Archives for April 9, 2018

BDT Capital Acquires Casa Dragones

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BDT Capital Partners has made a majority equity investment in Casa Dragones, an ultra-premium and luxury maker of tequila.

Casa Dragones is a small-batch, independent producer of sipping tequilas noted for their Joven (blended) and Blanco (unaged) sipping tequilas. There are five industry categories for tequila: Blanco tequila is bottled right after production; Reposado tequila has to be stored for at least 2 months; Añejo tequila has to be stored for at least a year; Extra Añejo tequila has to be stored for at least 2 years; and Joven (blended) tequila is Blanco mixed with Reposado or Añejo. Casa Dragones was founded in 2009 and is headquartered in Manhasset, NY (www.casadragones.com).

The investment by BDT Capital Partners – the firm’s first in the spirits category – will be used to help Casa Dragones continue its growth and build its position in the ultra-premium and luxury tequila category worldwide.

Casa Dragones, under the leadership of Co-founder and CEO Bertha González Nieves, helped spearhead the ultra-premium “sipping tequila” trend in the US, and now has become a category leader with a significant presence in key markets.  Ms. González Nieves will continue as CEO under BDT ownership and she is the second largest shareholder in the company. Her career is based in the consumer luxury goods market. In 2013, Forbes identified her as one of the 50 most powerful women in Mexico. Prior to co-founding Casa Dragones, she spent over ten years as a top executive for Grupo Jose Cuervo, the largest tequila company in the world.

“Our mission is to shape the tequila industry for the future and we believe this investment from BDT, and their role as our lead investor, will help us accelerate our momentum, growth and reach,” said Ms. González Nieves. “We welcome this investment from BDT because they share our values and long-term commitment to building on the strong foundation of Casa Dragones. BDT will help us accelerate growth and reach more markets across the US and internationally. Their experience partnering with founders and entrepreneurs, as well as their network of successful global business owners, will be valuable to our company’s next phase of growth.”

“We are impressed with Bertha’s entrepreneurial spirit and the quality of the Casa Dragones product and brand. We believe our investment in the company represents an opportunity to partner with a visionary founder in an attractive industry and category,” said Byron Trott, Chairman and CEO of BDT Capital Partners. “We look forward to working closely with the team at Casa Dragones to build upon that strength and momentum of the business and help expand their reach both domestically and internationally.”

Robert Pittman – current CEO of iHeartMedia (formerly Clear Channel), the creator of MTV, and Managing Partner of Pilot Group (a NY-Based investment firm) – who co-founded Casa Dragones with Ms. González Nieves, will continue to be a minority shareholder and remain as an advisor and board member. “Casa Dragones has emerged as the leading tequila for connoisseurs and has pioneered the sipping tequila category,” said Mr. Pittman. This has been both a great investment for Pilot Group and a personal passion of mine, and I’m pleased that BDT is stepping in to help the company reach its full potential. I am excited to continue my role as both an investor and board member.”

BDT Capital Partners was founded in 2009 by former Goldman Sachs Vice Chairman Byron Trott. The firm manages more than $9 billion across its committed funds and $3.7 billion of co-investments from its limited partners. The firm is a bit secretive and does not have a web presence but does maintain offices in Chicago, New York, London, and Frankfurt.

© 2018 Private Equity Professional | April 9, 2018

Fireman Builds Dunn’s River Brands

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Dunn’s River Brands (DRB), a beverage platform of Fireman Capital Partners (FCP), has acquired Temple Turmeric.

Temple Turmeric is a maker of beverages utilizing turmeric, an orange rhizome (a continuously growing horizontal underground root) and a cousin of ginger. The company’s products are sold at Whole Foods and other grocery retailers nationwide. Temple Turmeric was founded in 2009 by CEO Daniel Sullivan and is headquartered in New York (www.templeturmeric.com).

Dunn’s River Brands (DRB) is a platform company formed in 2016 by Kevin McClafferty, Lee Brody and Ian Knowles to acquire beverage companies. In December 2017, DRB acquired ready-to-drink iced tea brands Tradewinds Tea and Sweet Leaf Tea Company from Nestlé Waters North America. The company is headquartered north of Dallas in Frisco, TX (www.dunnsriverbrands.com).

“Temple Turmeric is a visionary brand, highly distinguished with a multi-functional product line and entrepreneurial energy,” said Ian Knowles, Managing Partner of DRB. “Daniel is an innovative entrepreneur and walking encyclopedia of product knowledge. With DRB’s resources, together we’ll be able to take the Temple brand to new heights.”

“Temple Turmeric is a great addition to the DRB platform and a good representation of brands with which we are looking to partner,” said Chris Akelman, a Principal at FCP. “Daniel has garnered a loyal following due to his vision. We are excited to see what he and DRB will do to move the brand forward.”

