Archives for May 2, 2019

Bain Buys Imperial Dade, Audax Remains Investor

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Bain Capital Private Equity has signed an agreement to acquire Imperial Dade, a distributor of disposable food service and janitorial supplies, from Audax Private Equity. Audax made a growth equity investment in Imperial Dade in January 2016 and will remain an investor in the company alongside Bain Capital.

Imperial Dade is one of the largest distributors of disposable food service and janitorial supplies in the Northeast, Mid-Atlantic, Southeast, and Midwest regions and Puerto Rico. The company has more than 15,000 SKUs and approximately 40,000 customers that are active in cruise lines, education, hospitality, sports & entertainment, food service, food processing, healthcare, government and grocery.

Imperial Dade has 2,300 employees and operates through 29 branches in 13 states with over 620 fleet vehicles. Imperial Dade has headquarters in Jersey City, NJ and Miami, FL (www.imperialdade.com).

Imperial Dade was formed in 1935 and was purchased by CEO Robert Tillis and President Jason Tillis (father and son) in 2007 with backing from Cyprium Partners. The company was originally known as Imperial Bag & Paper but change its name after acquiring Miami-based Dade Paper & Bag in June 2017.

Since 2007, Imperial Dade has made 19 add-on acquisitions with 13 of them occurring since Audax invested in the company. The most recent buy was the purchase in April 2019 of Woodside, NY-based Edmar Cleaning Corp., a distributor of paper, plastic, chemicals, and janitorial supplies to customers in New York, New Jersey, and Connecticut.

“During our partnership, the Imperial Dade team executed an aggressive buy and build strategy,” said Don Bramley, a managing director at Audax. “The company completed 13 acquisitions, expanding the geographical footprint, broadening its product and service offerings, and driving organic growth while maintaining its culture and differentiated service quality. We wish Robert, Jason, and the rest of the Imperial Dade management team continued success in their partnership with Bain Capital and look forward to remaining invested in the business.”

Imperial Dade will continue to be led by its current management team and they will remain significant investors in the company. “We are pleased to welcome an experienced investment partner who shares our vision for building Imperial Dade into a national distributor of foodservice and janitorial supplies, and who will support our efforts to seize the many opportunities we see in the marketplace,” said CEO Robert Tillis.

“Imperial Dade is a proven winner. Over the past 12 years, the Tillis family has done an exceptional job of building a structurally advantaged market leader,” said Ken Hanau, a managing director at Bain Capital. “We look forward to partnering with this talented management team to accelerate their acquisition strategy, build on their foundation of commercial and operating excellence, and ultimately create a best in class distribution business with national reach.”

Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media and telecommunications sectors. The firm has a team of approximately 240 investment professionals with 19 offices on four continents including offices in Boston, Chicago, New York, San Francisco, Dublin, London, Munich, Melbourne, Mumbai, Hong Kong, Shanghai, Sydney and Tokyo (www.baincapitalprivateequity.com).

Audax invests in middle market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure and building materials. Audax has offices in Boston, New York and San Francisco (www.audaxgroup.com).

Harris Williams is the M&A advisor to Imperial Dade with the transaction led by Managing Director Bob Baltimore and Vice President Graham Gillam of Harris Williams’ Specialty Distribution Group, and Director Anthony Basmajian of the firm’s Richmond office.

“Robert and Jason Tillis, in partnership with Audax, have built a company that is a clear market leader and thrives on a culture of innovation and unwavering service to its customers,” said Mr. Baltimore. “We are excited to have found a great partner for our client in Bain Capital that shares in management’s strategic vision for the business.”

This transaction is backed by fully committed debt financing. Credit Suisse, Barclays, and Goldman Sachs are serving as financial advisors to Imperial Dade.

Closing is expected by the end of the second quarter.

© 2019 Private Equity Professional | May 2, 2019

Vestar Continues Build of Edward Don

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Edward Don & Company, a distributor of foodservice equipment and supplies and a portfolio company of Vestar since February 2017, has acquired Myers Restaurant Supply.

Edward Don & Company (DON) is a distributor of foodservice equipment and supplies. The company stocks more than 12,000 SKU’s from 3,000 suppliers and its products include dinnerware, glassware, flatware, linens, buffet and table service, apparel, bar and kitchen supplies, furniture, fuel, cleaning products, paper towels, and tissues.

In addition to its distribution business, DON also as a Foodservice Equipment Division which provides kitchen design, equipment purchasing, and installation.

According to the 2019 Distribution Giants report published by Foodservice Equipment & Supplies magazine, DON had sales in 2018 of $1,027 million. DON has been owned and operated by the Don family since 1921.

DON, with approximately 1,250 employees, has seven distribution centers – in Chicago, Philadelphia, Atlanta, Miami, Dallas, Los Angeles, and Seattle – and is headquartered in Woodridge, IL (www.don.com).

Myers Restaurant Supply (Myers) is a distributor of foodservice equipment and supplies and is also a provider of restaurant and commercial kitchen design and build services. Customers include independent restaurants and multi-unit franchises, schools, hospitals, and country clubs. The company was founded in 1951 by Bob Myers and is today led by CEO Charlie Fusari and President Rob Myers (son of the founder). Myers is headquartered in Santa Rosa, CA (www.myersrestaurantsupply.com).

