CenterGate Capital has acquired Cartridge Technologies (CTI), a provider of managed print services to United States federal government agencies, from Broadtree Partners.
Through numerous service programs, CTI specializes in managing and servicing copiers, multi-function devices, laser printers and fax machines. The company serves as a single source for maintenance to all brands of office equipment including, among many others, Xerox, Toshiba, Canon, Lexmark, HP, Sharp, Brother, and Ricoh.
CTI is a prime contractor to the US government and directly enters contracts with federal, state, or local government agencies. Prime contractors are responsible for fulfilling the contract’s requirements, including project management, quality assurance, and, in some cases, subcontracting with other vendors or suppliers.
Broadtree acquired CTI in July 2020, and during its hold period CTI grew its revenue by more than 2.5x, expanded its headcount by 35%, and increased its number of devices under management by 80%.
“We are proud to have partnered with the CTI founders and team on what has been an incredibly successful chapter in CTI’s history,” said Brad Batten, a managing partner at Broadtree. “Colin Murphy’s leadership and the strength of the CTI team have carried forward the founders’ legacy and propelled the business to achieve great things.”
CTI was founded in 1990 by Ana Maria Castro and over its 33-year history, the Rockville, Maryland-headquartered company has developed specific expertise in providing managed print services to federal agencies. Today, CTI services more than 200 customers including many well-known agencies in the US government such as the US Army, the US Environmental Protection Agency, the US Department of Health & Human Services, and the US Department of Commerce.
CTI is registered with System for Award Management (SAM), a government-wide database and web portal managed by the U.S. General Services Administration (GSA) that consolidates federal procurement systems into one integrated system. SAM is the primary platform for vendors and contractors who want to do business with the federal government.
CTI is also listed on numerous GSA purchasing schedules. When a company negotiates and secures a contract with the GSA, they are added to the schedule, and their products or services then become available for purchase by all government agencies. This allows government agencies to buy from CTI under the terms and conditions negotiated in the GSA schedule contract.
“I am proud of what the CTI team has been able to accomplish as one of the premier managed print service providers to the federal government,” said CEO Colin Murphy, who will continue to lead CTI in partnership with CenterGate. “We are excited to partner with CenterGate in our next phase of growth. CenterGate’s investment will provide us with the capital and strategic resources to continue our growth trajectory while increasing productivity for our customers.”
“Colin and the CTI team have grown the company by providing an innovative, technology-enabled service to its customers who require the highest levels of service and security,” said Tim Liu, a managing director at CenterGate. “We are excited to partner with CTI to help them continue the execution of their growth plan.”
Austin-based CenterGate invests from $10 million to $75 million in equity in North America-based lower middle-market companies that have from $5 million to $30 million of EBITDA. Sectors of interest include business services, manufacturing and consumer. In August, CenterGate held a final and above target closing of CenterGate Capital Partners II LP with just over $375 million of capital.
The buy of CTI follows CenterGates’s August buy of Poseidon Barge, an Indiana-based manufacturer of sectional barges that are used in marine infrastructure applications including bridge rehabilitation, dam maintenance, and waterway dredging. Since its founding in 2014, CenterGate has now completed 14 platform investments, 18 add-on acquisitions, and has grown to a team of over 20 people.
Broadtree Partners makes majority investments across a range of industries in privately held and United States-based companies that have up to $75 million in revenue, up to $10 million in EBITDA, and at least 10% EBITDA margins. The firm was founded in 2016 by Managing Partner David Slenzak and is based in Charlotte, North Carolina.
DC Advisory was the financial advisor to CTI on this transaction.
© 2023 Private Equity Professional | November 1, 2023
Brynwood Partners has closed its ninth fund, Brynwood Partners IX LP, with over $750 million of committed capital. Brynwood’s new fund is the largest fund the firm has ever raised.
“We have been humbled by the support from our existing and new limited partners in one of the most challenging fundraising markets of my career. The success of the fundraise reinforces the strength of our active investment strategy,” said Hendrik Hartong III, the chairman and CEO of Brynwood. “As we approach our 40th year in business, we are both proud of our heritage and excited for our next fund cycle. Getting to Fund IX is a testament to our strategy and our team of dedicated investment professionals.”
