Archives for October 30, 2018

Artemis Acquires Superior Technical Ceramics

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Superior Technical Ceramics, a maker of ceramic materials used in harsh operating environments, has been acquired by Artemis Capital Partners.

Superior Technical Ceramics (STC) is a provider of ceramic materials that are used in a range of industries, including aerospace, defense, analytical instrumentation, energy, oil and gas, and semiconductor processing. The company’s materials offer distinct operating properties and are used in a range of operating environments including high heat, high pressure, corrosive, and high mechanical wear.

STC, founded in 1898, has more than 160 employees and 135,000 square feet of manufacturing space. The company is led by President John Goodrich and is headquartered in St. Albans, VT (www.ceramics.net).

“We are excited about partnering with Artemis. By combining STC’s strong operating team with Artemis’ strategic ownership, the company is poised for a new era of growth and innovation,” said Mr. Goodrich. “Most importantly, our customers can count on a seamless transition and our unwavering focus on performance, quality, and service.”

“STC’s capabilities speak for themselves and we plan to further invest in the company’s people, technology, equipment, and partnerships to realize STC’s full potential as a world-class player in the advanced ceramics market – from right here in Vermont,” said Peter Hunter, Managing Partner at Artemis.

“From the first day we visited STC, we saw a company with all the hallmarks of scalable growth – a customer-centric culture; technical advantages spanning both materials and processes; a passion for applications engineering; and a motivated team, hungry for partnership. STC’s dual commitment – to customer and technology – perfectly fits our investment model,” said James Ward, a Principal at Artemis.

Artemis Capital Partners invests in companies with revenues of $5 million to $50 million and EBITDA of $1 million to $10 million. Sectors of interest include manufacturers of differentiated industrial technologies, including aerospace, automotive, defense, energy, industrial automation, scientific and research, and medical sectors. The firm was founded in 2010 and is based in Boston (www.artemislp.com).

Needham & Company (www.needhamco.com) was the financial advisor to STC on this transaction.

© 2018 Private Equity Professional | October 30, 2018

Calera Acquires Healthcare Laundry Service

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Calera Capital has acquired a majority equity interest in ImageFIRST, a provider of laundry services to the healthcare industry.

ImageFIRST is a national linen rental and laundry services company specializing in the healthcare market. The company has 36 locations nationwide and serves over 11,000 medical facilities every week providing linen, patient gowns, scrubs and other materials. ImageFIRST, led by CEO Jeff Berstein, was founded in 1967 and is headquartered near Philadelphia in King of Prussia, PA (www.imagefirst.com).

Mr. Berstein, the Berstein family, and management will retain a significant equity interest in the business in partnership with Calera. “The entire leadership team and I are delighted to work together with Calera to build on the foundation that we have established over the past 20 years,” said Mr. Berstein. “We are a growth-focused company built on strong values, disciplined execution, and a commitment to serving the needs of our clients and employees.  We are well aligned with the Calera team in these critical areas and I look forward to a successful partnership.”

“Jeff Berstein and his management team have developed ImageFIRST into a true market leader, driven by the company’s commitment to an unparalleled service experience for its clients,” said Ethan Thurow, Managing Director of Calera Capital. “The company has tremendous momentum, and we look forward to partnering with Jeff and his team as they continue to build the business.”

Calera Capital invests from $35 million to $200 million in companies with enterprise values from $100 million to $750 million.  Sectors of interest include business services and specialty industrials. Calera was founded in 1991 and has offices in San Francisco and Boston (www.caleracapital.com).

“ImageFIRST has exceptional opportunities for further growth, both organic and through acquisitions.  We look forward to supporting management as they execute on these opportunities and continue to realize the substantial potential of the business,” said Ed Orzetti, Operating Partner of Calera Capital.

ImageFIRST represents Calera’s sixth investment for the firm’s fifth fund which had a final close in October 2017 with $555 million of capital commitments.

Antares (www.antares.com) and Varagon Capital (www.varagon.com) served as joint lead arrangers on a $138 million senior secured credit facility to support this transaction.

