Business Services

The Riverside Company Acquires CorporateRewards

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The Riverside Company has invested in GiveAnything.com (dba CorporateRewards), a facilitator of incentive, recognition and wellness programs.

CorporateRewards provides its clients a software platform that allows them to administer, manage and track their employee incentive programs.  Using a universal gift card reward, participants in CorporateRewards’ programs can select from hundreds of retailers and millions of products.  Corporate Rewards has more than 150 clients globally, including many Fortune 500 companies.  The company is based in New York (www.corporaterewards.com).

“CorporateRewards has a long track record of growth thanks to its exceptional service and compelling value proposition,” said Riverside Managing Partner Loren Schlachet. “We expect to build on that by investing in additional resources to help them serve the market even better.”

Employee incentive programs have become increasingly popular, as research has proven that non-monetary rewards can engage employees and agents and drive improved performance more effectively than cash. Programs like those that CorporateRewards provides are particularly effective for encouraging wellness program participation and other employee engagement efforts.

“CorporateRewards is addressing critical customer needs,” said Riverside Principal Alan Peyrat. “And it’s doing so with the best technology possible. Its cloud-based system provides real-time data and is robust and flexible. It’s an impressive package.”

Working with Messrs. Schlachet and Peyrat on the transaction for Riverside were Assistant Vice President Brad Resnick and Associate Grady McConnell.  Origination Principal Jim Butterfield sourced the transaction for Riverside.

Deerpath Capital Management (www.deerpathcapital.com) provided debt financing for the transaction and Jones Day and Deloitte advised Riverside.  MHT Partners, a Dallas-based investment bank (www.mhtpartners.com), served as the exclusive financial advisor to Corporate Rewards.

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $200 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 300 transactions with a total enterprise value of more than $6 billion. The firm is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-8-13

Gridiron Capital Acquires Hinda

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TharpeRobbins Company, a portfolio company of Gridiron Capital, has acquired Hinda, Inc., a provider of customer incentive programs. “We are excited to support TharpeRobbins’ acquisition of Hinda and believe that TharpeRobbins is the perfect company to continue expanding Hinda’s legacy that has been built over four decades. The combination of the two companies creates a powerful player in the incentives industry,” said Thomas Burger Jr., Managing Partner, Gridiron Capital.

Hinda is a provider of incentive programs used to reward customer loyalty, encourage top sales performance, influence employee behavior and motivate company dealers and distributors. The company is based in Chicago (www.hinda.com).

“The collective strength of our companies and our commitment to the incentive industry will provide clients with the best possible resources when implementing reward and recognition programs,” said Dave Peer, President of Hinda. “With TharpeRobbins’ expertise in the employee arena and Hinda’s expertise in the consumer, sales and channel programs, the products and services offered by each company naturally complement one another. It is an ideal fit.”

TharpeRobbins provides managed recognition and rewards services. The company offers consultative expertise to help organizations design human resources programs that drive higher levels of employee engagement and fulfillment. Its programs include products ranging from personalized jewelry to fine art, electronics, sports and outdoor merchandise. The company is located in Statesville, NC (www.tharperobbins.com). Gridiron Capital acquired TharpeRobbins from Saugatuck Capital in April 2010.

“This strategic merger combines the strengths of two companies built on innovation, customer service and flexibility,” said Brett Tharpe, Chief Executive Officer of TharpeRobbins. “Together we will strengthen our consultative services, diversify our awards mix and create new solutions to help our customers achieve higher levels of sales, customer loyalty, employee engagement and retention in an increasingly competitive environment.”

Gridiron Capital invests in middle-market manufacturing, service and specialty consumer companies in the United States and Canada. The firm is based in New Canaan, CT (www.gridironcapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-25-12

Baird Capital Partners Acquires Auctions In Motion

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American Auto Auction Group, a portfolio company of Baird Capital Partners, has acquired Auctions In Motion, a provider of dealer consignment auction services.

American Auto Auction Group (AAAG) was established by Baird Capital Partners in early 2010 in partnership with industry veterans to execute an acquisition platform strategy in the whole car auction market. Auto auctions create a transaction marketplace for finance companies, fleets, wholesalers, independent dealers, and franchise dealers to sell and purchase vehicles. AAAG is based in Charleston, SC (www.americanautoauctiongroup.com).

