Archives for December 7, 2017

Lindsay Goldberg Exits Crane

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Publicly-traded Crane Co. has agreed to acquire similarly named Crane & Co. (Crane Currency) from private equity firm Lindsay Goldberg, members of the Crane family, and other shareholders for $800 million. Lindsay Goldberg first invested in Crane Currency in September 2008.

Crane Currency is a manufacturer of cotton-based paper products used in the printing of national currencies, passports and banknotes. The company is also a provider of micro-optic security technology that is used by more than 50 central banks in the design and manufacture of their nations’ banknotes and the company is the dominant supplier of paper for use in US currency. Crane Currency, led by CEO Stephen DeFalco, was founded in 1801 and is headquartered in Boston (www.cranecurrency.com).

Crane Currency is expected to have 2017 sales of approximately $500 million with an adjusted EBITDA of $94 million. The purchase price represents approximately 8.5x Crane Currency’s 2017 adjusted EBITDA.

Crane Co. (NYSE: CR) is a diversified manufacturer of industrial products including diagnostic, measurement, and control devices; aerospace components; engineered materials; valves and pumps; vending machines; and other automated merchandising systems. Annual revenues of Crane Co. are approximately $2.8 billion. The company, founded in 1855, has approximately 11,000 employees and is headquartered in Stamford, CT (www.craneco.com).

“We are extremely excited to announce this transaction, which will be Crane Co.’s second largest ever, and brings together two companies with nearly 380 years of combined history,” said Max Mitchell, President and Chief Executive Officer of Crane Co. “Crane Currency is the fastest growing, fully integrated global currency provider in the growing global banknote supply and security industry. Making it part of Crane Co. is a logical extension of our expanding presence in the currency and payment markets.”

Lindsay Goldberg manages $13 billion of equity capital and is focused on partnering with family-owned and entrepreneur‐led businesses seeking a partner to help actively build their businesses. The firm is based in New York (www.lindsaygoldbergllc.com).

This transaction is expected to close in the first quarter of 2018.

© 2017 Private Equity Professional | December 7, 2017

Wind Point Adds to Vee Pak

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Vee Pak, a portfolio company of Wind Point Partners since March 2017, has acquired Cosmetic Essence Innovations (CEI), from Littlejohn & Co. which acquired an equity interest in the company in October 2010.

CEI is a provider of development services and contract manufacturing for fragrance, skin care, hair care and color cosmetics products. Customers of CEI include many of the largest and best-known brands in the beauty and personal care industry.

CEI was founded in 1984 and is headquartered in Holmdel, NJ with US production facilities in New Jersey, Pennsylvania, and Virginia, and an additional production facility in Stryków, Poland (www.cosmeticessence.com).

Vee Pak is a contract manufacturer of beauty and personal care products. The company’s major products include over-the-counter (OTC) topical drugs and sunscreens; viscous creams and lotions; and body washes, shampoos and conditioners. The company services numerous companies in the personal care industry spanning small boutique manufacturers to Fortune 500 companies. Vee Pak has 700,000 sq. ft. of total manufacturing and distribution capabilities and operates an OTC-certified manufacturing facility in Countryside, IL; a distribution center in Hodgkins, IL (headquarters); and manufacturing and warehouse facilities in New Albany, OH and Chatsworth, CA. Vee Pak was founded in 1989 and is led by CEO Richard McEvoy (www.veepak.com).

The buy of CEI will broaden Vee Pak’s product offering, add to the company’s product development capabilities, and provide it with a coast-to-coast manufacturing network and an international presence. “CEI significantly strengthens Vee Pak’s strategic position in the marketplace,” said David Stott, Managing Director with Wind Point Partners. “Personal and beauty care brands continue to value manufacturing partners that bring new and exciting innovation concepts to the table and act as an extension of their supply chain.”

Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII LP, 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. The firm was founded in 1984 and is based in Chicago (www.wppartners.com).

Littlejohn makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth.  The firm invests from $50 million to $150 million of equity in middle-market companies that have annual revenues of $100 million to $800 million.  Littlejohn invests across a range of industries and acquires manufacturers, distributors, and service providers.  The firm is currently investing from Littlejohn Fund V which has $2 billion in capital commitments.  Littlejohn is based in Greenwich, CT (www.littlejohnllc.com).

Houlihan Lokey (www.HL.com) was the financial advisor to CEI and Lazard Middle Market (www.lazard.com) advised Vee Pak.

© 2018 Private Equity Professional | November 14, 2018

Odyssey Exits EAG Laboratories

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Odyssey Investment Partners has sold its portfolio company EAG Laboratories to Eurofins Scientific for $780 million. Odyssey acquired EAG Laboratories in September 2008.

EAG Laboratories (previously Evans Analytical Group) is a testing and analysis services company that provides materials surface testing; testing and analysis services to the pesticides, animal health and industrial chemical end markets; and microelectronics test services for semiconductor companies and small to medium-sized integrated device manufacturers.

EAG has more than 4,000 customers that are active in the industrial, aerospace, solar, biomed, pharma, chemical, consumer and technology end markets. The company has 21 laboratories in 18 locations worldwide and serves approximately 4,000 worldwide customers. EAG is headquartered in San Diego (www.eaglabs.com).

Eurofins Scientific (Paris: ERF) is a provider of food, environment and pharmaceutical products testing. The company, with a staff of over 30,000 and 375 laboratories in 41 countries, is headquartered in Luxembourg (www.eurofins.com).

Odyssey makes control investments in middle-market companies in a variety of industries including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has approximately $3.5 billion of capital under management and has offices in New York and west of Los Angeles in Woodland Hills, CA (www.odysseyinvestment.com).

Harris Williams & Co. (www.harriswilliams.com) was the financial advisor to EAG on this transaction which was led by Brian Lucas, Luke Semple and Ian Thomas of the firm’s Richmond office.

© 2017 Private Equity Professional | December 7, 2017