Archives for June 2018

Bertram Sells Rowmark to Windjammer

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Bertram Capital has sold EXT Acquisitions, the parent company of Rowmark, to Windjammer Capital Investors. Bertram acquired Rowmark in September 2013 from Clearview Capital.

Rowmark is a manufacturer of extruded plastic sheet used in the signage, engraving and awards markets. The company can produce products, sold through 200 independent distributors in 80 countries, in a variety of materials including ABS, acrylic, high impact polystyrene, and thermoplastic elastomers among others. Rowmark, founded in 1987, has more than 280 employees and a 90,000 square foot facility and headquarters in Findlay, OH (www.rowmarkllc.com).

During its term of ownership, Bertram Capital completed the add-on acquisitions of Minneapolis, MN-based Johnson Plastics in June 2015; Phoenix, AZ-based LaserBits in August 2015; and Oklahoma City, OK-based Bur-Lane in January 2016.

“Bertram’s Industrial Team, led by Kevin Yamashita, Tim Heston and Cory Landerfelt flawlessly executed our High Five value creation strategy,” said Jeff Drazan, Managing Partner of Bertram Capital. “By executing an aggressive add-on acquisition strategy, leveraging our in-house technology team, and working collaboratively with the company’s management team, we successfully catapulted Rowmark to a market leading position in the engineered plastics industry.” 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.

The sale of Rowmark is Bertram’s 10th exit since its launch in 2006. “With the closing of the Rowmark transaction, we mark the completion of another successful investment for Bertram Capital,” said Kevin Yamashita, a Partner at Bertram Capital and investment lead for Rowmark. “We had the opportunity to partner with a phenomenal management team led by CEO Duane Jebbett to bring together some of the most highly recognized and respected brands in the industry, further solidifying the company’s presence as the market leader.”

Bertram 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. The firm is headquartered south of San Francisco in San Mateo, CA (www.bertramcapital.com).

Windjammer, the buyer of Rowmark, makes control investments of $40 million to $150 million in middle market businesses with EBITDAs from $8 million to $50 million. Sectors of interest include niche manufacturing, business services and value-added distribution. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).

Rowmark is the eighth platform investment in Windjammer’s $726 million Senior Equity Fund IV which closed in March of 2013. “Rowmark is an established market leader with strong brand recognition, supported by state-of-the-art manufacturing and an unmatched understanding of the market channel and new product development,” said Rob Quandt, Managing Director at Windjammer. “The company is led by a solid, experienced management team that has built a platform with robust operating fundamentals, long-standing customer relationships and a proven track record of consistent growth. We are excited about the future of Rowmark, as we fuel and accelerate the company’s growth.”

Alvarez & Marsal (www.alvarezandmarsal.com) provided transactional due diligence to Windjammer and Kirkland & Ellis (www.kirkland.com) provided legal counsel.

© 2018 Private Equity Professional | June 29, 2018

BV Acquires Risk International

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BV Investment Partners has acquired Risk International, a provider of commercial risk management and employee benefits advisory services.

Risk International provides its services -including outsourced risk management, benefits advisory, actuarial consulting and claims management – to Fortune 500 and upper middle-market and large-cap companies, including portfolio companies of private equity firms. By utilizing the services of Risk International, companies can meaningfully reduce the recurring total cost of commercial insurance and employee benefits, while preserving or improving coverage. The company estimates that since its founding in 1986 it has helped clients save or reduce their cost of risk by over $1 billion.

Risk International, led by CEO Todd Miller, is headquartered in Fairlawn, OH with offices in Charleston, SC and Charlotte, NC (www.riskinternational.com). “Risk International is the only scaled independent provider of its services in the industry, and we are in the very early innings of penetrating a massive market opportunity of over $3 billion in the US alone,” said Mr. Miller. “We have a great organic growth strategy and look forward to investing in the next chapter of Risk International in partnership with the team at BV.”

“We set out to find an investor who would be a true financial partner and has a track record investing in services businesses like our own.  BV has that in spades, and most importantly, understands and respects the culture of great service that we’ve built here throughout our history,” said Risk International Chairman Dave O’Brien. “We have a lot of confidence that BV will be a value-added partner to help us achieve our potential in the years ahead.”

BV Investment Partners makes investments in companies active in the business services and information technology services industries. Since its founding in 1983, the firm has invested over $3 billion in more than 93 companies.  In April 2017, the firm held a first and final close of BV Investment Partners Fund IX LP at its $750 million hard cap, well above its $600 million target. BV Investment Partners is headquartered in Boston (www.bvlp.com).

“The firm has had a long history of successfully investing across the insurance industry,” said Vik Raina, Managing Partner of BV.  “We believe our knowledge and network coupled with the very attractive operating metrics of Risk International and its highly experienced management team should drive significant future growth and value creation in the business.”

BV will own a majority interest in Risk International and the company’s executive team – including CEO Todd Miller, Chairman Dave O’Brien, and CFO Randy Weiser – will retain a significant ownership interest.

“Risk International is a unique and growing business that is disrupting the traditional world of employee benefits and insurance brokering,” said Justin Garrison, a Principal at BV. “Unlike traditional brokers, Risk International is directly aligned with its clients and provides fully independent advice and services free from any conflicts of interest with insurance carriers.  The company delivers an exceptional service with a proven return on investment to its customers.  We’re excited to be partnering with the Risk International team to build on and add to the great things that the company has accomplished to-date.  This includes expanding the sales and marketing effort, expanding the product and service offering, and executing strategic M&A.”

