Archives for November 19, 2019

Roark Drives Driven Into Auto Glass Repair

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Driven Brands, a portfolio company of Roark Capital Group, has acquired Clairus Group, a provider of automotive glass replacement services, from Ridgemont Equity Partners.

Quebec-based Clairus Group is a provider of automotive glass distribution, replacement, and claims management services. Company-owned brands include UNIGLASS, VITRO PLUS, Go! Glass, Docteur du Pare-Brise, PH Vitres d’Autos, and Conversense.

The company, led by CEO Marc Desmarais, has 240 service locations, over 330 mobile locations, and 22 distribution centers. Clairus Group was formed in April 2018 by Ridgemont Equity Partners when it acquired Uniban Canada and PH Vitres d’Autos.

Roark Capital Group acquired Driven Brands from Harvest Partners in April 2015 and has now completed more than 30 add-on acquisitions for the company.

Driven Brands is the parent company of several North American automotive aftermarket brands including Meineke Car Care Centers (repair and maintenance services); Maaco, CARSTAR, and ABRA (paint and collision repair services); 1-800-Radiator & A/C (parts distribution); and Take 5 Oil Change (quick lubrication services). In total, Driven Brands has more than 2,800 automotive centers across North America that service approximately 8 million vehicles annually and generate more than $2.8 billion in revenue. Driven Brands is headquartered in Charlotte, North Carolina.

The buy of Clarius provides Driven Brands with entry into the automotive glass repair sector. “We are thrilled to welcome the Clairus Group into the Driven Brands family. It’s a terrific platform offering great sought-after expertise,” said Jonathan Fitzpatrick, CEO of Driven Brands. “We are excited to add and invest in a new vertical in order to expand our family of brands and generate more growth not only in this market but in the rest of North America.”

Roark Capital Group invests in companies that have revenues from $20 million to $5 billion and EBITDA from $10 million to $500 million. Sectors of interest include franchised and multi-unit business models in the retail, restaurant, and service sectors; consumer products; consumer and business services; and environmental services. Roark is headquartered in Atlanta with an additional office in New York City.

In November 2018, Roark completed fundraising for its two newest funds, Roark Capital Partners V LP and Roark Capital Partners II Sidecar LP, with a total of $6.5 billion of capital commitments.

© 2019 Private Equity Professional | November 19, 2019

Vestar’s Woodstream Adds DynaTrap

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Woodstream, a manufacturer of pest and animal control products as well as lawn and garden products and a portfolio company of Vestar Capital Partners, has acquired Dynamic Solutions Worldwide, the maker of DynaTrap insect traps.

Dynamic Solutions Worldwide (DSW) is a provider of DynaTrap branded indoor and outdoor insect traps for mosquitoes, flies, moths, wasps and other flying insects without the use of pesticides or chemicals. Other company-owned brands include electronic insect swatter DynaZap and natural weed killer DynaSteam.DSW’s products are sold at home and hardware retailers including Home Depot, Costco, Sam’s, Bed Bath & Beyond, Amazon, and Ace Hardware, as well as on QVC, HSN, and other online retailers. The company was founded in 2006 by President Juan Rocha and is headquartered in Milwaukee.

“Woodstream is the perfect home for DynaTrap,” said Mr. Rocha. “There is a natural synergy between our companies, and through this combination, DynaTrap’s products will be introduced to a significant group of new customers.”

Vestar acquired Woodstream – a manufacturer and marketer of pest and animal control products – from Brockway Moran and CHS Capital in June 2015. Woodstream’s product portfolio includes wild bird feeders, organic pest controls, rodent control products, wild animal controls, lawn & garden decor products, and animal training and containment products. Brand names include Victor mouse and rat traps; Terro ant traps; Havahart animal cage traps; Safer organic insect controls; Perky-Pet bird feeders; Mosquito Magnet traps; and Sweeney’s mole and gopher control products. The company’s products are sold at more than 100,000 retail locations and to professional pest control providers throughout the United States, Canada, the United Kingdom, and other international markets. The company, led by CEO Miguel Nistal, is headquartered in Lancaster, Pennsylvania.

“The addition of DynaTrap not only adds a highly regarded and successful product line to Woodstream’s existing offerings, but it also introduces us to additional blue-chip clients which complement our current roster of world-class customers,” said Mr. Nistal. “Demand for DynaTrap insect traps has never been higher as new and more potent strains of mosquito viruses develop each year. We are excited to welcome the DynaTrap team, and we remain on the lookout for additional strategic acquisitions that will supplement Woodstream’s strong organic growth.”

