Archives for November 2017

Audax Sells RESA Power to Blue Sea Capital

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Audax Private Equity has completed the sale of RESA Power, a provider of maintenance, repair and related services and products that are used to extend the life of electrical distribution and control equipment, to Blue Sea Capital.

RESA Power specializes in servicing major power distribution and control markets, and stocking obsolete and hard-to-find inventory. The company has eight distribution facilities and nine service centers across the US and employs field sales engineers in twelve states serving every major US metropolitan area and Canada. RESA Power, led by CEO Brian McSharry, was founded in 2003 and is headquartered in Houston with approximately 250 employees (www.resapower.com).

During Audax’s term of ownership, RESA completed nine add-on acquisitions which expanded the company’s footprint across the United States and into Canada, and added complementary product and service offerings.

“We congratulate Brian McSharry and his team on an excellent job transforming the company through add-on acquisitions and organic growth,” said Geoffrey Rehnert, Audax’s Co-Chief Executive Officer. “We wish Brian and the RESA management team continued success with their new partner.”

Blue Sea Capital invests in companies that have up to $30 million of EBITDA and enterprise values of no more than $200 million. Sectors of interest include aerospace & defense, healthcare and industrial growth. Blue Sea is headquartered in West Palm Beach, FL (www.blueseacapital.com).

“We are delighted to partner with Blue Sea Capital for this next phase of our strategy to become the national service provider of choice within our chosen market sectors,” said Mr. McSharry. “The team at Blue Sea Capital shares our strategic vision of geographic expansion organically and via acquisition. Sincere thanks to Audax for their support over the years and their pivotal role in the company’s growth and success.”

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).

Barings and MetLife provided financing to back the buy of RESA Power by Blue Sea. Lincoln International was the financial advisor to RESA Power.

© 2017 Private Equity Professional | November 13, 2017

Huron Capital Acquires Hansons

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Huron Capital has acquired Hansons Holdings, a provider of home repair and renovations. The investment in Hansons is the first for the firm’s latest fund, The Huron Fund V, which closed in February 2017 with $550 million of capital commitments.

Hansons is a provider of marketing and support services for the installation of replacement windows, roofing and siding. The company was founded in 1988 by CEO Brian Elias and has eight locations throughout Michigan and Ohio. Hansons is headquartered in the Detroit suburb of Troy (www.hansons.com).

“I’m proud of the brand and business we’ve built at Hansons, and I’m confident Huron Capital is the right partner to help us continue our growth,” said Mr. Elias. “We look forward to working with the Huron Capital team as we expand into new products and markets.”

“Huron Capital has a history of investing in marketing services and consumer businesses, making Hansons a great fit,” said Sean Roberts, a Huron Capital Principal. “Hansons has a highly-visible and well-respected brand.  The business has a systematic approach towards lead generation and project management, all of which we believe provides a strong foundation for us as we pursue new growth, both organically and through acquisition.”

Huron Capital invests up to $70 million per transaction in middle-market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include specialty manufacturing, business services, consumer goods & services, and healthcare. Huron was founded in 1999 and has offices in Detroit and Toronto (www.huroncapital.com).

Hansons was represented on this transaction by Angle Advisors, a Birmingham, MI-based investment bank.

© 2017 Private Equity Professional | November 13, 2017

Quad-C Sells Vaco to Olympus

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Quad-C Management has sold its portfolio company Vaco, an executive search, consulting, placement and strategic staffing firm, to Olympus Partners.

Vaco, with annual revenues of approximately $450 million, operates more than 35 offices worldwide and has more than 780 employees and 4,300 consultants. Areas of emphasis for Vaco include accounting, finance, technology, healthcare IT, operations, administration and international managed services. The company was founded in 2002 by CEO Jerry Bostelman, Jay Hollomon, and Brian Waller and is headquartered in the Nashville suburb of Brentwood, TN (www.vaco.com).

