October 29, 2021
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Archives for October 29, 2021

LongueVue Closes 10th Fund III Platform

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LongueVue Capital (LVC) has acquired Associated MetalCast, an Alabama-based maker of metal components.

Associated MetalCast (AM) is a tier-one manufacturer of complex metal components used in water infrastructure, vertical transportation, agriculture, and automotive services applications. AM’s capabilities include product development, sourcing, casting, machining, heat-treating, coating, finishing, assembly, inventory management, and distribution. AM was founded in 1988 by CEO Ron Douglas and operates a 100,000 sq. ft. facility located 60 miles east of Birmingham in Oxford, Alabama.

“The LVC team took the time to understand what makes Associated MetalCast unique, and we are confident that this partnership will be a win for all our stakeholders,” said Mr. Douglas. “LVC has a proven track record, and their experience, partnership approach, shared vision, and cultural alignment will be instrumental as we grow the business and continue to provide best-in-class service to our valued customer base.”

“Partnering with the Associated MetalCast team is an honor for us at LVC,” said Ray Jeandron, a partner at LVC. “The company’s global foundry network and development capabilities, deep knowledge of casting and machining processes, and leading just-in-time delivery and inventory management services together produce a unique value proposition that enables Associated MetalCast to service leading OEMs in each of its industry verticals. The company’s exponential growth over the past several years is a testament to the tremendous culture and business that Ron and his team have built to date.”

“It is a true privilege that Ron and the team at Associated MetalCast chose LVC to be the company’s partner for its next phase of growth,” said Rick Rees, a co-founder and managing partner at LVC. “We are incredibly excited to welcome Associated MetalCast to the LongueVue Capital family as LVC III’s tenth platform investment.”

LongueVue makes equity and debt investments of $10 million to $50 million in companies that have over $3 million of EBITDA and up to $150 million of annual revenue. Sectors of interest include specialty manufacturing, transportation and logistics, healthcare, business and industrial services, and food and beverage. LongueVue closed LongueVue Capital Partners III LP in March 2017 at its hard cap of $252 million. The firm was founded in 2001 and is based in New Orleans with an additional office in Park City, Utah.

Warren Averett, a privately-owned certified public accounting firm headquartered in Birmingham, Alabama, provided accounting advisory services to Associated MetalCast on this transaction.

© 2021 Private Equity Professional | October 29, 2021

Monogram’s Prime Matter Heads West

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Prime Matter Labs, a contract manufacturer of beauty and personal care products and a portfolio company of Monogram Capital Partners, has acquired Cosmetic Development Laboratories.

Cosmetic Development Laboratories (CDL) is a private label and contract manufacturer of skin care, body care and hair care products with a specialization in anti-aging formulations. The company’s products include oils and butters, antioxidants, and therapeutic botanicals. CDL, led by CEO Joseph Peri, was founded in 2002 and operates an 80,000 sq. ft. facility in Torrance, California with research and development, manufacturing (with batch sizes from 20 gallons up to 3,200 gallons), filling, assembly, labeling and packaging capabilities.

Prime Matter Labs is a formulator and contract manufacturer of beauty and personal care products with a specialization with suncare, skincare, body care, and hair care formulations. The Miami-based company was founded in 2003 by CEO Mohamed Barakat, Mark Barakat, and Frank Linares. Monogram closed its initial investment in Prime in January 2020.

“Prime Matter Labs is focused on being the leading product development and production partner in the country for indie, emerging and established beauty and personal care brands,” said Mohamed Barakat. “As part of realizing that mission, expanding our operations to Southern California extends our reach, doubling our manufacturing footprint to nearly 200,000 square feet, and helps even more customers realize their goals, grow their businesses, and achieve success.”

With the close of this transaction, Cosmetic Development Laboratories will now operate as Prime Matter Labs West.

“As a leader in personal care contract manufacturing, we feel it’s important to have a physical presence on the West Coast,” added Mr. Barakat. “California is a hotbed of activity for new products with sustainable innovations, a key growth driver in our sector. It also has a strong labor market and provides supply chain flexibility for our customers.”

Monogram invests from $5 million to $30 million in companies with revenues of $5 million to $50 million. Sectors of interest include apparel and accessories, beauty and personal care, pet products, consumer healthcare, food and beverage, and restaurants. In April 2018, Monogram held a final closing of Monogram Capital Partners I LP at its hard cap of $152 million. Monogram was founded in 2014 and is headquartered in Beverly Hills, California.

© 2021 Private Equity Professional | October 29, 2021

Audax Private Debt Backs LLR’s Buy of Genesee Scientific

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Audax Private Debt was the provider of a unitranche credit facility to back the recent buy of Genesee Scientific by LLR Partners. Audax Private Debt was the facilities’ Joint Lead Arranger and Bookrunner.

Genesee Scientific’s products include lab instruments and equipment, reagents, and consumables used in life sciences applications by pharmaceutical and biotechnology companies, universities, medical research institutions and hospitals.

The company maintains more than 20,000 SKUs and has a unique specialty supplying equipment and supplies used by the Drosophila (fruit fly) research community. Drosophilae are widely used as a model organism in the field of genetics.

San Diego-headquartered Genesee Scientific was founded in 1995 by Ken Fry as a laboratory products distributor and today is one of the largest providers of life science consumables and equipment to the academic and biotech markets. At the close of the buy of Genesee Scientific, LLR named Sean Patrick, an industry veteran and former executive at Life Technologies and Antylia Scientific, as Genesee Scientific’s CEO.

“Genesee is uniquely positioned as a trusted consumable life science products provider to customers throughout the United States,” said Ryan Benedict, a managing director at Audax Private Debt. “We’re excited to work with LLR Partners and the Genesee team to help support the continued growth of the company.”

Philadelphia-based LLR makes minority or majority investments from $25 million to $200 million in companies that are active in the education, financial, healthcare, security, and software sectors. In October 2020, LLR held a final closing of its latest fund, LLR Equity Partners VI LP, with $1.8 billion in capital.

Audax Private Debt makes first-lien, stretch senior, unitranche, second lien, junior debt and equity co-investments in North American-based private equity sponsored middle-market companies. The lender was founded in 2000 and has invested $23 billion of capital in more than 900 companies backed by over 260 private equity sponsors. In May 2021, Audax Private Debt closed Audax Mezzanine Fund V LP with just over $1.8 billion in capital commitments. Today, the New York-based lender has more than 40 investment professionals and 80 total employees.

Audax Private Debt is part of Audax Group, an investor in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.

© 2021 Private Equity Professional | October 29, 2021

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