Archives for February 14, 2019

Excellere Buys SePRO

by

Excellere Partners has acquired SePRO Corporation, a provider of aquatic herbicides and algaecides.

SePRO is a provider of products and services that help manage invasive weeds and algae in aquatic environments, plant growth regulators, and herbicides and insecticides. The company also sells fungicides for the turf and greenhouse markets, as well as herbicides for the specialty agriculture markets.

SePRO was founded in 1994 and is led by CEO Bill Culpepper. The company is headquartered in Carmel, IN and has a research and technology facility in Whitakers, NC (www.sepro.com).

“An exciting opportunity exists for SePRO to create additional value to customers across the markets we serve by expanding the breadth and depth of our products and services,” said Mr. Culpepper. “It is clear to us that Excellere supports SePRO’s commitment to solving its customer’s most complex challenges.”

Excellere intends to grow SePRO through a combination of investments in infrastructure, continued penetration of its existing products into existing and new markets; commercialization of new technologies; and add-on acquisitions of agricultural and water-focused specialty chemical businesses.

“Excellere was in search of partnership opportunities in the agricultural and water segments of the specialty chemicals industry that offer a solution comprised of high-performance products and proprietary technical services – SePRO fits these criteria perfectly,” said Patrick O’Keefe, a partner at Excellere. “Founder Bill Culpepper is a recognized leader in the industry and has built a strong management team with a shared commitment to offering customers the most effective solutions in the market.”

Excellere invests in middle-market companies with EBITDA of more than $5 million. Sectors of interest include healthcare, business services, energy and power, and industrial technology and services. The firm was founded in 2006 and is based in Denver (www.excellerepartners.com).

© 2019 Private Equity Professional | February 14, 2019

Bow River Acquires Kivu Consulting

by

Bow River Capital has agreed to acquire Kivu Consulting, a provider of cyber security consulting services.

Kivu’s services include incident response, risk management, penetration testing, extortion and ransomware, expert witness, digital forensics investigation services, and preparedness for digital intrusions. The company is active in the insurance, legal, professional services, health care, and education sectors.

Kivu, led by CEO Kim Niquette, was founded in 2009 and is headquartered in San Francisco with additional offices in Denver, New York, Washington DC, Amsterdam, and Toronto (www.kivuconsulting.com).

“Kivu has the best team in the cyber security industry with brilliant analysts and incredibly innovative services,” said Ms. Niquette. “The partnership with Bow River will support us in building a unique global response capability.”

As part of the transaction, the founders of Kivu will retain a meaningful ownership stake in the company and will continue to lead the organization on a go-forward basis.  Bow River is partnering with the management team in order to scale operations, invest in infrastructure, and expand the company’s service offerings.

“Kivu is precisely the type of company Bow River seeks out for investment,” said Rick Pederson, a managing director at Bow River. “They are an exceptional team delivering top-notch services in a growing industry. We expect great things ahead in this partnership.”

Bow River makes control investments in companies with revenues of $10 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include business services, healthcare services, industrial services and products, infrastructure services and products, niche manufacturing, and value added distribution. Geographically, Bow River prefers companies that are based in the US Rocky Mountains, Midwest, Southwest, and Western Canada. Bow River was founded in 2003 and is based in Denver (www.bowrivercapital.com).

FOCUS Investment Banking (www.focusbankers.com) was the exclusive sell-side advisor to Kivu Consulting.

© 2019 Private Equity Professional | February 14, 2019

Canaccord Buys Petsky Prunier

by

Canaccord Genuity Group has acquired investment bank Petsky Prunier and all of the firm’s partners have entered into employment agreements with Canaccord Genuity.

Under the terms of the agreement, Canaccord Genuity acquired 100% of the business of Petsky Prunier via an asset purchase for initial consideration of US$30 million in cash and US$15 million in common shares of Canaccord Genuity Group that will be issued over a three-year period. Additional contingent consideration of up to US$40 million can be earned over the next four years upon the attainment of certain revenue targets. Last year Petsky Prunier had annual revenues of US$43 million.

Petsky Prunier provides investment banking services to the mid-market technology, media, marketing, information, e-commerce, and healthcare industries. In 2018 the firm closed more than 30 advisory transactions for mid-market companies and the firm has achieved a number one ranking by Bloomberg for the number of Mid-Market internet and advertising transactions in the United States for seven consecutive years. Petsky Prunier was founded in 1999 and is headquartered in New York (www.petskyprunier.com).

“On behalf of my partners and especially our founders Michael Petsky and John Prunier, we are pleased to have found an enterprise that is a natural fit with the strong culture and excellent reputation that we have built at Petsky Prunier,” said Sanjay Chadda, partner and managing director of Petsky Prunier. “Canaccord Genuity provides an ideal partnership structure and a strong, independent platform for our growth, as we continue to create outstanding value for the business owners and private equity firms that we serve.”

Mr. Chadda will join the management operating committee of Canaccord Genuity and he will co-lead the US investment banking group and the US technology, media, marketing and information services practice. All existing employees of Petsky Prunier will continue with the combined firms.

“Our US capital markets business has become an increasingly stronger regional competitor and this acquisition advances our priority of investing in areas of higher margin potential, as we continue to position our company for increased stability and long-term profitability,” said Dan Daviau, president and CEO of Canaccord Genuity. “The addition of Petsky Prunier creates an exceptional opportunity for our North American capital markets business, while simultaneously enhancing long-term value for our partners and shareholders.”

Canaccord Genuity Group (TSX: GF) is a full-service investment banking and financial services company that specializes in wealth management and capital markets. The firm provides mergers and acquisitions, corporate finance, restructuring, debt advisory and strategic advice for corporate, government and private equity clients globally. Canaccord Genuity is headquartered in Toronto with additional offices in Canada, the US, the UK, France, Ireland, Israel, Hong Kong, China, Singapore, Australia and Dubai (www.canaccordgenuitygroup.com).

Freeman & Co. (www.freeman-co.com) was the financial advisor to Petsky Prunier and legal advice was provided by Winston and Strawn (www.winston.com). Legal advisors to Canaccord Genuity were Debevoise & Plimpton (www.debevoise.com).

© 2019 Private Equity Professional | February 14, 2019