Risk International is BV’s third investment in its ninth fund.

© 2018 Private Equity Professional | June 29, 2018

Genstar Sells Power Products Division

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Genstar Capital has agreed to sell the Global Marine and Mobile division of portfolio company Power Products, to Brunswick Corporation (NYSE: BC) for $910 million in cash. Genstar acquired Power Products, a supplier and manufacturer of branded aftermarket electrical systems and components, from Sentinel Capital Partners in December 2016.

Power Products designs, manufactures and distributes a range of electrical products that are used in a variety of aftermarket and OEM applications including electrical construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation. The company’s products (totaling more than 25,000 SKUs) include harsh-environment power management and conversion products; wire and cable management accessories; and test and measurement devices, switches, and tools.

Power Product operates through two divisions: Global Marine and Mobile (GMM), and Electrical Construction & Maintenance (ECM).

The GMM division is a provider of marine and mobile electrical components and power management systems that are used in recreational boats as well as other recreational, specialty and emergency vehicles. GMM brand names include Ancor, BEP, Blue Sea Systems, CZone, Del City, Lenco Marine, Marinco, Mastervolt, Park Power, Progressive Industries, and ProMariner. The division’s TTM revenues as of March 31, 2018 totaled $233 million.

The ECM division is excluded from this transaction and consists of a portfolio of brands – including Gardner Bender, Sperry Instruments, Bergen Industries, and King Innovation – serving the electrical maintenance and repair, lighting and irrigation markets. The ECM brands are stocked and distributed through North American wholesalers, retailers, catalogs and e-commerce distributors.

Power Products, led by CEO David Scheer, is headquartered in Menomonee Falls, WI with five additional locations in the US, and international operations in China, The Netherlands, New Zealand, and Mexico (www.powerprodllc.com).

“After having worked with David Scheer and his team over the past 18 months to build out and expand the Power Products business, we are pleased that Brunswick recognizes the strength of the Global Marine and Mobile business as well as its future potential,” said Rob Rutledge, Managing Director of Genstar. “Going forward, our partnership with the ECM management team will focus on continuing to invest behind the growth of the ECM platform through continuing to develop industry-leading products and pursuing the acquisition of other leading brands in the ECM space.”

In October 2017, Power Products acquired Las Vegas, NV-based Bergen, a manufacturer of construction and maintenance lighting and other electrical products; and in May 2018, it acquired O’Fallon, MO-based King Innovation, a manufacturer of construction grade electrical and irrigation products for the residential, commercial, utility, irrigation and landscape lighting markets.

“We have worked closely with Genstar to build our marine and mobile business through new product innovation, added acquisitions that dramatically enhanced our global scale, and launched an integrated systems business to deliver value-add design and engineering services to our marine and vehicle OEM customers,” said Mr. Scheer. “With Genstar’s ongoing support, we are well-positioned to continue to grow our ECM business as demonstrated by our two most recent acquisitions, Bergen Industries and King Innovation.”

Genstar invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million.  The firm targets investments in the financial services, software, industrial technology, and healthcare industries.  Genstar was founded in 1988 and is based in San Francisco (www.gencap.com).

Baird was the financial advisor to Genstar and Weil, Gotshal & Manges provided legal services.

Closing of this transaction is expected in the third quarter.

© 2018 Private Equity Professional | June 29, 2018

CIVC Sells Peak to ORIX

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CIVC Partners has sold Peak Utility Services Group to ORIX Capital Partners. CIVC acquired Peak (previously Track Utilities) in June 2014.

Peak is a provider of utility services to the natural gas, telecom, and electric utility markets in the Pacific Northwest and Intermountain West regions of the United States. The company provides a suite of services for the recurring repair, replacement, maintenance, and installation of natural gas, aerial and underground telecom, and overhead and underground electric infrastructure.

Peak currently operates through three subsidiaries: Track Utilities, based in Meridian, ID, is a provider of electric and telecommunications infrastructure services; Sitewise Corporation, based in Wheat Ridge, CO, is a provider of maintenance and construction services for natural gas utility owners (Sitewise was acquired by Peak in April 2016); and Kelly Cable, based in Albuquerque, NM, provides aerial and underground construction services to telecom and electric utility owners in New Mexico (Kelly was acquired by Peak in July 2017). Collectively, the company has 22 locations and nearly 1,000 employees with a headquarters in Meridian, ID (www.peakusg.com).

During CIVC’s ownership term, Peak’s headcount increased from just over 200 employees in 2014 to nearly 1,000 at the time of the sale and EBITDA more than tripled in under four years. “The Peak management team has done an exceptional job creating a leading utility services platform with a strong track record of success,” said John Compall, a partner at CIVC. “It has been a pleasure working with them and we are excited to follow the continued growth of the platform.”

CIVC invests from $15 million to $85 million in companies that have at least $5 million of EBITDA.  Sectors of interest include business services and financial services. Since 1989, CIVC has invested $1.5 billion in 61 platform companies and is currently investing through its fifth fund, CIVC Partners Fund V LP, which closed at its hard cap of $400 million in May 2017. CIVC is headquartered in Chicago (www.civc.com).

