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Brazos Exits Southern Tide

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Brazos Private Equity has sold Southern Tide, a lifestyle apparel brand, to Oxford Industries at an enterprise value of $85 million. Brazos invested in Southern Tide in August 2013 with capital from its $715 million Brazos Equity Fund III which was raised in 2008.

Southern Tide is known for its extensive selection of men’s shirts, pants, shorts, outerwear, ties, swimwear, footwear and accessories.  The company recently launched an expansion of its women’s line and now offers a complete women’s collection.  Southern Tide’s products include a collegiate line featuring nearly 50 colleges and universities.  The company’s products are sold through its website and at Nordstrom, Von Maur and more than 850 specialty retailers in more than 45 states, the Virgin Islands and Bermuda. Southern Tide was founded in 2006 by Allen Stephenson and is based in Greenville, SC (www.southerntide.com).

During Brazos’ term of ownership Southern Tide added sales channels, expanded its product line and enlarged its geographic footprint. “We could not be more pleased with the success of Southern Tide,” said Randall Fojtasek, Co-Founding Partner and Co-CEO of Brazos. “Since our investment in 2013, the company has expanded its wholesale distribution channels, grown its e-commerce presence, invested in supply chain and logistics, and continued the development of its men’s and women’s lines. The management team’s talent, hard work and skillful execution allowed the company to capitalize on these growth opportunities.”

Brazos makes equity investments of $25 million to $100 million in middle-market companies with enterprise values from $50 million to $500 million. Sectors of interest include consumer, healthcare, commercial & industrial, and business services. Brazos has approximately $1.4 billion of equity capital under management and is based in Dallas (www.brazospartners.com).

“The partnership with Brazos has been instrumental in the value creation process and has positioned our company for continued strong performance,” said Chris Heyn, CEO of Southern Tide. “We are grateful for the counsel and support the Brazos team has given us over the past three years as we expanded our business. This is an exciting time for Southern Tide and we look forward to beginning the next phase of our growth as a member of the Oxford family of brands.”

Oxford Industries (NYSE:OXM) is a clothing retailer that specializes in high-end clothing and apparel. The company’s brands include Tommy Bahama, Lilly Pulitzer, Oxford Golf and Lanier Clothes. Oxford’s relationship with Southern Tide goes back to 2009 when it began providing sourcing and production services to Southern Tide. Oxford Industries was founded in 1942 and is headquartered in Atlanta (www.oxfordinc.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-21-16

TVV Capital Exits Indco

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TVV Capital has sold its portfolio company Indco, a manufacturer of mixing equipment. The sale generated a 3.2x return on invested capital for TVV’s second fund, Tennessee Valley Ventures II, LP.

Indco is a designer, manufacturer and distributor of industrial mixing and agitation equipment.  Products include handheld and portable mixing equipment, propellers, impellers, and dispersers, as well as related accessories such as containers, tanks, and stands. The company was founded in 1975 and is led by its president Mark Hennis. Indco is headquartered just north of Louisville in New Albany, IN (www.indco.com).

“TVV acquired Indco in 2005, and its sale generated an outstanding return for investors in our second fund,” said Andrew Byrd, President of TVV Capital. “When we purchased Indco, we saw potential for expanding their markets, accelerating product development and improving operating margins. The sale highlights our ability to identify and acquire well-managed, profitable companies in attractive niches and partner with their teams to achieve operational excellence, strong customer growth and market expansion.”

TVV Capital is a lower middle-market buyout firm focused on acquiring market-leading niche companies across a range of industries.  The firm targets companies with enterprise values from $10 million to $100 million, revenues from $15 million to $150 million, and EBITDA margins of 10 to 25 percent.  TVV Capital was founded in 1997 and is headquartered in Nashville (www.tvvcapital.com).

“As part of the sale process, we worked with the buyer to assure a smooth transition of operations. We are pleased that Indco’s key managers, including their President and Chief Financial Officer, will remain with the company post sale,” added Mr. Byrd.

