Archives for March 28, 2024

One Equity Partners has completed the all cash $205 million acquisition of the measurement solutions business of publicly traded TechnipFMC.

The business, which was rebranded at closing as Guidant, was part of TechnipFMC’s surface technologies segment and operates through three units: metering products; metering systems; and terminal management.

Guidant’s metering products and systems include positive displacement, turbine, ultrasonic and Coriolis meters used in leak detection, diagnostics, and custody transfer applications which measure and document the transfer of ownership of oil, gas, or other hydrocarbon products from one party to another. Custody transfers occur at various points along the production, transportation, and distribution chain, and involves accurately measuring the quantity and quality of the product being transferred. Guidant’s systems ensure accurate measurements of flow rate, temperature, pressure, and composition, enabling reliable data on transferred product volume and quality.

Guidant’s portfolio of metering products includes the Smith Meter, a positive displacement meter which was first built in the company’s Erie facility in 1940. Today, there are more than half a million Smith Meters in use in downstream, midstream and upstream applications including for gasolines and oxygenates, ethanol, kerosene, diesel fuel, jet fuels, and fuel oils.

Houston-headquartered Guidant, led by CEO Laura Schilling, has more than 450 employees and operates six facilities, including manufacturing locations in Erie, Pennsylvania, and Ellerbek, Germany.

“Our industry is experiencing increased demand for instrumentation and automation solutions due to new regulations, fuel diversification, green energy investment, evolving data security and increasing life of assets,” said Ms. Schilling. “We are excited to partner with OEP to support our core market focus and build on our portfolio through acquisitions to deliver best measurement practices, automation and technology across a growing global platform of manufacturing, product innovation and service for our customers.”

Guidant also provides terminal management systems that provide for the measurement, accounting and control of a customer’s facility through one single integrated interface. Energy terminals are located at key points along transportation routes, including ports, rail yards, pipelines, and major highways, and are used to store, process and transfer energy products from one transportation mode to another.

“We are thrilled to be partnering with Guidant’s talented management team,” said J.B. Cherry, a partner at One Equity Partners. “Its creation came about through consistent collaboration between the management team, OEP’s team, and a large group of dedicated outside advisors to complete a complex corporate carve-out, involving three separate business units spread across multiple countries. The newly standalone Guidant is well-positioned to build on the significant collective, global strengths of its existing measurement platforms and to grow via transformational acquisitions.”

One Equity Partners (OEP) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. Typical equity investments range from $30 million to $300 million. OEP specializes in corporate carve-outs and has completed 21 similar transactions across its latest 4 funds, including 11 which operate in industrial end markets.

In April 2022, OEP closed its latest fund, One Equity Partners VIII LP, with committed capital of $2.75 billion. The new fund was oversubscribed and closed above its increased hard cap. OEP, with offices in New York, Chicago, Frankfurt, and Amsterdam, spun out of JP Morgan in 2015 and has closed more than 300 transactions worldwide since its founding in 2001.

TechnipFMC (NYSE: FTI) is a provider of subsea and surface systems and infrastructure used in oil and gas production and transportation. The company was formed by the merger of FMC Technologies and Technip in 2017 and is headquartered in Newcastle, United Kingdom, with an operational headquarters in Houston, Texas. The company had more than $7.8 billion of revenue in 2023 and has more than 23,000 employees with operations in 48 counties.

© 2024 Private Equity Professional | March 28, 2024

Arsenal Capital Partners and BayPine have partnered on the acquisition of Poly-Wood, a portfolio company of Mayfair Capital Partners, a division of Oxford Financial.

Poly-Wood is a vertically integrated build-to-order manufacturer of recycled – from post-consumer and post-industrial sources – high-density polyethylene (HDPE) outdoor furniture and related products with more than 25,000 unique product options sold under the POLYWOOD brand. The company’s products include Adirondack, rocking and occasional chairs, benches, swings, and dining sets used in residential back yards, patios, and decks as well as restaurants, cruise ships and hotels.

Poly-Wood, with 1,650 employees and 2 million square feet of manufacturing space, was established in 1990 by CEO Doug Rassi. The company’s headquarters are located northwest of Fort Wayne in Syracuse, Indiana, with an additional manufacturing facility situated in Roxboro, North Carolina.

Oxford first invested in Poly-Wood in October 2015. “It has been a privilege to partner with such a world-class management team to meet the needs of Poly-Wood’s customers and drive a strategy focused on omnichannel growth, product innovation, and manufacturing scale,” said Bo Ramsey, the chief investment officer and co-managing partner at Mayfair and Oxford. “We are thrilled by the results our investment in Poly-Wood was able to produce for our clients.”

“We are thrilled about the opportunity to work alongside Arsenal and BayPine in the next phase of our company’s growth,” said Mr. Rassi. “Arsenal’s deep domain expertise in the polymer processing market and its understanding of our unique manufacturing processes, coupled with BayPine’s technology know-how and sharp focus on further developing our digital capabilities, gives us confidence in our go-forward partnership and unique ability to build a strategically important business.”

