Archives for February 9, 2022

Branford Forms New Filtration Platform

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Branford Castle Partners has formed Clean Solutions Group (CSG) as a new platform to consolidate its ownership of Fibrix Filtration, acquired in August 2020, and its new acquisition of Americo Manufacturing Company. Branford acquired Americo from Blue Sage Capital which invested in the company in December 2017 in partnership with the founding Rones family.

Americo is a manufacturer of synthetic and natural fiber floor pads, hand pads, utility pads and floor matting. The company sources one hundred percent of its polyester fiber raw materials from recycled post-consumer and post-industrial waste. The company’s products are sold throughout the United States and worldwide in over 70 countries.

Americo was founded in 1969 as the American Manufacturing Company by Jim Rones. The company changed its name to Americo Manufacturing Company in 1984 and today is headquartered northwest of Atlanta in Acworth, Georgia.

Fibrix Filtration is a manufacturer of nonwoven filtration materials used in HVAC, paint collection, liquid, evaporative cooling, and specialty applications. Fibrix has more than 300 employees and operates 4 facilities – two in both Texas and North Carolina – with headquarters north of Charlotte in Mooresville, North Carolina. Fibrix is led by CEO Keith White who is also the president and CEO of Clean Solutions Group.

“The transition to a greener and cleaner environment is a monumental challenge for this generation,” said Mr. White. “The combination of Fibrix Filtration’s and Americo’s people, technologies, and assets creates a formidable nonwovens manufacturing platform focused on innovative clean solutions for home and work environments using environmentally sustainable practices.”

“We are enthusiastic to be joining Clean Solutions Group as we continue growing our business by delivering innovative, environmentally friendly products with an unparalleled customer experience,” said Lenny Shutzberg, the CEO of Americo. “The combination of these two great companies makes us stronger, more adaptable and better positioned to leverage our resources for sustainable, future growth.”

“We’re proud to support a company dedicated to developing solutions for a cleaner, more sustainable environment,” said Laurence Lederer, a senior managing director of Branford Castle. “Under the excellent leadership of Keith White and his team, we are confident Clean Solutions Group will continue to grow strategically, both organically and through acquisitions, while defining the future of the industry.”

New York City-based Branford Castle invests in companies that have enterprise values of up to $100 million and EBITDA of less than $15 million. Sectors of interest include consumer products and services, commercial distribution, industrials and specialty manufacturing, business services, and logistics.

Byline Bank and Brookside Capital Partners provided financing to support the buy of Americo by Clean Solutions Group.

© 2022 Private Equity Professional | February 8, 2022

Lion Acquires Elkhart Tri-Went Industrial

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Lion Equity Partners has acquired Elkhart Tri-Went Industrial from publicly traded Aalberts NV.

Elkhart Tri-Went Industrial (ETI) is a manufacturer of extruded aluminum components and fabricated copper tube products that are sold to OEM customers in the automotive, air conditioning, refrigeration, water systems, and industrial markets.

ETI, led by President Joe Headdy, is headquartered south of Ft. Wayne in Geneva, Indiana with additional manufacturing facilities in Knoxville, Tennessee, and near Toronto in Ajax, Ontario.

“What an amazing time for Elkhart Tri-Went Industrial, our partners, employees, and communities,” said Mr. Headdy. “This investment by Lion Equity is validation that our workforce, technical capabilities and product offerings are truly valued in the OEM market. We look forward to better serving our customers, employees, and stakeholders through targeted investments in capital equipment, growing the workforce, and positioning ETI to thrive in the markets we serve.”

“Through its exceptional customer service, high-quality products and talented employee base, ETI has distinguished itself as a trusted partner to bring complex, industrial solutions to the OEM market,” said Ari Silverman, a co-founder and a partner at Lion Equity. “ETI’s design expertise and FormCast proprietary manufacturing capabilities are key differentiators and provide a strong foundation for future growth, both organically and through strategic add-on acquisitions.”

Denver-based Lion Equity makes control investments in North American-based corporate carve-outs and special situations including businesses experiencing financial, operational or industry-driven challenges. Typical targets will have revenues between $30 million and $300 million and EBITDA up to $15 million. Lion Equity invests across a wide range of sectors and is effectively industry agnostic.

Publicly traded Aalberts (Euronext: AALB), the seller of ETI, operates from four groups – piping systems; surface technologies; hydronic flow control; and advanced mechatronics and fluid control. Netherlands-headquartered Aalberts was founded in 1975 by Jan Aalberts and went public in 1987. The company has more than 16,000 employees and operations in over 50 countries.

© 2022 Private Equity Professional | February 8, 2022

Kinderhook’s Vehicle Accessories Closes Sixth Add-On

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Vehicle Accessories (VAI), a portfolio company of Kinderhook Industries, has acquired Cord Automotive International.

