Archives for June 13, 2018

LLR Closes $1.2 Billion Fund

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LLR Partners has held a final closing of its latest fund, LLR Equity Partners V LP, at $1.2 billion.

LLR Partners invests from $15 million to $100 million in companies that have up to $100 million in annual revenue and are active in the education, financial, healthcare, security and software sectors.  The firm will invest in minority or majority equity positions through growth capital, recapitalizations and buyout transactions.

The new fund has already made eight investments as follows:

  • 3SI Security Systems, a Malvern, PA-based provider of asset protection systems used in the financial, retail, cash-in-transit and law enforcement markets, in June 2017;
  • eLocal, a Conshohocken, PA-based provider of software to support digital performance marketing and new customer acquisition, in November 2017;
  • Eye Health America, an Alpharetta, GA-based provider of eye care practice management services, in March 2018;
  • MedBridge, a Seattle, WA-based provider of clinical and professional education, patient education and home rehabilitation programming for medical and allied health professionals, in March 2018;
  • Midigator, a Salt Lake City, UT-based provider of software used to prevent, analyze and manage payment card chargebacks, in March 2018;
  • Onapsis, a Boston, MA-based provider of cybersecurity services used to monitor and protect SAP and Oracle ERP and other business applications, in April 2018;
  • PhishLabs, a Charleston, SC-based provider of 24/7 managed security services to protect organizations against phishing attacks that target their customers and employees, in May 2018;
  • Professional Capital Services, a Philadelphia, PA-based provider of software used by registered investment advisors, independent broker-dealers and investment management firms to automating the sale, design, valuation and management of retirement plans, in September 2017.

“With our focus on select industries and our innovative approach to sourcing investments, we see compelling companies seeking a partner to help them grow their businesses to the next level,” said Mitchell Hollin, a Partner with LLR. “Our collaborative and flexible investment approach has remained consistent since LLR’s founding in 1999. More than ever, we leverage the collective expertise of our multi-disciplinary team, portfolio executives and extensive third-party network to help create value for our companies.”

Asante Capital Group (www.asantecapital.com) was the European placement agent for this fundraise and Latham & Watkins (www.lw.com) provided legal services.

LLR Partners is headquartered in Philadelphia (www.llrpartners.com). The firm’s earlier fund, LLR Equity Partners IV LP, closed at $950 million in March 2014.

© 2018 Private Equity Professional | June 13, 2018

New Harbor Sells PT Solutions

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New Harbor Capital has sold PT Solutions to Lindsay Goldberg. New Harbor acquired PT Solutions through its first fund, New Harbor Capital Fund I LP, in December 2013.

PT Solutions is a provider of physical therapy services through stand-alone, outpatient physical therapy clinics, hospitals, physician groups and other partners. The company’s services include physical, occupational and speech therapy, sports medicine, industrial rehabilitation and medical fitness. PT Solutions has over 140 locations in 12 states and is headquartered in Atlanta (www.ptsolutions.com).

During New Harbor’s term of ownership, PT Solutions recorded a revenue CAGR of 24% by opening more than 70 hospital satellite and private de novo locations, expanding into multiple new markets, completing seven add-on acquisitions, and doubling its number of hospital contracts.  The management team was expanded to support this growth and the overall PT Solutions team grew by almost 5x.

“The leadership New Harbor provided has elevated our business to another level, growing revenue and locations dramatically over the last 4 plus years,” said Dale Yake, Founder and CEO of PT Solutions.  “We significantly increased every performance metric in the business and are poised for considerable growth as we move into the next chapter of our evolution in partnership with Lindsay Goldberg.”

“We have greatly valued our relationship with Dale and the management team over our 4 plus years of partnership,” said Jocelyn Stanley, a Partner at New Harbor.  “We shared a true spirit of collaboration, aligned goals and a growth-mindset which fostered extraordinary success that exceeded our expectations.”

New Harbor invests from $10 million to $40 million of equity in companies that have from $3 million to $15 million of EBITDA. Sectors of interest include growth-oriented business services companies with an emphasis on the healthcare and education industries. New Harbor was co-founded in February 2013 by Tom Formolo and Ed Lhee, long-time partners at CHS Capital, and is based in Chicago (www.newharborcap.com).

Lindsay Goldberg, the buyer of PT Solutions, manages $13 billion of equity capital and is focused on partnering with family-owned and entrepreneur‐led businesses seeking a partner to help actively build their businesses. The firm is based in New York (www.lindsaygoldbergllc.com).

Jefferies was the financial advisor to PT Solutions.

