Archives for October 16, 2018

Abacus Stays Busy with Westview

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Abacus Finance Group was the Administrative Agent and Lead Arranger for $25.5 million in senior secured credit facilities to support the recapitalization of The Phia Group by WestView Capital Partners. Abacus also made an equity co-investment as part of the transaction.

In September, Abacus backed the acquisition by WestView of AccountabilIT, a Scottsdale, AZ-based provider of outsourced IT services to middle-market companies as wells as small and medium-sized businesses. Abacus also made an equity co-investment in AccountabilIT as well.

The Phia Group is a provider of outsourced cost containment and payment integrity services to healthcare payers and the entities that service them. The company’s services include plan document drafting, subrogation and overpayment recovery, claim negotiation, plan defense and consulting. The Phia Group is headquartered near Boston in Braintree, MA (www.phiagroup.com).

“Once again, we selected the Abacus team because of its industry knowledge in the healthcare sector,” said WestView General Partner Matt Carroll. “Equally important was their ability to provide certainty of close early on in the process.”

“Part of the Abacus mission is to back leaders in their niches, and The Phia Group is a trailblazer in its space,” said Tim Clifford, President and CEO of Abacus. “Lead investor Matt Carroll and WestView are best in class when it comes to healthcare technology and outsourcing. They are easy to work with and they place a high value on our flexibility and speed – key aspects of what we call our Total Partnership Approach™.”

Abacus provides cash flow-based senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million.  New York-based Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).

WestView makes majority and minority investments of $10 million to $60 million in lower middle market growth companies.  Sectors of interest include business services, software and IT services, consumer, healthcare technology and outsourcing and growth industrial. Target companies will have operating profits between $3 million and $20 million. WestView manages approximately $1.7 billion in capital across four funds and is headquartered in Boston (www.wvcapital.com).

Abacus team members involved in the transaction included Sean McKeever and Brian Green while WestView’s team was composed of Matt Carroll, Jeff Clark and Kevin Twomey.

© 2018 Private Equity Professional | October 16, 2018

Auxo Acquires Prestige Stamping

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Auxo Investment Partners has acquired Prestige Stamping in partnership with the Rink family.

Prestige is a maker of high-volume, tight-tolerance washers and similar small stampings made from aluminum, brass, bronze, copper, low and high carbon steels as well as high strength, pre-tempered and stainless steels with a thickness range of .020″ through .375″. The company manufactures over a billion washers and metal stampings annually for more than 200 customers that are active in the automotive, infrastructure & construction, agricultural, electronics and home/office products sectors.

Prestige recently was accredited with IATF 16949, the new global industry standard for quality management systems published by the International Automotive Task Force (IATF). The company, led by CEO Chris Rink, was founded in 1967 and operates from a 100,000-square-foot production facility and headquarters located near Detroit in Warren, MI (www.prestigestamping.com).

Mr. Rink will continue as CEO of Prestige under Auxo ownership. “Starting from a stone garage in Detroit where we took our first order more than 50 years ago, our family has worked hard to build a customer- and employee-centric culture with a singular mission to deliver market-leading quality, speed and value to our customers,” said Mr. Rink. “We selected Auxo as a partner because of the values our organizations share – and we think Auxo’s hands-on investment approach will bolster our ability to maintain our vision and ensure a prosperous future for our company and for our long-standing employees.”

“We were immediately impressed with Prestige and by the tenacity with which the company pursues process improvement, quality and growth,” said Auxo Managing Partner Jack Kolodny. “It’s clear the company’s values are closely aligned with ours, and its success has been driven by the Rink family’s relentless pursuit of excellence and customer service. We’re excited to honor their legacy by bringing their industry-leading responsiveness, quality, and on-time delivery to other markets where those performance levels are critical for customers, all of which will take the business to the next level.”

In addition to its core markets, Mr. Kolodny believes that Prestige can expand into other markets including aviation and engine manufacturing, rail, aerospace and defense, heavy truck and other transportation sectors.

“We couldn’t be more thrilled to be working with Prestige Stamping and the Rink family,” added Auxo Managing Partner Jeff Helminski. “This is exactly the kind of company we had in mind when we formed Auxo two years ago — and we look forward to being an active and additive partner in the continued growth and diversification of an already outstanding company.”

Auxo invests in North America-based companies that have from $1.5 million to $15 million of EBITDA. Sectors of interest include manufacturing, industrial, value-added distribution and business services. Typical investments for Auxo occur at corporate transition points, including owner-operators planning retirement, companies exploring family succession, and ownership/management teams seeking growth capital. The firm prefers majority-control investments but will consider select minority opportunities.

