Archives for January 25, 2019

Granite Bridge Adds to InterMed

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The InterMed Group, a portfolio company of Granite Bridge Partners, has acquired Horizon CSA from its owners Mike Marrow and Dale Allman.

Horizon CSA is a provider of biomedical and clinical engineering equipment services to acute care hospitals and other healthcare providers in the southeastern and mid-Atlantic US.

Horizon CSA is based north of Charlotte in Mooresville, NC (www.horizonbiomedicalservices.com).

The InterMed Group is a provider of outsourced medical equipment maintenance, management and other services. The company’s services includes inspection, preventative maintenance, corrective repair, logistics planning, and consulting. InterMed services cover diagnostic imaging equipment such as ultrasound, X-ray, CT, MRI and various lab equipment and the company also sells new, pre-owned and reconditioned equipment. The company, led by CEO Rick Staab, is headquartered near Gainesville in Alachua, FL (www.intermed1.com).

Granite Bridge acquired InterMed, formerly four separate businesses, in December 2015 in partnership with Mr. Staab and other members of the company’s senior management team.

“Horizon’s dedication on delivering best in class medical equipment servicing and program management aligns perfectly with InterMed’s strategy and culture,” said Mr. Staab. “The addition of the Horizon portfolio of customers helps make InterMed an even more formidable player on the East Coast. We anticipate a smooth integration with very little change to service delivery to Horizon’s very loyal client relationships other than offering them the additional services that InterMed provides.”

“We believe that the combination of Horizon CSA and InterMed makes a lot of sense from both a cultural and strategic standpoint,” said Michael Goodman, a partner at Granite Bridge. “Its base of long-term customers and trusted service will deepen InterMed’s presence in the southeast and mid-Atlantic states and help support our expansion strategy.”

Granite Bridge was formed in July 2018 when the former management team of Wafra Partners, the direct equity division of Wafra, spun out to form the firm. With backing from Spring Bridge Partners and a syndicate of other limited partners, Granite Bridge acquired, through a secondary transaction, a majority interest in Wafra’s direct equity portfolio which included the equity interest in InterMed. The buy of Horizon CSA is the first investment for Granite Bridge since its formation last year.

Granite Bridge invests from $10 million to $30 million per transaction in companies that have enterprise values between $10 million and $100 million. Typical targets will have revenues of at least $10 million and EBITDA of between $2 million and $12 million. Sectors of interest include consumer products and services, business services and niche manufacturing. Granite Bridge is headquartered in New York (www.granitebridge.com).

© 2019 Private Equity Professional | January 25, 2019

Enlightenment Invests in System High

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Enlightenment Capital has made an investment in System High Corporation, a provider of proactive protection, security engineering, counterintelligence, and cybersecurity services to government and commercial customers.

System High was founded in 2005 and is headquartered in Chantilly, VA with an additional office in Colorado Springs, CO (www.systemhigh.com).

“System High will serve as the initial investment of a new Enlightenment platform, which will provide mission-critical protection of the technology that underpins many of the most sensitive efforts within the defense, intelligence, and commercial sectors,” said Jason Rigoli, a partner of Enlightenment Capital.  “We look forward to working with the leadership team to drive the company’s growth as they continue to play an integral role in this special arena.”

Kirk Blubaugh, the founder of System High, will join the company board of directors, remain a shareholder, and act as a strategic advisor to the company. “Enlightenment is an ideal partner and will be instrumental in helping execute our new long-range strategic plan,” said Mr. Blubaugh.

“System High continues to attract the best professionals in our business space, and our customers benefit from our team’s focus on supporting our clients’ security goals,” said Rob Howe, System High’s newly appointed CEO and President. “I am proud to partner with Enlightenment and the System High family of professionals, which are passionate about preserving our national security.”

“System High sits at the critical intersection of defense innovation and IP protection,” said Devin Talbott, a managing partner of Enlightenment Capital.  “We plan to support management and invest in the company’s continued momentum – both organically and through M&A.”

Enlightenment Capital provides senior debt, mezzanine debt, and equity to middle market companies in the aerospace, defense & government sector. The firm was founded in 2012 and is headquartered in Chevy Chase, MD (www.enlightenment-cap.com).

© 2019 Private Equity Professional | January 25, 2019

Audax Keeps Building CoolSys

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Source Refrigeration Holdings (DBA CoolSys), the parent of company of a number of refrigeration and HVAC companies nationwide and a portfolio company of Audax Private Equity, has acquired Arjae HVAC and Mechanical Services. Audax acquired Source Refrigeration from Arsenal Capital Partners in December 2015.

Arjae HVAC and Mechanical Services provides commercial and industrial HVAC installation and services, as well as sheet metal fabrication – aluminum, galvanized steel, stainless steel, carbon steel, and copper  – throughout the Pacific Northwest.

The company’s customers are active in a range of sectors including retail, warehouse and manufacturing facilities, office buildings, schools and libraries. Arjae was founded in 1986 and has a 25,000 sq. ft. facility and headquarters near Portland in Milwaukie, OR (www.arjae.com).

CoolSys provides commercial refrigeration and HVAC services to food retailers, convenience store chains, telecommunication providers, and industrial companies. Services include design, installation, environmental and energy optimization, and maintenance services. The company has more than 1,200 field-based service and installation experts serving the daily needs of more than 4,000 customers across North America. CoolSys, led by CEO Adam Coffey, is headquartered near Los Angeles in Brea, CA (www.coolsys.com).

The buy of Arjae strengthens CoolSys’ presence in the Pacific Northwest and expands its HVAC capabilities. “The acquisition of Arjae is an exciting step in our strategic growth plan,” said Mr. Coffey.  “While we have been a market leader in commercial refrigeration-related services in the Pacific Northwest for many years, the addition of Arjae to our portfolio provides greater market density and also expands our HVAC capabilities, including sheet metal fabrication, in this important market. This will allow us to offer an even broader solution set to new and existing customers.”

Audax makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. Since founding in 1999, Audax has invested $5 billion in 118 platforms and 715 add-on companies. The firm has offices in Boston, New York and San Francisco (www.audaxgroup.com).

© 2019 Private Equity Professional | January 25, 2019