Archives for May 9, 2018

Linden Hits Hard Cap on Fund IV

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Linden Capital Partners has closed its fourth private equity fund, Linden Capital Partners IV LP, at the hard cap of $1.5 billion. Fund IV was oversubscribed and exceeded its target of $1.25 billion.

Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries with a specific interest in medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Linden’s strategy is based on three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. The firm is based in Chicago (www.lindenllc.com).

“We truly appreciate the support from our investors, which include endowments, global financial institutions, and pension funds,” said Tony Davis, Linden’s President and Managing Partner. “Linden will continue to execute its consistent strategy in Fund IV. This strategy consists of implementing its proprietary value creation programs, emphasizing human capital, and leveraging the integrated expertise of its operating partners and investment professionals to build market-leading healthcare companies.”

Linden closed its first fund of $200 million in 2005, its second fund of $375 million in 2010, and its third fund of $750 million in 2015. During the investment phase of its third fund, Linden expanded its resources with the addition of four new investment professionals, five new operating partners, and an additional member to the firm’s finance team.

Park Hill Group (www.parkhillgroup.com) was the placement agent for this fundraise.

© 2018 Private Equity Professional | May 9, 2018

Tonka Bay Exits NPI Medical

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Private equity-backed Westfall Technik has acquired NPI Medical, a portfolio company of Tonka Bay Equity Partners.

NPI Medical specializes in prototype-to-production services in the medical device, life science and healthcare markets. The company’s capabilities include quick turn manufacturing for short runs, production injection molding for high volume programs, and a full-service tool room.  Customers of NPI include large medical OEMs, design shops and contract manufacturers.

NPI Medical has both clean room and white room molding capabilities, primarily for medical devices and disposables. The company has a 66,000 sq. ft. facility with 46 injection molding machines ranging in size from 28 to 330 tons of clamp force. Additionally, NPI has one Class 8 and two Class 7 clean rooms that are used for both injection molding and assembly. NPI was founded in 1967and is headquartered west of New Haven in Ansonia, CT (www.npi-med.com). Tonka Bay acquired NPI in November 2015.

Westfall Technik was formed in October 2017 by Lee Equity Partners, BlackBern Partners and plastics industry executive Brian Jones, the former President and CEO of Nypro, as a platform to build a market leading plastics services provider. The first two acquisitions of Westfall Technik were Fairway Injection Molds, a Walnut, CA-based manufacturer of multi-cavity injection molds; and Tempe, AZ-based Integrity Mold, a manufacturer of plastic injection molded parts, integrated assemblies, and injection molding tool fabrication. The buy of NPI provides Westfall Technik with an east coast injection molding facility, complementary production capabilities, and increased scale. Westfall Technik is based near Phoenix in Chandler, AZ (www.westfall-technik.com).

Lee Equity Partners focuses on control buyouts and growth capital financings, typically investing $50 million to $100 million of equity per transaction. Target companies have enterprise values of $100 million to $500 million and are located in the United States. Sectors of interest include business services; consumer and retail; distribution and logistics; financial services; healthcare services; and media. The firm is based in New York (www.leeequity.com).

BlackBern Partners invests in mature operating companies in the lower middle market. The firm was founded in 2010 by Ian Black and Jonathan Bernstein and is based in New York (www.blackbernpartners.com).

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).

© 2018 Private Equity Professional | May 9, 2018

Incline Building Midwest Industrial Rubber

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Midwest Industrial Rubber, a portfolio company of Incline Equity Partners, has acquired New England Belting Company (NEBCO).

NEBCO is an independent provider of specialty belts including edge belts, wave solder belts, timing belts and vacuum belts.  The company is based in Berlin, CT (www.newenglandbelting.com).

Midwest Industrial Rubber (MIR) is a supplier of industrial maintenance, repair, and operations products, specializing in the fabrication and distribution of lightweight conveyor belting and related conveyor components and accessories. The company serves the conveyor maintenance, replacement, and overhaul needs of approximately 2,500 customers that are active in the manufacturing of non-discretionary consumer staples (such as food, personal care and hygiene products). MIR, led by CEO Mike Bruhn, was founded in 1980 and is headquartered in St. Louis (www.mir-belting.com). MIR has been a portfolio company of Incline Equity since December 2016.

“NEBCO is the second acquisition we have completed since partnering with Incline in 2016,” said Mr. Bruhn. “An important part of our growth strategy is finding companies to acquire in geographies targeted for expansion.  These acquisitions provide quick access to new or underserved markets and strengthens both companies’ ability to serve customers.” The buy of NEBCO follows the March 2018 add-on acquisition of Maple Grove, MN-based Conveyor Belting Supply, a fabricator and distributor of light weight conveyor belting and accessories to the Minnesota and Dakotas markets.

The purchase of NEBCO gives MIR a stronger presence in the Northeast, allowing the company to provide more direct fabrication, installation and on-call services to customers in the region. “NEBCO is a recognized and respected brand in the industry and will continue to operate as NEBCO, a division of MIR,” said John Morley, Managing Director of Incline.  “The acquisition broadens the overall product and service offering, and we are pleased to have the NEBCO owners with us moving forward.”

Incline Equity Partners 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 $300 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 | May 9, 2018

J.F. Lehman Adds Two

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J.F. Lehman & Company has added two new professionals to its New York office with the hirings of David Ashcraft as Managing Director of Portfolio Operations, and Michael Cueter as Senior Associate.

Mr. Ashcraft will be involved in all aspects of the firm’s private equity investments with an emphasis on the operational evaluation and oversight of portfolio companies from acquisition through exit.  Prior to joining J.F. Lehman, he was with Cerberus Operations and Advisory Company (COAC), the in-house operations affiliate of Cerberus Capital Management. At COAC, Mr. Ashcraft was active in providing interim management, operations improvement, strategic planning and executive mentorship. Most recently, he led COAC’s operational and strategic due diligence efforts for all potential Cerberus-led acquisitions. Earlier in his career, he worked for nearly a decade at AlixPartners where he was active in operational restructuring, corporate strategy and revenue growth across a range of industries and geographies. Mr. Ashcraft has a BBA in Finance & Economics and a BA in German from Washburn University and an MBA from Harvard Business School.

“David is an accomplished executive with a track record of operational success perfectly suited to J.F. Lehman’s investment strategy,” said Louis Mintz, Partner.  “We expect our portfolio companies to benefit immensely from David’s years of experience driving growth and profitability in all types of businesses.”

Mr. Cueter joined J.F. Lehman in February 2018 after more than two years at Olympus Partners, where he served as an Associate and was active with due diligence, acquisition and oversight of the firm’s portfolio investments. Mr. Cueter began his career in investment banking at Harris Williams & Co. He has a BBA from the University of Michigan with concentrations in accounting and finance. “Mike further strengthens our transaction execution capabilities,” added Mr. Mintz.  “We look forward to his contributions and believe he will be a valuable addition to our organization.”

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense and aerospace sectors. The firm was founded in 1992 by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has acquired 62 operating entities within 25 platform investments with an aggregate transaction value of approximately $3.1 billion. The firm is headquartered in New York with an additional office in Washington, DC (www.jflpartners.com).

© 2018 Private Equity Professional | May 9, 2018