PWP Growth Equity, the middle-market private equity group of Perella Weinberg Partners, has acquired Alloy Die Casting from Gladstone Investment Corporation.
Alloy Die Casting (ADC) is a provider of sand and investment casting, machining, robotic finishing, assembly and other services for short-run, high-complexity components to companies operating in the aerospace, defense, medical, automotive, and industrial sectors.
The company’s materials capability includes aluminum, zinc, stainless steel, and Inconel (a nickel-chromium-based alloy). ADC, founded in 1946 and led by CEO Rick Simpson, has approximately 150 non-union employees and operates from a 105,000 square foot facility in Buena Park, CA (www.alloydie.com).
“I am extremely excited about this new chapter for ADC. PWP Growth Equity and ADC share a similar culture and commitment to growth,” said Mr. Simpson. “This partnership will allow us to accelerate our investments in people, state-of-the-art equipment, and technology to support our customers’ growth.”
“We are excited to partner with Rick and the ADC management team,” said Dan Leever, an operating partner of PWP Growth Equity. “They have built an industry-leading company that is a trusted supplier to some of the most prominent OEMs in the world. We look forward to supporting ADC in their next stage of growth.”
As a part of the investment, Mr. Simpson, Mr. Leever, David Ferguson (partner and co-founder of PWP Growth Equity), and John McKee (managing director of PWP Growth Equity) will join ADC’s board of directors.
PWP Growth Equity makes both minority and control investments of $25 million to $100 million in lower middle-market companies that are active in the consumer, industrial and services sectors. The New York-based group is co-managed by partners Chip Baird and David Ferguson (www.pwpgrowthequity.com).
Gladstone Investment (NASDAQ: GAIN), which acquired ADC in September 2013, makes debt and equity investments in US-based small to middle-market businesses. The firm generally invests from $5 million to $30 million of debt and equity in companies that have from $3 million to $20 million in EBITDA. Gladstone Investment is based in McLean, VA (www.gladstoneinvestment.com).
Minneapolis-based Prestwick Advisors was the financial advisor to ADC and Gladstone on this transaction.
© 2019 Private Equity Professional | August 27, 2019
Sunbelt Supply, a portfolio company of Clearlake Capital, has acquired Severe Service Specialists (Triple S).
Sunbelt Supply is a specialty supplier of industrial flow control products and technical services to the energy and industrial sectors. Clearlake acquired the company in September 2017 through its buy of FloWorks International from TowerBrook Capital and The Stephens Group. At that time, FloWorks operated through five business segments: Sunbelt Supply, Major, Southwest Stainless & Alloy, J&J Alloys, and J&J Bar Plus. In July 2019, the operations of J&J Alloys and J&J Bar Plus were sold to Houston-based Texas Pipe & Supply with the remaining operations rebranded as Sunbelt Supply.
“Sunbelt continues to grow, and adding Triple S is another strong step that deepens the technical expertise Sunbelt offers to customers in key industrial corridors,” said José Feliciano, a managing partner and co-founder of Clearlake. “We are excited about the organic and inorganic growth opportunities we continue to see for Sunbelt, and we remain committed to supporting the company by bringing more resources and relationships, and the power of our O.P.S.® framework, to this great team.” Clearlake’s O.P.S. model stands for operations, people and strategy.
Clearlake has over $9 billion of assets under management and invests in the industrials and energy; software and technology-enabled services; and consumer sectors. In March 2018, Clearlake closed Clearlake Capital Partners V LP with over $3.6 billion in commitments. Fund V exceeded its target and was substantially oversubscribed, reaching its hard cap. The firm was co-founded by José Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, CA (
Cotton Creek Capital has held a final closing of Cotton Creek Capital Partners III LP with $215 million in capital commitments.
Cotton Creek is headquartered in Austin, TX (
Trinity Hunt Partners has promoted Garrett Greer to principal and John Oakes to vice president.
Earlier in his career, Mr. Greer was with Lone Star Investment Advisors, Insight Equity, American Capital, and Imperial Capital. He has his BBA and a Masters in Professional Accounting from the University of Texas, as well as an MBA from Northwestern University.
Mr. Oakes joined Trinity Hunt in 2015 and has been active with the firm’s investments in Family Help & Wellness, a North Carolina-based provider of behavioral health programs to adolescents and young adults (acquired in March 2014); Mid America Pet Food, a Texas-based maker of branded pet food products (acquired in August 2014); Veracity Research, a Texas-based provider of investigative services (acquired in August 2018); and Wexco International, a California-based provider of litigation-focused forensic engineering services (acquired in August 2019). Before joining Trinity Hunt, Mr. Oakes was with Credit Suisse in its global energy group. He has his BBA from Southern Methodist University.