Aterian Investment Partners has closed Aterian Opportunities II LP (AO Fund II), a new single asset continuation vehicle with capital commitments of $460 million.
Excellere Partners has named Ian Beck as its new Associate of Origination.
MPE Partners has acquired Mid-States Bolt & Screw, a distributor of fasteners and MRO products.
“We are looking forward to partnering with the Somers family and the rest of the Mid-States team to accelerate the company’s growth through continued customer service and product availability, as well as organic and inorganic geographic expansion,” said Graham Schena, a partner at MPE.
“The Somers family has built Mid-States into a world-class distributor over the past several decades, and has exciting growth planned,” said Nick Stender, a principal at MPE, “We look forward to helping Mid-States accelerate its growth while maintaining the culture and tradition of excellence that has made the company so successful to date.”
Cleveland and Boston-based 
Align Capital Partners (ACP) has acquired Counsel Press, a provider of outsourced legal services, from Gladstone Investment Corporation.
“Gladstone Investment has enjoyed a strong partnership with Counsel Press and its talented management team over many years. We are proud to have supported the business through a period of transformation and growth, both organically and through acquisition,” said Erika Highland, a managing director at Gladstone. “The entire Counsel Press management team has achieved outstanding results in building upon its legacy of operational excellence and we wish them continued success.”
“Since we first met the team at Counsel Press, we’ve been impressed by the company’s market expertise, operational excellence and collaborative culture,” said Matt Iodice, a partner at ACP. “Counsel Press helps its clients navigate a complicated segment of our legal system by pairing talented industry professionals with unique client-facing technology. As the industry becomes increasingly complex, ACP believes that it is well equipped to help Counsel Press pursue add-on growth initiatives and support the continued evaluation of the company’s operating resources.”
Six Pillars Partners has acquired Royalty Roofing and its sister company, Majestic Facility Experts.
Operating as a natural extension of Royalty, South Bend, Indiana-based 
“Our entire management team is excited about the enhanced growth opportunities this new partnership will bring,” said Mr. Royalty. “Six Pillars is a great fit not only for the strategic expertise they bring to the table, but more importantly, for the value they place on caring for our people.”
“We’re thankful to be able to partner with successful entrepreneurs, founders and operators like Andy who have built businesses on the foundation of passionately serving their employees, customers, and community,” said Teddy Saltzstein, a partner at Six Pillars. “Andy’s dedication to thoughtful growth and the “Royalty way” is evidenced by the company’s 37-year operating history, its national reach, and numerous awards for being a leading re-roofing and facility maintenance provider.”
Shrieve Chemical Company, a portfolio company of Gemspring Capital, has acquired industrial chemicals distributor Gilbert & Jones.
Gemspring acquired 
“The Gilbert & Jones acquisition aligns perfectly with our long-term growth strategy and allows us to further diversify our product offerings and expand our reach into new markets,” said Mr. Fuller. “Together, we will capitalize on our collective strengths and capabilities to provide unparalleled service and solutions to our customers. We are excited to welcome the Gilbert & Jones team to the Shrieve family and are looking forward to our combined success.”
Pfingsten Partners has held an above target, oversubscribed, and hard cap close of its sixth investment fund, Pfingsten Fund VI LP, with $435 million in capital.
“The successful fundraise reflects our consistent, disciplined, operationally focused approach to building value in lower middle market companies,” said Scott Finegan, a senior managing director at Pfingsten. “For nearly 35 years Pfingsten has been laser focused on our goal of delivering exceptional results for our investment partners and other stakeholders.”
“The value we bring lies in our ability to provide resources to scale businesses beyond their entrepreneurial roots, enabling them to realize growth potential and become high-performing organizations,” said Ken Hessevick, a managing director at Pfingsten. “The successful growth of our portfolio companies is only possible by building partnerships with highly effective management teams capable of driving growth organically and through strategic acquisitions.”
“We appreciate the strong support from both existing and new limited partners who believe in our investment philosophy, strategy and team,” said Phil Bronsteatter, a managing director at Pfingsten. “Pfingsten will continue to invest in companies where our operational resources and financial expertise drive value by building better businesses.”
