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Halifax Exits NPC Guardian

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The Halifax Group has signed an agreement to sell its portfolio company, NPC Guardian Holdings, to bioscience company The Chr. Hansen Group at an enterprise valuation of $185 million. Closing is expected by the end of the first quarter of 2016.

NPC Guardian owns Nutrition Physiology Holdings and Guardian Food Technologies and together they are a developer and marketer of probiotic microbial products for commercial livestock. Probiotics are live bacteria and yeasts that are beneficial to the health of an animal, especially its digestive system. Brand names include Bovamine, Bovamine Defend, Bovamine Dairy and Poultrimax. NPC Guardian is led by CEO Tony Arnold and was founded in 1993. The company is headquartered in Guymon which is in the panhandle of Oklahoma (www.bovamine.com).

“Through a combination of Tony’s superb leadership, a tremendous employee team and a dedicated board of directors, we aggressively invested to expand NPC from its entrepreneurial, predominantly feedlot core to a multi-species, multi-product, robust technology platform. NPC has been an exceptional investment for Halifax as I am sure it will be for Chr. Hansen,” said Brent Williams, a Managing Director with The Halifax Group.

The Halifax Group invests in companies with revenues generally between $25 million and $300 million. Sectors of interest include business services, healthcare, wellness, animal health, franchising and infrastructure services industries. The firm has offices in Washington, DC; Dallas and Raleigh (www.thehalifaxgroup.com).

Chr. Hansen, the buyer of NPC Guardian, is a bioscience company that develops natural ingredient products for the food, nutritional, pharmaceutical and agricultural industries.  Products include cultures, enzymes, probiotics and natural colors. Chr. Hansen has 2,500 employees in 30 countries and production facilities in Denmark, France, the United States and Germany. The company (CPH: CHR) was founded in 1874 and is headquartered near Copenhagen in Hoersholm, Denmark (www.chr-hansen.com).

William Blair (www.williamblair.com) served as financial advisor and Arnold & Porter (www.arnoldporter.com) served as legal advisor to NPC and The Halifax Group.

Below is a corporate video describing Bovamine, NPC’s lead product.

[embedyt] http://www.youtube.com/watch?v=ECWoabSjr94[/embedyt]

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-14-16

Tonka Sells Circuit Check to North Branch

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Tonka Bay Equity Partners has sold its portfolio company Circuit Check to North Branch Capital.

Circuit Check (CCI) is a manufacturer of test interfaces for printed circuit boards and other electronic and electro-mechanical devices. The company was founded in 1979 and is based northwest of Minneapolis in Maple Grove, MN (www.circuitcheck.com).

Tonka Bay led the buyout of CCI in January 2007 in partnership with Greg Michalko, CEO.  During Tonka Bay’s ownership period it grew the company by developing the senior management team, building an outside board of directors with industry experience, executing a strategy focused on functional test systems, and completing the August 2012 add-on acquisition of Cimtek – an electronic test equipment maker based in Burlington, Canada.

“CCI has proved to be a successful investment for Tonka Bay,” said Peter Kooman, Partner at Tonka Bay.  “Greg Michalko and his management team have done a tremendous job establishing the company as a leader in functional test systems.”

Tonka Bay Equity Partners invests in manufacturing, value-added distribution and business services companies that have EBITDAs greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).

“Tonka Bay has been a value-added partner,” said Mr. Michalko.  “They have provided guidance and capital to make strategic investments, which has allowed us to accelerate growth and further differentiate CCI as a global leader of test solutions for the printed circuit board industry.”

North Branch Capital, the buyer of Circuit Check, invests in companies with revenues of at least $10 million and EBITDA of at least $2 million. Sectors of interest include value-added distribution, industrial and business services, and niche manufacturing. North Branch Capital was founded in 2014 and is led by its partners Jon Leiman, Dan Bauman, and Bill Huber. The firm is headquartered in Chicago (www.northbranchcap.com).

North Branch partnered with Midwest Mezzanine Funds (www.mmfcapital.com), RGA Reinsurance Company (www.rgare.com), Pulleyworks Capital (a St. Louis-based private equity investor), and the Circuit Check management team to complete this equity investment.

The Private Bank (www.theprivatebank.com) provided senior financing alongside subordinated debt investments by Midwest Mezzanine and RGA. Katten Muchin Rosenman (www.kattenlaw.com) served as legal counsel to the financial investors in the transaction.