Myers will operate as a division of DON and remain under the leadership of Charlie Fusari and Rob Myers. “We look forward to bringing the Myers team on board,” said Steve Don, CEO of Edward Don & Company.  “Their design-build and contract expertise complement our existing equipment and supplies business well, both in the California market and nationwide.”

The buy of Myers is DON’s third add-on acquisition under Vestar’s ownership. The two earlier buys were Smith & Greene, a Kent, WA-based foodservice equipment and supplies distributor, in December 2017, and Atlanta Fixture and Sales Company, an Atlanta-based foodservice equipment and supplies distributor, in October 2017.

Vestar specializes in management buyouts and growth capital investments. The firm targets equity investments from $50 million to $150 million in middle-market companies with enterprise values ranging from $250 million to $1 billion. Sectors of interest include consumer; diversified industries; healthcare; and financial services.  Since the firm’s founding in 1988, Vestar has completed more than 80 investments in companies with a total value of more than $50 billion. Vestar has offices in New York, Boston, and Denver (www.vestarcapital.com).

© 2019 Private Equity Professional | May 2, 2019

One Rock Closes Newell Carve-Out

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One Rock Capital Partners has closed its buy of the Process Solutions business of publicly-traded Newell Brands.

Process Solutions manufactures custom-designed plastic, nylons, monofilament, and zinc products that are used in health care, consumer, and industrial applications. The business is also the primary supplier of copper-plated zinc penny blanks to the United States mint as well as a supplier of coinage to other countries. In 2018, net sales for the business were approximately $640 million. Process Solutions, led by CEO Chuck Villa, is headquartered in Greenville, SC and operates out of 19 facilities across the US, UK and Puerto Rico with approximately 1,800 employees (click HERE for the company’s webpage).

“The acquisition of Process Solutions represents a prime example of our corporate carve-out expertise and ability to identify high-potential standalone businesses in the specialty manufacturing sector,” said Scott Spielvogel, a managing partner of One Rock. “We look forward to working alongside management to capitalize on the significant growth opportunities ahead.”

One Rock invests in companies that are active in the chemicals and process industries; specialty manufacturing and healthcare products; business and environmental services; and food manufacturing and distribution. One Rock has a strategic relationship with Mitsubishi Corporation which provides resources to One Rock and its portfolio companies.  The firm was formed in 2010 by managing partners Tony Lee and Scott Spielvogel and is based in New York (www.onerockcapital.com).

“We are pleased to collaborate with the Process Solutions team and our operating partners to execute on strategic initiatives aimed at enhancing the company’s high-quality product offerings, deepening its global customer relationships, and instilling operational excellence throughout the business,” said Mr. Lee.

Newell Brands (NASDAQ: NWL) is a global consumer goods company with a portfolio of well-known brands including Paper Mate, Sharpie, Elmer’s, Coleman, Sunbeam, Mr. Coffee, Graco, Calphalon, Rubbermaid, Yankee Candle, and many others. The company has annual revenues of approximately $15 billion and is headquartered in Hoboken, NJ (www.newellbrands.com).

Credit Suisse Securities was the financial advisor to Newell Brands.

© 2019 Private Equity Professional | May 2, 2019

AEI Acquires Air Cargo Company

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AE Industrial Partners (AEI) has acquired a majority interest in Alpine Air Express, a logistics and transportation platform providing air cargo services across the Mountain Region of the Western US.

Alpine operates a fleet of over 40 aircraft and transports mail packages and other time-sensitive cargo. The company has multiple contracts with the United States Postal Service, United Parcel Service, and Amazon.

In 2018, after a four-year process, the company received approval from the FAA to convert the Beechcraft 1900D from passenger configuration to cargo configuration.

With a cargo configuration, the Beechcraft 1900D – branded as the Alpine Super Freighter by the company – has a 40% capacity increase, a 23% range increase, and a 7% speed increase over the industry standard 1900C model. This makes the 1900D the largest single piloted cargo aircraft in the world, giving Alpine a competitive edge on its competitors.

Alpine holds a FAR (Federal Aviation Regulations) Part 135 air carrier certificate (operators of business aircraft for hire need a Part 135 certificate and must comply with many FAA requirements regarding flight operations, maintenance and training). Alpine, led by CEO Michael Dancy, was founded in 1975 and is headquartered in Provo, UT (www.alpine-air.com).

AEI partnered on this transaction with the existing shareholders of Alpine, including Mr. Dancy who will continue in his role as CEO of the company. “Alpine is a leader in its regional air cargo market, possessing a unique geographic presence, strong customer relationships, a growing aircraft fleet, and a reputation for reliability and safety,” said Jon Nemo, a partner at AEI.  “This leadership position has been driven by the company’s strong management team with whom we are excited to partner in the company’s next chapter of growth.”

AEI invests in the aerospace & defense, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

“Demand is steadily growing for reliable air transportation to support increasing shipments and specialty cargo throughout the US,” said Jeff Hart, a vice president at AEI. “AEI has been strategically focused on establishing a platform within this market and will continue to invest in Alpine’s infrastructure while pursuing strategic growth opportunities that will allow the company to even better serve its customers.”

“AEI is a perfect partner for us given their deep industry knowledge and experience working with unique, growing platforms throughout the aviation marketplace,” said Mr. Dancy. “We look forward to our partnership with AEI as we enter our next chapter of growth and execute on key strategic initiatives.”

KPMG was the financial advisor to AEI on this transaction.

© 2019 Private Equity Professional | May 2, 2019