Gridiron Capital has closed its fifth fund, Gridiron Capital Fund V LP, with $2.1 billion of capital. The new fund exceeded its target of $1.8 billion and is markedly higher than the firm’s earlier fund which closed in December 2020 with $1.35 billion of capital.
“Following another successful fundraise, we cannot be more appreciative of our investors’ continued confidence and unwavering support. Despite a challenging fundraising environment, many of our existing limited partners chose to not only re-invest but also increase their commitments in Gridiron V,” said Tom Burger, a co-founder and a managing partner at Gridiron. “At Gridiron, we cultivate a team culture of respect, getting better every day, and ‘Winning Together.’ We strive to provide superior returns for our portfolio company partnerships, our investors, and most importantly, our investors’ underlying constituents, including retirees, teachers, hospitals, and students, among many others.”
“Our success is built upon outstanding people and leaders,” said Kevin Jackson, a managing partner at Gridiron. “We are grateful for the talented and dedicated team at Gridiron, and we are proud of the performance of our portfolio company partnerships. Gridiron has developed repeatable processes and enhanced internal capabilities to prepare our portfolio companies for accelerated growth while protecting against a diverse range of economic headwinds. We enter Fund V with a dynamic group of companies poised for growth and we’re excited to continue executing our investment strategy to create further value for our loyal limited partners.”
Frontenac has acquired sister companies Chan & Chan and Prime Food Processing, a branded Asian food manufacturing business.
“Albert has dedicated 30 years to building these companies from an import business to an established, reputable manufacturer, and he is now seeking a partner to help him reach a wider audience,” said Mr. Eirinberg. “The company and brands have developed a strong reputation in the ethnic foods channel, and we believe that there is an opportunity to expand the reach of his products and bring them to many more consumers to enjoy.”
“Albert is an incredibly talented entrepreneur and has built an impressive business,” said Betsy Williamson, a managing director at Frontenac. “There is demand for authentic Asian cuisine across multiple channels and we believe CCI Prime is well-positioned to meet this demand given its new facility and loyal employees. We look forward to working alongside Albert and his team to drive continued success at CCI Prime.”
Benford Capital Partners (BCP) has acquired RP Foods, a Hispanic-focused food and beverage products company, in partnership with the company’s owners and senior management team.
Chicago-based 
Integrity Partners Group (IPG), a chemical distribution platform of OpenGate Capital, has acquired selected assets of the military and aerospace division of West Penetone.
Now under the IPG umbrella, the combined companies are a full-line chemical distribution platform with more than 1,000 SKUs of high-purity solvents, industrial additives and modifiers, surfactants, lubricants and metalworking fluids, and diesel exhaust fluids. Specific products of IPG include acetone, ethanol, heptane, methanol, methyl acetate, isopropyl alcohol, and xylene.
J.F. Lehman & Company has closed its acquisition of publicly traded Crystal Clean at a valuation of $1.2 billion.
NexPhase Capital has closed NexPhase Capital Fund V LP (NPC V) with $795 million in capital, $45 million above its $750 million target.
“The overwhelming support from our investors demonstrates the strength of our platform and talented team,” said Mr. Yun. “Our thematic approach to sourcing compelling investment opportunities, paired with the methodical application of our value creation strategy, has delivered attractive returns for our investors. With NPC V, we look forward to continuing to partner with exceptional entrepreneurs and management teams to build institutional-quality companies within the most attractive segments of our industry verticals.”
Graycliff Partners has closed the firm’s fifth lower middle market private equity fund, Graycliff Private Equity Partners V LP (Fund V).
“We are extremely pleased with the outcome of this fundraise and want to thank all of our limited partners for their overwhelming support,” said Andrew Trigg, the managing partner of Graycliff.
P&F Industries has agreed to be acquired by ShoreView Industries in an all-cash transaction which values the company at $50 million.
“P&F brands are backed by talented teams that have worked hard to establish their reputation as a customer-focused, leading engineered solutions manufacturer,” said Tom D’Ovidio, a partner at ShoreView. “Through this partnership, we look forward to leveraging our sector expertise and resources to continue building on P&F’s longstanding heritage of providing high value tools for customers.”
Branford Castle Partners has acquired Marine Floats, a specialty marine contractor.