Below is a corporate video describing the operations of Circuit Check.

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© 2016 PEPD • Private Equity’s Leading News Magazine • 1-13-16

Marwit Exits Western Emulsions

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Marwit Capital Partners has sold its portfolio company, Western Emulsions, to Idaho Asphalt Supply. Marwit acquired Western Emulsions in 2008 in partnership with Bob Koleas, CEO at the time and part of the founding family. Asphalt emulsions are used to extend the useful life of roads, highways and parking lots.

Western Emulsions is a manufacturer of asphalt emulsions and related products used for roadway pavement preservation, repair and restoration projects. Customers include: (i) federal agencies, such as DOT’s and others involved with roads, highways and airports; (ii) state and local agencies, such as county and municipal public works departments; (iii) private entities, such as general contractors; and (iv) intermodal consultation groups, such as government agencies who manage highway infrastructure. The company is based in Tucson (www.westernemulsions.com).

Under Marwit’s ownership, the business grew from two plants serving two states to six plants serving 15 states. Marwit’s activities included the construction of three new facilities, the closing of two add-on acquisitions, and the expansion of the company’s product line. These efforts resulted in a more than tripling of revenue and EBITDA during the ownership period.

According to Marwit, Western Emulsions is now the largest independent provider of asphalt emulsions for pavement preservation applications in the US. “We were fortunate to work with and assemble a strong management team at Western Emulsions, who shared our vision for building a leading company in the pavement preservation industry,” said Chris Britt, Marwit Managing Partner.

Marwit invests from$10 million to $40 million in companies that have enterprise values up to $100 million, revenues of $20 million to $200 million and EBITDA in the range of $4 million to $20 million. Sectors of interest include infrastructure; healthcare services; healthy living products and services; industrial products and services; business services; renewable resources; and retail and entertainment.

Idaho Asphalt Supply, the buyer of Western Emulsions, is a supplier of asphalt cements, emulsions, and polymer modified asphalts. The company was founded in 1973 and is headquartered in Idaho Falls, ID (www.idahoasphalt.com).

“Our investment in Western Emulsions exemplifies Marwit Capital’s strategy of working closely with the fund’s CEOs and management teams, through good times and challenging times, to generate successful investment outcomes that benefit the fund, our management partners, and our companies,” said Marwit Partner David Browne.

Marwit is managed by three partners, Chris Britt, Matthew Witte and David Browne, with human resource strategy and support provided across all portfolio companies by Carol Farrell. The firm has completed over 60 buyouts, recapitalizations and growth equity investments in its history. Marwit was founded in 1962 and is headquartered in Newport Beach (www.marwit.com).

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-12-16

Bunker Hill Sells California Family Fitness to Perpetual

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Bunker Hill Capital has sold its portfolio company California Family Fitness – an owner and operator of fitness centers in the greater Sacramento metropolitan area – to Perpetual Capital Partners.

California Family Fitness (CFF) currently has 19 mid-to-large format club locations, each of which offers a selection of exercise equipment, swimming pools, basketball and racquetball courts. Other services include fitness class instruction, child care, tanning, sauna and steam rooms, and organized sports leagues. The company is headquartered northeast of Sacramento in Orangevale, CA (www.californiafamilyfitness.com).

“Bunker Hill Capital helped us grow from an entrepreneurially run company to a more developed, professionally run organization,” said Randy Karr, President of California Family Fitness. “The team from Bunker Hill helped us think more strategically about our business and helped put in place the necessary tools and controls to execute our strategy.”

Bunker Hill makes control investments in lower middle market companies with EBITDAs between $5 million and $20 million, and enterprise values up to $120 million.  Sectors of interest include industrial products, business services, consumer products, and specialty retail.  The firm has offices in Boston and San Diego (www.bunkerhillcapital.com).

“We are very pleased with the sale of California Family Fitness and are confident that the company will continue its impressive growth trajectory,” said Rufus Clark, a Bunker Hill Managing Partner. “We are grateful to the co-founders of CFF- Russ Kuhn and Larry Gury – for partnering with us on this transaction, and to Randy Karr, Cherrie Fosco and the entire CFF management team for their hard work and devotion to the business over the years.

