Archives for January 9, 2018

Tonka Bay Sells PTI to Incline Equity

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Tonka Bay Equity Partners has sold P.T. International, a supplier of mechanical power transmission products, to Incline Equity Partners.

P.T. International (PTI) is a supplier of metric and American standard power transmission products.  The company’s products include mounted ball and roller bearing units, roller chains, gears, sprockets and other products that are sold to original equipment manufacturers and large national distributors for use across a range of end-markets.  PTI was founded in 1994 and is headquartered in Charlotte, NC (www.ptintl.com).

Tonka Bay partnered with the management team of PTI to acquire the company in September 2012. During Tonka Bay’s ownership, PTI recruited and built out the management team and made a significant add-on acquisition with the buy of LMS Bearings, a Lafayette, CO-based supplier of commercial bearings, in March 2017.

“PTI is a great business” said Steve Soderling, Partner of Tonka Bay.  “Led by a dynamic management team and a board with deep industry expertise, PTI was able to invest in people, new product development and technology, which accelerated its growth.  PTI proved to be a very successful partnership for Tonka Bay and, with its talented management team in place, is poised for continued success.”

“Tonka Bay has been a great partner for our business” said Darin Davenport, CEO of PTI.  “Since I joined PTI in 2013, Tonka Bay has been a strong supporter of our team and made the investments to help us build a bigger, better business.  They provided the guidance, resources and expertise to help accelerate our growth and position PTI for a bright future.”

Tonka Bay invests in manufacturing, value-added distribution and business services companies that have EBITDAs greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).

Incline Equity Partners, the buyer of PTI, invests from $15 million to $30 million in support of recapitalizations, buyouts and corporate divestitures of lower middle market companies that have EBITDAs greater than $5 million and enterprise values between $50 million and $200 million. Sectors of interest include value-added distribution, specialized light manufacturing, and business and industrial services.  Incline was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).

© 2018 Private Equity Professional | January 9, 2018

Golden Gate Expands Elevator Company

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GAL Manufacturing, a portfolio company of Golden Gate Capital, has acquired Comprehensive Manufacturing Services (CMS), a provider of door systems for freight elevators.

CMS’ products include power and manually operated freight elevator doors, car gates, car enclosures, and related components. The company’s freight door products are sold under the Courion and Security brand names and its cart lift products are sold under the Cart-Matic and Tote-Matic brand names. CMS also provides installation, repair, and modernization services for any type of freight elevator door system through Freight Tech, a wholly-owned New York-based subsidiary. The company was founded in 1921 and is headquartered in St. Louis (www.couriondoors.com).

CMS is led by its owners and principals Michael Garner and Bob Jackson who will remain in their current roles at CMS under GAL ownership. “Our company has always respected what GAL stood for and we’re glad to be a part of their organization. Their reputation throughout the industry is outstanding, and we’re confident that this partnership will allow us to deliver even more superior products and service to our customers,” said Mr. Jackson.

Golden Gate Capital acquired GAL Manufacturing, a designer, manufacturer, and distributor of elevator components and systems, in June 2017. GAL supplies nearly every electromechanical component used in elevator systems including door operators and associated door equipment, geared and gearless traction machines, universally compatible microprocessor controllers, safety components, signal fixtures, push-button panels, and structural assemblies. The company sells its products to thousands of independent elevator contractors and large elevator OEMs. GAL is headquartered in the Bronx, NY, with additional facilities in Quincy, IL, and Mississauga, ON (www.GAL.com) (www.hollisterwhitney.com) (www.GALCanada.com).

“Courion’s products are highly complementary to GAL’s broad product portfolio and Courion has established an excellent reputation for customer support and service that will bolster our efforts to provide an unrivaled range of products to independent elevator contractors and large elevator OEMs,” said Mark Boelhouwer, President and CEO of GAL.

Golden Gate Capital targets companies across a range of industries and transaction types, including going-privates, corporate divestitures, recapitalizations, and public equity investments. The firm has approximately $15 billion of capital under management and is based in San Francisco (www.goldengatecap.com).

© 2018 Private Equity Professional | January 9, 2018

Monomoy Exits Katun

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Monomoy Capital Partners has completed the sale of Katun Corporation to Taiwan-based General Plastic Industrial Co.

Katun is a supplier of OEM-compatible imaging supplies, photoreceptors, parts and accessories for single and multi-function copiers, printers, and other imaging devices. The company has approximately 5,300 SKUs and sells to more than 11,500 customers in over 130 countries throughout the world. Katun is headquartered in Minneapolis and operates seven distribution facilities in the United States and Europe; and maintains over 20 sales and customer service offices in North America, Europe, Latin America, the Middle East and Africa (www.katun.com).