“Poly-Wood’s longstanding track record of growth and industry-leading position are a testament to the differentiated business model and brand the team has built over the past three decades,” said George Abd, an operating partner at Arsenal. “Given its vertical integration and eye toward innovation, the company’s ability to serve its retail partners and consumers is unmatched in the market. We are excited to work with Doug and his leadership team to continue building on the business’ momentum.”

“We see meaningful opportunity ahead for Poly-Wood and significant whitespace in the HDPE market,” said Matthew Teller, a principal of Arsenal. “We look forward to investing behind the company to achieve both key organic and inorganic initiatives and to further drive long-term strategic value.”

Partnering with Arsenal on this transaction is Boston-based BayPine, an investor in companies that are active in the healthcare, consumer, specialty industrials, and business services sectors. BayPine specializes in investing in companies where opportunities are present for growth through the application of digital technology in infrastructure, analytics, marketing, and automation.

“Poly-Wood has distinguished itself through its pioneering brand and sustainable manufacturing processes, unwavering commitment to operational excellence, and focus on fostering a highly collaborative and collegial culture,” said Steve Ko, a founding partner of BayPine. “We see a significant opportunity to further build lasting value at Poly-Wood by leveraging our differentiated digital and technology expertise in partnership with management.”

New York-headquartered Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million of enterprise value. Since its founding in 2000, Arsenal has raised total capital of $10 billion, closed more than 290 platform and add-on acquisitions, and exited more than 35 portfolio companies.

Arsenal’s buy of Poly-Wood, follows its January 2024 acquisition of Polycorp, an Ontario-headquartered maker of engineered polymer products, including rubber- and polyurethane- based elastomers, which are used to reduce corrosion, abrasion, vibration, and noise in applications in the mining, rail, infrastructure and industrial sectors.

Mayfair Capital Partners makes control and non-control equity investments of $75 million to $150 million in North American-based businesses that are active in the consumer, technology, and industrial sectors and have EBITDA at or near break-even to $30 million. Mayfair was formed by Oxford in July 2021 as an extension of its Mayfair direct investment strategy which was formed in 2003. Mayfair and Oxford are headquartered north of Indianapolis in Carmel, Indiana.

Piper Sandler & Co. and Moelis & Company were the financial advisors to Poly-Wood, and Baird was the financial advisor to Arsenal and BayPine.

© 2024 Private Equity Professional | March 28, 2024

L Catterton has made an investment in Storyteller Overland, a maker of premium Class B RV and expedition vehicles.

Storyteller’s vehicles, including MODE adventure vans and GXV HILT adventure trucks, are sold through more than 40 dealers located across the United States.

In addition to its vehicle products, Storyteller sells adventure gear and related accessories to its customer base of outdoor lifestyle enthusiasts, road-trippers, van-lifers, and overlanders. Storyteller was founded in 2018 and is headquartered in Birmingham, Alabama.

With the backing of L Catterton, Storyteller plans to accelerate its product development initiatives, invest in manufacturing capabilities, and build its dealer network.

“We are so excited for this brilliant partnership with L Catterton,” said CEO Jeffrey Hunter. “Their deep expertise in the consumer sector, coupled with their track record of supporting high-growth companies, makes them an ideal partner as we continue to expand our business and bring our vision of adventure to more people around the world.”

“With its strong product offering, sizable dealer network, and engaged community of adventurers, Storyteller Overland is the clear leader in the adventure vehicle space,” said Matt Nugent, a partner in L Catterton’s Growth Fund. “In just a few years since its founding, Storyteller Overland has captured considerable market share and has established itself as the new standard of excellence for Class B RVs. We look forward to working with the Storyteller Overland team to continue growing its adventurer community and to help them reach new levels of success.”

Greenwich, Connecticut-headquartered L Catterton invests in consumer-focused companies with specific interest in food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services. The firm, with 200 investment and operating professionals across 17 offices, was founded in 1989 and has $34 billion of equity capital under management across its three investment strategies: private equity, credit, and real estate.

L Catterton is familiar with the outdoor products sector with past investments in Pinarello, a provider road bikes and accessories (2017); Getaway, a “tiny house” lessor and operator (2017); Airxcel, a maker of cooling and ventilation systems used in recreational vehicles (2018); Truck Hero, a provider of aftermarket accessories for pickup trucks and Jeeps (2020); Heartland RV, a manufacturer and marketer of non-motorized recreation vehicles (2007); and Leslie’s, an omni-channel retailer of swimming pool and spa supplies (2017).

Co-investing in this transaction with L Catterton are California-based RX3 Growth Partners (co-founded by NFL quarterback Aaron Rodgers), New York-based Wheelhouse, and South Carolina-based Virentes Partners Group.

© 2024 Private Equity Professional | March 28, 2024