, data networks, internet-connected products and material handling/transportation equipment.

The company has more than four billion parts (approximately 100,000 SKUs) that are in stock and ready to ship which, according to America II, makes it one of the world’s largest distributors of semiconductors and electronic components. America II’s product line includes batteries, cable assemblies, connectors, diodes, fuses and circuit breakers, LEDs, microcontrollers, microprocessors, resistors, sensors, switches and relays, transformers, voltage regulators.

America II was founded in 1989 and is headquartered in St. Petersburg, FL with a 420,000 square-foot distribution facility. The company has additional offices in the UK, Germany, China, Japan, Singapore and Mexico (www.americaii.com).

“We are excited to partner with a great management team and invest in a global market leader with a differentiated value proposition, diversified customer base and growing end-markets,” said Frank Hayes, Managing Partner at Wynnchurch.

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 Los Angeles (El Segundo), and Toronto (www.wynnchurch.com).

“America II has built a reputation for excellent product quality, availability and service and we look forward to partnering with management to execute on key operational initiatives and accelerate its strategic growth plan,” said Greg Gleason, Managing Director at Wynnchurch.

“Our leadership team is very excited about this next step for our business and we are confident that our partnership with Wynnchurch will propel America II’s leadership position and enable us to significantly expand our global footprint,” said Michael Galinski, Chief Executive Officer and Founder of America II.

Atlanta-based CHILDS Advisory Partners (www.childsadvisorypartners.com) was the exclusive financial advisor to America II on this transaction.

© 2017 Private Equity Professional | November 3, 2017

Summit Park Acquires smarTours

by

Summit Park has acquired smarTours, a provider of direct-to-consumer travel tours. Summit Park partnered with the company’s co-CEO’s, Greg Geronemus and David Rosner, on this transaction and they will continue to lead the company under Summit Park ownership.

smarTours provides travelers with curated, pre-packaged tours and itineraries to over 40 destinations across the globe. The company’s trips focus on connecting travelers with experiences that center around the history, people, attractions and local culture of exotic destinations. Currently offered tour destination include Africa, Asia, Australia and New Zealand, China, Cuba, Dubai, India and Nepal, Japan and many others.

All of smarTours trips include international airfare from the US on major scheduled airlines; deluxe and first class hotels; in-depth excursions and sightseeing; and professional English-speaking local guides. The company has arranged tours for more than 200,000 travelers since its founding in 1996. smarTours is headquartered in New York (www.smartours.com).

“We are very excited to partner with Greg, David and the smarTours team,” said Bob Calton, co-Founding Partner of Summit Park. “We believe Greg and David have done a terrific job of investing in the people and systems necessary to capitalize on an attractive niche of the global travel market. We also think that smarTours is in the early innings of its growth, and our focus will be on significantly increasing the investment in marketing to grow the smarTours brand and continue to build upon its community of highly satisfied travelers.”

Summit Park makes investments in lower middle market companies in a range of industries that have revenues between $20 and $100 million or EBITDAs between $4 million and $12 million. Sectors of interest include business and consumer services, light manufacturing and value-added distribution.  Summit Park is headquartered in Charlotte, NC (www.summitparkllc.com).

“Summit Park has an excellent track record of helping businesses accelerate their growth, and we believe that they can be particularly helpful in enhancing our direct-to-consumer marketing efforts through their network of relationships and expertise,” said Mr. Geronemus.

The acquisition of smarTours is Summit Park’s fifth platform investment in its second fund, Summit Park II LP, which closed in May 2015 with $118 million of capital commitments.

New York and Charlotte-based investment bank Fidus Partners (www.fiduspartners.com) was the financial advisor to smarTours.

© 2017 Private Equity Professional | November 3, 2017

Audax Closes on Ecolab’s Equipment Care

by

Audax Private Equity has completed its acquisition of Ecolab’s equipment care business which specializes in commercial kitchen equipment repairs and maintenance. This transaction was first announced in early October.

The equipment care business (ECB) repairs and services more than 300 OEM brands of commercial kitchen equipment including cooking, refrigeration, warewashing, beverage, holding and preparation appliances and is active with its customers from equipment installation to disposal. Customers include full-service restaurants, quick-service restaurants, hospitality providers, food retailers, institutions and healthcare facilities. ECB services 40,000 locations across 25 states with 500 technicians and 400 subcontractors and distributes 25,000 parts from more than 100 manufacturers, including thermocouples, switches, water filters, gas hoses, oven knobs, thermostats and contactors.

In 2016, ECB had total revenues of $180 million. The group is led by CEO Bill Emory and is headquartered in St. Paul with additional locations in Norcross, GA; Columbus, OH; Dallas and Fort Worth, TX; Hartford, CT; Indianapolis, IN; Louisville, KT; Miami and Tampa, FL; Minnetonka, MN; and Nashville, TN (www.equipmentcare.com).