Perpetual Capital Partners, the buyer of CFF, acquires and makes growth equity investments in companies with a minimum of $2 million of annual cash flow. Sectors of interest include media and communications; distribution and logistics; business and financial services; and branded products including consumer goods and services, and industrial products. The firm is headquartered in Arlington, VA (www.perpetualcapitalpartners.com).

Perpetual Capital Partners is backed by the Allbritton family and is related to other investments of the family including Allbritton Communications Company, a media company that holds broadcast television and other assets throughout the country including WJLA-TV/NewsChannel 8 in Washington, DC, and POLITICO, a new media political news website and newspaper.

Piper Jaffrey & Co. (www.piperjaffray.com) advised CFF and Bunker Hill on the sale to Perpetual Capital Partners.

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-8-16

Sentinel Exits Northeast Dental

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Sentinel Capital Partners has sold Northeast Dental Management to Dental Care Alliance, a portfolio company of Harvest Partners.

Northeast Dental Management (NEDM) – acquired by Sentinel in April 2012 – provides administrative staffing, human resources, purchasing, financial, and information technology support services to 65 locally-branded dental offices in Connecticut, Massachusetts, Maryland, New York, New Jersey, Pennsylvania, and Virginia. The company is headquartered north of Newark in Paramus, NJ (www.nedentalmanagement.com).

During Sentinel’s term of ownership, the number of offices served by NEDM grew from 29 to 65 through 24 add-on affiliations which increased the company’s office density in the northeast Amtrak corridor and expanded its service offering into Maryland, Massachusetts, and Connecticut.

“Sentinel has given us the guidance and support needed to grow our business,” said NEDM Chief Executive Officer, Dr. Craig Abramowitz. “Together, we have created a strong, integrated platform capable of providing our dentists with topflight administrative support that allows them to provide their patients with the highest level of dental care.”

Sentinel Capital Partners invests in 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 businesses with EBITDAs up to $65 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare services, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).

Dental Care Alliance, the buyer of NEDM, was acquired in July 2015 by Harvest from Quad-C Management. Today, the company is one of the largest dental support organizations in the US with 157 dental offices located in eight states supporting over 382 dentists.  Back office business support services include human resources, marketing, purchasing, accounting and insurance management.  DCA’s dental practices provide general dentistry, hygiene, pediatric dentistry, orthodontics, endodontics, periodontics and oral surgery.  The company was founded in 1991 and is headquartered in Sarasota (www.dentalcarealliance.com).

Harvest Partners currently manages approximately $2 billion of equity and structured capital and is investing its sixth private equity fund.  Harvest targets investments in companies with $20 million to $75 million of EBITDA and total enterprise values of $100 million to $750 million.  Sectors of interest include industrial & energy services; manufacturing & distribution; consumer & business services; and healthcare services.  The firm was founded in 1981 and is based in New York with an additional office in Palo Alto (www.harvestpartners.com).

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-8-16

Audax Sells Chesapeake IRB to Linden

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Audax Private Equity has completed the sale of Chesapeake IRB – a provider of institutional review board services for human subjects in clinical trials – to Linden Capital Partners. Audax acquired the company in May 2013.

Chesapeake IRB provides its legally-mandated IRB services to pharmaceutical, biotech, and medical device companies; contract research organizations; institutions; and academic medical centers. The company is accredited by the Association for the Accreditation of Human Research Protection Programs. Chesapeake IRB is headquartered in Columbia, MD (www.chesapeakeirb.com).

During Audax’s term of investment the company completed three add-on acquisitions which expanded Chesapeake’s market share and geographic reach across the United States and Canada. “Audax’ continued support and expertise in executing its buy and build strategy was extremely valuable as we expanded our market share and geographic reach over the past three years,” said Jeff Wendel, President & CEO of Chesapeake.

“Jeff Wendel and the Chesapeake team have done a tremendous job in building a differentiated market leader in the IRB space through acquisitions and organic growth,” said Geoffrey Rehnert, Co-CEO of Audax Group.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).

Linden Capital Partners – the buyer of Chesapeake IRB – 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 private equity and operating expertise; and strategic relationships with large corporations.

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. Fundraising for the new fund took less than 3 months. 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).

Goulston & Storrs served as legal counsel to Audax. Houlihan Lokey advised Chesapeake and Audax. Kirkland & Ellis served as legal counsel to Linden.

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-6-16