Hilliard Lyons Investment Banking (www.hlinvestmentbanking.com) was the financial advisor to TVV and McKenzie Laird (www.mckenzielaird.com) provided legal services.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-20-16

Castle Harlan Exits Baker & Taylor

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Castle Harlan has sold Baker & Taylor, a distributor of books, video and music products, to Follett Corporation. Castle Harlan Partners IV, LP acquired Baker & Taylor in July 2006 in a transaction valued at $455 million.

Baker & Taylor is a distributor of physical and electronic books, videos, music products and a provider of services to libraries and retailers. The company has approximately 25,000 suppliers and sells to over 20,000 customers in 120 countries. Baker & Taylor is headquartered in Charlotte (www.baker-taylor.com).

Follett Corporation provides education technology, services, and print and digital content to pre-K and K-12 schools, and colleges in the United States and Canada. The company distributes new and pre-owned books, reference materials, digital resources, eBooks, and audiovisual materials. Follett is also the nation’s largest operator of college bookstores, with more than 1,000 campus bookshops. The company is privately held – the Follett family has owned the company for four generations – and has annual revenues of approximately $2.6 billion. Follett was founded in 1873 and is headquartered in the Chicago suburb of Westchester, IL (www.follett.com).

Castle Harlan makes control investments in middle-market companies in North America, Europe and, together with CHAMP Private Equity, in Australia. Castle Harlan has participated in eight private equity funds, five in the United States and three in Australia. Those funds totaled approximately $6 billion in capital commitments.  Castle Harlan was founded in 1987 and is based in New York (www.castleharlan.com).

Sagent Advisors (www.sagentadvisors.com) was the financial advisor to Baker & Taylor and Schulte Roth & Zabel (www.srz.com) provided legal counsel.  Jones Day (www.jonesday.com) provided legal counsel to Follett Corporation.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-20-16

Wynnchurch and Comvest Exit U.S. Pipe

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Wynnchurch Capital and Comvest Partners have sold their portfolio company USP Holdings Inc. (US Pipe) to Forterra Building Products. Wynnchurch and Comvest acquired US Pipe through a divestiture from Mueller Water Products in April 2012.

US Pipe is a manufacturer of ductile iron pipe products, fittings and joint restraints that are used in drinking water and wastewater systems. Customers include distributors, residential and commercial construction contractors, utilities, and government municipalities.  The company is headquartered in Birmingham, AL (www.uspipe.com).

US Pipe was founded in 1899 as the United States Cast Iron Pipe and Foundry Company and at that time was responsible for approximately 75% of the production capacity of cast iron pipe in the United States.

Over the past four years, Wynnchurch and Comvest have grown US Pipe both organically and through five add-on acquisitions. “Wynnchurch and Comvest have been valued partners as we have continued to build on our position as the leading provider of ductile iron pipe products in the US,” said US Pipe CEO Paul Ciolino. “Each firm has significant investment and operational expertise, which helped management grow the business, drive continuous improvement and execute on our strategy.  In addition, Wynnchurch and Comvest were critical in leading and executing several strategic acquisitions furthering our efforts in becoming a full-service, world class organization.”

Wynnchurch Capital makes investments of $10 million to $90 million in middle-market companies that have revenues of $5 million to $500 million. Sectors of interest include niche manufacturing, business and industrial services, energy and power services, logistics, transportation and value-added distribution. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit and Toronto (www.wynnchurch.com).

Comvest Partners provides debt and equity to middle-market companies. For debt investments the firm will invest from $2 million to $20 million per transaction in companies with $10 million to $200 million of revenue that have positive or negative EBITDA. For equity investments the firm will invest from $25 million to $100 million of equity per transaction in companies with $15 million to $500 million of revenue that have positive or negative EBITDA. Comvest is based in West Palm Beach (www.comvest.com).

Forterra Building Products is a provider of infrastructure and water management products and a manufacturer of concrete and clay building products. Company divisions include Forterra Pipe & Precast, Forterra Pressure Pipe, Forterra Structural & Specialty Products, and Forterra Brick. Forterra employs approximately 5,400 people and has more than 125 facilities. The company is based in Irving, TX (www.forterrabp.com).

Moelis & Company (www.moelis.com) was the financial advisor to US Pipe and Foley & Lardner (www.foley.com) provided legal services.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-19-16

Wafra Exits Century Fire Protection

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Wafra Partners has sold Century Fire Protection to publicly-traded FirstService Corporation. Wafra acquired Century in January 2007.