Quad-C invested in Vaco in 2014 in partnership with its management team. During the term of ownership, Vaco completed seven add-on acquisitions which expanded Vaco’s service offerings into healthcare IT and extended its geographic footprint domestically, as well as into Canada and India. “In a relatively short period of time, we made significant investments in the company and were able to roughly double Vaco’s revenues, while diversifying the company’s end markets,” said Timothy Billings, a Partner at Quad-C.

“Vaco is exceedingly appreciative of Quad-C’s wisdom, passion and generosity over our fruitful three-year partnership,” said Mr. Bostelman. “The team rolled up its sleeves and collaborated in a way that helped expand our business and perspective, leaving an indelible mark on our company.”

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. Quad-C is headquartered in Charlottesville, VA (www.quadcmanagement.com).

“Jerry, Jay, Brian, and the rest of the Vaco team have built a remarkable entrepreneurial culture that has led to impressive growth across multiple industries and geographies,” said Jason Miller, a Partner at Olympus. “We look forward to working with them to continue that success.”

Olympus, with $5.5 billion of total capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion.  Sectors of interest include business services, restaurants, consumer products, healthcare services, financial services, and packaging.  The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com).

The acquisition of Vaco marks Olympus’ ninth investment out of its $2.3 billion sixth fund which closed in 2013. The Olympus team for this transaction was comprised of Managing Partner Jim Conroy, Partner Jason Miller, Vice President Griffin Barstis, and Associate Bohdan Tyshynsky.

William Blair & Company and CHILDS Advisory Partners were the financial advisors to Quad-C and Vaco on this transaction.

© 2017 Private Equity Professional | November 13, 2017

Azalea Capital Invests in Ark Naturals

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Azalea Capital has made an investment in Ark Naturals, a maker of natural health products for dogs and cats. Partnering with Azalea in this investment are Ark’s founders, Susan and Jay Weiss, pet executive Michael Stoeckle, and the 4612 Group, an Atlanta-based investor in private companies.

Ark Naturals markets a full line of remedy, health and lifestyle products for dogs and cats under the Ark Naturals and Gray Muzzle Brands.  All of the company’s products are manufactured in the United States in FDA and USDA approved facilities.  The company was founded in 1996 and is headquartered in Naples, FL (www.arknaturals.com).

Mr. Stoeckle has joined Ark as its President and CEO and Michelle Higdon, a colleague of Mr. Stoeckle and Azalea Capital, has joined the company’s board of directors. Susan and Jay Weiss will continue with the company, with Jay Weiss also serving on the board of directors.

“We were attracted to Ark due to its quality standards and history providing products that promote health and well-being through the natural and pet specialty channels,” said Mr. Stoeckle. “Building on the foundation developed by Susan and Jay, we will continue to invest in people, products and marketing to expand the awareness and availability of Ark’s superior product offerings beyond its devoted customer base.”

Mr. Stoeckle has 30 years of experience managing branded consumer packaged goods companies.  He is the former VP of Corporate Strategy and VP of Sales and Marketing for Solid Gold Pet Food, a premium pet food company.  Prior to Solid Gold, Mr. Stoeckle was VP of Sales for Waggin’ Train, a division of Nestle-Purina that produced a line of natural dog treats.   Immediately prior to joining Ark, he was VP of Sales and Marketing for Spray and Forget, an outdoor cleaning products company.

Michelle Higdon has 20 years of experience in the consumer goods market and currently serves as the CEO of Rockford, IL-based Jones Naturals, a maker of all-natural pet treats and a portfolio company of Azalea since May 2016.  Previously, Ms. Higdon was the CEO of Solid Gold Pet Food, as well as the President and COO of Waggin’ Train, which was acquired by Nestle-Purina in 2010.

Azalea Capital invests in middle market companies that have annual revenues of at least $10 million and EBITDAs of up to $8 million.  Industries of interest include aerospace, business services, consumer products, energy services, healthcare, manufacturing, and value-added distribution. Azalea Capital was founded in 1996 and is headquartered in Greenville, SC (www.azaleacapital.com).