“The CIVC team was instrumental in our ability to scale the Peak platform to where it is today,” said Lee Wilkerson, Senior Corporate Advisor and former CEO of Peak. “We relied heavily on their deep knowledge of the utility services industry.”

ORIX Capital Partners, the buyer of Peak, invests from $75 million to $200 million of equity per transaction in North America based middle-market companies that are active in the business services, infrastructure services and industrials sectors. New York-based ORIX Capital Partners is a business unit of ORIX USA, a Dallas-based financial services firm. Its parent company, ORIX Corporation, is a Tokyo-based, publicly owned financial services company with operations in 38 countries and regions worldwide (www.orixcapitalpartners.com).

Harris Williams & Co. (www.harriswilliams.com) was the financial adviser to Peak and Kirkland & Ellis (www.kirkland.com) provided legal services.

© 2018 Private Equity Professional | June 29, 2018

Bain Buys Italmatch from Ardian

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Bain Capital Private Equity has signed an agreement to acquire Italmatch Chemicals, a manufacturer of specialty chemicals, from Ardian which has owned the company since July 2014.

Italmatch Chemicals makes specialty chemical additives that are used in a range of applications in water treatment, oil & gas, lubricants, plastics, and personal care. Customers include major multinationals that are active in the chemical, petrochemical, detergents and oil & gas industries.

Italmatch has 780 employees and annual revenues of more than €400 million ($463 million). The company operates through seven manufacturing plants in Europe (Italy, Spain, Germany and the UK), five in Asia Pacific (China, Japan and India), five in the US and sales/distribution subsidiaries in Brazil, Belgium, China, Japan, India, Poland, Singapore and the US. Italmatch was founded in 1997 by its CEO Sergio Iorio and is headquartered in Genoa, Italy (www.italmatch.com).

Over the past four years under Ardian ownership, Italmatch has more than doubled its sales, both organically and through acquisitions, with nine transactions completed worldwide. In June 2016, Italmatch made its first acquisition in the US with the buy of Smyrna, GA-based Compass Chemical from One Rock Capital. Compass produces and sells organophosphonates (chemical compounds derived from phosphoric acid), polymers and other specialty additives that are used in water treatment and oil & gas applications.

“When Ardian partnered with Italmatch four years ago we had no doubt that the growth path planned with Sergio Iorio and his team would be a success,” said Yann Chareton, a Managing Director of Ardian. “It has been an incredible journey with a fantastic team of professionals. We are very proud to exit from this investment, which is now a solid and innovative international group with an established presence in key markets such as the US and Asia.”

“Italmatch has a global reputation with its customers for high-quality innovative products, and an impressive growth track record,” said Ivano Sessa, a Managing Director at Bain Capital Private Equity. “Leveraging our experience in the chemicals sector and our global presence, we look forward to supporting Sergio Iorio and the rest of the management team to continue growing the company, both organically and through an ambitious plan of strategic acquisitions.”

Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media and telecommunications sectors. The firm has a team of approximately 220 investment professionals with offices in Boston, Chicago, New York, Palo Alto, San Francisco, Dublin, London, Munich, Melbourne, Mumbai, Hong Kong, Shanghai, Sydney and Tokyo (www.baincapitalprivateequity.com).

Ardian was founded in 1996 and has $71 billion of assets under management. The firm is headquartered in Paris (www.ardian.com).

“We are grateful to Ardian for the strong support of Italmatch’s growth over the last four years, mainly through the successful completion of nine acquisitions in our core markets,” said Mr. Iorio. “At the same time, we are proud and honored by Bain Capital’s decision to support Italmatch through its next phase of growth. We think we have a solid and wide base to build upon through innovation. We are convinced that Bain Capital, thanks to its experience in the chemical sector and its strong global reach, is the right partner to bring Italmatch to the next level, and we are excited about our next years of cooperation with Bain Capital.”

Goldman Sachs, BNP Paribas, Fineurop Soditic were the financial advisors to Italmatch and Ardian. Rothschild and Lincoln International advised Bain Capital.

© 2018 Private Equity Professional | June 28, 2018

AE Industrial Adds to BHI Energy

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Bartlett Holdings (DBA BHI Energy), a portfolio company of AE Industrial Partners, has acquired D&D Power. AE Industrial Partners acquired BHI Energy from Harvest Partners in August 2017.

D&D Power installs, repairs and performs maintenance services on overhead electrical power lines for utilities and industrial companies. The company also performs all types of electric distribution construction work as well as performing new substation construction. D&D Power, led by CEO and owner Darren Donohue, is based in Latham, NY (www.danddpower.com). Mr. Donohue and other members of the senior management team will remain with the company post-closing.

BHI Energy is a specialty utility services company that provides onsite services to support the daily operations, routine maintenance and capital investment requirements of nuclear, fossil and renewable power facilities, as well as government decommissioning projects. The company’s staffing services include both professional & technical staffing and recruitment process outsourcing. BHI’s workforce includes more than 8,000 project management and technical, professional and craft employees operating at more than 150 global project locations. The company, led by CEO Bob Decensi, is headquartered south of Boston in Weymouth, MA (www.bhienergy.com).