Nexus Capital Management, through newly formed Gateway Mercury Holdings, has acquired FTD, an online florist and gift company for $118 million.
Florists’ Telegraph Delivery (FTD) was founded in 1910 by thirteen American florists led by John Valentine to serve each other’s out-of-town customers by exchanging orders via telegraph. In 1965, the company began offering international orders and changed its name to Florists’ Transworld Delivery. In 1994, private equity firm Perry Capital acquired the company for $130 million and later, in 2004, sold the company for $450 million to Leonard Green & Partners. FTD was acquired by publicly traded United Online in 2008 for $754 million. In 2013, United Online spun off FTD and it began trading on the NASDAQ under the symbol FTD.
With the closing of the transaction, Nexus has named Jeff Clarke as the executive chairman of FTD. Mr. Clarke is the former CEO of travel technology firm Travelport from 2006 to 2011; the chairman of Orbitz Worldwide, a travel fare aggregator website, from 2007 to 2014, and CEO of Eastman Kodak from 2014 to 2019.
Nexus makes investments of $20 million to $150 million in opportunistic credit, structured investments, and private equity across a range of industries including industrials, consumer & retail, food & beverage, services, education, and distribution & logistics. The firm was co-founded in 2013 by ex-Apollo Global professionals Damian Giangiacomo and Michael Cohen and is headquartered in Los Angeles (
BV Investment Partners has sold Plasco ID to the Barcodes Group, a portfolio company of Odyssey Investment Partners. BV acquired Plasco ID through its eighth fund in December 2014.
Barcodes, the buyer of Plasco ID, is a distributor of automatic identification and data capture (AIDC) products and services such as barcode scanners, mobile computers, label printers, point-of-sale systems, and related consumable products, software, and integration services. The company also distributes identification card and access control products and systems. Customers of Barcodes include small and medium-sized businesses and some Fortune 500 customers throughout the US, Canada, and UK. Barcodes is led by CEO Daniel Nettesheim and is headquartered in Chicago (
“Since partnering with Alan Mendelson in 2014, we have had the benefit of working with the management team to transform Plasco into a proprietary full solutions provider of identity and access control software, products, and services,” said Justin Harrison, a managing partner of BV Investment Partners. “During this partnership, we launched new products, expanded internationally, and completed two acquisitions. Our relationship with Alan was a key contributor to this successful outcome.” The two add-on acquisitions were the buys of SouthEast ID, a Deerfield Beach, FL-based photo identification products retailer in January 2016; and BadgeExpress an Asheville, NC-based provider of security and access cards, and badging systems in December 2016.
BV Investment Partners makes investments in companies that are active in the business services, software, and information technology services industries. Since its founding in 1983, the firm has invested over $3 billion in more than 95 companies. BV Investment Partners is headquartered in Boston (
Odyssey, which acquired Barcodes from Cortec Group in January 2019, makes control investments in middle-market companies that have from $20 million to $100 million of EBITDA. Sectors of interest include industrial and business services. The firm has offices in New York and west of Los Angeles in Woodland Hills, CA (
Meridian Adhesives Group, a portfolio company of Arsenal Capital Partners, has closed its sixth acquisition with the buy of Epoxies, Etc.
“This acquisition extends Meridian into high growth sectors, such as infrastructure and aerospace, and expands our product portfolio in existing markets, mainly in electronics and medical applications,” said Roy Seroussi, an investment partner at Arsenal.
Arsenal invests in middle-market specialty industrial and healthcare companies that have from $100 million to $500 million in enterprise value. The firm has offices in New York and Shanghai (
Trive Capital has sold Precise Packaging to PLZ Aeroscience, a portfolio company of Pritzker Private Capital since July 2015.
Trive Capital acquired Precise Packaging in December 2012. “Under Trive ownership, Precise has transformed into an end-to-end service provider that is an industry leader in the formulation, design and production of complex personal care products,” said Mr. Gaus. “The partnership with Trive was critical as the business developed and executed an ambitious operational value plan dedicated to offering a more compelling value proposition to our customers. The Precise management team is excited to begin a new partnership with PLZ, who we believe offers additional resources, relationships and capabilities that will continue to support the company’s growth.”
