Archives for December 8, 2017

Wind Point Moves Into Custom Food

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Wind Point Partners has partnered with food executive Milt Liu and management to acquire Pacifica Foods and Stir Foods, two California-based businesses in the custom food manufacturing industry.

Pacifica Foods and Stir Foods are custom manufacturers of soups, sauces, dressings, fresh salsas, and muffin batters for both retail and foodservice customers. Pacifica was founded in 2000 and has two SQF (Safe Quality Food Institute) certified production facilities near Los Angeles in Corona, CA (www.pacificafoods.net).

Stir Foods was founded in 2005 and has two SQF certified production facilities in Orange, CA (www.stirfoods.com). The distance from Corona to Orange is only 22 miles. Pacifica and Stir’s four production facilities will remain open and management from both companies will continue to be involved in the business going forward.

“Pacifica Foods and Stir Foods are leaders in the attractive custom food manufacturing industry,” said Joe Lawler, a Principal at Wind Point.  “Our investment will support the strong cultures established by the ongoing ownership and current management teams to continue to deliver strong quality and customer service and grow with our customers. I am also excited about partnering with Milt Liu who brings decades of highly relevant leadership experience in food manufacturing and retail.”

Milt Liu has joined Pacifica Foods and Stir Foods as their new CEO. Prior to partnering with Wind Point on this acquisition, he was President and COO of Chicago-based Flying Food Group from September 2013 to March 2016. Flying Food Group produces meals for over 70 airlines, primarily international carriers, and retailers such as Starbucks. The company has more than $400 million in revenue and 4,000 employees at 18 locations (www.flyingfood.com). Earlier in his career, he held senior executive positions in Target’s grocery business and he was a strategy consultant at McKinsey & Co.

Dave Beré, a Wind Point Executive Advisor Partner and long-time consumer products and foodservice executive, is also joining Pacifica Foods and Stir Foods as non-executive Chairman. Mr. Beré most recently served as Chairman of Nonni’s Foods, a producer of branded artisan baked cookies and specialty snacks, which was sold by Wind Point to Vestar Capital Partners in November 2017.

“I am honored and excited to work with Wind Point and Dave Beré to bring together these two culinary-driven custom food manufacturers,” said Mr. Liu. “The management teams at Pacifica Foods and Stir Foods have created customer-focused organizations with reputations for superior quality, consistency and reliability.  I look forward to working with existing management to utilize our complementary product and packaging capabilities, as well as Wind Point’s resources, to better serve existing and new customers.”

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 and industrial products. Wind Point was founded in 1984 and is based in Chicago. In June 2017, 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 | December 8, 2017

MFG Buys MCG from Stone Arch

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MFG Partners has completed the acquisition of Mail Communications Group (MCG), an outsourced provider of print-to-mail services, from Stone Arch Capital.

Mail Communications Group provides print-to-mail and electronic document services including statement processing, electronic bill presentation and payment, variable printing, automated inserting, and mail induction. The company also provides direct mail services, such as list acquisition, letter shop, and mailing, and presorting services.

Customers of MCG include banks, insurance companies, healthcare providers, state and local governments, and local small businesses. MCG, led by its President Tom Lawrenz, was founded in 1984 and is based in Des Moines (www.mailcommunicationsgroup.com).

“We look forward to supporting Tom and the team at MCG,” said Jonathan Schilowitz, a Partner at MFG.  “Management has built an exceptional business by addressing the evolving communication needs of its customers.  We are eager to work with management to expand MCG’s service offering, with an emphasis on investing in the company’s digital platform and extending its geographic reach.”

“MFG’s focus on collaboration and its long-term investment approach fit well with our business,” said Tom Lawrenz, President of MCG. “We will deepen the relationship with our customers as we continue to invest in new products and services and expand our footprint.”

MFG Partners makes control investments of $10 million to $50 million in North American companies valued from $25 million to $100 million. Sectors of interest include industrial, manufacturing, distribution, and business-to-business services. MFG was founded by Jeff Mizrahi and Jonathan Schilowitz and is headquartered in New York (www.mfgpartners.com).

Stone Arch Capital, the seller of MCG, makes equity investments of $10 million to $25 million in Midwest-based lower middle-market companies with revenues from $20 million to $150 million and EBITDA greater than $5 million.  Transaction sizes are generally within the range of $20 million to $100 million.  Sectors of interest include manufacturing and service industries.  Stone Arch Capital is headquartered in Minneapolis (www.stonearchcapital.com).

TCF National Bank and Tecum Capital Partners provided financing for this transaction.  Cleary Gull was the financial advisor to MCG.

© 2017 Private Equity Professional | December 8, 2017

LFM Completes Second Eckhart Add-On

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Eckhart, a portfolio company of LFM Capital, has acquired Polker Design Services. This is the second add-on acquisition for Eckhart since being acquired by LFM in June 2015.

