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Archives for 2019

Argosy Adds to Olympia Chimney

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Olympia Chimney Supply, a portfolio company of Argosy Private Equity, has acquired Copperfield Chimney Supply, a distributor of hearth and chimney systems, from The Home Depot.

Copperfield serves more than 5,500 customers including chimney professionals, hearth specialty retailers and other distributors. Company-owned brand names include HomeSaver, Woodfield, Gelco, Lock-Top and Lyemance.

Copperfield, founded by industry icon Bob “Sooty” Daniels, is headquartered in Fairfield, IA and has more than 80 employees with five distribution centers located in California, North Carolina, Ohio, Massachusetts, and New Jersey (www.copperfield.com).

The Home Depot acquired Copperfield in July 2015 as part of its purchase of Interline Brands, a distributor of facilities maintenance, repair and operations products, from Goldman Sachs Capital Partners and P2 Capital Partners.

Olympia Chimney, acquired by Argosy in May 2012, is a designer, manufacturer and distributor of stainless steel chimney liners, venting systems for heating appliances, and other accessories to venting professionals and hearth retailers throughout the United States. The company, led by CEO Bryan Yourdon, was founded in 1999 by Will Kozlansky and is headquartered in Scranton, PA with additional distribution centers in North Carolina, Indiana, Oregon and New Hampshire (www.olympiachimney.com).

“Olympia’s acquisition of Copperfield brings together two of the biggest names in the chimney and venting industry. Each company has a unique history but we share a strong passion for high-quality products, innovation and exceptional customer service,” said Mr. Kozlansky.

“Olympia is the perfect fit for us,” said Julie Kobliska, a vice president at Copperfield Chimney. “They manufacture some of the highest-quality products in the industry and are the thought leaders in chimney safety and industry education.”

Argosy Private Equity invests from $5 million to $20 million in lower middle market companies that have revenues of $15 million to $100 million and EBITDA of $3 million to $9 million with EBITDA margins of 10% or greater. Sectors of interest include business services and manufacturing. Argosy Private Equity is a division of Argosy Capital Group, an investment adviser with $1.3 billion of assets under management. The firm was founded in 1990 and is headquartered in the Philadelphia suburb of Wayne, PA (www.argosycapital.com).

Raymond James was the financial advisor to The Home Depot on this transaction.

© 2019 Private Equity Professional | January 7, 2019

Blue Point Acquires W.A. Kendall

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Blue Point Capital Partners has acquired W.A. Kendall and Co., a provider of vegetation management services to utility companies in the Southeast United States.

W.A. Kendall’s services include tree trimming, mowing, line clearing, debris removal, and storm restoration. Demand for the company’s services is largely driven by regulatory requirements and the necessity to routinely manage vegetation to mitigate power outages.

W.A. Kendall was founded in 1970 by Warren Kendall and is headquartered near Atlanta in Lawrenceville, GA (www.wakendall.com).

“Given its impressive reputation and growth, W.A. Kendall is a perfect example of the type of company with which Blue Point aims to invest,” said Brian Castleberry, a principal with Blue Point. “We look forward to partnering with and assisting the management team as they continue to evolve the company’s capabilities and drive profitable growth.”

Blue Point invests in manufacturing, distribution and service businesses that have from $20 million to $300 million in revenue and EBITDA greater than $5 million. The firm has offices in Cleveland, Charlotte, Seattle, and Shanghai (www.bluepointcapital.com).

Blue Point has made 35 investments in the business services sector over its 19-year history and has specifically invested in the utilities services sector. In 2006 the firm’s second fund invested in Area Wide Protective (AWS), an Ohio-based provider of traffic management services to utilities that support construction, repair, or maintenance projects affecting public roads. AWS was sold to The Riverside Company in 2015 (Blue Point maintains a minority investment in AWS through its third fund).

“Our team really valued Blue Point’s experience in the utility services sector, as we believe they can help us to improve and grow our offerings to current and new utility customers,” said Robert Williams, President of W.A. Kendall. “Our team has worked extremely hard to achieve our level of success to date, and we are excited for the next chapter in partnership with Blue Point.”

“W.A. Kendall’s strong reputation for safety, reliability and customer service has positioned the company well in the market,” said Sean Ward, a partner with Blue Point. “We are thrilled to partner with such an exceptional team to enhance its business practices, operational capabilities and continue its growth story.”

The investment in W.A. Kendall was made through the Blue Point’s fourth fund, Blue Point Capital Partners IV LP, which closed in January 2018 at its hard cap of $700 million.