Auxo was founded in October 2016 and is led by its managing partners Jeff Helminski, Jack Kolodny and Fred Tedori. The firm, which is named after the ancient Greek goddess of growth, has offices in Grand Rapids, MI and Los Angeles, CA (www.auxopartners.com).

The buy of Prestige Stamping is Auxo’s fifth acquisition in 13 months and follows the September closing of the firm’s first investment fund, Auxo Growth Holdings I LLC.

Tree Line Capital Partners (www.treelinecp.com) and Mercantile Bank (www.mercbank.com) provided debt financing. Generational Equity (www.genequityco.com) was the financial advisor to Prestige Stamping.

© 2018 Private Equity Professional | October 16, 2018

Centre Partners Invests in Guy & O’Neill

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Centre Partners has made an investment in Guy & O’Neill, a manufacturer and developer of household cleaning and personal care products.

Guy & O’Neill’s products include wet wipes and other liquid-fill products that are sold under the company’s own brands as well as under private labels. The company’s services include blending, liquid-fill, converting and packaging.

Guy & O’Neill’s products include disinfecting wipes and multi-surface cleaners; adult care incontinence products and bathing products; feminine hygiene products; facial wipes, makeup remover wipes and cosmetic wipes; and automotive wipes. Company-owned brand names include Ally, Care4, Clean Cut, Evoke, Green & Clean, and Zippy. Guy & O’Neil, led by CEO Tom Misgen, has approximately 340,000 sq. ft. of office, production and warehousing facilities at its headquarters located near Milwaukee in Fredonia, WI (www.guyandoneill.com).

Centre’s investment was made alongside the company’s senior management team, which will continue to own a meaningful stake and lead the business under Centre’s ownership. “We are very pleased to partner with and invest alongside Centre. We believe that their financial support and industry expertise will accelerate growth and facilitate meaningful investments in our business while maintaining our focus on offering the highest quality products and customer service that our customers value and will continue to enjoy,” said Mr. Misgen. “Centre’s investment is an endorsement of the strength of our dedicated management team and the strength of our innovative portfolio of products.”

“Centre is thrilled to partner with the Guy & O’Neill management team,” said Bruce Pollack, a Managing Partner of Centre Partners. “The company is well-positioned to execute on multiple compelling growth strategies, and uniquely situated to offer its customers with innovative products to capitalize on shifting consumer preferences in the household cleaning sector.”

“Guy & O’Neill is an established market leader and a highly strategic partner for its customers, with a stellar reputation supported by its state-of-the-art manufacturing and new product development,” said Michael Schnabel, a Managing Director of Centre Partners. “Through our previous investments in the household cleaning sector, we have a deep expertise in the space and significant resources that will assist us in accelerating the growth of the business both organically and through acquisitions.”

Centre Partners invests from $10 million to $50 million in North American based middle market companies that have $30 million to $300 million in revenue and $5 million to $40 million in EBITDA.  Sectors of interest include branded and private label consumer, and healthcare. Centre Partners was founded in 1986 and has offices in New York and Los Angeles (www.centrepartners.com).

Twin Brook (www.twincp.com) served as administrative agent on $77 million of financing to support Centre Partners’ leveraged buyout of Guy & O’Neill.

© 2018 Private Equity Professional | October 16, 2018

ShoreView Closes 4th Rohrer Add-On

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Rohrer Corporation, a portfolio company of ShoreView Industries since December 2009, has acquired Transparent Container.

Transparent Container is a designer and manufacturer of high-visibility packaging products, including blister and club packaging, clamshells, and printed plastic and paperboard folding cartons.

The company was founded in 1961 and is headquartered near Chicago in Addison, IL with additional facilities in Georgia, California, and Mexico (www.transparentcontainer.com).

Rohrer is a manufacturer of high-visibility, paperboard and thermoformed plastic consumer packaging including graphically intensive blister, skin, folding carton, high volume board packaging, and clamshell packaging. The company’s customers are active in a range of end markets, including hardware, office supplies, batteries, consumer electronics, automotive aftermarket, consumer products and personal care. Rohrer is headquartered near Akron in Wadsworth, OH and also has production facilities in Buford, GA; Huntley, IL; Mesa, AZ; and Solon, OH (www.rohrer.com).

The buy of Transparent Container is the fourth add-on acquisition by Rohrer under ShoreView ownership. Rohrer has grown to become one of the leaders in the high-visibility packaging market within North America and serves some of the largest consumer packaged goods companies in the world.

ShoreView makes control and minority investments in US-based middle market companies that have revenues from $20 million to $300 million and operating profits from $5 million to $40 million. Sectors of interest include manufacturing, distribution and services.  The firm currently has $900 million of capital under management and is based in Minneapolis (www.shoreviewindustries.com).

© 2018 Private Equity Professional | October 16, 2018