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Clayton, Dubilier & Rice Exits Sally Beauty

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Clayton, Dubilier & Rice today announced total proceeds of $1.9 billion from its 2006 investment in Sally Beauty Holdings. Including a secondary offering completed today, CD&R has sold all of its 86 million Sally common shares in four underwritten offerings in October 2011, February 2012, May 2012 and July 2012, and a share repurchase by Sally in May 2012, at an average price of $22.68. In November 2006, CD&R invested $571 million to acquire approximately 47.5% of Sally Beauty Holdings, Inc., valued at $6.66 per share, from The Alberto-Culver Company. Post-initial investment, CD&R became the largest single shareholder.

Sally Beauty Holdings is an international specialty retailer and distributor of professional beauty supplies with annual revenues of $3.5 billion. Sally operates primarily through two business units, Sally Beauty Supply and Beauty Systems Group, and is the largest distributor of professional beauty supplies in the U.S. based on store count. The Sally Beauty Supply and Beauty Systems Group businesses sell and distribute through over 4,400 stores, including 185 franchised units, throughout the United States and Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Mexico, France, Ireland, Spain, Germany and the Netherlands. The company is based in Denton, TX (www.sallybeautyholdings.com).

Under CD&R’s ownership, revenues and EBITDA for Sally increased 49% and 101%, respectively, while margins expanded 430 basis points. Sally pursued a number of initiatives to drive earnings growth, including initiatives focused on improving sales productivity at the company’s 4,400-store network, accelerating new store openings, augmenting profitability, growing internationally, and strategically making acquisitions.

CD&R Partners Richard Schnall and Kenneth Giuriceo served as Directors of Sally Beauty, and CD&R Operating Partner James Berges served as Chairman. “Sally Beauty involved the complex carve-out of a non-core distribution business,” said Mr. Schnall. “The company’s strong performance during our ownership was underpinned by solid execution of key operational improvement initiatives, including increasing customer traffic, expanding gross margins and growing the business internationally.”

Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $17 billion in 52 US and European businesses representing a broad range of industries with an aggregate transaction value of approximately $80 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York, NY and London, UK (www.cdr-inc.com).

Sentinel Capital Partners Exits LTI Boyd

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Sentinel Capital Partners announced today the sale of LTI Boyd, a manufacturer and supplier of high performance, custom engineered components for large, multinational OEMs. During Sentinel’s ownership, LTI Boyd’s revenue increased nearly five-fold through organic growth and the completion of three acquisitions. “We are extremely pleased with LTI Boyd’s performance,” said John McCormack, Senior Partner at Sentinel. “We have been fortunate to partner with LTI Boyd’s talented management team and wish them continued success as they enter their next stage of growth.”

LTI Boyd manufactures products for gasket, sealing, insulation, and impact protection applications in the heavy truck, recreational vehicle, enterprise electronics, off-highway, aerospace, and consumer electronics markets. LTI Boyd operates seven manufacturing facilities across the United States and in China. The company is based in Modesto, CA (www.ltiboyd.com).

“Sentinel was an ideal partner for our team,” said Mitch Aiello, LTI Boyd’s CEO. “Sentinel’s support and help was a crucial component of LTI Boyd establishing its leading market position.”

Sentinel Capital Partners invests in smaller middle market companies in the United States and Canada in partnership with management. The firm invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of established businesses with EBITDAs of between $7 million and $35 million. Sectors of interest include aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare products and services, and industrials. The firm is located in New York, NY n(www.sentinelpartners.com).

Robert W. Baird & Co. advised LTI Boyd in the transaction. William Blair & Company served as co-advisor. Kirkland & Ellis served as legal advisor to LTI Boyd.

High Street and Greyrock Exit Data Source

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High Street Capital and Greyrock Capital Group have announced the sale of DSI/Data Source, a business process outsourcing service organization, to Inverness Graham Investments.