BB&T Capital Markets as the financial advisor to W.A. Kendall on this transaction.

© 2019 Private Equity Professional | January 7, 2019

WindRose Hits Hard Cap

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WindRose Health Investors has closed its fifth fund, WindRose Health Investors V LP, with $705 million of capital commitments. The new fund was oversubscribed and closed at its hard cap.

WindRose was formerly known as MTS Health Investors but rebranded in February 2018. The firm shares a common lineage with healthcare investment bank MTS Health Partners but the two businesses are independent and have operated separately for many years.

The senior investment team at WindRose has been investing together for well over a decade and has over 80 years of combined experience working with healthcare businesses. “WindRose’s deep domain knowledge and extensive network of healthcare industry relationships equips us to identify attractive investment targets and to bring new growth opportunities to each of the companies with which we partner,” said Curtis Lane, the firm’s founding partner.

WindRose makes equity investments in US-based companies with enterprise valuations of $25 million to $300 million that operate within the services sectors of the healthcare industry. Typical transaction structures include buyouts, recapitalizations, corporate carve-outs and growth equity investments. The firm is based in New York (www.windrose.com).

“It is gratifying to see our team’s strategy and track record so well received in the market. We are grateful for the trust placed in us by a distinguished group of investors and will work diligently to execute our plan,” said Oliver Moses, managing partner at WindRose.

With the closing of the fifth fund, WindRose now manages over $1.4 billion of capital.

© 2019 Private Equity Professional | January 7, 2019

Strength Sells Inland Pipe to J. F. Lehman

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Strength Capital Partners has sold Inland Pipe Rehabilitation to J.F. Lehman & Company.

Inland Pipe Rehabilitation (IPR) is a provider of trenchless pipe rehabilitation services – which allow for the completion of underground repair or replacement projects with minimal surface and environmental disruption – to the municipal wastewater and stormwater markets.

IPR’s services provide its customers with minimally disruptive, cost-effective solutions to manage aging underground pipe infrastructure. Over the last 30 years, trenchless rehabilitation technologies have steadily gained ground on traditional “dig and replace” methods.

IPR’s primary technical and operational capabilities include cured-in-place-pipe, pipe bursting, and geopolymer spray lining. The company, led by CEO Robert McCrae, has approximately 450 employees and is headquartered near Atlanta in Conyers, GA (www.inlandpiperehab.com).

Strength Capital acquired IPR in 2005.  At that time the business was combined with Inland Industrial Services, which was split off in 2007 and sold in 2013 to Aquilex HydroChem, then a portfolio company of Centerbridge Partners. During the term of its ownership, Strength Capital grew IPR through a combination of seven add-on acquisitions and organic growth. These efforts grew the company from a localized Detroit-based operation with significant customer concentration to a diversified, national platform with 19 locations and an Atlanta headquarters. The sale of IPR to J.F. Lehman produced a 3.4x return on Strength’s invested capital.

Strength Capital Partners invests in companies that have from $2 million to $20 million of EBITDA. Sectors of primary interest include manufacturing, distribution, infrastructure and industrial services. Since its founding in 2000, the firm has invested $450 million in equity across 23 platform companies and 40 add-on acquisitions. Strength Capital has offices in Birmingham, MI; Cincinnati, OH; and Denver, CO (www.strengthcapital.com).

“We are excited to have IPR join our growing portfolio of companies in the environmental services sector,” said Glenn Shor, a partner with J.F. Lehman. “The company is an excellent fit with our investment strategy given its strong market position, comprehensive suite of services and talented workforce. We believe IPR has significant opportunities for growth given the increasing demand for efficient, cost-effective solutions to service the critical, but aging, municipal wastewater and stormwater infrastructure.”

J.F. Lehman is a middle-market private equity firm focused primarily on the maritime, defense and aerospace sectors. The firm was founded in 1992 by Dr. John Lehman, who served six years as Secretary of the United States Navy. J.F. Lehman is headquartered in New York with an additional office in Washington, DC (www.jflpartners.com).

Debt financing for this transaction was provided by Monroe Capital. Houlihan Lokey was the financial advisor to IPR.

© 2019 Private Equity Professional | January 4, 2019

Platte River Adds Cutting Edge

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In-Place Machining, a portfolio company of Platte River Equity since November 2016, has acquired Cutting Edge Services Corporation (CES).

CES is a provider of outsourced industrial services specializing in diamond wire sawing, drilling and removal services. The company provides its services both on land and undersea and serves the nuclear, hydro, locks and dams, heavy industrial, decommissioning, bridge construction and undersea pipes and platforms sectors.