Cord Automotive is a designer and producer of lightweight and corrosion-resistant aluminum vehicle accessories including running boards, door sills, bed rails, and other automotive accessories that are sold to automotive original equipment manufacturers. Cord was founded as Cord Automotive Light Alloy Accessories in 2006 by William Cord and Robert Crandall, and today is led by Mr. Cord with a headquarters near Los Angeles in Placentia, California.

“Partnering with Vehicle Accessories and Kinderhook will allow for cross-selling opportunities within overlapping customer bases and the ability to leverage existing relationships across both Cord Automotive and VAI,” said Mr. Cord.

Vehicle Accessories (VAI) is a manufacturer of metal and plastic automotive products including protective door edge guards, all-weather floor mats, splash guards, bodyside moldings, bumper protectors, running boards, door sills, and bed rails.

Kinderhook formed Vehicle Accessories as a platform for a buy-and-build strategy focused on genuine original equipment manufacturer (OEM) parts and accessories as well as parts that are sold to the aftermarket divisions of automotive OEMs. The buy of Cord is the sixth add-on acquisition for the platform following the buys of Adell Group (2019), Powerflow (2019), Hope Valley Industries (2020), AIM Group (2020), and Remington Global (2021).

VAI products are sold to automotive OEMs including Toyota, Lexus, Ford, Subaru, Nissan, Infiniti, Honda, Hyundai, Kia, General Motors, and Chrysler and are installed post-production and are typically sold to end consumers as part of upgraded protection packages. VAI, led by CEO J Pearson, has facilities in Texas, New York, California, Ontario, and Quebec.

“The team is thrilled for Cord Automotive to join VAI,” said Mr. Pearson. “The company has a long, successful history of offering best-in-class accessories to OEMs. We are eager to build upon that success with Cord Automotive as part of the VAI family and look forward to welcoming Bill Cord to the VAI team as the president of Cord Group and a member of VAI’s board of directors.”

“VAI is happy to announce another strategic acquisition that will serve to further diversify VAI’s business across both product categories and OEMs,” said Tom Tuttle, a managing director at Kinderhook. “Cord Automotive has forged strong relationships with OEMs, including Toyota, for whom Cord Automotive is the #1 running board accessory supplier. The team looks forward to expanding Cord Automotive’s OEM relationships across all of VAI.”

New York City-based Kinderhook has over $3.3 billion of committed capital and has closed more than 300 investments and follow-on acquisitions since its founding in 1983. Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. Sectors of interest include healthcare services; environmental and business services; and automotive and light manufacturing.

Twin Brook Capital Partners, as administrative agent, provided debt financing to support the acquisition of Cord Automotive. Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.

Also providing financing were Kayne Anderson Capital Advisors, and Alliance Partners.

© 2022 Private Equity Professional | February 8, 2022

Willis & Smith Acquires R&B Grinding

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Willis & Smith Capital has acquired R&B Grinding, a family-owned and Wisconsin-based provider of metal machining services.

R&B Grinding is a manufacturer of machined components used in a range of applications by industrial customers, including Fortune 500 original equipment manufacturers operating in the agriculture, commercial, construction, defense, forestry and consumer sectors. The company provides CNC milling and turning, welding and assembly, grinding and screw machining services.

R&B Grinding was founded in 1958 by Ray and Marilyn Biddle. Today, the company has more than 110 employees and operates from a 140,000 sq. ft. facility located near Milwaukee in Racine, Wisconsin.

“We are grateful of the trust the Biddle Family has placed in our team to ensure R&B’s long-term prosperity,” said Eric Willis and Terry Smith, co-founders of Willis & Smith. “We believe R&B’s family values and dedication to its employees, its community, and its clients speak for themselves.”

With the close of the transaction, Gene Simon, a Willis & Smith operating partner will become the new CEO of R&B Grinding. “I am energized to work alongside such a talented team as we dedicate our resources to further enhance R&B’s already impressive capabilities,” said Mr. Simon. In addition, several key members of the company’s senior management team, including President Barb Lange, the daughter of the founders, will continue managing R&B’s operating divisions.

“From our first meeting with Willis & Smith, we were confident they were the optimal choice to help us transition the future of R&B. Our family sought a partner with significant manufacturing experience that could provide the necessary capital and strategic guidance to continue R&B’s legacy,” said Ms. Lange and other members of the Biddle Family in a released statement.

Willis & Smith invests in lower middle-market companies that have from $5 million to $200 million in revenue and up to $10 million of EBITDA. The firm will also consider companies that have a negative EBITDA. Sectors of interest include manufacturing, distribution, logistics, industrial services, engineering and construction. Willis & Smith was founded in September 2019 and is headquartered north of Dallas in Plano, Texas.

Milwaukee-based Taureau Group was the financial advisor to R&B on this transaction.

© 2022 Private Equity Professional | February 8, 2022