© 2018 Private Equity Professional | June 13, 2018

Platinum to Buy LifeScan from J&J

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Johnson & Johnson has agreed to sell its LifeScan business, a maker of blood glucose monitoring products, for approximately $2.1 billion to Platinum Equity.

In the US, LifeScan is the leading maker of blood glucose monitoring systems for home and hospital use. The company’s OneTouch brand products are recommended by more endocrinologists and primary care physicians than any other brand. Globally, more than 20 million people use OneTouch products to test and monitor their diabetes.

LifeScan has been a Johnson & Johnson business since 1986 and has 3,000 employees with a headquarters in Chesterbrook, PA and manufacturing facilities in Puerto Rico and Scotland (www.lifescan.com) (www.OneTouch.com).

Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion buyout fund which closed in March 2017. Platinum Equity has completed more than 200 acquisitions since its founding in 1995. The firm is based in Beverly Hills with additional offices in New York and London (www.platinumequity.com).

Johnson & Johnson (NYSE: JNJ) is a multinational medical devices, pharmaceutical and consumer packaged goods manufacturing company with annual revenues of more than $75 billion. Johnson & Johnson’s brands include numerous household names of medications and first aid supplies including the Band-Aid line of bandages, Tylenol medications, Johnson’s baby products, Neutrogena skin and beauty products, Clean & Clear facial wash, and Acuvue contact lenses. The company is headquartered in New Brunswick, NJ (www.jnj.com).

This transaction is expected to close by the end of 2018.

© 2018 Private Equity Professional | June 13, 2018

Warburg Pincus Exits FacilitySource

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FacilitySource, a portfolio company of Warburg Pincus since February 2012, has been sold to CBRE Group for approximately $290 million in cash.

FacilitySource is a provider of facility management services to companies operating in the retail, banking, logistics, healthcare and other industries.  The company supports more than 120,000 customer locations nationwide for facilities management services, capital-improvement and energy-management projects, with a particular emphasis on large multi-site portfolios. FacilitySource manages more than $3 billion of annual facility maintenance spend, across more than 4 million work orders. The company, led by CEO Bill Hayden, was founded in 2005 and has a back-office support center in Phoenix, AZ and an operations center in Columbus, OH (www.facilitysource.com).

“Since investing in FacilitySource in 2012, we have been pleased to partner with Bill Hayden and his team as the company has competed successfully, grown significantly and become the innovation leader in integrated facility management services,” said Alex Berzofsky, a Managing Director at Warburg Pincus. “FacilitySource meets a critical need for large facility portfolios, and we wish them continued success in this next chapter of the business.”

CBRE Group (NYSE:CBRE) is one of the largest commercial real estate services and investment firms. The company has more than 80,000 employees and approximately 450 offices worldwide. CBRE services include facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; consulting; property sales; mortgage services and development services. CBRE is headquartered in Los Angeles (www.cbre.com).

“FacilitySource materially advances our strategy of creating superior client outcomes through the delivery of integrated solutions – from facilities management to project management to transactions – for leading occupiers,” said Bill Concannon, CBRE’s Global Group President and CEO, Global Workplace Solutions. “We are constantly evolving and extending our service offerings with innovative solutions. In FacilitySource, we have found a company that brings complementary technologies, a rich source of data, and a strong leadership team with a record of growth and deep client commitment.”

CBRE traces its roots back more than 100 years when after the 1906 San Francisco earthquake, Tucker, Lynch & Coldwell was established. In 1940 the company was renamed Coldwell Banker and in 1981, Coldwell Banker was acquired by Sears. The Carlyle Group acquired the business in 1989 from Sears for $305 million and renamed it CB Commercial. Carlyle took the company public in 1996 and in 1998 it merged with Richard Ellis International and changed its name to CB Richard Ellis.  In 2001, the company was taken private by an investment group led by Blum Capital in an $800 million transaction, and in 2004 was once again taken public. In 2011, the company changed its name to CBRE Group.

“We built FacilitySource to unlock the power of data and change the facilities management industry. Combining with CBRE enhances our ability to grow quickly, serve large, complex client portfolios, and invest in our leading model,” said Mr. Hayden. “Together, we can accomplish much more than either company could on its own.”

Warburg Pincus has more than $44 billion in assets under management and has raised 16 private equity funds since its founding in 1966. In November 2015, the firm reached a final close of Warburg Pincus Private Equity XII LP at the hard cap of $12 billion. Warburg Pincus is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore (www.warburgpincus.com).

© 2018 Private Equity Professional | June 13, 2018