© 2018 Private Equity Professional | October 30, 2018

Altas Partners Buys Tecta America

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Altas Partners has agreed to acquire Tecta America Corporation from ONCAP, the mid-market private equity platform of Onex Corporation. ONCAP acquired a majority position in Tecta America in August 2016 from Oaktree Capital Management for $280 million.

Tecta America is a provider of commercial roofing contracting services to national and local customers across a range of industries and end markets. The company’s services include installation, replacement, repairs and maintenance, new construction, and disaster response. Tecta has more than 3,000 employees and operates from 60 locations from coast to coast.

Tecta America, an active buyer of commercial roofing companies, is led by CEO Mark Santacrose and is headquartered near Chicago in Rosemont. IL (www.tectaamerica.com).

“We are thrilled to partner with Altas as we continue to execute on our growth opportunities – both organically and through selective acquisitions,” said Mr. Santacrose. “Furthermore, we’re excited to leverage the firm’s support and expertise as we continue to focus on delivering best-in-class service to our customers and being the employer of choice in the roofing industry. We greatly value the support and commitment ONCAP provided throughout its ownership, as well as its confidence in our people and our future.”

ONCAP is the mid-market private equity platform of Onex Corporation (TSX: ONEX) which makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $33 billion of assets under management and is based in Toronto with additional offices in New York, New Jersey and London (www.onex.com).

“We’re proud of everything we accomplished together with Tecta America. During our ownership period, we worked closely with Tecta management to enhance the company’s acquisition capabilities and strengthen the business’ operating performance. We wish the Tecta America team all the best as they continue to execute on their proven growth strategy,” said Edmund Kim, a Principal at ONCAP.

“Tecta America’s strength as a national company with deep local relationships has enabled its evolution into the largest commercial roofing contractor in the US,” said David Brent, a Partner at Altas. “This opportunity is an excellent fit with our long-term investment strategy and approach of partnering with outstanding management teams. We look forward to supporting the team at Tecta America as it continues to provide its customers with exceptional service and capitalize on the significant growth opportunities that lie ahead.”

Altas’ investing partners include endowments, foundations, public pension funds and other institutional investors. Altas was founded in 2012 by former Onex Managing Director Andrew Sheine and is based in Toronto (www.altaspartners.com).

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

© 2018 Private Equity Professional | October 30, 2018

J.F. Lehman Acquires IMIA

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J.F. Lehman & Company has acquired International Marine & Industrial Applicators, LLC and Craft and Technical Solutions, LLC (collectively IMIA) from IMIA Group.

IMIA provides vessel preservation services to hulls, tanks and other coated areas on US Navy submarines, aircraft carriers, and other combat vessels as well as commercial vessels. The core services of the company are steel grit, dry abrasive and water blasting, HVLP (high-volume, low-pressure) and spray-painting, specialty coatings and linings, abatement and containment, and high-pressure water washing.

IMIA, led by CEO Mike Keenan, was founded in 1985 and is headquartered near Mobile in Spanish Fort, AL with a presence in over 30 facilities nationally as well as in Japan (www.imiallc.com).

“J.F. Lehman & Company is a great partner for IMIA,” said Mr. Keenan. “They offer an excellent combination of unique expertise and relationships as well as capital to accelerate our growth. We look forward to continuing IMIA’s proud heritage of providing best-in-class preservation services to the US maritime industry.”

“We are excited to be partnering with the IMIA management team and are pleased to welcome the company to the J.F. Lehman & Company portfolio,” said Alex Harman, a Partner with JFLCO. “They are an excellent fit with our investment strategy given their leading market positions, long-standing customer relationships and outstanding workforce. In today’s government and commercial marine marketplace, the need for high-quality, reliable, safe and cost-effective preservation solutions is growing, and IMIA offers a full range of services to meet this demand.”

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 64 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).

Debt financing for the transaction was provided by Ares Management (www.aresmgmt.com).

Mensura Capital (www.mensuracapital.com) was the financial advisor to IMIA Group.

© 2018 Private Equity Professional | October 30, 2018