CES also offers robotic demolition, hydraulic splitting, diamond blade sawing and super-abrasive steel cutting. The company is headquartered east of Cincinnati in Batavia, OH (www.cuttingedgeservices.com).

In-Place Machining (IPM) provides on-site machining and measurement services to customers in the power generation, metal production, infrastructure, marine and defense industries. The company’s services include field machining; diamond wire cutting; alignment and measurement; crankshaft repair and machining; line boring; cast iron repair; and on-site welding. IPM, led by CEO Dean Flint, has more than 100 employees and is headquartered in Milwaukee with an additional facility in Chesapeake, VA (www.inplace.com).

The acquisition of CES increases IPM’s exposure to hydroelectric and bridge-related work, while also diversifying end markets served by IPM through CES’ presence in the nuclear decommissioning and undersea industries.

Platte River makes equity investments of $20 million to $100 million in lower middle-market companies with enterprise values between $40 million and $250 million. The firm focuses on investing in the aerospace and transportation; energy and infrastructure; agriculture and chemicals; and metals and minerals. Platte River is based in Denver (www.platteriverequity.com).

© 2019 Private Equity Professional | January 4, 2019

Stellex Closes Second Morbark Add-On

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Morbark, a portfolio company of Stellex Capital Management since March 2016, has acquired DENIS CIAMF, a maker of industrial brushcutters and mulchers.

DENIS CIMAF specializes in the manufacture of brushcutter and mulcher attachments for excavators, skid steers, forestry tractors, graders and other types of heavy equipment. The company manufactures three main lines of products: the DAH series, industrial mulcher attachments for excavators; the DAF series, attachments for skid steers and other dedicated carriers; and the EWF series, dedicated hydraulic power packs.

The company was founded in 1998 and is headquartered in Roxton Falls, QC (www.deniscimaf.com). Benjamin-Pierre and Simon Denis, the sons of founders Laurent Denis and Monique Vaillancourt, will continue to lead the company under Morbark ownership.

Morbark is a maker of equipment for the forestry, recycling, tree care, sawmill and biomass markets. The company’s products include whole tree and waste wood chippers, flails, brush chippers, horizontal and tub grinders, sawmill equipment, and material handling systems. Morbark, led by CEO Dave Herr, was founded in 1957 and operates a 1.1-million-square-foot manufacturing complex north of Lansing in Winn, MI (www.morbark.com).

“DENIS CIMAF’s line of attachments are complementary to our current tree care and industrial product lines,” said Mr. Herr. “In fact, DENIS CIMAF mulcher heads have been an available option on our Rayco carriers for many years. The company’s patented mulcher head design has enabled them to become a the mulcher head attachment of choice among intensive vegetation control, land clearing, roadside transmission lines, pipeline maintenance, and forest fire prevention contractors.”

The buy of DENIS CIMAF is the second add-on acquisition for Morbark under Stellex ownership. In October 2017 the company acquired Rayco Manufacturing, a Wooster, OH-based maker of stump cutters, crawler trucks, forestry mulchers, multi-tool carriers, brush chippers and aerial trimmers (www.raycomfg.com).

Stellex invests from $25 million to $100 million in United States or Europe-based companies with enterprise values from $50 million to $500 million. Sectors of interest include automotive, aerospace, building products, defense, industrial equipment, metal fabrication and transportation. Stellex has offices in New York and London (www.stellexcapital.com).

© 2019 Private Equity Professional | January 4, 2019

Turnspire Buys Specialty Vehicle Group

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Turnspire Capital Partners has formed Crane Carrier Holdings to acquire the specialty vehicle group of Hines Corporation, a manufacturer of heavy-duty truck chassis, complete vehicles and aftermarket parts.

Crane Carrier’s products are used in the work truck industry and include custom, severe-service chassis and purpose-built vehicles used in the refuse and recycling, infrastructure maintenance, ground support, agriculture, oil and gas, and concrete mixer markets.

Brand names included in the transaction are Crane Carrier Company (truck chassis), Crane Carrier Company Engineered Chassis, and CyKlone Mixers with Kimble Technology. Crane Carrier is headquartered 90 miles south of Cleveland in New Philadelphia, OH (www.cranecarrier.com).

Crane Carrier will continue to be led by its President and CEO Randy Rollins.  Mr. Rollins and other members of the management team invested alongside Turnspire in this transaction. “We are excited to embark on the next chapter of Crane Carrier’s growth as an independent company,” said Mr. Rollins.  “In Turnspire, we have a financial partner with whom we share the same vision, the same drive to excel and the same values.”

