Archives for February 15, 2018

Grey Mountain Acquires CHEP Recycled

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Grey Mountain Partners has acquired CHEP Recycled Pallet Solutions from Brambles, an Australian supply-chain logistics group.

CHEP Recycled is the largest whitewood pallet recycler in the North America, recycling over 90 million pallets annually. The company purchases used whitewood pallets, repairs them, and then re-sells the pallets to manufacturers and distributors. CHEP Recycled, with approximately 2,400 total employees, is headquartered in Atlanta, GA, and has 67 locations in the US and 6 locations in Canada. Click HERE for the CHEP Recycled website. Brambles acquired its US recycled pallet business as part of the acquisition of IFCO Systems in March 2011 and Paramount Pallet in November 2011. The unit was rebranded as CHEP Recycled in October 2014.

“The partnership with Grey Mountain is an exciting opportunity for CHEP to get back to its roots of offering simple, cost-effective pallet management solutions throughout the supply chain,” said Kyle Otting, CEO of CHEP Recycled. “Grey Mountain’s commitment to provide the resources needed to enter new markets and expand our service offering will strengthen our ability to serve our customers and offer end-to-end pallet management solutions coast-to-coast.”

“We are excited to announce the acquisition of CHEP Recycled. We believe there is a clear opportunity for the company to better serve its customers as a standalone business, and we will focus on achieving operational excellence across all 73 facilities,” said Bill Ross, a Grey Mountain Affiliate Manager. “By partnering with the management team and supporting the business with growth capital and additional resources, we hope to further grow CHEP Recycled, which is already the market leader.”

Grey Mountain has approximately $700 million of assets under management and was founded in 2003 by Managing Partners Rob Wright and Jeff Kuo. The firm invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest are varied and include building products and materials; diversified manufacturing; financial services; food and beverage; health and wellness; industrial technology; packaging; professional services; specialty chemicals; transportation and logistics; and wholesale distribution. Grey Mountain is currently investing from its third fund, which was raised in 2013. The firm is based in Boulder with additional offices in Minneapolis and Pittsburgh (www.greymountain.com).

© 2018 Private Equity Professional | February 15, 2018

Saugatuck Adds to FEMCO Machine

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FEMCO Machine Company, a machine repair and manufacturing company and a portfolio company of Saugatuck Capital, has acquired MAN-TEX Manufacturing & Welding. Saugatuck first invested in FEMCO in June 2007.

MAN-TEX is a provider of welding, machining, fabrication and field services to companies operating in the oil & gas, commercial, agriculture, and industrial manufacturing industries. The company serves customers located throughout the Rocky Mountain region and is headquartered in Rifle, CO (www.mantexmfg.com).

FEMCO is a provider of repair services and a producer of aftermarket and OEM replacement parts for customers that operate heavy equipment and vehicles. The company’s capabilities allow it to manufacture and repair extraordinarily large components and machines used primarily in the crane and dragline industry, recycling facilities, aggregate and concrete companies, metal stamping shops, sugar cane harvesters, the mining industry and other heavy industrial markets. FEMCO operates a fleet of 19 mobile machine shops which are staffed by technicians and contain specialized cranes and machining equipment. The company has manufacturing and field service facilities in Olivehurst, CA; Atlanta, GA; Punxsutawney, PA; Odessa, TX; and Gladewater, TX. FEMCO, led by CEO Dan Rondeau, was founded in 1964 and is headquartered in Pittsburgh (www.femcomachine.com).

“We are delighted to invest in MAN-TEX,” said Mr. Rondeau. “MAN-TEX’s leading position in the Rocky Mountain area, combined with its strong management team, will enable FEMCO to continue growing both organically and through strategic acquisitions. FEMCO has a significant track record of investing to grow our business. We look forward to working with such a great team and to further our pledge to provide outstanding customer service anytime, anywhere.”

Saugatuck invests in leveraged recapitalizations, buyouts, and growth equity investments in the lower middle-market.  The firm seeks companies with revenues of $15 million to $100 million and invests in a wide range of niche industries. Saugatuck was founded in 1982 and is based in Wilton, CT (www.saugatuckcapital.com).

© 2018 Private Equity Professional | February 15, 2018

Bertram Hits Fund III Hard Cap

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Bertram Capital has held a hard cap final closing of Bertram Growth Capital III LP and Bertram Growth Capital III-A LP (collectively Fund III) with a combined $500 million of capital commitments. Sixpoint Partners was the placement agent for this fundraise.

Fund III received commitments from over 30 investors, including endowments, insurance companies, multi-manager funds, consultants, public pensions, corporate pensions and family offices.

Bertram Capital invests in middle-market business services, consumer, industrial and manufacturing companies that have revenues from $25 million to $250 million and EBITDA of $5 million to $30 million. To drive growth and create value in its portfolio companies, Bertram uses an investment strategy called “High 5” which focuses on five core operating principles – sales and marketing improvement, management support, supply chain optimization, technology optimization, and add-on acquisitions.

“Bertram greatly appreciates the support of our limited partners in the strategy we have developed over the last 12 years. We are off to a great start, having already deployed capital and co-investment in three platform investments,” said Jeff Drazan, Managing Partner at Bertram. “The successful fundraise is the result of effectively employing a differentiated investment strategy and building a cohesive, committed team.  We would also like to thank Sixpoint Partners for their role in this successful fundraise.”

The three platform investments that Bertram has already closed on are Anord, a Dundalk, Ireland-based provider of power distribution and protection equipment for data centers and industrial applications that was acquired in May 2017; Spectrio, an Oldsmar, FL-based provider of customer engagement products and services that was acquired from The Riverside Company in September 2017; and Trademark Global, a Lorain, OH-based supplier of a range of branded home goods and consumer products to internet retailers and marketplaces that was acquired in October 2016.

Sixpoint Partners, the placement agent on this fundraise, is headquartered in New York with offices in Chicago, San Francisco and Hong Kong (www.sixpointpartners.com). “Bertram’s experienced team and differentiated approach generated strong demand from investors looking for untapped value in the middle market,” said Laurence Smith, Founder & Partner at Sixpoint Partners. “We believe Bertram is well positioned to continue generating strong results in the lower middle market, and we look forward to continuing our partnership with the Bertram team.”

Bertram Capital is led by its executive partnership team of Jeff Drazan, Kevin Yamashita, Ryan Craig, Jared Ruger, David Hellier, Ingrid Swenson and Brian Wheeler. The firm is headquartered south of San Francisco in San Mateo, CA (www.bertramcapital.com).

Kirkland & Ellis provided legal counsel in connection with Fund III.

© 2018 Private Equity Professional | February 15, 2018