Archives for January 11, 2024

Summit Park has acquired Michelli Weighing & Measurement, a provider of measurement equipment and calibration services.

Michelli sells, rents and services heavy and medium-capacity scales, precision measurement devices, and calibration equipment used in the transportation, recycling and waste, food and beverage, agriculture, and manufacturing sectors. The company’s services – provided by its field-technicians and lab-based metrologists – include calibration, maintenance and repair, inspection and repair, and installation.

Michelli traces its beginning to 1942 with the founding of By-Pel Equipment, an independent dealer for the Exact Weight Scale Company. Today, New Orleans-headquartered Michelli, led by CEO Bobby Feigler and COO Joel McMullen, services over 6,000 customers through its 30 locations in 11 states across the Southeast, Texas, and the West Coast.

“We are thrilled to be partnering with Bobby, Joel and the entire Michelli team who have built one of the leading brands in the calibration services market,” said Andrew Gilbert, a partner at Summit Park. “Michelli has had relentless focus on providing best-in-class essential services to their rapidly growing customer base and we believe there is a significant opportunity to expand the company’s footprint in both the industrial weighing and precision measurement markets.”

“We decided as a team that to achieve our strategic goals, we needed to bring in an operationally focused and experienced partner,” said Mr. Feigler. “Summit Park distinguished themselves as a firm that would bring significant resources to the company through their value creation and business development teams and based on their long-term focus on partnering with founders and management teams.”

“Our team has been focused on investing in the test and measurement sector for more than a decade, including our previous investment in laboratory products and services business, Control Company,” added Mr. Gilbert.

Summit Park acquired the Control Company, a Texas-based provider of branded laboratory equipment – thermometers, timers, tools, humidity gauges and hygrometers – in June 2011 and exited the company in August 2017 through a sale to strategic buyer Cole-Parmer.

Charlotte-headquartered Summit Park invests in lower middle-market companies that have operations primarily based in the Eastern half of the United States and have revenues between $20 million and $150 million, and EBITDA between $4 million and $15 million. Sectors of interest include business and consumer services, light manufacturing, and value-added distribution. Summit Park was founded in 2006 and has made over 40 investments in the lower middle market totaling more than $2 billion in enterprise value.

Stellus Capital Management provided the debt financing to back the acquisition of Michelli by Summit Park.

© 2024 Private Equity Professional | January 12, 2024

Firelight Capital Partners has acquired Fromm International, a provider of beauty tools, from the founding Simon-Johnson family.

Fromm is a manufacturer and distributor of shears, salon apparel, hair accessories, brushes, combs, foil, gloves and towels used by both professionals and consumers. Company-owned brands include Fromm Pro, The Hair Edit, and Diane. Fromm sells its products through thousands of points of distribution throughout North America and Western Europe, including at all Ulta Beauty stores. In addition to its beauty products, Fromm is one of the largest suppliers of education kits to beauty schools throughout the United States and Canada.

Fromm was founded in 1907 as the Illinois Razor Strop Company by James Simon, selling razor strops to barbers. In 1960, the company introduced the Clipper-Mate Hard Rubber Comb – its first non-cutlery related product. In 1968 the company began a series of acquisitions with the buys of Fromm Cutlery, a maker of shears in 1968; Andre Fantasies, a provider of salon apparel including masks and aprons, in 1992; Mebco Combs in 2000; and Diane Products, a provider of bobby pins and  hair clips, in 2003. The company changed its name to Fromm International in 1984 and today is headquartered near Chicago in Mt. Prospect, Illinois.

Fromm’s current owners, Julie Simon Johnson and Kevin Johnson, will continue to own a portion of the company in partnership with Firelight. Kevin Barrett, the current president of Fromm, will remain with the company as its president but will begin transitioning leadership of day-to-day operations to Martin Okner, who was named as Fromm’s chief executive officer on January 2nd. Mr. Barrett has been with Fromm since 1989 when he joined the business as a vice president from Helene Curtis. “I am excited to see how the new ownership and leadership will build on Fromm’s already impressive history of growth,” said Mr. Barrett.

Mr. Okner is the past president and chief operating officer of New York City-based dpHUE, a provider of hair color, shampoos, conditioners, and other hair care products. Earlier in his career he worked in various leadership positions at Revlon, Cadbury and Altria.

“I am honored to lead Fromm into this new chapter,” said Mr. Okner. “With the company’s strong foundation and support of Firelight Capital Partners, we will continue to deliver exceptional products and services to our customers and will continue to realize new opportunities for growth and expansion through retail distribution and acquisitions.”

“We see tremendous potential in Fromm’s brands and are excited to build upon its more than 100-year legacy of success,” said Pat Collins, the managing partner of Firelight. “We are extremely proud of what the Fromm team has accomplished and are excited to see what the future holds. We believe the organization will continue to thrive and grow under the new leadership.”