“Ecolab’s Equipment Care is a leader in the kitchen equipment repair industry,” said Geoffrey Rehnert, Audax’s Co-Chief Executive Officer. “We look forward to working with Bill Emory and the rest of the Equipment Care team to build a leading platform organically and through add-on acquisitions.”

Audax Group 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).

“We are excited to be partnering with Audax for the next phase of Equipment Care’s growth. Audax provides expertise, resources, and valued experience in the industrials sector that will help us grow through strategic acquisitions,” said Mr. Emory.

Ecolab is a provider of water, hygiene and energy technologies and services. The company’s products and services are used to promote safe food, maintain clean environments, optimize water and energy use and improve operational efficiencies for customers in the food, healthcare, energy, hospitality and industrial markets. Ecolab had total revenues in 2016 of $13 billion. The company has more than 48,000 employees and is headquartered in St. Paul (www.ecolab.com).

Ecolab acquired the equipment care business through its 1998 acquisition of GCS Service.

Ropes & Gray provided legal services to Audax on this transaction.

© 2017 Private Equity Professional | November 3, 2017

Brian Boyle Joins Raymond James

by

Raymond James has added Brian Boyle as a managing director in its consumer investment banking practice. Mr. Boyle will lead the firm’s effort in the food and beverage sector.

Mr. Boyle joins Raymond James from PwC Corporate Finance where he co-led the consumer markets investment banking practice. He began his career at Lehman Brothers (1984 to 1997) and held senior positions at other investment banks including McGladrey Capital Markets (2000 to 2012) and D.A. Davidson & Co. (2012 to 2015). Mr. Boyle also founded a merchant banking firm, Capital Placement, which advised middle-market growth companies. He is a graduate of the University of Pennsylvania and is based in Chicago.

“I am very excited to be joining the highly successful Raymond James consumer investment banking team,” said Mr. Boyle. “Raymond James has built a powerful global M&A platform that I am looking forward to leveraging on behalf of my clients.”

“Brian is a highly regarded professional with an exceptional understanding of the food and beverage space,” said Mark Goodman, Managing Director and head of the consumer investment banking practice. “He’s adept at delivering results to clients, and I’m thrilled to welcome Brian to our team.”

Raymond James (NYSE: RJF) is a financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. Since 2013, Raymond James has participated in raising $300 billion in capital for its corporate clients and completed more than 400 advisory assignments, including more than 350 M&A buy-side or sell-side advisory assignments. The firm was founded in 1962 and is headquartered in St. Petersburg, FL (www.raymondjames.com).

© 2017 Private Equity Professional | November 3, 2017

Arbor Sells Salami Maker to Hormel

by

Hormel Foods has agreed to acquire Columbus Manufacturing, a branded manufacturer of salumi and related deli meat products, from Arbor Investments for $850 million. Arbor acquired Columbus in October 2012 from Endeavour Capital.

Columbus Manufacturing is a branded manufacturer of retail ready, super premium, artisanal salumi and related deli meat products. Salumi are Italian cured meat products and are predominantly made from pork (Editor’s note: “salami” is the plural of “salame” which is a type of “salumi”). Products are exclusively sold through supermarkets, club stores and specialty grocery stores across North America. The company, led by CEO Joe Ennen, was established by the Domenici and Parducci families in 1917 and is headquartered near San Francisco in Hayward, CA (www.columbuscraftmeats.com).

“We are pleased to add Columbus to the Hormel Foods family. Columbus has an outstanding reputation in the food industry and is well-positioned in the advantaged retail deli category,” said Jim Snee, President and Chief Executive Officer at Hormel Foods. “Columbus is capitalizing on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today’s consumers who are looking for unique experiences, flavors, and products.”

Upon closing of the transaction, Columbus will continue to operate from its facilities in California and will report into the Refrigerated Foods segment of Hormel. “The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organization,” added Mr. Snee. “This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers, and consumers. The synergies we can unlock with this acquisition are clear and I’m excited for the next evolution of our company.”

Hormel Foods (NYSE: HRL) is a global branded food company with over $9 billion in annual revenues. The company’s brands include SKIPPY, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly Guacamole, Hormel Black Label and more than 30 other brands. Hormel Foods is headquartered in Austin, MN (www.hormelfoods.com).

Columbus Manufacturing was advised by BofA Merrill Lynch and DLA Piper. In addition, Rothschild provided financial advice to Columbus Manufacturing. Hormel Foods was advised by Barclays and Faegre Baker Daniels.

Arbor, the seller of Columbus Manufacturing, invests in the food, beverage and related industries. Typical targets will have annual revenues of up to $300 million and EBITDA from $5 million to $50 million. Since founding in 1999 the firm has acquired or invested in over 52 companies that were active in the frozen foods, baked goods, dairy, protein, foodservice equipment, bottling, ingredients, packaging, and distribution segments. In July 2016 Arbor closed its fourth equity fund, Arbor Investments IV LP, with$765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I LP, with $125 million of capital. Arbor is based in Chicago (www.arborpic.com).

© 2017 Private Equity Professional | November 2, 2017