“The acquisition of D&D Power will allow BHI Energy to expand our transmission and distribution service offerings, delivering optimal solutions and greater value to our clients,” said Mr. Decensi. “D&D has a superior reputation for dependable electrical contracting and major development projects, and is well-known for a commitment to safety, quality, customers, and employees. We look forward to partnering with Darren and his team to build on their tradition of excellence and to grow our overall suite of service offerings.”

AE Industrial Partners invests in the aerospace & defense, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

© 2018 Private Equity Professional | June 28, 2018

Sterling Quickly Adds to Traffic Solutions

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Traffic Solutions, a portfolio company of Sterling Partners, has acquired Altus Traffic Management, its first add-on acquisition since being acquired by Sterling last month.

Altus Traffic Management is a provider of traffic control services, equipment rental, permitting and work zone safety training to more than 575 customers including departments of transportation, state and local governments, roadway construction contractors and subcontractors, railroads and utilities. The company, led by CEO Jeff Holcomb, is headquartered in Dallas and has 375 employees in nine locations across Texas, Washington and Colorado (www.altustraffic.com).

Traffic Solutions rents, sells, and services a range of traffic control products including barricades, message and arrow boards, crash cushions, and solar-powered message boards. The company also provides an array of services including construction zone traffic control, permit process management, overhead sign installation, striping services, and lane, road, and freeway closures.

Customers of Traffic Solutions include public utilities like Sacramento Municipal Utility District, Honolulu Rail, Hawaiian Electric and PG&E; federal, state, county, and city agencies; private utilities; large road and bridge building firms; general contractors; and special event producers. The company has more than 2,000 customers and 750 employees at 18 locations in California, Hawaii, and Nevada. Traffic Solutions is led by its president Don Nicholas and is headquartered in Irvine, CA (www.statewidesafety.com).

Traffic Solutions was formerly known as Traffic Control and Safety Corporation, it filed Chapter 11 Bankruptcy in April 2012, and was previously a portfolio company of Marwit Capital and Fifth Street Finance. Sterling Partners acquired Traffic Solutions in May 2018.

“When we partnered with Traffic Solutions, the plan was to look for and leverage opportunities for accelerated growth. Bringing Altus into the fold allows us to quickly scale Traffic Solutions’ platform to better serve customers across a wider geographic footprint,” said Mike Drai, Managing Director at Sterling Partners. “We will continue to support companies that have clear growth opportunities and offer innovative and efficient solutions to solve our nation’s infrastructure challenges.”

Altus’ strategy to create value at Traffic Solutions includes entering new geographies, diversifying its service offerings, and expand in existing end markets. “We are thrilled to partner with the Altus team. As we look to grow, Altus is a great company and a great fit to help us expand both our services and the markets we serve,” said Don Nicholas, President of Traffic Solutions.

Sterling Partners focuses on investing growth capital in small and mid-market companies in industries with positive, long-term trends, including healthcare and business services. The firm was founded in 1983 and has offices in Chicago and Baltimore (www.sterlingpartners.com).

© 2018 Private Equity Professional | June 28, 2018

Cerberus Completes Buy of ECI

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Cerberus Capital Management has closed its acquisition of Electrical Components International (ECI) from KPS Capital Partners. According to a source familiar with this transaction, KPS earned a return of more than 3 times its invested capital. ECI was acquired by KPS in May 2014.

ECI is a manufacturer of wire harnesses and control boxes and a provider of assembly services for consumer appliance and specialty-industrial applications.  The company’s products are used by more than 500 customers in a variety of electronic and electro­mechanical applications in the home appliances, agriculture and construction, heating, ventilation and air conditioning (HVAC), specialty transportation, automotive, commercial appliance and commercial electronics markers.

ECI has 35 manufacturing facilities, 19 distribution centers and sales and engineering offices located in North America, South America, Asia, Europe and Africa. The company, founded in the 1950’s, has approximately 20,000 employees worldwide and is headquartered in the St. Louis suburb of Creve Coeur (www.ecintl.com).

“Over the past six decades, ECI has established itself as a trusted global partner and supplier to the world’s leading home appliance and specialty-industrial equipment manufacturers. We are excited to work hand-in-hand with ECI’s talented management team to build upon that legacy of success and capture additional opportunities for growth,” said Michael Sanford, Co-Head of North American Private Equity and Senior Managing Director of Cerberus.

Cerberus has approximately $34 billion of capital under management and invests in three strategies: global credit opportunities (which includes non-performing loans, corporate credit & distressed debt, mortgage securities & assets, and direct lending); private equity; and real estate. The firm was founded in 1992 and is headquartered in New York (www.cerberuscapital.com).

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with approximately $5.4 billion of assets under management that invests in restructurings, turnarounds and other special situations. KPS targets manufacturing and industrial companies that are going through a period of transition or experiencing operating or financial difficulties. KPS is headquartered in New York (www.kpsfund.com).

© 2018 Private Equity Professional | June 28, 2018

Snow Phipps Adds Two to Ideal-Tridon

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Ideal-Tridon, a portfolio company of Snow Phipps, has acquired Clamp SRL and Campbell Fittings. Snow Phipps acquired Ideal-Tridon from Industrial Growth Partners in July 2017.

Clamp SRL is a manufacturer and distributor of clamps for the industrial aftermarket in Europe. The company is headquartered in Milan, Italy (www.clamp.it/en). The prior majority owner and leader of Clamp, Matteo Giuffrida, will continue to lead the sales efforts of the business under Ideal-Tridon ownership.