Data Source is a business process outsourcing service organization that provides document design and distribution and other “back-office” services to multi-location businesses such as commercial franchises, auto dealerships, retail insurance, branded products, industrial products and restaurant concepts. The company is based in Kansas City, MO (www.data-source.com).

High Street Capital and Greyrock Capital Group partnered with the founders of DSI/Data Source in March of 2007 to grow Data Source both organically and through acquisitions. During their ownership, Data Source built a management team for growth, expanded to three industry verticals, completed three acquisitions and two strategic partnerships, added over 37 new clients, and grew revenues over 55%.

High Street Capital acquires, recapitalizes and provides growth capital to outsourced business services, niche manufacturing and value-added distribution and logistics companies in the central US with revenues of $10 million to $100 million. The firm is based in Chicago, IL (www.HighStreetCapital.com).

Greyrock Capital Group provides mezzanine debt and equity to finance buyouts, recapitalizations and internal growth needs of middle-market companies. Greyrock is currently investing out of its second fund and serves management teams and equity sponsors nationwide through offices in San Francisco, Chicago and Wilton, CT (www.greyrockcapitalgroup.com).

Inverness Graham invests in lower middle market value-added manufacturing and service companies with EBITDA’s between $3 million and $10 million and enterprise values of less than $75 million. Inverness Graham manages $250 million in capital commitments and was formed by senior executives of the Graham Group, an industrial and investment concern with global interests in plastics, packaging, recycling, building products and outsourced manufacturing. The firm is based in Philadelphia, PA (www.invernessgraham.com).

Century Park Capital Partners Exits Eckler’s

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Century Park Capital Partners has completed the sale of its portfolio company Eckler’s, multichannel retailer of aftermarket parts for predominantly classic cars, to Baird Capital Partners. Eckler’s was acquired in June of 2006 by Century Park Capital Partners.

“We are very proud of what the Eckler’s team has been able to accomplish, which was to build one of the leading multichannel marketers of parts and accessories for automobile enthusiasts,” said Chip Roellig, Managing Partner with Century Park. “By partnering with management to aggressively grow the company, we were able to deliver a favorable outcome for Century Park and our limited partners.”

Eckler’s is a multichannel retailer of aftermarket parts for predominantly classic cars. The company’s offerings include Corvette (www.ecklers.com), 1949-1954 Early Chevy (www.ecklersearlychevy.com), 1955-1957 Classic Chevy (www.classicchevy.com), 1958-1972 Chevy (www.lategreatchevy.com), Classic Chevy Truck (www.ecklerstrucks.com), Camaro (www.rickscamaros.com), Firebird (www.ecklersfirebird.com), Chevelle (www.ecklerschevelle.com), El Camino (www.elcaminostore.com), 1957-1979 Ford (www.dearbornclassics.com), Porsche (www.automotion.com) and Mercedes (www.ecklersmbzparts.com).

Since Century Park Capital’s original acquisition in 2006, Eckler’s consummated five acquisitions, expanding the company’s range of products to reach a much broader enthusiast vehicle base. Initially specializing in primarily Corvette-based products, the company now serves a variety of makes including Ford, Chevrolet, Porsche and Mercedes.

“We have had a great relationship with Century Park, and my team and I have valued their guidance and support in building our platform. The Century Park team felt like a true partner and it was a pleasure to work with them,” said Matt Jordan, President and CEO of Eckler’s. “We are pleased that this exit will deliver solid returns for their investors and we are excited for the next chapter of our growth.”

“The growth of Eckler’s both organically and through its successful integration of five acquisitions underscores the impact of our approach to building leading companies in the middle market. Matt Jordan and the entire management team at Eckler’s did an absolutely incredible job running this business, especially given the challenging macroeconomic environment,” said Guy Zaczepinski, Principal with Century Park.

Century Park Capital Partners invests from $10 million to $50 million in profitable, growing middle-market companies with operating cash flows of at least $4 million and revenues ranging from $25 million to $150 million. Sectors of interest include manufacturing, branded distribution and service businesses. The firm is based in Los Angeles, CA (www.centuryparkcapital.com).