At closing, Turnspire added two industry executives, Jim Marcotuli and Scott Thompson, to the board of Crane Carrier. Mr. Marcotuli is the former Chief Executive Officer and President of North American Bus Industries, a manufacturer of heavy-duty buses, which was sold by Cerberus Capital to New Flyer in June 2013.

“We are thrilled to acquire Crane Carrier, which is an ideal fit with our operationally focused investment strategy,” said Ilya Koffman, a managing partner at Turnspire. “The company capitalized on its strong brands and customer relationships to grow its refuse and specialty truck business as a non-core division of Hines Corporation.  As an independent company under Turnspire’s ownership and led by its talented management team, Crane Carrier can build upon its foundation to achieve operational excellence and sustainable growth.”

Turnspire invests in companies with revenues between $50 million and $400 million and valuations up to $125 million. The firm prefers companies that are underperformers and/or in need of an operational turnaround.  Sectors of interest include aerospace and defense; automotive; capital equipment; chemicals; consumer; construction and building materials; food and beverage; industrial equipment; logistics; metals and metal fabrication; paper and packaging; and plastics and synthetic materials. Turnspire is based in New York (www.turnspirecap.com).

“An iconic brand, Crane Carrier Company is an ideal fit for our strategy of investing in high-quality businesses in specialty markets,” added Mr. Koffman.

Hines Corporation, the seller of Crane Carrier, is privately held and owns a group of industrial manufacturing companies operating in the transportation, energy, construction and commercial cleaning sectors. The company was founded in 1958 and is based in the western Michigan city of Spring Lake (www.hinescorp.com).

Hines acquired Tulsa-based Crane Carrier in June 2013. The company’s operations were closed in June 2014 and were consolidated into Hines’ existing facilities in Philadelphia, OH.

© 2019 Private Equity Professional | January 3, 2019

Main Post Adds Infinite Packaging to Fortis

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Fortis Solutions, a portfolio company of Main Post Partners, has acquired Infinite Packaging Group from Svoboda Capital.

Infinite Packaging was formed in April 2015 when Svoboda Capital rebranded the operations of M.E.I. Labels (acquired as a platform in December 2012) and TVC Label (acquired by M.E.I. in June 2013). Today, Infinite Packaging is a provider of packaging products, including pressure-sensitive labels, shrink sleeves, and pouches to companies operating in the consumer products, retail, food and beverage, nutraceuticals and health and beauty sectors.

Infinite Packaging, led by CEO Lynn Higgs, is headquartered north of Dallas in Lewisville, TX with an additional facility near Tulsa in Catoosa, OK (www.infinitepkg.com).

Fortis Solutions, acquired by Main Post in December 2017, provides labeling and packaging – including pressure sensitive and shrink sleeve labels, booklet printing, variable data printing, multi-ply coupon printing and flexible packaging printing – to companies active in the consumer packaged goods sector. Fortis has manufacturing and sales offices in Austin, TX; Ellington, CT; Flowery Branch, GA; Fort Worth, TX; High Point, NC; Kansas City, MO; Memphis, TN; West Chester, OH; and Wixom, MI. The company, led by CEO John Wynne, Jr., is headquartered in Virginia Beach, VA (www.fortissolutionsgroup.com).

“I have long admired the Infinite organization and its go-to-market strategies and we are excited to partner with Lynn Higgs to continue building upon their success,” said Mr. Wynne. “This acquisition is a wonderful opportunity to grow our presence in the Texas market and establish a presence in Oklahoma. In addition, we will be bolstering our strength across product offerings and key vertical markets.”

With the buy of Infinite Packaging, Fortis Solutions now has more than 550 employees. The company continues to seek add-on acquisitions that expand its product lines and geographic reach.

Main Post makes both control and non-control investments in middle market growth companies in the consumer, business services and industrial growth sectors. The firm was founded in April 2014 by managing partners Sean Honey and Jeffrey Mills, both former partners at Weston Presidio. Main Post is headquartered in San Francisco (www.mainpostpartners.com).

In November 2018, Main Post held a final closing of its second fund, Main Post Growth Capital II LP, with $700 million of capital commitments. The new fund was oversubscribed and closed at its hard cap less than three months after the launch of fundraising.

Svoboda Capital, the seller of Infinite Packaging, invests from $10 million to $25 million in business services, value-added distribution, and consumer products companies that have revenues from $10 million to $100 million and EBITDAs from $3 million to $15 million. The Chicago-based firm was founded in 1998 and has over $400 million of capital under management (www.svoco.com).