© 2017 Private Equity Professional | November 9, 2017

Ridgemont Closes New Fund

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Ridgemont Equity Partners has held a final above target closing of Ridgemont Equity Partners Energy Opportunity Fund LP (EOF) with $320 million in capital commitments.

The EOF is a companion fund to Ridgemont’s $995 million fund, Ridgemont Equity Partners II LP (REP II), which closed in November 2015. The EOF and REP II invest side-by-side in the firm’s energy sector investments.

“We have scaled our platform to capitalize on the attractive opportunities we are seeing in energy today,” said John Shimp, a Partner at Ridgemont. “It is important to have a long-term view in this industry and we have been active but disciplined in our deployment of capital through commodity cycles.”

Ridgemont Equity Partners invests from $25 million to $100 million per transaction in companies that have from $5 million to $30 million of EBITDA. Sectors of interest include basic industries and services; energy; healthcare; and technology and telecommunications. The principals of Ridgemont have deployed more than $4 billion in 141 investments since 1993 and more than a quarter of the firm’s invested capital has been funded in Ridgemont’s energy strategy investments.

“Ridgemont employs a diversified investment strategy across basin, commodity and the value chain, and seeks to back successful teams multiple times over,” said Cay Freihofer, a Principal at Ridgemont. “The EOF enhances our ability to build a high-quality middle market energy portfolio.”

San Francisco-based Brooklands Capital Strategies (www.brooklandscapital.com) served as the fundraising advisor for the EOF.

Ridgemont Equity Partners is headquartered in Charlotte with an additional office in Dallas (www.ridgemontep.com).

© 2017 Private Equity Professional | November 9, 2017

Dubin Clark Acquires Skyline Tent

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CE Rental, a Dubin Clark portfolio company, has acquired Skyline Tent Company, a provider of tenting and large flooring systems to events throughout the Southeast.

Skyline Tent has an extensive inventory of structures including sailcloth tents, structure and frame tents; lighting and power systems, tent flooring, tent accessories, and tables and chairs. The company has offices in Charlottesville, VA and Charleston, SC (www.skylinetentcompany.com).

CE Rental is a provider of event rental equipment including linens, fine china, flatware, dinnerware, tents, tables, and chairs. The company serves customers in the mid-Atlantic market. CE Rental was founded in 1952 and is headquartered in Raleigh, NC (www.cerental.com).

“Both CE Rental and Skyline are leaders in their respective markets. We are enthusiastic about the expanded growth opportunities by bringing together two of the premier tabletop and tenting providers in the industry,” said Brent Paris, Managing Partner at Dubin Clark.

“The partnership between CE Rental and Skyline Tent greatly expands our strategy of being the premier full-service rental provider on the East Coast,” said James Auerbach, Senior Vice President at CE Rental. “We are excited to leverage the exclusive tabletop and tenting offerings of both CE Rental and Skyline in all of our existing markets and beyond.”

The buy of Skyline Tent is the third add-on acquisition completed by CE Rental since being acquired by Dubin Clark in February 2017. The two earlier acquisitions were Capital Party Rentals (Dulles, VA) and Festive Fare Rentals (Charlottesville, VA).

Dubin Clark invests in companies that have from $10 million to $100 million in sales and at least $2 million of EBITDA. Sectors of interest include manufacturing, value-added distribution, and services. In July 2017, the firm closed its oversubscribed second fund, DCCP Fund II LP, with more than $100 million of capital commitments. Dubin Clark has offices in Boston, MA and Ponte Vedra Beach, FL (www.dubinclark.com).

“Joining Skyline Tent and CE Rental is a fantastic opportunity for both companies. Our new combined group will work together to elevate the quality of events in the markets we serve, and will allow us to offer all of our customers the very best combination of tents, tabletop rentals, and service across the Southeast,” said John Hingeley, President of Skyline Tent.

© 2017 Private Equity Professional | November 9, 2017