Baird Capital Partners invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 to $125 million and EBITDAs greater than $5 million. Baird Capital Partners was founded in 1989 and is based in Chicago, IL (www.bairdcapitalpartners.com).

Sidley Austin served as legal counsel to Century Park and Lazard served as the exclusive financial advisor to Eckler’s.

BV Investment Partners Exits Northstar Travel Media

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BV Investment Partners has announced the sale of its portfolio company Northstar Travel Media, a business-to-business information company serving the travel and meeting industries, to The Wicks Group of Companies. This is the fourth exit in 2012 for BV Investment Partners.

“BV’s expertise in the business and information services sector proved pivotal as we worked together to pursue new avenues of growth over the past several years. We are proud of the way we have grown and transformed the business under BV’s ownership and we look forward to working with our new partners at The Wicks Group to begin our next stage of development,” said Thomas Kemp, Chairman and CEO of Northstar.

Northstar is a business information and marketing solutions provider to the travel, tourism, and meetings industries. The company provides information and marketing solutions through a branded portfolio of information, events, research and content products, delivered online and offline. The Northstar assets include Travel Weekly, Meetings & Conventions, Travel Age West, Successful Meetings, Business Travel News, Incentive, Meeting News, and PhoCusWright. The company is based in Secaucus, NJ (www.northstartravelmedia.com).

“Northstar’s superb management team led by CEO Tom Kemp, whom we recruited in 2009, did an outstanding job of growing this company and strengthening its leadership position in its served markets. The company has been transformed from a print publishing business to a multi-dimensional cross platform business information and marketing services company as a result of continued investment in strong leadership, innovative new product development, and complementary acquisitions. We are pleased with this successful outcome and believe the company will continue to thrive under The Wicks Group,” said Andrew Davis, a Managing Director of BV.

BV Investment Partners makes investments in US based companies active in the information and business services, communications and media industries. Since its founding in 1983, the firm has invested $2.6 billion in 75 companies. The firm was founded in 1983 and has offices in Boston, MA and New York, NY (www.bvlp.com).

Hammond, Kennedy, Whitney & Company Exits OakRiver Technology

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It was announced today that Hammond, Kennedy, Whitney & Company has sold its portfolio company OakRiver Technology, a manufacturer of automation equipment, to PaR Systems.

OakRiver Technology is now part of the new PaR Life Science and Process Automation group and will serve as a platform to lead PaR Systems’ expansion in the life sciences market.

OakRiver Technology is a manufacturer of high precision automation equipment to the medical device and high tech industrial sectors. The company is based in Oakdale, MN (www.oakrivertechnology.com).

PaR Systems is a designer and manufacturer of automation equipment and a portfolio company of MML Capital Partners. Industries served include aerospace, defense/marine, hazardous material/nuclear, heavy material handling, industrial manufacturing, and life sciences. The company was founded in 1961 and is based in St. Paul, MN (www.par.com).

“OakRiver Technology brings to PaR deep engineering talent with superior technology know-how. They have a great combination of strong operational and engineering expertise and focus while sustaining steady growth. Like PaR, their customer base views them as a trusted partner for demanding and complex solutions and they continually adopt new technologies to add to their solutions arsenal. We are excited about the market opportunities OakRiver brings to the mix, and pleased to add this quality organization to the PaR family,” said Mark Wrightsman, President and CEO of PaR Systems.

Greene Holcomb & Fisher (GH&F) served as the exclusive financial advisor to OakRiver Technology. GH&F, with offices in Minneapolis, Phoenix, Seattle and Atlanta, is an investment banking firm that specializes in mergers and acquisitions, private placements and financial advisory services for the middle market (www.ghf.net).

“OakRiver is an extremely well-run company with an outstanding management team and track record of delivering high quality engineered products to its customers. We worked together with the management team and HKW to find a strong partner for the business in PaR Systems,” said GH&F Managing Director, Ken Higgins.

Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Over the past 29 years, HKW has completed 40 platform management buyouts of small middle-market companies throughout North America as well as 42 add-on acquisitions. The firm is headquartered in Indianapolis, IN with an additional office in New York, NY (www.hkwinc.com).

Falfurrias Capital Partners Exits UC Synergetic

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Falfurrias Capital Partners announced today that it has signed an agreement to sell its ownership interest in UC Synergetic, a provider of energy and communications engineering, consulting and technical services, to a subsidiary of Pike Electric Corporation. “Falfurrias has been an exceptional partner for our company, from both a strategic and a financial perspective,” said UC Synergetic CEO Mike Kistner. “Even during the height of the recession, Falfurrias supported our decision to maintain the highest level of service despite challenging market conditions. Our managers are excited to begin the company’s next phase of growth as a part of the Pike team.”

UC Synergetic is a national engineering, technical services and consulting company. Capabilities include power engineering and design (both transmission and distribution); gas distribution design; energy delivery consulting; wireless, cable, and cellular network infrastructure engineering. UC Synergetic is based in Charlotte, NC with major offices in Atlanta; Boston; Columbus; Dallas; Denver; Raleigh and Tampa as well as regional offices throughout the U.S. (www.ucsynergetic.com).

By focusing on maintaining the highest level of client service and by expanding into the high-growth communications, transmission, and substation engineering markets through highly accretive acquisitions, UC Synergetic achieved exceptional financial results, nearly tripling its base revenue and profitability since the Falfurrias acquisition in 2007.

“When we made our investment in UC Synergetic, we were attracted to the industry trends that had driven the company’s successful track record for the previous two decades,” said Ed McMahan, Partner with Falfurrias Capital Partners. “During our investment period, the UC Synergetic management team successfully navigated the unexpected challenges that proved daunting for many of the company’s competitors, providing an attractive enterprise for Pike.”

Falfurrias Capital Partners makes equity investments of at least $3 million in companies with revenues in excess of $10 million and EBITDAs in excess of $2 million. Industries of interest include financial services; consumer products; health care; building products; diversified manufacturing; business services; education, training, and information services; and infrastructure services. Falfurrias was founded by former Bank of America Chairman and CEO Hugh McColl Jr. and former Bank of America CFO Marc Oken. The firm is based in Charlotte, NC (www.falfurriascapital.com).

Falfurrias was advised on the transaction by BlackArch Partners, a middle-market investment bank offering investment banking services to financial sponsors, private companies and corporations, including dedicated industry verticals for Energy and Infrastructure & Construction. The firm is based in Charlotte, NC (www.blackarchpartners.com).

Industrial Growth Partners Exits Xaloy Superior Holdings

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Nordson Corporation announced today that it has completed the acquisition of Xaloy Superior Holdings, a portfolio company of Industrial Growth Partners and a manufacturer of melt delivery components for injection and extrusion machinery.

Xaloy is a provider of highly engineered, function-critical plastic processing wear components and ancillary equipment used in injection and extrusion machinery in the plastic processing industry. Products include injection barrels, high performance screws, preassembled plasticating systems, heat transfer rolls, melt pumps, screen changers, pelletizers, and cleaning ovens. The company is based in New Castle, PA (www.xaloy.com).

Nordson Corporation engineers, manufactures and markets products and systems used for dispensing adhesives, coatings, sealants, biomaterials and other materials, fluid management, test and inspection, UV curing and plasma surface treatment. Nordson serves the consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. The company was founded in 1954 and is headquartered in Westlake, OH (www.nordson.com).

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. The firm is based in San Francisco, CA (www.igpequity.com).

