Archives for August 2019

Hastings Forms Coyote Industrial

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Hastings Equity Partners has acquired its third investment platform for its fourth fund with the formation of Coyote Industrial Holdings and the acquisitions of Code Red Safety and Critical 2-Way Communications.

Code Red Safety is a provider of safety equipment rental, safety product sales, safety and rescue personnel, and confined space (tanks and vessels where flammable gas and toxic fumes might be present) and high angle rescue training and services. High angle situations involve rescuing injured persons on terrain that has slopes of 60 degrees or greater and involves hoisting victims from one level to another using ropes, pulleys, harnesses, and belay devices. Customers of Code Red Safety are active in the industrial, refining, petrochemical, agricultural, steel and power generation markets.

Most of Code Red’s offices feature training spaces, including classrooms, scaffolding for high angle rescue service training, and containers to simulate situations for training a confined space rescue crew. Founded in 1995, Code Red is headquartered in Hammond, IN with additional offices in St. Louis, MO; Sulphur, LA; Baton Rouge, LA; Houston, TX; Beaumont, TX; and Corpus Christi, TX (www.coderedsafety.com).

Critical 2-Way Communications specializes in the rental of two-way radios to companies operating in the petrochemical industry and to other industries where FM-Approved communications tools are required. The company is headquartered in LaPorte, TX (www.critical2way.com).

“Code Red and Critical 2-Way are a terrific combination,” said Mike Miller, a senior member of Coyote Industrial’s management team. “I am extremely proud of what we are building and our partnership with Hastings will enhance our ability to grow.”

Coyote Industrial is based in Houston and is led by CEO Nick Mowbray. “It’s an exciting time at Coyote,” said Mr. Mowbray. “We have a phenomenal team of managers and employees who are veterans of the industrial safety industry. We have customer-focused solutions that maximize the safety and productivity of each of our customers. The future is very bright at Coyote.”

“Safety is paramount in every company we invest in and the markets they serve,” said Ted Patton, a managing director at Hastings. “Coyote’s independent safety platform provides the best technology available to the market, and can handle the scale, complexity and time-sensitive nature of its customers. Coyote has a talented team and a premier safety record. We are thrilled to partner with Nick, Mike and the entire team at Coyote.”

Hastings Equity Partners invests in energy services and equipment companies (upstream, midstream, and downstream) with EBITDAs from $4 million to $20 million. Hastings’ approach is to leverage the operational experience of the firm’s managers and investors, many of whom are active or former CEOs of Fortune 1000 companies. The firm is based in Houston (www.hastingsequity.com).

Cadence Bank provided financing support for this transaction.

© 2019 Private Equity Professional | August 1, 2019

Wellspring Hires Biz Development Pro

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Wellspring Capital Management has hired Alexander Bues as the firm’s new head of business development.

Throughout his career, Mr. Bues has a track record of origination and execution of middle-market private equity investments across the healthcare, consumer, industrial, and services sectors. Prior to joining Wellspring, he was the head of business development for Westport, CT-based Balance Point Capital from 2018 to 2019. Before that, he was part of the investment team at Birmingham, AL-based New Capital Partners from 2015 to 2018, where he sourced, evaluated, and executed investments in technology and tech-enabled services businesses. Mr. Bues began his career with Stamford, CT-based Greenwich Associates, a strategy consulting firm. He has a BA in economics from Denison University and an MBA from Duke University.

“I am delighted to be joining Wellspring, a leading private equity firm recognized for its thoughtful approach to investing and track record of generating attractive returns,” said Mr. Bues. “I look forward to building upon Wellspring’s existing relationships and developing new relationships with investment banks, capital providers, and other deal participants.”

“We are very excited to have Alex on the Wellspring team,” said William Dawson, Jr., chief executive officer of Wellspring. “Alex will play an integral role in our effort to develop and strengthen our investment banking and capital markets relationships. His deal sourcing, evaluation, and deep capital markets experience will be critical as we continue to deploy capital into high-quality businesses. We will also look to Alex to bring his valuable insights to the table on the market and our existing relationships as it relates to our current portfolio.”

Wellspring invests in companies with $20 million to $100 million of EBITDA and $100 million to $1 billion of enterprise value. Sectors of interest include general industrial, business services, healthcare services, packaging, distribution, consumer, and restaurants. In January 2018, Wellspring closed its latest fund, Wellspring Capital Partners VI LP, at its hard cap of $1.4 billion. Wellspring, founded in 1995, is based in New York (www.wellspringcapital.com).

© 2019 Private Equity Professional | August 1, 2019

PennSpring Adds to Team

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PennSpring Capital has hired Thomas Showers to lead the firm’s transaction development efforts in Pennsylvania.

Mr. Showers, who has nearly four decades of deal origination experience, joins PennSpring from BB&T where he was responsible for business development in the bank’s south-central Pennsylvania region. Earlier in his career, he held similar business development positions at National Penn Bank and Bank of Lebanon County.

“Tom thoroughly impressed us in his role with BB&T on one of our previous deals, and we are very fortunate that he has chosen to apply his business development acumen and invaluable relationships to the buy-side with PennSpring,” said Lou Castelli, managing partner of PennSpring. “Tom’s roots in the regional community run deep indeed, and with his hire we have planted the PennSpring flag firmly in our backyard. We look forward to further investing in the local economy, and in partnership with the entrepreneurs that make our state a small business example for the world.”

PennSpring invests in lower middle-market companies that have EBITDA of $750,000 to $5 million. Sectors of interest include manufacturing and business, healthcare, and education services.

“Through our every interaction I became more impressed with PennSpring – this is not your typical financial buyer,” said Mr. Showers. “They are first entrepreneurs and operators and treat business owners with the same respect and consideration they wanted afforded them when they sat opposite an acquirer. As a member of PennSpring I believe I can bring valuable solutions to the communities and partners I have served throughout my career.”

Over the past twelve months, PennSpring has been very active and has closed nine investments. Most recently, in May 2019, PennSpring acquired Swing Kingdom, a Leola, PA-based manufacturer of vinyl playground equipment (www.swingkingdom.com); and Atlas Molding, a rotational molding company also located in Leola (www.atlasmolding.com).

PennSpring is led by Lou Castelli and Justin Davis and is based in Lancaster, PA (www.pennspring.com).

© 2019 Private Equity Professional | August 1, 2019