Since acquiring Katun in September 2008 through its first fund, Monomoy Capital Partners LP, the firm has consolidated the company’s distribution centers and sales offices, improved product mix and introduced new products.  In November 2010, the company expanded its printer products with the acquisition of the assets of Media Science’s toner business including inventory, fixed assets, and intangibles for $11 million. Also during Monomoy’s ownership, the company introduced a web-based selling program and improved its working capital requirements through reductions in inventory.

“Monomoy has been an instrumental partner throughout the transformation of Katun,” said Robert Moore, Katun’s President and Chief Executive Officer. “Monomoy’s dedicated team of investment and operating professionals helped Katun create a strong, profitable business and set a new standard for excellence throughout the company. Monomoy gave us the support and resources necessary to execute a winning global strategy and create substantial value for our shareholders.”

Monomoy makes control investments of debt and equity in companies with at least $150 million in sales, $15 million of EBITDA, and enterprise values of up to $500 million. Sectors of interest include industrial, distribution, and consumer. Monomoy is currently investing out of its third fund, Monomoy Capital Partners III LP, with $767 million of committed capital. The firm is headquartered in New York (www.mcpfunds.com).

“Katun is a great example of how Monomoy creates value,” said Justin Hillenbrand, Co-Chief Executive Officer of Monomoy. “In partnership with management, we were able to improve the business through the Great Recession by eliminating low margin products, exiting unprofitable geographies, streamlining corporate overhead costs, improving efficiency at Katun’s distribution centers, driving profitable growth and positioning the business for a successful exit.”

“Over our ownership period, we helped transform this corporate carve-out into a resilient, disciplined design and distribution business through challenging market dynamics,” said Jaime McKenzie, a Monomoy Director. “We leveraged Monomoy’s operationally-focused strategy to drive free cash flow and stable earnings and successfully positioned Katun for continued growth under the ownership of a strategic buyer. Katun is a premier provider of aftermarket imaging supplies with a world-class management team, and we wish them all the best.”

General Plastic Industrial Co., the buyer of Katun, is a Taiwan-based company that manufactures and distributes toner cartridges. The company is publicly-traded on the on Taiwan Stock Exchange (TSE: 6128.TW) and is headquartered in Taichung (www.gpi.com.tw).

Lincoln International was the financial advisor to Katun on this transaction.

© 2018 Private Equity Professional | January 9, 2018

Transom Has Hard-Cap Close

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Transom Capital Group has held a first and final closing of Transom Capital Fund III LP with $300 million of capital commitments.

The new fund reached its hard-cap in just two months of fundraising and was oversubscribed from its initial $250 million target and $300 million hard-cap. Transom’s earlier fund closed in June 2016 with $133 million of capital commitments.

“Fund III will be a continuation of the partnership-driven, operationally focused approach that led to Transom’s historical success.  We will continue to focus on the middle market and make investments in similar situations where our team plays a hands-on role in identifying and executing business transformations,” said Russ Roenick, Managing Partner.

Transom invests in buyouts and turnarounds of companies with EBITDAs from $0 (turnaround situations) to $20 million. Sectors of interest include consumer products, media & entertainment, and industrial. Transom is headquartered in Los Angeles with an additional office in Seattle (www.transomcapital.com).

“We are very grateful for the support from our new and existing global institutional investors who have demonstrated incredible confidence in the value creation capabilities of our firm,” added Ken Firtel, Managing Partner.

Don Melamed of Los Angeles-based law firm O’Melveny & Myers (www.omm.com) provided legal services to Transom on this fundraise.

© 2018 Private Equity Professional | January 9, 2018

Kidd & Company Expands Family RV

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Family RV Group, a portfolio company of Kidd & Company, has acquired Dunlap RV Centers, an operator of recreational vehicle (RV) dealerships with four locations in Kentucky, Tennessee and Georgia.

Family RV Group is specialty retailer of new and used RV’s, related services, parts and accessories for RV owners and camping enthusiasts.  The company, led by its president Wade Stepp, was founded in 1968 and is headquartered in Cincinnati (www.familyrvgroup.com).

With the buy of Dunlap RV completed, Family RV now operates nine full-service dealerships throughout Ohio, Indiana, Kentucky, Tennessee and Georgia under the brand names Colerain Family RV, Northside Family RV, and Dunlap Family RV.

“Family RV’s acquisition of Dunlap RV adheres to our strategy of geographic expansion by acquiring quality RV dealerships with strong brand recognition, high customer loyalty and strong operations,” said Ken Heuer, a Kidd & Company Principal and Family RV Board member.

Kidd & Company is the private investment arm of the Kidd Family Office and makes control equity investments in the lower middle market. The firm was founded in 1976 and is headquartered in Old Greenwich, CT (www.kiddcompany.com).

“Family RV has enjoyed a stellar reputation among their manufacturers and retail customers for delivering best-in-class sales and services for the past 50 years.  From a business and cultural standpoint, it was a natural fit for us to join the Family RV team,” said Brad Soldwedel, Founder of Dunlap RV.

© 2018 Private Equity Professional | January 9, 2018