Century designs, fabricates, installs, maintains, repairs, monitors and inspects fire protection products for commercial, residential, industrial and institutional customers. The company had revenues in 2015 of approximately $93 million.  Century has approximately 600 employees and operates out of 12 offices in Georgia, Alabama, North Carolina, South Carolina, Tennessee and Texas. The company is headquartered near Atlanta in Duluth, GA (www.centuryfp.com).

“We were pleased to have had the opportunity to work closely with management in order to transition Century from primarily a Georgia-centric, provider of installation services to the largest, independent full service fire protection company in the Southeast,” said Michael Goodman, a Managing Director at Wafra.

During the term of its ownership Wafra worked with the management of Century to add new services and close on three add-on acquisitions. “Through the addition of various service capabilities and three accretive acquisitions, Century is now a rapidly growing company that has diversified toward recurring, higher-margin work on existing facilities, expanded into new end markets and geographies, and added the sales, estimation, accounting and operational personnel necessary to support an end-to-end platform,” added Mr. Goodman.

Wafra invests up to $30 million of equity per transaction in middle market companies based in North America that have enterprise values between $20 million and $150 million. Typical investments have revenue of $20 million or more and EBITDA of $4 million or more. Sectors of interest include consumer products, outsourced business services, niche manufacturing, and consumer-driven services. The firm is based in New York (www.wafrapartners.com).

“Wafra Partners has been an ideal partner,” said Scott Tutterow, CEO and founder of Century Fire. “They provided management with the strategic resources and capital necessary to help us achieve our strategic and financial goals. Wafra was flexible and stuck with us during some difficult times. As a result of our collaborative relationship, we are now in a position to further accelerate growth with the support of our new partners.”

FirstService Corporation (TSX and NASDAQ: FSV) provides outsourced property services to the commercial and residential property sectors. The company had $1.3 billion in annual revenues in 2015 and has approximately 16,000 employees. FirstService is headquartered in Toronto (www.firstservice.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-14-16

Linden Exits CORPAK MedSystems

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Linden Capital Partners has agreed to sell its portfolio company, CORPAK MedSystems, to publicly traded Halyard Health for total cash consideration of $174 million. This sale is expected to close before the end of the second quarter.

CORPAK develops, manufactures, and markets branded enteral products which are used for feeding or administrating drugs through the gastrointestinal tract. The company’s products – sold through a direct sales force and exclusive distributors – include CORFLO nasogastric and gastrostomy feeding tubes, FARRELL gastric pressure relief devices, and enteral feeding safety devices. CORPAK’s sales for fiscal year 2015 were approximately $54 million. The company is based in the Chicago suburb of Buffalo Grove and has sales offices in the US and the UK (www.corpakmedsystems.com).

Linden acquired CORPAK in September 2008. “Linden is proud to see CORPAK find a great home with Halyard,” said Brian Miller, a Linden Managing Partner. “During our seven-year ownership, Linden pursued its value creation plan that included an expanded strategy, an enhanced leadership team, a non-core divestiture, multiple joint ventures and acquisitions, new headquarters, direct international expansion, and intensive research and development for new product launches.”

Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries. Linden’s strategy is based upon three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. Just over a year ago, in March 2015, Linden closed its third private equity fund, Linden Capital Partners III, LP, at the oversubscribed hard cap of $750 million. The original target for the new fund was $600 million. Linden closed its first fund of $200 million in 2005 and its second fund of $375 million in 2010. The firm is based in Chicago (www.lindenllc.com).

Halyard Health (NYSE:HYH), formerly Kimberly-Clark Health Care, is a medical products manufacturer. Revenues in 2015 were approximately $1.6 billion. The company is headquartered north of Atlanta in Roswell, GA and has 11 manufacturing facilities with approximately 12,000 employees worldwide (www.halyardhealth.com).

Houlihan Lokey (www.hl.com) was the financial advisor to CORPAK and Kirkland & Ellis (www.kirkland.com) served as legal counsel.

Robert W. Baird & Co. (www.rwbaird.com) served as Halyard’s financial advisor and Alston & Bird (www.alston.com) served as legal counsel.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-13-16