Campbell Fittings manufactures fittings and couplings that are used in the industrial hose and water well industries.  The company has five warehouses in California, Texas, Illinois, Georgia and Pennsylvania and is headquartered in Boyertown, PA (www.campbellfittings.com).

Campbell Fittings was founded by Louis Campbell in the early 1900’s and was sold to Frederick Paff after World War II. Campbell Fittings’ prior owners and existing management team, President Tom Paff and Chief Financial Officer Joe McGlynn, will continue to lead the business under Ideal-Tridon ownership.

“The Clamp and Campbell Fittings transactions demonstrate Ideal-Tridon’s ability and willingness to acquire high-quality businesses that operate in complementary geographies or product segments,” said John Pless, Partner at Snow Phipps.

Ideal-Tridon is a designer and manufacturer of stainless steel and specialty clamps that are used in a range of fastening and sealing applications across many end markets. The company’s products include stainless steel clamps, worm drive hose clamps, high-torque clamps, constant tension clamps, T-Bolts, V-Inserts, no-hub couplings and a host of specialty and custom clamping products. Ideal-Tridon sells its products to original equipment manufacturers and to distributors and retail businesses in the replacement market. The company is headquartered in Smyrna, TN with additional US facilities in Brownsville, TX and Fullerton, CA; and international facilities in Mexico, China, Japan, Poland, and India (www.idealtridon.com).

“We are extremely excited to partner with two outstanding management teams to expand the Ideal-Tridon platform and continue our growth trajectory,” said Michael Reese, CEO of Ideal-Tridon.  “Both Clamp and Campbell Fittings have long track records of providing highly engineered products to their customers, and we look forward to leveraging our existing capabilities and product offerings to support their continued success in the marketplace.”

Snow Phipps makes control investments in companies primarily located in North America with enterprise values ranging from $100 million to $500 million that require equity investments ranging from $50 million to $150 million. Sectors of interest include industrials, services, and consumer. The firm was co-founded by Ian Snow and Ogden Phipps in April 2005. Snow Phipps is headquartered in New York (www.snowphipps.com).

© 2018 Private Equity Professional | June 27, 2018

Webster Forms ShelterLogic Group

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Webster Capital has formed ShelterLogic Group to act as a holding company for three investments (one existing and two new) that the firm has made in the outdoor products market.

Rio Brands, acquired by Webster Capital in April 2015 from Guardian Capital Partners, is a designer and manufacturer of beach chairs, umbrellas, cooler bags, beach tables, cots, stadium seats, and patio furniture sold under company-owned brands Rio Beach, Rio Creations and Rio Gear. The company also manufactures and distributes outdoor furniture for the Tommy Bahama and Jimmy Buffet’s Margaritaville brands. The company is headquartered in West Conshohocken, PA (www.riobrands.com).

“After an extensive search, we identified two terrific companies in ShelterLogic and Sojag to combine with our original investment in RIO Brands,” said Don Steiner, Webster Co-Managing Partner.

ShelterLogic is a manufacturer and marketer of fabric-covered, steel frame shelters and canopies that are used in a range of consumer and commercial applications, including as sheds, garages, greenhouses and pop-up canopies. The company is headquartered in Watertown, CT and is led by CEO Jim Raymond and President Robert Silinski (www.shelterlogic.com). ShelterLogic was acquired from RFE Investments and Charter Oak Equity.

Sojag is a designer and marketer of gazebos, sun shelters, solariums and patio furniture. The company is headquartered in Brossard, Quebec and is led by CEO Yves Gagné (www.sojag.com/en).

All three companies – Rio Brands, ShelterLogic, and Sojag – sell their products through a variety of retailers including major home centers, mass merchants, specialty, farm and agriculture stores, warehouse clubs and online retailers.

Webster Capital invests in branded consumer, business-to-business, and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values from $20 million to $100 million. Webster is currently investing its third fund which closed in 2014 with $400 million in capital commitments.  The firm was founded in 2003 and is based in the Boston suburb of Waltham (www.webstercapital.com).

© 2018 Private Equity Professional | June 27, 2018

Caruth Acquires Jersey Premier Outdoor

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Caruth Capital Partners has acquired Jersey Premier Outdoor Media and has renamed the company Premier Outdoor Media.

Premier Outdoor Media is an outdoor advertising company with over 200 billboards and digital faces in New Jersey, Delaware, Maryland and Pennsylvania. The company was founded by Chet Atkins in 1998 and is headquartered in Moorestown, NJ (www.jpom.net).

CCP partnered with two industry executives, Dominick Vastino and Sean Corbett, on this transaction. Mr. Vastino is now the CEO of Premier Outdoor and most recently he was the co-founder of Alliance Outdoor, an outdoor advertising company headquartered in Hoboken, NJ. Mr. Corbett is now the President and Head of Sales for Premier Outdoor. He spent nearly 20 years at Clear Channel Outdoor where he built a book of business in excess of $40 million annually.

“Premier Outdoor Media’s portfolio gives us a great starting point as we execute on our growth strategy,” said Mr. Vastino. “I am looking forward to working with our team to continue to expand the company’s footprint in the Mid-Atlantic.”