MidOcean and Crestview Exit OneLink Communications

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MidOcean Partners and Crestview Partners announced today that they have entered into an agreement to sell San Juan Cable (dba OneLink Communications) for an enterprise value of $585 million, or approximately 8x LTM Q1 2012 Adjusted EBITDA, to Liberty Global. OneLink is the largest provider of cable TV, high-speed data and telephony services in Puerto Rico. The transaction is expected to close in the fourth quarter of 2012.

MidOcean and Crestview, together with co-investors and management, acquired OneLink in October 2005 from Adelphia Communications. At the time, its services were limited to basic and digital cable TV and high-speed data. Rebranded as OneLink Communications under MidOcean and Crestview’s ownership, the company upgraded its plant to 860 MHz; expanded its high-speed data service offering; launched telephony services, VoD and HD/DVR services; and launched an all-digital system transition that is expected to be completed in 2012.

“We are proud of everything we have been able to accomplish at OneLink. OneLink is now a best-in-class cable company with a strong commitment to providing outstanding products and service to our valued customers in Puerto Rico. We are leaving our customers and employees in good hands with Liberty Global and Searchlight, who are very experienced cable operators and investors,” said Jeffrey Marcus, Partner at Crestview and a long-time cable industry veteran.

MidOcean Partners is a private equity firm focused on the middle market. MidOcean seeks companies with stable market positions and multiple opportunities for growth. Industries of interest include consumer, media and communications, business and financial services and industrial services. The firm has offices in New York, NY and London, UK (www.midoceanpartners.com).

“We have enjoyed a successful partnership with OneLink’s management team, led by Ron Dorchester, all of whom have done a great job growing the business during our ownership,” said Tyler Zachem, Managing Director at MidOcean. “As a result of the team’s hard work, OneLink’s customers now enjoy superior product offerings across video, high-speed data and telephony, and will benefit even more in the coming months from the pending completion of the company’s all-digital conversion.”

Crestview Partners is a $4 billion private equity firm which invests from $100 million to $250 million in equity in companies with enterprise values up to $3 billion. Sectors of interest include media, financial services, healthcare and energy. The firm is based in New York, NY (www.crestview.com).

Kirkland & Ellis served as legal advisor to MidOcean and Crestview.

Skyview Exits TRM Copy Centers

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Skyview Capital announced today the sale of TRM Copy Centers and its subsidiary Solvport to Burroughs Payment Systems, a portfolio company of Marlin Equity Partners. TRM is a provider of self-service retail copy centers and Solvport is an ATM and Kiosk outsourced services provider.

TRM Copy Centers is a nationwide provider of self-service convenience photocopy services in the retail environment. The company operates more than 14,000 copy centers throughout the United States through grocery, convenience and drug store chains as well as thousands of independently owned businesses. TRM Copy Centers is based in Portland, OR (www.trmcopycenters.com).

Solvport provides outsourced, off-premise ATM & Kiosks services including technical support, field service, real-time monitoring, and project management to over 120,000 locations nationwide. Customers include participants in the ATM independent sales organization industry as well as companies serving the financial institutions market. The company is based in Portland, OR (www.solvport.com).

Burroughs Payment Systems is a provider of document and payment- processing image technology, cash-automation solutions and services to financial institutions and retailers. The company is based in Plymouth, MI (www.burroughs.com).

Skyview Capital is a private investment firm which specializes in the acquisition and management of “systems – critical” businesses in the areas of technology, telecommunications, business services, and niche manufacturing. The firm is located in Beverly Hills, CA (www.skyviewcapital.com).

“We are very pleased with the outcome of this transaction. As TRM was one of our earlier investments and with the execution of disciplined business strategies by a strong management team, it proved to be very successful. TRM and Burroughs present a highly complementary fit that will be of great benefit to both employees and customers alike. We wish the combined business further success in the future,” said Alex Soltani, Chairman and CEO of Skyview Capital.

Marlin Equity Partners invests in businesses across multiple industries that are in the process of undergoing varying degrees of operational, financial or market-driven change. The firm is based in is a Los Angeles, CA (www.marlinequity.com).

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