Archives for February 12, 2018

Audax’s Imperial Dade Keeps Growing

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Imperial Dade has acquired the assets of Sikes Paper & Chemical Supply, a distributor of sanitary products, equipment, and packaging serving the metropolitan Atlanta and North Georgia market areas.

The buy of Sikes Paper is the fifteenth acquisition for Imperial Dade, a national distributor of disposable food service and janitorial supplies. Imperial was formed in 1935 and was purchased by CEO Robert Tillis and President Jason Tillis in 2007.  In January 2016, Audax made a growth equity investment in the company.

Sikes Paper has nine 26-foot trucks that provide daily delivery service to all of metro Atlanta and much of north Georgia. The company operates from an 81,000 sq. ft. office/distribution facility near Atlanta in Austell, GA (www.sikespaper.com).

Imperial Dade is one of the largest distributors of disposable food service and janitorial supplies in the Northeast, Mid-Atlantic, Southeast, and Midwest regions and Puerto Rico. The company was originally known as Imperial Bag & Paper but change its name shortly after acquiring Miami-based Dade Paper & Bag Co. in June 2017. Imperial Dade has headquarters in Jersey City, NJ and Miami, FL (www.imperialdade.com).

The acquisition of Sikes Paper enhances Imperial Dade’s presence in the Southeast. “We enthusiastically welcome the Sikes team members to Imperial Dade. Their strong reputation and history of excellence make Sikes a great fit with Imperial Dade,” said Robert Tillis. “We look forward to working together to further grow the business.”

Other recent acquisitions by Imperial Dade include the January 2018 buy of Willow Grove, PA-based PCA Industrial & Paper Supplies, a distributor of paper products, janitorial supplies and cleaning equipment serving the Philadelphia metropolitan area; and the November 2017 buy of Racine, WI-based Kranz, a distributor of janitorial and sanitary supplies serving Wisconsin and the Chicagoland area. Earlier add-on acquisitions completed by Imperial Dade include: Borda Products (May 2009), Center Moriches Paper (July 2010), Burke Supply (September 2011), Wasserman Bag (January 2013), Goldman Paper Company (June 2014), Silfen-Berman Paper Company (January 2015), Borax Paper Products (February 2016), Accommodation Mollen (September 2016), Peninsular Paper (May 2017), Dade Paper (June 2017), Jersey Paper (July 2017), and Central Paper (October 2017).

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.audaxgrouom).

© 2018 Private Equity Professional | February 12, 2018

H.I.G. Buys Wastequip from Centerbridge

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H.I.G. Capital has agreed to acquire Wastequip from Centerbridge Partners. Centerbridge acquired Wastequip from Odyssey Investment Partners in June 2012 when the company was forced to restructure its debt.

Wastequip is a manufacturer of waste handling equipment used to collect, store, transport, and manage a wide range of solid and liquid waste and recyclables. The company’s products include both steel and plastic dumpsters, compactors, balers, and carts and are sold under the company’s brand names including Wastequip, Toter, Galbreath, Pioneer, Accurate, Cusco, Mountain Tarp and Parts Place. Wastequip has manufacturing facilities in both the US and Canada and an extensive dealer network. The company, led by CEO Marty Bryant, was founded in 1989 and is headquartered in Charlotte (www.wastequip.com).

“We want to thank Centerbridge Partners for their invaluable partnership over the last 5 years,” said Mr. Bryant. “Centerbridge’s support has been instrumental in strengthening Wastequip’s position as the largest and most trusted supplier in the waste equipment industry with leading brands, top quality products and world-class customer service.”

“Over the past five years, we partnered with Marty and his team to improve the performance and competitiveness of the company,” said Kyle Cruz, a Senior Managing Director at Centerbridge. “We are proud of their success and believe that Wastequip is well-positioned for the future.”

Centerbridge invests from $50 million to $300 million in US-based leveraged buyouts and distressed securities. The firm has $28 billion of capital under management and is headquartered in New York with an additional office in London (www.centerbridge.com).

“We are very excited to partner with Marty and the rest of the Wastequip team,” said Tenno Tsai, a Managing Director at H.I.G. “The company’s diverse product portfolio, customer base and nationwide footprint uniquely position it to capitalize on growth opportunities. We look forward to supporting Wastequip’s next phase of growth by investing in new product development, geographic expansion and complementary acquisitions.”

H.I.G. specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing and service businesses. H.I.G. has more than $24 billion of capital under management. The firm is based in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City and Rio de Janeiro (www.higcapital.com).

Barclays Capital and Credit Suisse Securities are providing committed financing for the transaction which is expected to be completed by the end of the first quarter of 2018.

© 2018 Private Equity Professional | February 12, 2018

Brand & Oppenheimer Adds-On

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Brand & Oppenheimer (B&O), a textile converter and a portfolio company of Praesidian Capital and Stone Creek Capital, has acquired General Fabrics.

General Fabrics is a wholesale designer, packager, and distributor of printed textiles. The company’s products are sold to quilting and crafting resellers and to other markets. General Fabrics was founded in 1951 by the Odessa family and is headquartered in Pawtucket, RI (www.genfabco.com).