“We are thrilled to be partnering with Dominick and Sean and the team at Premier Outdoor Media.  With Dominick’s experience in building value through a disciplined approach and Sean’s passion to build a world-class sales effort, we know that Premier will be a force to be reckoned with in the coming years,” said Tim Wegener, Caruth Co-Founder and Partner.

Caruth Capital Partners invests in lower-middle market businesses and was co-founded by Tim Wegener and Ben deTar Wilhite. The firm is based in Dallas.

© 2018 Private Equity Professional | June 27, 2018

Avista and Dana Build Kramer Labs

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Kramer Laboratories has acquired Nizoral, an anti-dandruff shampoo brand sold in North America and Latin America, from Janssen Pharmaceutica, a unit of Johnson & Johnson.

Avista Capital Partners partnered with Dana Holdings to acquire Kramer Laboratories, a seller of over-the-counter (OTC) foot care and specialty cough products, in May 2018.

Kramer’s product portfolio includes foot care brands such as The Original Fungi-Nail Toe & Foot, used to treat toe and foot fungus; HC Max, used to treat Athlete’s Foot; and Safetussin, used to relieve coughs caused by the common cold. The company’s products are sold in over 60,000 stores nationwide, including major drug, food and mass merchandiser outlets. Kramer Laboratories, led by CEO Rick Kornhauser, was founded in 1983 and is headquartered in Coral Gables, FL (www.kramerlabs.com).

“We are delighted to add Nizoral, an iconic OTC brand, to the Kramer portfolio,” said Mr. Kornhauser. “With over a 25-year history, Nizoral is one of the most widely-recognized and highly-trusted brands in therapeutic hair care. This acquisition also significantly enhances our financial profile, adding meaningful scale, growth and profitability to our company. We look forward to building upon Nizoral’s strong brand heritage and continuing to grow the brand through investment and brand support.”

“This is a transformative acquisition for Kramer, one that not only adds an exceptional brand to the portfolio, but also establishes Kramer as a leading OTC consumer healthcare platform of scale,” said David Burgstahler, President and Co-Managing Partner of Avista. “We are excited about Kramer’s future prospects and are committed to supporting the company’s continued development and expansion.”

Avista, with over $6 billion of capital under management, makes control or influential minority investments in growth-oriented healthcare businesses with a specific interest in pharmaceuticals, medical devices, outsourced pharmaceutical services, distribution, and consumer-driven healthcare. The firm was founded in 2005 and is based in New York (www.avistacap.com).

Dana Holdings, Avista’s co-investor in Kramer, is an independent sponsor that makes minority and control investments in companies active in the consumer healthcare sector. The firm was founded in 2004 and is based in Princeton, NJ.

© 2018 Private Equity Professional | June 27, 2018

Advent Buys GE’s Distributed Power Business

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Advent International has agreed to acquire General Electric‘s (NYSE: GE) Distributed Power business for $3.25 billion. The transaction includes Distributed Power’s Jenbacher and Waukesha engines, as well as manufacturing sites in Austria, Canada and the US.

Distributed Power, a business unit of GE Power, is a provider of reciprocating gas engines, power equipment, and services that are used for power generation and gas compression at or near the point of use. The unit’s product portfolio includes industrial gas engines generating 200 kW to 10 MW of power sold under the Jenbacher and Waukesha brands.

Distributed Power, led by its President Carlos Lange, had $1.3 billion in revenues in 2017 and has approximately 3,000 employees and three facilities located in Austria, the US and Canada.

“Our Jenbacher and Waukesha brands and engines are recognized all over the world for their performance and reliability, and Advent’s deep sector expertise will allow us to further strengthen our capabilities for the benefit of our worldwide customers,” said Mr. Lange. “Advent will help accelerate our growth as we continue to execute on our priorities.”

“Distributed Power is a terrific asset with highly regarded engines that are the go-to OEM for the efficient generation of electrical power and heat as well as gas compression,” said Ranjan Sen, Managing Partner at Advent International. “The business has significant growth potential on a global scale and talented employees all over the world. We plan to invest substantially in critical areas such as the product portfolio, service network and digitization to support Distributed Power in sustainably strengthening its market position.”

Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. Advent has 14 offices in 12 countries and employs 190 investment professionals across North America, Europe, Latin America and Asia. Founded in 1984 and headquartered in Boston, Advent has $39 billion in assets under management and has completed more than 335 buyout and private equity transactions (www.adventinternational.com).

This transaction is expected to close by the fourth quarter of 2018.

© 2018 Private Equity Professional | June 25, 2018

Cornell Closes Inaugural Fund

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Cornell Capital has held a final closing of its inaugural private equity fund, Cornell Capital Partners LP, with total capital commitments of $1.325 billion.

Cornell Capital was founded in 2013 by Henry Cornell, the former Vice Chairman of Goldman Sachs’ Merchant Banking Division, to invest in companies in the consumer, energy, financial and industrial sectors.

“We greatly appreciate the strong support from our new and existing investment partners, which is a testament to the seasoned team we have assembled as well as the opportunities ahead,” said Mr. Cornell. “I look forward to working alongside my partners to leverage our cross-border relationships and operational expertise to generate long-term value through our proven, disciplined approach.”