Fireman Capital Partners invests from $50 million to $100 million of equity in consumer products companies with revenues between $30 million and $150 million and EBITDA from $20 million to $100 million. The firm was founded in 2008 by Chairman Paul Fireman, the former Chairman and CEO of Reebok International, and Managing Partner Dan Fireman and is based near Boston in Waltham, MA (www.firemancapital.com).

Yarmouth, ME-based investment bank Whipstitch Capital (www.whipstitchcapital.com) was the financial advisor to Temple Turmeric.

© 2018 Private Equity Professional | April 9, 2018

Warren Adds on Again to SSP

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SSP Innovations, a provider of IT services to electric, gas, and water utilities and a portfolio company of Warren Equity Partners, has acquired Wind Lake Solutions.

Wind Lake Solutions is a provider of IT services and software development to utilities, telecommunication providers, and municipal government organizations. The company provides geographic information systems (GIS) data maintenance and custom software solutions for data integration. GIS systems capture, store, manipulate, analyze, manage, and present spatial or geographic data.

Utilities and municipalities are accelerating their investments in GIS and are becoming increasingly dependent on third parties to update and manage GIS-specific data and applications. Wind Lake Solutions is headquartered in Milwaukee (www.windlakesolutions.com).

SSP Innovations provides IT services and software development – with a specialty in GIS and workforce management – to electric, gas, and water utilities, as well as oil & gas pipeline operators and telecommunications providers. The company was acquired by Warren Equity in April 2017 and is headquartered in Centennial, CO (www.sspinnovations.com).

“We are proud to welcome Wind Lake to the SSP family,” said Skye Perry, CEO of SSP. “Wind Lake is led by industry veterans who have strong reputations for customer focus and employee engagement. Wind Lake’s data solutions add a valued offering to SSP’s suite of services, and we are looking forward to working with management to continue to grow the business.”

“SSP and Wind Lake have a long history of working together and are an excellent cultural fit,” said Scott Bruckmann, a Partner at Warren Equity. “Since our original investment in SSP, we have been seeking to grow SSP’s data management offerings due to customer demand and Wind Lake was the ideal acquisition candidate.”

The buy of Wind Lake is the second add-on acquisition by SPP under Warren Equity ownership. In June 2017, SPP acquired Paleon Solutions, an IT services provider based in Castle Rock, CO. SSP plans to continue to expand its service offerings and geographic footprint through a combination of organic growth and add-on acquisitions.

Warren Equity invests from $5 million to $40 million in North American-based companies with $3 million to $15 million of EBITDA. Sectors of interest include industrial and business services with a specific focus on infrastructure maintenance and repair. The firm is headquartered in Jacksonville Beach, FL (www.warrenequity.com).

© 2018 Private Equity Professional | April 9, 2018

Argosy Sells Nationwide to Harbour Group

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Argosy Private Equity has sold its portfolio company Nationwide Industries to the Harbour Group.

Nationwide Industries (NWI) is a supplier of specialty hardware to OEMs, distributors and installers in the fence and gate, railing and patio markets.  The company’s products include hinges, latches, locks, rollers, railing post mounts and cable railing infill that are used in vinyl, ornamental, specialty, wood, cable and chain link fence applications. NWI, led by CEO Christopher Kliefoth, is headquartered in Tampa (www.nationwideindustries.com).

“We believe Harbour Group’s operational and strategic expertise gathered over many years will be a valuable resource to our business as we continue to grow,” said Mr. Kliefoth. “Our brand and customer relationships are strong today and will only improve.  We look forward to continuing to operate as a leader in our industry as we grow our product offering.”

“We are excited to welcome Nationwide Industries to the Harbour Group family,” said Jeff Fox, Harbour Group’s chairman and chief executive officer. “NWI has a well-respected brand in its market and serves its customers with high quality, innovative products and great customer service.  The combination of this fantastic base business and Harbour Group’s resources will further strengthen NWI’s position in its market.”

Harbour Group invests in North American-based companies with valuations from $30 million to $500 million. Areas of interest include product-oriented businesses that are generally either a provider of proprietary products or are a niche, value-added distributor. Since its founding in 1976, Harbour Group has acquired 200 companies in 43 different industries. The firm is based in St. Louis (www.harbourgroup.com).

Argosy acquired NWI for $22 million through its fifth fund from publicly traded P&F Industries in February 2016 and in September 2016 added on to the company with the buy of The Cable Connection, a manufacturer of cable railing infill systems and custom wire rope systems based in Carson City, NV.

Argosy invests from $5 million to $15 million in lower middle market companies that have revenues of $10 million to $100 million and EBITDA margins of 10% or greater.  Sectors of interest include manufacturing, business services, and value-added distribution.  The firm was founded in 1990 and is headquartered in the Philadelphia suburb of Wayne, PA (www.argosycapital.com).

© 2018 Private Equity Professional | April 9, 2018