Archives for January 8, 2018

Sun Sells Robertshaw to One Rock

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Sun Capital Partners has sold Robertshaw Controls Company, a maker of electronic and electromechanical controls, to One Rock Capital Partners.

Robertshaw designs, engineers and manufactures control products that are used in the white goods industry (white goods are heavy consumer durables such as air conditioners, refrigerators, stoves, etc., which used to be painted only in white enamel finish. Despite their availability in varied colors now, they are still called white goods). Robertshaw manufactures more than 10,000 controls for commercial and home appliances including clothes washers and dryers, dishwashers, refrigerators, electric and gas cooking, ice makers, fluid dispensing, storage water heaters, gas valves for space/central heating, and automotive/off road temperature and fluid controls. The company has more than 6,300 employees and is headquartered near Chicago in Itasca, IL and also has four engineering centers, eleven manufacturing plants, and seven distribution centers. The company was founded in 1899 by Frederick Robertshaw (www.robertshaw.com).

Sun Capital Partners acquired the Invensys Appliance division from its parent company Schneider Electric in June 2014 and renamed the business Robertshaw Controls. During its ownership term, Sun Capital worked with the management team to build out a back-office infrastructure for the newly standalone business, streamlined procurement, and improved manufacturing processes.

“Sun Capital saw the company’s potential to be a market leader when it was the Invensys Appliance division of Schneider Electric,” said Marc Leder, Co-CEO at Sun Capital. “We are proud to have helped Robertshaw progress from good to great through a series of operational improvements and the strategic acquisition of Burner Systems International in June 2016. This resulted in a doubling of profitability in less than four years.”

Sun Capital invests in leveraged buyouts, equity, and debt in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 340 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. The firm has offices in Boca Raton, Los Angeles and New York, and affiliates in London, Frankfurt, Stockholm and Shenzhen (www.SunCapPart.com).

Mark Balcunas, who has been with Robertshaw since 1979, will remain CEO under One Rock ownership. “We will become an even stronger supplier of controls and solutions to the industries we serve through our One Rock partnership,” said Mr. Balcunas. “Robertshaw will continue to invest in new product offerings, state of the art engineering and manufacturing capabilities, and the expansion of our market-leading product positions through targeted niche acquisitions, with the most recent being Burner Systems International.”

“Robertshaw is a proven industry leader with a strong reputation in the market and proven commitment to its customers,” said Tony Lee, Managing Partner of One Rock. “We are excited to work alongside Robertshaw’s management team to continue developing the business and enhancing its ability to serve customers globally.”

One Rock makes control investments of $10 million to $60 million in companies that are active in the chemicals and process industries; specialty manufacturing; healthcare products; business services; environmental services; and automotive retail. One Rock has a strategic relationship with Mitsubishi Corporation – the firm’s largest investor – which provides resources to One Rock and its portfolio companies.  One Rock was formed in 2010 by Tony Lee and Scott Spielvogel and is based in New York (www.onerockcapital.com).

© 2018 Private Equity Professional | January 8, 2018

Align Acquires ISA Fire & Security

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Align Capital Partners has acquired International Systems of America (ISA) from Gen Cap America. Gen Cap acquired ISA in September 2010.

International Systems of America provides inspection, maintenance, and repair services and sells new, repaired, and remanufactured parts for fire and security systems.  ISA is led by its CEO Mike Epperson and is headquartered in Louisville (www.isa-net.com).

“Due to the hard work of the ISA team and support of Gen Cap over the past seven years, we’re well-positioned to execute on multiple growth channels,” said Mr. Epperson.

“ISA is a great example of the business attributes and industry dynamics that are core to Align’s investment strategy,” said Managing Partner Steve Dyke.  “The company has been successful in building a unique, dual-pronged service and parts model facilitating niche leadership within a large, fragmented market.  Align is focused on growing ISA through organic growth and acquisitions, while maintaining the exceptional service culture that the company embodies today under the continued leadership of CEO Mike Epperson.”

Align Capital Partners makes control investments in companies that have from $3 million to $10 million of EBITDA. Sectors of interest include specialty manufacturing, distribution and business services. The firm was founded in 2016 by managing partners Steve Dyke, Robert Langley, and Chris Jones – all formerly of The Riverside Company – and has offices in Cleveland and Dallas (www.aligncp.com).

Working alongside Mr. Dyke on this transaction were Managing Partner Chris Jones, Operating Partner John Dupuy, Vice President Jack Parks and Associate Jonathan Vadiee. The buy of ISA is Align’s fifth platform company investment since the firm’s first fund closed at its hard cap in September 2016 with $325 million of capital.

