Archives for January 25, 2024

GS Foods Platform Grows with Buy of Diamond Foods

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GS Foods Group, a portfolio company of Highview Capital and A&M Capital Partners, has acquired Diamond Foods, a regional K-12 food distributor.

New Orleans-headquartered Diamond Foods was founded in 1982 by CEO Jerry Sax and specializes in dry and frozen products and services many of the state’s parishes.

Highview and A&M formed GS Foods Group in October 2019 to acquire Gold Star Foods from Castle Harlan, and then immediately merged the company with Good Source Solutions, a portfolio company of Highview.

Today, Ontario, California-headquartered GS Foods is a food distributor serving the education, corrections, non-profit, business and industry, and healthcare sectors. The company operates through its two subsidiaries, Good Source Solutions which distributes center-of-plate items including poultry, meats, pasta, fruits, vegetables, bakery items, beverages, and snacks; and Gold Star Foods which distributes refrigerated, frozen and dry menu items as well as fresh bread and produce. GS Foods has more than 8,500 customers and is led by CEO Sean Leer.

The buy of Diamond Foods follows earlier add-on acquisitions of Louisiana-based Lamm Food Service (September 2023), Missouri-based Graves Foods (July 2022), Connecticut-based Thurston Foods (November 2021), Missouri-based C&C Produce (September 2021), Ohio-based Classic Delight (July 2021), California-based School Lunch Products (June 2021), California-based Fresno Produce (January 2021), and California-based Hayes Distributing (January 2021). In addition to these seven add-ons, GS Foods has opened new distribution centers in Pennsylvania (June 2021), Texas (July 2021), Colorado (July 2020), Oregon (July 2020), and Missouri (October 2021).

“The GS Foods family is dedicated to its mission of simply and sustainably nourishing the specialized needs of our customers and communities,” said Mr. Leer. “This partnership reinforces our commitment to provide the highest-quality food solutions to the K-12 market in the region.”

Highview Capital, headquartered in Los Angeles, invests from $20 million to $125 million of equity in companies with revenues of $50 million to $500 million and EBITDA of $5 million to $50 million. Highview invests in many sectors and is effectively industry agnostic. The firm sources its capital from a $500 million evergreen fund and is backed by Karlin Asset Management, a Los Angeles-based investment company.

Greenwich, Connecticut-based A&M Capital Partners makes control and significant minority investment of $60 million to $200 million in North American-based companies that have from $20 million to $100 million in EBITDA. Sectors of interest include business services, industrials, manufacturing, food and beverage, healthcare, consumer and retail, government services, financial services and energy services.

© 2024 Private Equity Professional | January 25, 2024

Praesidian Takes the Checkered Flag with Sale of Autobahn

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Praesidian Capital has sold Autobahn Holdings, an operator of indoor go-kart racing tracks, to K1 Speed, the world’s largest indoor go-kart racing operator.

Jacksonville, Florida-headquartered Autobahn operates eleven indoor karting tracks in the United States with locations in Maryland, Alabama, Virginia, Pennsylvania, Florida, Tennessee, and New York. Kart speeds can reach up to 45 miles per hour. Customers of the company include novices, auto racing enthusiasts, racing professionals, and corporate event planners. Praesidian first invested in Autobahn in November 2018.

Source: Autobahn Holdings

The go-kart racing sector and K1 are not new to Praesidian. In September 2011, Praesidian provided K1 with $6.6 million in senior debt to provide K1 with expansion capital to open new locations in California, Texas, Florida and Illinois. Praesidian exited this investment in June 2013.

“This successful exit underscores Autobahn’s growth and exceptional management team,” said Tom Duffy, a partner at Praesidian. “The company’s commitment to providing world class experiences has not only resonated with enthusiasts but has also set a new standard in the industry. We are pleased with the result of this investment and its positive outcome for our investors.”

“Praesidian has been an invaluable partner throughout Autobahn’s growth,” said Michael Greene, CEO of Autobahn. “We are grateful for Praesidian’s role in our success and are confident that Autobahn is well positioned for the future.”

K1 Speed is the world’s largest indoor electric kart racing operator. As a result of this acquisition, K1 Speed now operates 83 locations in 29 states and 7 countries. In addition to its indoor electric go kart racing, K1 locations offers food and drinks (including beer and wine) through its Paddock Lounge café, seating and viewing areas, spacious lobbies, electronic games, and private meeting rooms. K1 also holds the K1 Speed E-World Championship, one of the largest karting championships in the country with one of the largest prize purses of any karting championship worldwide. K1 was founded in 2003 by CEO David Danglard and Director of Marketing Susan Danglard and is headquartered in Irvine, California.

Source: K1 Speed

The acquisition of Autobahn is the largest in a series of acquisitions by K1 that began in August 2022 with the purchase of Pole Position Raceway and its two company-owned karting centers in Las Vegas, Nevada and Corona, California.

“Autobahn’s passion for indoor karting was undeniable, and I applaud them for promoting it through their leagues and championships,” said Mr. Danglard. “We share this same strong love for the sport, so we’re confident that existing racers will embrace the expanded competition that K1 Speed provides with our E-World Championship.”