Polker Design Services designs automated manufacturing and robotic assembly systems for blue-chip customers in a variety of end markets. The company’s specialties include mechanical design, robotic simulation, and lean manufacturing for metal inert gas (MIG) welding systems, pierce units, automatic and robotic resistance, weld guns, and checking/drill fixtures. Polker was founded in 1988 by Art Polker and is headquartered near Detroit in Rochester Hills, MI.

“I am excited to partner with a company committed to embracing Industry 4.0 and the advanced technologies that are reshaping the manufacturing landscape. From autonomous guided vehicles to highly automated assembly systems, our joint team believes we can bring an unprecedented level of value to end customers across multiple industries,” said Mr. Polker. “I was looking for business partners committed to being good stewards of the business and chose to partner with LFM Capital and the Eckhart team because of their direct knowledge and experience in our business and their overall long-term commitment to our employees.” (Editor’s note: Industry 4.0 is a name for the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of Things, cloud computing and cognitive computing. Industry 4.0 creates what has been called a “smart factory”).

Eckhart is a designer and manufacturer of specialized ergonomic tools that are sold to automotive and industrial manufacturers.  According to Eckhart, ergonomically correct machinery enhances process reliability and results in improved worker performance, worker safety, and product quality.  Eckhart’s products include autonomous guided vehicles (AGVs), collaborative robotic systems, traditional robotics, additive manufacturing tool development & production, and ergonomic general assembly tooling products. Customers include automotive and industrial original equipment manufacturers such as Stryker Medical, General Electric, Ford, Tesla, PACCAR, John Deere, Bradford White, and Caterpillar. The company is led by its President and CEO Andy Storm and operates from three company-owned facilities in Lansing, MI (www.eckhartusa.com).

“This acquisition demonstrates our ongoing commitment to expand our design capability and accelerate our efforts to provide end-customers with a broader suite of advanced manufacturing solutions,” said Mr. Storm. “Polker adds specific industrial engineering capabilities that will complement unprecedented growth in our autonomous guided vehicle business and also provides expertise in robotic cell engineering. Our collective team is now able to take on complex robotic systems projects and integration with the highest level of quality and service in the industry.”

The buy of Polker is the second by Eckhart under LFM Capital ownership. In July 2016, Eckhart acquired Auto Craft Tool & Die, a provider of industrial material handling systems and tooling, and ergonomic and work cell construction components. The company’s products include door and instrument panel carriers, and automatic guided carts used to transport material in factory environments. Auto Craft also sells work brake systems that protect production line operators exposed to rotating assembly processes. Customers of the company include Boeing, Honda, Toyota, Johnson Controls, Carrier, Whirlpool, Nissan, Kawasaki, Ford, Chrysler, and General Motors. Auto Craft is based near Detroit in Algonac, MI (www.auto-craft.com).

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 with $110 million in capital commitments in October 2014 (www.lfmcapital.com).

© 2017 Private Equity Professional | December 8, 2017

Murray Devine Adds Business Development Pro

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Murray Devine has hired Mark Emrich as its newest Managing Director. Mr. Emrich will lead Murray Devine’s New York business development activities with an emphasis on alternative investment firms and financial service intermediaries including investment banks, law firms, accounting and audit firms, and insurance companies.

Mr. Emrich has more than 20 years of experience in investment sales and business development at financial service firms across multiple asset classes and investment strategies. Prior to joining Murray Devine, Mr. Emrich was a Managing Director at Anagenesis Capital Partners, a New York-based investor in the healthcare and consumer sectors, where he focused on business development as well as developing relationships with institutional investors.

“I believe there is a tremendous market opportunity to grow Murray Devine,” said Mr. Emrich. “Rapid growth of the private equity and private credit markets, increased regulatory scrutiny on valuation practices and demand for independent advice provides a strong macro backdrop for the independent valuation advisory industry. My background combined with the firm’s leading brand and deeply experienced valuation advisory team uniquely positions Murray Devine to capitalize on these trends. I look forward to building upon the firm’s 30-year track record of success.”

Prior to his time at Anagenesis, Mr. Emrich led business development for Pembroke Hobson, a Philadelphia-based private equity real estate investment firm. He has also held senior investment sales roles at CIBC and Scotiabank as well as Brown Brothers Harriman. Mr. Emrich has an MBA from the New York University’s Stern School of Business and a bachelor’s degree from Keene State College.

“Mark’s deep relationships – particularly in the alternative investments sector – provide a solid platform for our continued success and next level of growth in the New York region,” said Rob Tribuiani, Managing Director and Head of Business Development for Murray Devine.

Murray Devine is a provider of financial opinions, financial and portfolio valuations and related valuation advisory services for private equity firms, business development companies, private debt and hedge funds, commercial banks and corporations. The firm was founded in 1989 and is headquartered in Philadelphia with an additional office in New York (www.murraydevine.com).

“In further building out our senior sales and management teams, we couldn’t have asked for a better partner than Mark,” said Dennis Murray, President of Murray Devine. “Mark’s extensive experience with capital markets and marketing private funds to alternative investors brings a new and exciting perspective to our firm that will resonate well with our clients.”

© 2017 Private Equity Professional | December 8, 2017