Archives for February 16, 2021

Presco Polymers Adds On Again

by

Presco Polymers, a portfolio company of River Associates since February 2019, has acquired William Frick & Company.

William Frick is a designer, manufacturer, and reseller of labeling and marking products including custom labels, signs, tags, markers, nameplates, and radio frequency identification (RFID) products used in the utility (electric, telecommunications, cablevision), OEM, aerospace, logistics, and asset management industries.

William Frick was founded in 1975 and is based north of Chicago in Libertyville, Illinois.

Presco is a manufacturer of commercial marking products including barricade tape, roll flagging, marking flags, and Krylon marking paint. In addition to its marking products, Presco also compounds and extrudes flexible vinyl film that is sold to other manufacturers who utilize it in the making of medical products, brattice material (mining partitions), laminate flooring, military tents, and awnings.

In December 2019, Presco acquired Pro Line Safety Products, a West Chicago, Illinois-based manufacturer of tracer wire and detectable marking tapes used in underground utility applications, from Pro-Pak Industries. Presco, founded in 1942 by Robert “Earl” McMackin as Precision Specialties Company, is today led by CEO Lisa McGregor and is headquartered north of Dallas in Sherman, Texas.

“Presco is pleased to announce its recent acquisition of William Frick & Company,” said Ms. McGregor. “For the past few years, Presco’s mission has been to become the leading provider of safety marking and damage prevention products. The acquisition of Frick brings us one step closer to accomplishing this goal. The combination of resources, services and extension of products opens numerous opportunities for both entities.”

“Having worked for 30-plus years growing a successful company, my business partner and I knew the value of our business very well but had virtually no experience with strategic transactions and how to maximize that value in the market,” said Jeff Brandt, the president of William Frick. “Bob Contaldo and the entire XLCS team guided us through the financial, operational, and emotional issues surrounding our decision to sell our business while creating a mutual trust between us worthy of titling them our “Third Partner” for the duration of the deal.”

Chattanooga, Tennessee-based River Associates invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million.  Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services. The firm is investing out of its seventh fund, River VII LP, which closed in June 2017 with commitments of $285 million. The buy of Yale is the firm’s 99th transaction since its founding in 1989.

The buy of Frick by Presco closed in December 2020. River Associates and Presco continue to seek other complementary add-on acquisitions.

XLCS Partners, a middle-market investment bank, was the financial advisor to William Frick. The transaction was led by Managing Partner Bob Contaldo.

© 2021 Private Equity Professional | February 17, 2021

Mill Point Hits Fund II Hard Cap

by

Mill Point has held a final, oversubscribed, and hard cap close of Mill Point Capital Partners II LP with $886 million of total capital.

The raising of Fund II was conducted entirely virtually and completed in just under four months. The new fund’s limited partners include endowments, foundations, government and corporate pension plans, insurance companies, family offices, and funds of funds.

“We are grateful for the strong support from our existing limited partners and overwhelming interest from new limited partners, especially during these unprecedented times,” said Michael Duran, the founder and managing partner of Mill Point.

New York City-based Mill Point makes control investments in lower middle-market companies that are active in the industrial, business services, and IT services sectors. The firm closed its inaugural institutional fund, Mill Point Capital Partners LP, at its hard cap of $450 million in May 2018.

“We look forward to continuing to partner with lower middle-market businesses where we can implement transformative strategic initiatives and operational improvements to build enduring value,” added Dustin Smith, a partner of Mill Point.

Earlier this month, Mill Point acquired Prime Pensions, a New Jersey-based provider of retirement plan recordkeeping, consulting, actuarial and administration services, in partnership with its founder and CEO Scott Feit. Last year, in December, Mill Point sold Huntington Solutions, a South Carolina-headquartered maker of custom-engineered shape-molded and fabricated foam made from expanded polystyrene (EPS), expanded polypropylene (EPP) and other resins.

Acalyx Advisors was engaged by Mill Point as its placement agent for Fund II. “Launching and closing a fund completely virtually was quite extraordinary, but it is clear that institutional investors are committed to backing disciplined firms with a compelling strategy and resilient portfolio,” said Jennifer Cho Rinehart, a partner of Acalyx.

Kirkland & Ellis provided legal services to Mill Point on this fundraising.

© 2021 Private Equity Professional | February 17, 2021 

Huron Builds Senior Leadership

by

Huron Capital has named Jim Mahoney as a new managing partner to work alongside Brian Demkowicz as part of the firm’s management succession plan.