Gen Cap America invests in companies with revenues between $5 million and $100 million that are active in the manufacturing, distribution or service sectors. The firm is currently investing through Southwest Fund VII, a $250 million fund which had a final close at its hard cap in January 2017. Gen Cap was founded in 1985 and is based in Nashville (www.gencapamerica.com).

© 2018 Private Equity Professional | January 8, 2018

Arcapita Buys MC Sign from Caltius

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Arcapita has acquired a controlling interest in MC Sign Company from Caltius Capital Management for a total transaction value in excess of $100 million. Caltius acquired MC Sign from Sverica Capital Management in September 2015.

MC Sign provides signage, lighting and maintenance services to over 275 customers that are active in the retail, banking, hospitality, quick service restaurant and petroleum/C-store segments throughout the US and Canada. The company’s services include new installations, rebrandings, and refurbishments, as well as on-demand sign maintenance and emergency repairs.

The company has also steadily grown its lighting services business which completes interior and exterior lighting installations and is currently capitalizing on the high-growth LED retrofit/conversion market. MC Sign processes over 40,000 work orders per year through over 5,000 field service partners, and has 225 employees. The company was founded in 1953 and is headquartered near Cleveland in Mentor, OH (www.mcsign.com).

“MC Sign acts as a comprehensive one-stop-shop for customers, eliminating the need to manage multiple relationships with local vendors across diverse geographies. This is especially beneficial for companies with a national or regional footprint,” said Martin Tan, Arcapita’s Chief Investment Officer. “We believe the company has significant potential to grow organically and through acquiring smaller regional service providers. Given the repeat nature of customer demand, MC Sign also benefits from a sizable and growing recurring revenue base.”

“MC Sign is led by a very experienced team of professionals who have grown the business considerably over the past few years, and we believe the company is well positioned to acquire market share in a highly fragmented industry that is dominated by locally-focused, sub-scale service providers,” said Atif Abdulmalik, Arcapita’s Chief Executive Officer. “Over 75% of MC Sign’s customers are blue-chip companies with a national presence and, attesting to the company’s value proposition, MC Sign has averaged an industry-leading customer retention rate of 99% since 2012.”

Arcapita is a private equity firm specializing in growth capital and buyout investments in the consumer, healthcare, energy, business services, industrial, technology, food & beverage, transportation & logistics, and manufacturing sectors. The firm invests between $50 and $200 million in companies with total transaction values between $50 and $300 million. Arcapita was founded in 1997 and is based in Atlanta with additional offices in Bahrain, London, and Singapore (www.arcapita.com).

© 2018 Private Equity Professional | January 8, 2018

Centerfield Closes Fund Four

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Centerfield Capital Partners has held a final closing of its fourth mezzanine debt and equity investment fund, Centerfield Capital Partners IV LP, and side fund, CCP IV SBIC LP, at the combined hard cap of $310 million and above the combined target of $225 million.

Investors in Centerfield IV include banks, insurers, public pension plans, fund-of-funds, family offices and individuals. Many of these investors were limited partners in earlier Centerfield funds.

“We are humbled by the strong reception of Centerfield IV in the market. Having $310 million of committed capital will allow us to continue to execute upon our strategic plan of building a leading institutional platform to serve growing small to middle market businesses for years to come,” said Scott Lutzke, Centerfield Founding Partner. “We appreciate the support of our investors, and are also excited to welcome three new investment professionals to the team who will help us deploy Centerfield IV.” Joining Centerfield in 2017 were Troy Clark, Director of Business Development, from Cisco Capital; Augie Pence, Senior Associate, from Prospect Partners; and Adam Shaffer, Analyst, from Sterling Partners.

Centerfield provides from $7 million to $35 million of subordinated debt and equity financing to middle-market companies that have $15 million to $100 million of revenue and $4 million to $15 million of EBITDA. The firm is based in Indianapolis (www.centerfieldcapital.com).

“Collaboration, teamwork, investment discipline and structural flexibility are at the core of our strategy at Centerfield and have served us well across many funds and varying economic cycles,” said Faraz Abbasi, Centerfield Senior Partner. “We will continue to expand and solidify our relationships with private equity firms, independent sponsors and intermediaries who provide us a high-quality pipeline of investment opportunities.”

Centerfield began investing Centerfield IV in April 2017 and has deployed $67 million in six platform companies and one add-on acquisition. Since 2001 the firm has closed 56 platform investments and 42 related add-on acquisitions.

© 2018 Private Equity Professional | January 8, 2018