PLZ is a manufacturer of more than 2,500 branded and private-label aerosol products including industrial solvents, lubricants and degreasers, adhesives, sanitary supply disinfectants, insecticides, cleaners, polishes, air fresheners and personal care products. PLZ is based near Chicago in Downers Grove (
“During Trive’s ownership, the company has expanded capacity, added new capabilities and built a world-class management team who collaboratively executed on a shared vision,” said David Stinnett, a partner at Trive. “As a result, the company is well-positioned for continued success, and we believe PLZ is the best partner to continue this momentum via further investment in the business and its people.”
Trive invests from $10 million to $150 million of debt or equity in North America-headquartered companies with revenues of $40 million to $1.5 billion. The firm is industry-agnostic but has specific experience across a wide range of sectors including aerospace and defense, automotive, building products, business services, chemicals, and consumer goods. In September 2017, Trive held a final closing of Trive Capital Fund III LP with $1 billion of capital commitments. The firm was founded in 2012 by Conner Searcy and Chris Zugaro and is based in Dallas (
Pritzker Private Capital (PPC) acquires North America-based middle-market companies that have enterprise values between $100 million and $750 million and EBITDA in excess of $15 million. Sectors of interest include manufactured products, services and healthcare. The firm is led by Tony Pritzker and the former investment and operating professionals of Pritzker Group Private Capital. In July 2018, PPC held a final closing of PPC Fund II LP at its hard cap of $1.8 billion. The firm has offices in Chicago and Los Angeles (
Arlington Capital Partners has agreed to sell Ontario Systems to New Mountain Capital.
Under Arlington Capital’s ownership, the company has achieved record revenues and profitability. “Our relationship with Arlington Capital Partners has been outstanding,” said Ron Fauquher, CEO and co-founder of Ontario Systems. “With Arlington’s assistance, we have successfully expanded our healthcare-market footprint, entered government markets, doubled our revenues, and expanded our reach to include more than 1,200 clients. We are proud of our progress and achievement of the goals we had previously set, and we thank Arlington for their support in helping drive our strategic growth initiatives. As we take the next evolutionary step, we look forward to New Mountain Capital’s support and partnership.”
“Arlington’s investment in Ontario Systems continues our track record of successful partnership with founding management teams to drive transformational growth in healthcare software companies,” said Matt Altman, a managing partner at Arlington Capital. “The investments in technology and people that we have made over the course of our investment have further distinguished Ontario as the leader in revenue cycle management enterprise software across the large and growing healthcare, government, and accounts receivable management markets.”
New Mountain is an industry generalist and seeks to acquire just three or four companies each year, typically in the $100 million to $1 billion enterprise value range, and generally invests $100 million to $500 million per transaction. In September 2017, New Mountain held an oversubscribed final close of its fifth private equity fund, New Mountain Partners V LP. The new fund closed at its hard cap with just over $6.1 billion of capital commitments. The firm was founded in 1999 and is headquartered in New York (
Arlington Capital, the seller of Ontario Systems, was founded in 1999 and has completed over 90 acquisitions since its inception. The Chevy Chase, MD-based firm is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund which closed in June 2019 (
TSG Consumer Partners has agreed to acquire a majority stake in Joe Hudson’s Collision Centers (JHCC) from Carousel Capital. Post-closing, Carousel Capital and JHCC management will continue as minority investors.
“JHCC’s longstanding reputation for providing customers with exceptional service has enabled it to grow into one of the leading regional players in the collision repair industry,” said Pierre LeComte, managing director at TSG. “We are thrilled to join forces with JHCC CEO Traweek Dickson and the management team as the company looks to capitalize on a number of compelling growth opportunities, including increasing its geographic footprint and expanding in its existing and adjacent markets.”
San Francisco-based TSG invests from $200 million to $800 million of equity in high-growth, branded consumer companies. Sectors of specific interest include beauty, fitness and outdoor, food and beverage, personal care, household, lifestyle, pet, restaurant, and retail. In January 2019, the firm closed its eighth fund with an oversubscribed $4 billion of limited partner capital commitments (
Carousel Capital, the seller of JHCC, invests in business, consumer and healthcare services companies that are headquartered in the Southeastern United States and have enterprise values of up to $200 million and EBITDA of at least $3 million. The firm, based in Charlotte, was founded in 1996 and is led by managing partners Charles Grigg and Jason Schmidly (