In his new role, Mr. Mahoney will manage Huron’s day-to-day operations while continuing to lead new investment opportunities. In addition to his portfolio company board roles and his role as a member of the firm’s investment committee, he has also now joined Huron Capital’s board of directors.

“Brian has established a world-class investment platform that has successfully navigated through multiple market cycles by relying on its operationally-focused investment approach and outstanding people,” said Mr. Mahoney. “I am honored to have the opportunity to work alongside the next generation of senior investment professionals and lead the firm through its next exciting chapter. In the coming years, we will be focused on building upon our considerable accomplishments over the past two decades to achieve new levels of success.”

Mr. Mahoney joined Huron in 2007 and has led numerous investments for the firm. His sector experience is wide, and he has specific expertise in the business services space, including facility, infrastructure, and utility services. He currently serves on the board of six active Huron Capital portfolio companies, including Albireo Energy, Sciens Building Solutions, and Sunland Asphalt & Construction.

Mr. Demkowicz, the firm’s co-founder, will remain actively involved with Huron Capital through a continuing role as managing partner alongside Mr. Mahoney and, as the firm’s chairman of the board, he will continue to provide oversight of Huron Capital’s investment and fundraising strategies, and strategic and value-creation activities.

“I am excited about Huron Capital’s future under Jim’s leadership,” said Mr. Demkowicz. “Our succession strategy is the product of thoughtful planning over the past two years to ensure that this important transition occurs in a measured, methodical, and transparent way for our team and investors. This move greatly enhances our senior leadership team and provides a strong foundation for our continued success. Jim has earned his stripes as a strong leader and successful investor, making him thoroughly qualified to take on this leadership position.”

Huron Capital 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 and services, and specialty industrials.

“I am extremely proud of our team and the strong investment franchise we have built over the past 22 years. I remain deeply committed to Huron Capital and continue to devote all my professional time and effort toward the firm,” concluded Mr. Demkowicz. “I am extremely grateful for the continued support of our investment partners and believe that our senior leadership team is well-positioned to build upon Huron Capital’s successful legacy and lead the firm into its next phase of growth and prosperity.”

Founded in 1999, Detroit-based Huron Capital has raised over $2 billion in capital through 6 private equity funds and invested in over 200 companies.

© 2021 Private Equity Professional | February 17, 2021

IMB Names New Managing Directors

by

IMB Partners, a lower middle-market private equity firm, has named two new managing directors with the promotions of Farrah Holder and Derrick Weatherspoon.

“I would like to congratulate Farrah and Derrick on their contributions and well-earned promotions at our firm,” said IMB’s CEO and founder Tarrus Richardson. “Last year was a pivotal one for the growth of IMB’s team and partner companies. Our combined team remains highly energized and focused on serving our portfolio companies, investor and financing partners, and other stakeholders.”

Ms. Holder is active at IMB leading the firm’s transaction sourcing, marketing, and business development activities. She joined IMB in 2016 and has more than eighteen years of business development, marketing, and finance experience. Earlier in her career – from 2010 to 2019 – she co-founded ThinkNXT Marketing, a Washington DC-based boutique marketing firm focused on small to medium-sized businesses. Ms. Holder began her career as a financial analyst at Morgan Stanley. She has her undergraduate degree in finance and marketing from the University of Virginia and her MBA from The Wharton School at the University of Pennsylvania.

Mr. Weatherspoon is active at IMB leading the firm’s transaction execution process. He joined IMB in 2020 and has over ten years of private equity experience. Before joining IMB – from 2012 to 2019 – he was a vice president at The Carlyle Group in its consumer, media and retail group. Earlier in his career, he was with Welsh, Carson, Andersen & Stowe and Lehman Brothers. Mr. Weatherspoon has his undergraduate degree in finance from the University of Maryland and his MBA from Harvard Business School.

IMB Partners invests in lower middle companies that have from $5 million to $25 million in EBITDA and have EBITDA margins of at least 10%. Sectors of interest include providers of business services to electric and gas utilities, and/or government agencies.

In December 2020, the firm invested in Richmond Wholesale Meat Company, a California-based food manufacturer that provides over 10,000 SKU’s of frozen, chilled and dry food products to the US military. The company, with 55 employees, was founded in 1959 by the Doellstedt family and is today led by its second-generation owners in partnership with IMB. Earlier in 2020, IMB acquired Ashburn Consulting, a Northern Virginia-based information technology consulting firm that provides network engineering and cybersecurity services to federal, state and local governments, and commercial clients.

IMB Partners was founded in 2010 and is headquartered in Bethesda, Maryland.

© 2021 Private Equity Professional | February 17, 2021