Praesidian was founded in 2002 and has been an active provider of senior and subordinated debt along with growth capital to lower middle-market businesses in the United States, United Kingdom, Germany, and selectively in Northern Europe. The firm is headquartered in Oklahoma City, Oklahoma.

© 2024 Private Equity Professional | January 25, 2024

As It Begins its Thirteenth Year, Abacus Finance Announces Promotions

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Abacus Finance Group has announced the promotions of Joseph Lee to senior vice president and Austin Rendell to vice president. In addition, the firm has hired Matthew Campanella as an analyst.

As an investment team member, Mr. Lee, who joined Abacus in 2014, is involved with structuring, underwriting, executing, monitoring, and valuing investments for the firm. Before joining Abacus, he was an analyst at GE Capital. Mr. Lee has his undergraduate degree in accounting and finance from the University of Illinois.

Mr. Rendell, who joined Abacus in 2019 as an analyst, works as part of the investment team in structuring, underwriting. and executing new investments; and he also performs various portfolio monitoring and valuation roles. Before joining Abacus, he was an analyst in the food and consumer group at BMO Harris Bank. Mr. Rendell has his undergraduate degree from the McDonough School of Business at Georgetown University.

As an analyst with Abacus, Mr. Campanella will be active as an investment team member in structuring, underwriting, executing, monitoring, and valuing investments for the firm. He has his undergraduate degree in economics from Boston College.

“We are especially proud of the accomplishments of Joe and Austin as members of what has become one of the most experienced investment teams in our industry. As we enter our thirteenth year, that experience continues to deepen, and we are better prepared than ever to meet our goal of providing our sponsors with the talent and resources that will deliver swift and efficient service,” said Tim Clifford, the president and CEO of Abacus. “The strength of our investment team and our ability to move quickly are important aspects of why they can Count on Us™ and the effectiveness of our Total Partnership Approach™.”

Abacus provides cash flow-based senior financing to private equity and family office-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $50 million. Since Abacus’s founding in June 2011, it has closed over $3 billion in financings. Abacus, led by Mr. Clifford, is headquartered in New York City and is an affiliate of New York Private Bank & Trust which was founded in 1850.

© 2024 Private Equity Professional | January 25, 2024

WILsquare Expands Quilting and Crafting Platform

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WILsquare’s portfolio company TEK Holdings (DBA TekBrands) has closed the acquisition of Arrow Companies, a maker of workstations, storage systems and accessories for quilting and sewing enthusiasts.

Arrow’s products, sold through a nationwide network of dealers and online through its website under company owned brands Arrow and Kangaroo, include sewing cabinets, tables and chairs, storage cabinets, cutting tables and mats, and other specialty furniture.

Source: Arrow Companies

Arrow Sewing was founded in 1943 by Isaac Aaronson as Arrow Novelty Company, initially specializing in the manufacturing of wooden toys and novelties, and is headquartered southwest of Milwaukee in Elkhorn, Wisconsin.

TekBrands is a designer and e-commerce-based marketer of a range of branded products sold and used by quilting and crafting enthusiasts and retailers. The company’s products include electric and manual fabric cutters, cutting dies, quilting patterns, cutting mats, sewing supplies, storage trays and cabinets. Omaha, Nebraska-headquartered TekBrands was founded in 1990 by the husband and wife team of Steve and Lynette Nabity.

Arrow Sewing is the second acquisition made by TekBrands under WILsquare’s ownership and follows the buy of June Tailor in July 2023. June Tailor’s products include cutting and measuring tools, quilting templates, iron-on transfer sheets, and other accessories that are used by crafting, quilting, and sewing enthusiasts. The business was founded by June Kroenke in 1961 and is based near Milwaukee in Richfield, Wisconsin.

In addition to the just acquired Arrow and Kangaroo brands, TekBrand’s other company-owned brands include AccuQuilt, AccuCut, Custom Shape Pros, MemoryStitch, and June Tailor.

“I am excited to welcome Arrow Sewing to our growing family of quilting, sewing and crafting brands,” said Renee Thomas Jacobs, the CEO of TEK Holdings. “Our organizations have a mutual passion for developing unique products and innovative solutions for a shared customer base. Together, we can offer even more inspiration to our combined audience of crafting enthusiasts.”

“Arrow Sewing represents a highly complementary addition to the TEK Holdings platform,” said Andrew Scharf, a director at WILsquare. “We believe this acquisition unlocks new opportunities across the TEK portfolio of brands and meaningfully advances our market leadership position.”

WILsquare invests in businesses that are based in the Midwest and South that have EBITDA of $3 million to $10 million. Sectors of interest include business services, technology infrastructure and services, value-added distribution, niche manufacturing, and internet and catalog-based enterprises.

In July 2019, after a quick three months of fundraising, WILsquare held a final and above target closing of WILsquare Capital Partners Fund II LP with total capital commitments of $190 million.

© 2024 Private Equity Professional | January 25, 2024