“We are very excited to join forces with B&O,” said Edward and David Odessa, members of the founding family, in a joint statement. “We will continue to meet customer demands with quality products and outstanding service, and we look forward to a very successful future together.”

Brand & Oppenheimer specializes in providing textile products to the military, tactical, commercial, apparel, and industrial markets. The company provides a wide range of stock fabrics and can also provide custom fabrics. B&O’s product line includes a variety of weights and constructions including nylon, polyester, cotton, vinyl, canvas and blended woven and knit fabrics. The company is headquartered in Portsmouth, RI (www.brandandoppenheimer.com).

In October 2011, Praesidian and StoneCreek acquired B&O in partnership with the senior management team of the company. “Since our initial investment, B&O has continued to provide premiere textile products and customer service,” said Jason Drattell, the founding partner of Praesidian. “We have been consistently impressed with the management team’s strategic vision and ability to drive growth. The buy of General Fabrics will expand B&O’s product offering and customer base, and we anticipate continued growth in the coming years as management executes on their strategic vision.”

This is the third acquisition by B&O in recent years. In May 2017, the company acquired the assets of Cutting Edge TexStyles, a 99-year-old manufacturer of bias binding, trims and textiles based in Bedford, MA (www.cetexstyles.com); and in January 2014 it acquired the assets of Performance Textiles, a supplier of high-performance fabrics to the commercial and military markets, based in Greensboro, NC (www.perftex.com).

“We are excited to bring General Fabrics into the B&O family,” said Ed Ricci, CEO of B&O. “B&O and I have worked with the Odessa’s for a long time, and General Fabrics’ business model fits well into B&O’s operations. The acquisition expands our product capabilities, complements our existing sales divisions, and advances our vision for strategic growth. We look forward to entering the print quilting and craft markets and streamlining the connections between B&O’s other sales divisions.”

Praesidian provides senior and mezzanine capital to small and mid-sized businesses that have revenues of $15 million to $200 million and EBITDA of $5 million to $20 million.  The firm typically invests in connection with a management/leveraged buyout, recapitalization or refinancing. Types of facilities offered include one-stop financing, senior secured debt, junior secured debt, preferred stock, and common equity in connection with a mezzanine investment. Praesidian is based in New York with an additional office in London and manages nearly $1 billion in committed capital (www.praesidian.com).

StoneCreek Capital invests in middle market companies that have revenues of at least $10 million and EBITDAs of at least $2 million. The firm is industry agnostic but has a particular interest in the manufacturing, consumer products, food service and business service sectors. The firm is based in Irvine, CA (www.stonecreekcapital.com).

© 2018 Private Equity Professional | February 12, 2018

Blue Wolf Acquires Petrosmith

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Blue Wolf Capital Partners has acquired a majority interest in Petrosmith, a provider of production equipment and oilfield tubular goods to the domestic oil and gas industry.

Petrosmith manufactures storage tanks (including oilfield storage tanks and wash tanks) and vessels (including heater treaters, separators and vapor recovery towers) used by large exploration and production (E&P) companies primarily in the Permian Basin, Eagle Ford and Mid-Continent region. The company also sells a variety of new and used oilfield tubular goods (drill pipe, casing and tubing commonly referred to as OCTG) and provides an array of OCTG refurbishment services. Petrosmith also provides plug and abandonment services to E&P companies.

The company has state-of-the-art coating facilities that service the company’s tank, vessel and OCTG divisions. Petrosmith, founded by Cliff Smith in 1983, has approximately 300 employees and is headquartered in Abilene, TX (www.petrosmith.com).

Mr. Smith will remain with Petrosmith as Chief Executive Officer and will retain an ownership stake in the company. “We are extremely pleased to have partnered with Blue Wolf and are eager to collaborate with them,” said Mr. Smith. “Our new partners have shown a commitment to supporting our employees and providing us with the capital and guidance to execute on our growth plan. We believe that this new partnership will be instrumental in helping our company extend its leading position in the market.”

“Cliff and his team have built a business that is recognized in the industry for the quality and reliability of its products and the flexibility of its manufacturing process to meet evolving customer demands,” said Blue Wolf Partner Charlie Miller. “Petrosmith is well positioned to benefit from the ongoing recovery in the domestic energy market.”

Blue Wolf invests in companies in which management of relationships with complex constituencies – such as government and labor – can change organizations and create value. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. The firm focuses its efforts on companies based in the United States and Canada. Blue Wolf is headquartered in New York (www.blue-wolf.com).

The buy of Petrosmith is the first investment made by Blue Wolf Capital Fund IV which closed in October 2017 with $540 million of capital commitments. It is also Blue Wolf’s second investment in the energy services sector, following the firm’s December 2016 acquisition of Extreme Plastics Plus, an environmental containment company that provides lining, above ground storage tanks, and secondary steel wall containment systems to the domestic oil and gas industry.

© 2018 Private Equity Professional | February 12, 2018