The new fund has already deployed a third of its capital in three portfolio companies as follows:

  • In May 2017, Cornell acquired Corelle Brands (formerly known as World Kitchen). The business manufactures and market its products – such as bakeware, dinnerware, kitchen and household tools, range-top cookware, storage and cutlery – under the brand names Pyrex, Corelle, CorningWare, Snapware, Chicago Cutlery, Revere, Visions, Ekco and Baker’s Secret. Pyrex and CorningWare are registered trademarks of Corning Inc. and are licensed by Corelle Brands. The company has approximately 3,000 employees with manufacturing and distribution operations in both North America and Asia-Pacific regions.  Corelle Brands is headquartered in the Chicago suburb of Rosemont, IL (www.WorldKitchen.com).
  • In January 2018, the firm invested in Monolith Materials, a manufacturer of carbon black and hydrogen gas using natural gas feedstock. The company’s products are used in tires and industrial rubber products, plastics, coatings, and toners and printing ink applications; and petroleum refining, clean power generation, and chemical industries. Monolith Materials is based in Redwood City, CA (www.monolithmaterials.com).
  • In May 2018, the firm was the lead investor in the $2 billion acquisition of Talcott Resolution, the run-off life and annuity businesses of The Hartford Financial Services Group. Other investors included Atlas Merchant Capital, TRB Advisors, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Talcott Resolution has 375 employees and is headquartered in Windsor, CT with an additional office in Woodbury, MN (no website found).

The closing of the new fund brings Cornell Capital’s total assets under management to over $2.2 billion, including co-investments and single asset funds. The firm has 19 professionals and is based in New York with an additional office in Hong Kong (www.cornellcapllc.com).

© 2018 Private Equity Professional | June 25, 2018

MDP Grows Ankura

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Ankura Consulting Group, a portfolio company of Madison Dearborn Partners since March 2016, has agreed to acquire the Disputes, Forensics and Legal Technology (DFLT) segment and its Transaction Advisory Services (TAS) of Navigant.

Ankura Consulting Group’s services include forensic and dispute consulting, turnaround and restructuring consulting, financial risk and controls advisory, corporate investigation, geopolitical risk assessment, transaction advisory, valuation and visual communications services. Customers include both corporate and public sector clients. The company is headquartered in Washington DC with 13 additional offices across the US and in Puerto Rico (www.ankuraconsultinggroup.com).

The addition of Navigant’s DFLT and TAS businesses strategically complements Ankura’s existing capabilities and geographic reach and creates a business advisory firm with over 1,400 employees in 34 offices worldwide and over $500 million in revenues.

“Bringing Navigant’s global DFLT and TAS businesses to Ankura represents a milestone opportunity to establish a global footprint, enhance our client offerings, deepen our relationships with our clients, and provide new and exciting opportunities for our people,” said Roger Carlile, CEO of Ankura. “Ankura was founded to create a different kind of business advisory firm based on collaboration and innovation, and our success and growth is a testament to our approach. Navigant’s DFLT and TAS professionals are leading experts in their fields who share these same beliefs, and we are excited to welcome our new colleagues to our growing platform.”

Madison Dearborn (MDP) invests in privately held or publicly traded companies in the following sectors: basic industries; business and government software and services; financial and transaction services; health care; and telecom, media and technology services. In August 2016 the firm closed its seventh buyout fund at $4.4 billion. Madison Dearborn was founded in 1992 and is based in Chicago (www.mdcp.com).

Navigant Consulting (NYSE: NCI) is a global professional services firm that provides advisory, consulting, outsourcing, and technology/analytics services to companies active in the healthcare, energy and financial services industries. The company, headquartered in Chicago, has nearly 50 offices in the United States, Canada, Europe, Middle East and Asia (www.navigant.com).

Jefferies was the financial advisor to Navigant.  Deutsche Bank Securities and SunTrust Robinson Humphrey served as financial advisors to Ankura.

This transaction is valued at $470 million and is expected to close during the third quarter of 2018.

© 2018 Private Equity Professional | June 25, 2018

Renovo Acquires Rochester Gauges

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Renovo Capital has acquired Rochester Gauges from Gas Equipment Company. Renovo partnered on this transaction with industry executive and operating partner Frank Guidone.

Rochester Gauges is a manufacturer of gauges and sensors that measure liquid levels of various fuels, including propane, gasoline and diesel. The company’s products are most often used in residential and commercial propane tanks, forklifts, RV’s, lawn and garden equipment, tractors and personal aircraft.

Rochester Gauges was founded in 1913 and acquired by Gas Equipment Company in 1958. The company has manufacturing facilities in Dallas (headquarters), Mexico City and Brussels, with a sales office in Shanghai, China (www.rochestergauges.com).

Gas Equipment Company (GEC) is a distributor of in-process, transfer and control equipment for oil and gas producers, transporters, and LP-Gas marketers. The company has been owned and managed by the LaDue family since Milt LaDue founded the company in 1937. GEC, led by President Skeeter LaDue (grandson of the founder), is headquartered in Dallas (www.gasequipment.com).

The buy of Rochester Gauges will be used as a platform investment in the sensor and measurement space and will be led by Mr. Guidone. “We are excited to continue the legacy that the LaDue family has successfully built over many decades of ownership,” said Mr. Guidone. “Our priority will continue to be operating at a high level of quality and customer service as well as grow the business in current and new markets. We believe that Rochester serves as an optimal foundation for growth, both organically and through acquisition, in order to create a broad-based liquid level measurement business.”