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; business services and healthcare. Since Vestar’s founding in 1988, the firm has completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of more than $50 billion. Vestar has offices in New York, Boston, and Denver.

© 2019 Private Equity Professional | November 19, 2019

Wind Point Buys Plantgistix

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A&R Logistics, a portfolio company of Wind Point Partners, has acquired family-owned Plantgistix, a provider of packaging, warehousing, and export services to the plastic resin industry.

Wind Point acquired A&R Logistics, a provider of dry bulk logistics services to manufacturers and distributors of chemicals and plastics, from Mason Wells in May 2019.

Plantgistix’s customers include many of the world’s largest chemical producers and the company has facilities in Houston (headquarters); Baytown and Orange, Texas; and Burkville, Alabama. The company was founded in 1981 by CEO Marc Levine. Post-closing, Plantgistix’s president, Sam Diaz, and the entire Plantgistix team will join A&R.

A&R’s services include transportation, warehousing, packaging, distribution, and third-party logistics management. The company operates a national network of nearly 50 facilities, a fleet of 800 specialized tractors and 1,200 pneumatic trailers (both company-owned equipment and owner-operators), and a technology platform customized for dry bulk transportation. A&R, founded in 1969, is led by CEO Mark Holden and is headquartered in Louisville, Kentucky.

“Through his focus on delivering the industry’s highest quality service, and an emphasis on building a strong corporate culture, Marc Levine laid the foundation for a truly unique company,” said Mr. Holden. “Likewise, Sam Diaz has done a remarkable job leading the business day-to-day, positioning Plantgistix as a true leader in this space. We could not be happier to welcome the Plantgistix management team and employees to the A&R family.”

Earlier in 2019, A&R announced that it had committed more than $100 million of capital to establish facilities in Charleston, South Carolina, and Savannah, Georgia. The buy of Plantgistix complements this expansion strategy and gives the company a large and growing footprint near the Port of Houston.

“Aggressively expanding A&R’s presence in the chemicals export market was a key value creation initiative identified at the time of our investment, and this acquisition advances A&R’s position as one of the largest, most flexible supply chain partners for the world’s leading chemical companies,” said Konrad Salaber, a managing director at Wind Point.

The buy of Plantgistix is the second add-on acquisition completed by A&R under Wind Point ownership and follows the June 2019 buy of Blue Water Plastic Transport, a St. Clair, Michigan-based provider of transportation and logistics services to the plastics industry.

A&R’s add-on acquisition strategy focuses on acquiring companies that provide dry bulk transportation, warehousing and logistics services to producers and distributors of chemicals and plastics. Additionally, A&R is also interested in expanding into complementary services, including liquid chemical supply chain services.

Chicago-based Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. Wind Point is currently investing out of Wind Point Partners IX LP which began fundraising in 2019.

Houston-headquartered Statesman Corporate Finance was the financial advisor to Plantgistix.

© 2019 Private Equity Professional | November 19, 2019

H.I.G. Beats Target on New Fund

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H.I.G. Capital has held a final and above target close of H.I.G. Middle Market LBO Fund III LP with $3.1 billion of capital commitments.

H.I.G.’s earlier mid-market fund, H.I.G. Middle Market LBO Fund II LP, closed at its hard cap of $1.75 billion in February 2014. As with its earlier mid-market funds, H.I.G. will continue making private equity investments in middle-market companies, primarily in North America.

“The new fund received overwhelming support from H.I.G.’s long-standing limited partners,” said Jordan Peer, a managing director and global head of H.I.G.’s capital formation group. “Commitments were received from a prestigious and diverse institutional investor base, including foundations, endowments, public and corporate pensions, consultants, sovereign wealth funds, and family offices across the US, Europe, Asia, and the Middle East.”

“The team is excited to build upon H.I.G.’s successful middle-market strategy with this latest fund,” said Rick Rosen, an executive managing director of H.I.G. and head of its middle-market fund. “We will continue to target control investments in complex situations and/or undermanaged middle-market companies. H.I.G.’s scale and operational expertise continue to create a meaningful competitive advantage for us.”

H.I.G. specializes in providing debt and equity capital to small and medium-sized companies and invests in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. With the closing of this new fund, H.I.G. now has more than $30 billion of capital under management.

“We are pleased with the level of support received from our investors, reflecting the strong performance of the H.I.G. middle market team and its differentiated investment approach,” said Sami Mnaymneh and Tony Tamer, founders and co-CEOs of H.I.G., in a released statement.

H.I.G. is headquartered in Miami with additional offices across the US, Europe, and South America.

© 2019 Private Equity Professional | November 19, 2019