Archives for May 13, 2019

CCMP’s Truck Hero Buys Lund from Highlander

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Truck Hero, a portfolio company of CCMP Capital Advisors, has acquired Lund International from Highlander Partners, who will remain as a minority investor. CCMP acquired Truck Hero in April 2017 from TA Associates which remains as a minority investor in the company as well. The buy of Lund is Truck Hero’s fifteenth acquisition since its formation in November 2007 by Kinderhook Industries.

Lund International is a designer, manufacturer and marketer of branded automotive aftermarket accessories for passenger cars, light trucks, and heavy trucks. Its products include vent visors, hood shields, floor mats, tonneau covers, storage boxes, fender flares, nerf bars and running boards.

Company-owned brand names include Lund, AVS, Belmor, AMP Research, Rampage, Bushwacker, Roll-N-Lock, TonnoPro and Stampede. Lund is led by CEO Mitch Fogle and is based northeast of Atlanta in Buford, GA (www.lundinternational.com).

Truck Hero is a designer and manufacturer of branded aftermarket accessories for pickup trucks. The company’s main products are hard and soft truck bed covers that are available in a variety of materials such as vinyl, plastic and metal, and numerous styles, including retractable, folding, roll-up and snap-on units. Truck Hero’s products also include bedliners, bumpers, steps, floorliners and a variety of other pickup truck accessories. Company-owned brand names include Extang, TruXedo, BedRug, UnderCover, Advantage, Retrax, BAK, A.R.E., N-FAB, Husky Liners, and Rugged Liner. Truck Hero is led by CEO Bill Reminder and is headquartered in Ann Arbor, MI (www.truck-hero.com).

“The highly talented Lund and Highlander teams have built a very attractive, profitable and scalable portfolio of functional automotive accessories brands,” said Joe Scharfenberger, a managing director at CCMP Capital.  “We and our partners at Truck Hero welcome them into the Truck Hero family and look forward to realizing the many benefits this combination will bring to our collective customers, employees and shareholders.”

The buy of Lund by Truck Hero adds a complementary product portfolio that further diversifies the Truck Hero’s product category mix and increases exposure to a larger market of vehicles. “This is an opportune time to bring Truck Hero and Lund together,” said Mr. Reminder. “Mitch Fogle and the entire Lund team have built an impressive collection of great companies which will be a perfect match to Truck Hero.  We look forward to working with Mitch and his team to leverage our combined capabilities to further build the company’s position as the foremost source for automotive aftermarket accessories.”

“We decided that the combining of Lund into Truck Hero was an outstanding opportunity to further enhance an already successful investment,” said Jeff Hull, president and CEO of Highlander Partners. “We will be a significant shareholder in the combined company and look forward to continuing our partnership with the Lund management and working alongside Bill and his team at Truck Hero, as well as CCMP, to continue to grow these businesses.”

Highlander makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include manufacturing, consumer products, industrial goods, automotive accessories, packaging, food and beverage, and specialty chemicals. The firm has over $2 billion in assets under management and is based in Dallas (www.highlander-partners.com).

CCMP makes buyout and growth equity investments of $100 million to $500 million in North America and European companies that have enterprise values of $250 million to $2 billion. Sectors of interest include consumer, industrial and healthcare. CCMP is headquartered in New York with an additional office in Houston (www.ccmpcapital.com).

Jefferies (www.jefferies.com) provided debt financing to support this transaction and was the financial advisor to Truck Hero.

Ropes & Gray (www.ropesgray.com) provided legal services to Truck Hero and CCMP on this transaction. Katten Muchin Rosenman (www.kattenlaw.com) was the legal advisor to Lund and Highlander.

© 2019 Private Equity Professional | May 13, 2019

DalFort Closes Third VersaFlex Add-on

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VersaFlex, a portfolio company of DalFort Capital Partners since March 2017, has acquired Specialty Products.

Specialty Products (SPI) is a manufacturer of spray-applied polyurea elastomers and polyurethane foams as well as a maker and distributor of polyurea coating and polyurethane foam application equipment.

The company, led by President Dan Helton, was founded in 1974 and is headquartered in Lakewood, WA (near Tacoma) with additional facilities in Rowlett, TX; Chicago, IL; and Anchorage, AK (www.specialty-products.com).

VersaFlex formulates, manufactures and distributes polyurea-based protective coatings, linings, joint fillers and repair materials that are used in the industrial, commercial, transportation and maintenance sectors. The company is led by CEO David Cerchie and is based in Kansas City, KS (www.versaflex.com).

“Dan Helton and the SPI team have developed an impressive suite of formulated solutions for demanding industrial and commercial environments. We are pleased to announce our partnership and look forward to working together to improve our offering and service to customers,” said Bryan Bailey, managing partner of DalFort Capital Partners.