Mr. Guidone has over 25 years of operating and leadership experience and most recently was the President and CEO of Measurement Specialties (NASDAQ: MEAS), a designer and manufacturer of embedded sensors and sensor-based systems. While at Measurement Specialties, he orchestrated a successful out-of-court restructuring of the business in 2004 and then led an expansion of the company growing revenue from $40 million to $600 million over 10 years. During this period, Mr. Guidone led the acquisitions of 24 businesses and deployed $450 million of capital within the embedded sensor sector. The result was compounded annual earnings growth of over 20%. Mr. Guidone exited the company in October 2014 following the sale to TE Connectivity (NYSE: TEL). Prior to his time at Measurement Specialties, he was a founding partner and managing director of CRP, a Dallas-based turnaround and restructuring firm.

Renovo Capital makes control equity investments in lower middle market businesses that are undergoing varying degrees of operational, financial or market-driven change. The firm typically invests from $10 million to $40 million of equity capital in businesses with annual revenues between $20 million and $200 million. Sectors of interest include manufacturing, distribution, and services. Renovo was founded in 2009 and is based in Dallas with an additional office in Denver (www.renovocapital.com).

Renovo Capital is currently investing out of Renovo Capital Fund II LP which closed in September 2014 with $132 million committed capital.

© 2018 Private Equity Professional | June 22, 2018

Novacap Invests in Noble Foods

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Novacap has made an investment in Noble Foods Nutrition, a contract manufacturer of nutrition and energy bars.

Noble Foods Nutrition has approximately 100 employees and manufactures a range of nutrition and energy bars including granola bars, crisp bars, fruit bars, peanut and mixed nut bars. The company can also coat its products with a variety of chocolates including dark, milk, sugar-free, or peanut flavored coatings.

Noble Foods was founded in 1999 by Lee Shulkin, Eric Kimmel and Alex Dehkter and all three will continue in their current roles and remain shareholders in the company. The company is headquartered in Pointe-Claire, Québec (www.noblefoods.com).

The investment from Novacap will be used to invest in the company’s growth to help it expand into new markets. “Noble Foods is proud to be joining forces with a strategic partner of the caliber of Novacap to propel our company to the next phase of its growth,” said Lee Shulkin, President of Noble Foods. “With its team of seasoned managers and this injection of fresh capital, it will bring complementary expertise that will enable us to accelerate our development plan and achieve our high ambitions by exploring new market segments.”

“The team at Noble Foods has demonstrated market leading know-how in innovation, production and market development,” said Antoine Casimir, Principal – Industries, at Novacap. “We firmly believe that blending their expertise with that of Novacap will enable Noble Foods to drive growth and become the preferred contract manufacturer in North America. This partnership will allow us to explore multiple acquisition and strategic opportunities to expand its current manufacturing capabilities and geographic reach. We are all very enthusiastic about this chance to work with a very dynamic company led by three visionary founders.”

Novacap, with $2.3 billion in assets under management, invests in middle market companies within traditional industries and in companies in the technology, media and telecommunications sector.  The firm was founded in 1981 and is based in Quebec (www.novacap.ca).

This transaction was completed with the support of Investissement Québec, a business development organization that provides advisory and capital (loans, loan guarantees and equity investments) to companies looking to initiate or expand their activities in Quebec. Investissement Québec is headquartered in Montréal (www.investquebec.com).

“Noble Foods is the type of business we want to support in Québec’s food manufacturing ecosystem,” said Pierre Gabriel Côté, Investissement Québec’s President and CEO. “The innovative manufacturing sector is one of our strategic priorities, and the company will strive to increase the number of manufacturing jobs on the Island of Montréal following the planned capacity expansion. So it’s perfectly natural for us to contribute to the success of the transaction.”

© 2018 Private Equity Professional | June 22, 2018

Incline Completes Another MIR Add-on

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Midwest Industrial Rubber (MIR), a portfolio company of Incline Equity Partners, has acquired VanCon, Inc. MIR has been a portfolio company of Incline Equity since December 2016.

VanCon is a distributor of conveyor belting for the food, paper, industrial and automotive industries. The company is based near Detroit in Dexter, MI.

“We are very happy to become the latest company to join MIR. We can now expand our capabilities to our customers in the region with access to the wealth of manufacturing and expert resources that MIR has to offer,” said VanCon President Kerry McConnell.

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 was founded in 1980 and is headquartered in St. Louis (www.mir-belting.com).

“This acquisition expands our geographical footprint into the Michigan region and our capabilities in the automotive end market,” said Brian McSharry, CEO of MIR. “This supports our strategy of delivering superior service through proximity to our customers.”

The buy of VanCon is the third add-on acquisition MIR has completed in the past four months. In May 2018, MIR acquired Berlin, CT-based New England Belting Company, a provider of specialty belts including edge belts, wave solder belts, timing belts and vacuum belts; and in March 2018 it acquired Maple Grove, MN-based Conveyor Belting Supply, a fabricator and distributor of light weight conveyor belting and accessories to the Minnesota and Dakotas markets.

“We are thrilled to complete our third acquisition at MIR in a short period of time,” said Jack Glover, Partner with Incline. “Growth through acquisition is an important component of our strategy. We are continually looking for companies that expand MIR’s geographic footprint, add product lines or open the door to new end markets.”

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 | June 22, 2018