© 2019 Private Equity Professional | January 3, 2019

Huron Closes First Pueblo Add-On

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Huron Capital has added on to its HVAC services platform, Pueblo Mechanical & Controls, with the buy of Commercial Air, Inc.

Commercial Air designs, installs and maintains air conditioning, refrigeration and heating systems for a range of customers that operate in the commercial office, hospitality, education, and transportation sectors. The company was founded in 1996 and is headquartered in Phoenix (www.comairinc.com).

“We are proud to join Pueblo and look forward to growing together with one another,” said Karl Thompson, president of Commercial Air, who will remain with the company. “We believe Pueblo’s management resources and expertise in the HVAC industry are a great fit with our commercial service offerings and will enable us to continue to support our customers at the highest level.”

Huron launched Pueblo Mechanical in January 2018 in partnership with industry veteran Dan Bueschel. The company provides a full spectrum of HVAC replacement, retrofit and repair services primarily for facilities in the education, municipal, and healthcare end markets throughout Arizona. The company is headquartered in Tucson (www.pueblo-mechanical.com).

“Commercial Air is a strong company known for its reliable reputation and excellent service,” said Mr. Bueschel. “We look forward to uniting our management expertise and sales force with Commercial Air’s capabilities and leveraging our combined resources to support a wide variety of commercial and industrial HVAC services.”

The combination of Pueblo Mechanical and Commercial Air results in one of the larger HVAC services groups in Arizona. Pueblo continues to seek other add-on acquisition opportunities in Arizona and the surrounding states, including Texas, Colorado, New Mexico and Utah.

“We believe Commercial Air’s diverse client base and trusted services represent an excellent cultural and regional fit that will deepen Pueblo’s presence in Arizona and help support our expansion strategy,” said Danielle Lalli, a vice president at Huron Capital. “We are excited to welcome Commercial Air as the first addition to the Pueblo family and to continue to provide exceptional HVAC services to our customer base.”

Huron Capital is an operationally-focused private equity firm that makes control and non-control investments in companies with revenues of $20 million to $200 million and EBITDAs of $5 million or more. Sectors of interest include business services, consumer goods & services, and specialty industrials. Founded in 1999, Detroit-based Huron Capital has raised over $1.8 billion in capital through six private equity funds and invested in over 150 companies (www.huroncapital.com).

© 2019 Private Equity Professional | January 3, 2019

Gridiron Closes Sale of QSI

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Gridiron Capital has completed its sale of Quality Solutions, an asset-light facilities services provider, to publicly-traded Cushman & Wakefield. Gridiron acquired Quality Solutions in February 2012.

Quality Solutions (QSI) provides on-demand facilities maintenance and other managed services to more than 110,000 locations by contracting with over 50,000 local facility service providers that offer electrical, handyman, and plumbing services. The company, led by CEO Eric Crabb, is headquartered near Wichita in Colwich, KS (www.qsifacilities.com).

During Gridiron’s ownership, QSI expanded its market share through both organic growth and multiple add-on acquisitions. The company grew its customer base, expanded into new service verticals, and added new facility service providers. “Gridiron Capital’s support enabled us to take a dramatic step forward as a business,” said Mr. Crabb. “The firm supported QSI in enhancing a best-in-class management team, bringing experienced industry executives to our Board of Directors, and helping us uncover accretive add-on opportunities to supplement our organic growth. We are a stronger company today as a result of this partnership.”

“We have enjoyed partnering with the QSI management team the past six years and are proud of their significant growth, the platform capabilities they have built, and their success in becoming an industry leader,” said Gridiron Capital Co-Founder and Managing Partner Tom Burger. “Cushman & Wakefield has acquired a great business with capabilities among the best in the industry.”

Cushman & Wakefield (NYSE: CWK) is one of the largest providers of commercial real estate services in the world with annual revenues of more than $6 billion. The firm is headquartered in New York and operates in more than 70 countries and has 48,000 employees (www.cushmanwakefield.com). The acquisition of QSI will expand Cushman & Wakefield’s facility management capabilities across North American markets.

Gridiron Capital invests in manufacturing, service and specialty consumer companies that have EBITDAs from $8 million to $50 million. Sectors of interest include branded consumer, B2B and B2C services, and niche industrial. In October 2016, Gridiron held a final closing of the firm’s third fund, Gridiron Capital Fund III LP, at the hard cap of $850 million. The firm is based in New Canaan, CT (www.gridironcapital.com).

Piper Jaffray was the financial advisor to QSI on this transaction.

© 2019 Private Equity Professional | January 3, 2019

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