The buy of Specialty Products is the third add-on acquisition completed by VersaFlex under DalFort ownership. The two earlier buys were Milamar Coatings, an Oklahoma City, OK-based manufacturer of resinous coatings for floors, walls, and industrial applications (acquired from ShoreView Industries in September 2018); and Raven Lining Systems, a Broken Arrow, OK-based provider of epoxy linings used in the protection and rehabilitation of wastewater, water and storm-water infrastructure (acquired in January 2018).

DalFort Capital Partners invests in companies with enterprise values up to $100 million that have revenues of $15 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include industrial manufacturing and services; specialty chemicals; building products; energy products and services; and logistics and transportation. The firm is headquartered in Dallas (www.dalfortcapital.com).

© 2019 Private Equity Professional | May 13, 2019

Webster Buys Vivona Brands from Inflexion

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Webster Equity Partners has acquired a majority stake in Vivona Brands from Inflexion Private Equity which first invested in the company in February 2012.

Vivona Brands is a multi-brand beauty, wellness and lifestyle products platform. The company’s beauty products are sold under the Korean beauty umbrella brand OhK! and sub-brands of SUGU, SOS, and Jiinju, as well as under its Japanese beauty brand Koburi.  The company’s wellness products are branded under the umbrella brand Luna & Rae with sub-brands including We Live Like This and Sunday Rain. Lifestyle legacy brands include Drinking Buddies and NPW.

Vivona’s products are sold internationally through partnerships with major retailers including Ulta Beauty, CVS, Walgreens and Target in the US; and Sephora, Superdrug, and Boots in Europe, the Middle East and Africa (EMEA). Vivona Brands is led by CEO Tim Wright and is headquartered in London, UK (www.vivonabrands.com).

“Tim and the management team have done a terrific job establishing Vivona as a brand creator and developer of awarding products for global consumers and retailers,” said Chris Casgar, a partner at Webster. “We see enormous potential to further scale the brands under our ownership.”

“The team and I are very pleased to be partnering with Webster,” said Mr. Wright. “We are experiencing strong momentum and believe that Webster’s deep understanding of the beauty and personal care market will help accelerate our growth.”

Webster invests in branded consumer and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values from $15 million to $200 million. In August 2018 the firm held a final and oversubscribed closing of Webster Capital IV LP at its hard cap of $875 million. Webster Capital was founded in 2003 and is based in the Boston suburb of Waltham (www.webstercapital.com).

Inflexion Private Equity makes minority and majority investments from £10 million to £250 million in high growth entrepreneurial businesses across a range of sectors. The firm was founded by John Hartz and Simon Turner in 1999 and is headquartered in London, UK (www.inflexion.com).

Global investment bank Alantra (www.alantra.com) was the financial advisor to Vivona on this transaction.

© 2019 Private Equity Professional | May 13, 2019

Gallant Adds Biz Development Pro

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Gallant Capital has hired Jamie Kim as the firm’s new head of business development. Ms. Kim is responsible for sourcing and assessing investment opportunities, managing relationships with transaction advisors and leading the firm’s marketing strategy.

“Jamie is an outstanding addition to the Gallant team,” said Gallant Partners Jon Gimbel, Anthony Guagliano, and Desmond Nugent in a released statement. “Jamie’s extensive experience working with entrepreneurs, investment bankers and corporate executives make her uniquely positioned to source creative and unique opportunities that fit Gallant’s growth-oriented investment strategy.”

Ms. Kim has over 15 years of experience in various senior finance, commercial and business development roles. Most recently, from October 2014 to April 2019, she was the Vice President of Corporate Development & Strategy at Presto, a “front-of-house” technology platform used by restaurants. Prior to her time at Presto, Ms. Kim was a member of the business development team at Platinum Equity, where she was responsible for deal origination and managing strategic relationships with investment banks, corporate sellers and other deal intermediaries. She started her career as an investment analyst at J.P. Morgan and Merrill Lynch and holds a BA in Political Science from the University of California, Los Angeles and an MBA from the Wharton School at the University of Pennsylvania.

“I am excited to join Gallant at such an exciting time in the firm’s growth and I look forward to leading the business development and marketing efforts for Gallant and expanding the firm’s presence in the lower-middle market,” said Ms. Kim.

Gallant Capital makes control investments in lower middle market companies in the technology, industrials and business services sectors that have from $5 million to $25 million of EBITDA. The firm was founded in January 2018 by Jon Gimbel and Anthony Guagliano, both formerly with The Gores Group. Gallant Capital is headquartered in Los Angeles (www.gallantcapital.com).

© 2019 Private Equity Professional | May 13, 2019