“The acquisition of Fromm deepens our commitment to investing in consumer businesses with strong growth potential, and we believe that under the leadership of Martin Okner, Fromm will continue to thrive and innovate in the beauty industry,” said Rick Perkal, a managing partner and CEO of Firelight.

Firelight makes majority or minority investments of $10 million to $25 million in North American-based lower middle market companies that have revenue of $25 million to $100 million and EBITDA of $2 million to $15 million. Specific sectors of interest include apparel and accessories; health and wellness; beauty and personal care; food and beverage; footwear; and pets.

Firelight’s investment strategy includes pursuing operating improvements at its portfolio companies specifically in the areas of digital acceleration, channel expansion and brand strategy. The firm maintains an investment partnership with Yard NYC, a New York City-based consumer-focused brand and marketing strategy agency.

The buy of Fromm is Firelight’s first investment in the beauty industry and its fourth platform investment.

The firm’s three earlier platforms include Hobo, a Maryland-based designer and producer of branded leather handbags and accessories sold in the affordable luxury category, in 2019; Chalk Couture, a Utah-based provider of crafting products including transfers, surfaces, chalk pastes, and accessories, in 2020; and Three Dog Bakery, a Missouri-based manufacturer, marketer, and distributor of dog treats and food. Three Dog Bakery was acquired in 2020 and sold to Topspin Consumer Partners in 2023.

Fort Lauderdale-headquartered Firelight was founded in 2015 by Rick Perkal, a former senior managing director at Irving Place Capital, and Pat Collins, previously a partner at JH Partners.

© 2024 Private Equity Professional | January 12, 2024

Altamont Capital Partners has acquired Mini Melts USA, a maker of frozen novelty products. Altamont is partnering with Dan Kilcoyne, the CEO and founder of Mini Melts, on this transaction.

Mini Melts is a maker and distributor of beaded ice cream, a frozen dessert that consists of tiny, bead-like ice cream pellets that are created by flash-freezing a 14% butterfat blend of a liquid ice cream mix using liquid nitrogen.

Mini Melts’ products are sold in 2.5, 5, 8, and 12 ounce cup sizes and bulk and are available in more than a dozen flavors including chocolate, strawberry, cotton candy, cookies and cream, and rainbow ice, and are sold through automated kiosks, grab and go freezers, serving carts, and huts all with -40F cryogenic freezers. Mini Melts sells over 30 million cups per year and distributes nationally to over 15,000 locations, including convenience and drug stores, family entertainment centers, zoos, amusement parks, malls, and sports venues.

“Mini Melts’ fully integrated white glove distribution model is a real difference maker. It enables an entirely seamless experience for the company’s channel partners, and a better quality product for consumers,” said Kevin Mason, a managing director at Altamont. “This model is made possible by the world class team supporting the Mini Melts brand, a team that we felt an immediate cultural connection with and that we are honored and thrilled to be partnering with.”

Mini Melts is headquartered in the Philadelphia metropolitan area with a manufacturing facility in Norwich, Connecticut, and 20 distribution centers located across the United States.

According to the company, Mini Melts is one of the fastest-growing ice cream novelties nationwide with sales growing 35% annually with total sales that are estimated to exceed $100 million within the next 18 months. According to IRI Worldwide, Mini Melts is currently the second fastest growing frozen handheld treat in the convenience store channel and was selected as one of Bain & Company’s 2023 Insurgent Brands.

“Mini Melts has established itself as a leader in frozen novelties,” said Kabir Mundkur, a principal at Altamont. “The brand’s products are some of the highest selling single-serve products in on-the-go locations today and we believe the beaded ice cream category has expandable growth potential. We are excited to invest in the brand and bring Mini Melts into more consumers’ hands while fostering new and exciting innovation in the future.”

Post closing, Altamont and Mini Melts will be active supporting the expansion of the company’s distribution footprint and manufacturing capabilities.

“Our partnership with Altamont will bolster our growth plans, allowing us to spread into new markets and grow with new customers,” said Mr. Kilcoyne. “We have experienced exponential growth over the past several years and are focused on reaching across the entire country and innovating for our valued customers. We are excited to leverage Altamont’s experience scaling family-owned businesses and in multi-unit operations, food manufacturing, and distribution to support our next phase of growth.”

Capital Southwest and Main Street Capital provided financing to support Altamont’s investment in Mini Melts, and Raymond James was the financial advisor to Mini Melts.

Altamont invests equity of $15 million to $150 million in companies that have up to $100 million of EBITDA. Sectors of interest include business services, healthcare, consumer and retail, industrials, and financial services. The firm was formed in 2010 by Randall Eason, Jesse Rogers, and Keoni Schwartz who previously worked together at Golden Gate Capital and Bain & Company. Today, the firm has $4 billion of capital under management and is based in Palo Alto, California, with an additional office in Austin, Texas.

© 2024 Private Equity Professional | January 11, 2024