Auctions In Motion is a dealer consignment auction offering traditional auction services. The company is based in Westlake Village, CA (www.auctionsinmotion.com). This is the sixth add-on acquisition completed for AAAG since its founding in 2010. In addition to Auctions In Motion, AAAG has acquired Badger State (Fond Du Lac, WI); Charleston Auto Auction (Moncks Corner, SC); Mid-South Auto Auction (Pearl, MS); Texas Lone Star Auto Auction (Carrollton, TX); and Your Auction (Tampa, FL).

“The acquisition of Auctions In Motion is another step toward becoming a national full-service dealer-centric remarketing platform,” said Tom Costello, a Principal of Baird Capital Partners. ”We continue to be very interested in partnering with other independent auctions as we build AAAG’s market share across the country.”

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).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-11-12

Kelso & Company Acquires Swank Audio Visuals

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Kelso & Company has acquired Swank Audio Visuals, a provider of audiovisual and event technology services. Swank will be merged with Kelso’s existing portfolio company PSAV Presentation Services.

“PSAV and Swank are industry leaders with impressive histories of growth, innovation, and best-in-class customer service,” said Steve Dutton, Vice President at Kelso. “With PSAV and Swank as one combined entity, hoteliers will benefit from a single source of audiovisual and technology support for every size hotel and event around the world.”

Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 115 companies in a broad range of industry sectors. The firm is currently investing its eighth investment partnership, Kelso Investment Associates VIII, L.P., with $5.1 billion of committed capital. The firm is based in New York, NY (www.kelso.com).

Barclays and Macquarie Capital served as advisors to Kelso, and are arranging financing for the transaction.

Swank Audio Visuals provides audiovisual and event technology services within the hotel, resort, meetings and conference center industries. The majority of Swank’s services are provided via relationships whereby the company acts as the preferred outsource service provider to more than 375 hotels and resorts throughout the United States, Canada and the Middle East. The company is based in St. Louis (www.swankav.com).

“Swank is very excited about this partnership and the wealth of benefits it will provide our team members, hotel partners and customers, as well as the event technology industry as a whole,” said Greg Diekemper, President and CEO of Swank Audio Visuals. “We feel this merger will provide our hotel partners and customers with greater access to innovative new technology, as well as a deeper pool of highly trained, experienced personnel to operate it.”

PSAV Presentation Services is a provider of audiovisual equipment and services to the meeting and event industries. The company is based in Schaumburg, IL (www.psav.com).

“The entire team at PSAV is thrilled about Kelso’s purchase of Swank Audio Visuals and the impending merger of the two companies,” said Mike McIlwain, President and CEO of PSAV. “This opportunity provides a multitude of advantages for the industry. Combining our companies’ strengths will give meeting planners and producers unparalleled access to advanced audiovisual and event technology support throughout the United States and the world.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-11-12

Riordan Lewis & Haden Exits Creative Circle

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Riordan Lewis & Haden (RLH) has sold its portfolio company, Creative Circle, a specialized staffing agency, to Morgan Stanley Global Private Equity. RLH acquired Creative Circle in 2009 and during its ownership the company achieved a three-fold increase in revenue and an even more rapid rise in EBITDA, entirely through organic growth.

This transaction provided a very favorable financial outcome for RLH’s investors while affording the Creative Circle management team the opportunity to continue their global growth strategy in partnership with a new investor. The sale of Creative Circle is the second liquidity event of 2012 for RLH and the second exit from its RLH Investors II fund.

Creative Circle is a specialized staffing agency representing advertising, marketing, graphic communication, and interactive professionals. Customers include advertising agencies, marketing firms, and enterprise clients. Creative Circle is headquartered in Los Angeles and operates in 12 states through 14 offices nationwide (www.creativecircle.com).

Riordan, Lewis & Haden invests in high growth, lower middle market companies. Sectors of interest include business services, healthcare, and government services. The firm currently manages over $600 million of assets and is actively seeking new portfolio companies. Riordan, Lewis & Haden is based in Los Angeles, CA (www.rlhequity.com).

Morgan Stanley Global Private Equity, part of Morgan Stanley Investment Management, makes private equity and equity-related investments of $75 million to $150 million in companies with enterprise values of $100 million to $1 billion. To date, Morgan Stanley Global Private Equity and its affiliated funds have invested over $9 billion of equity across a spectrum of industries. The firm is based in New York (www.morganstanley.com/privateequity).

This transaction represents the twelfth investment for Morgan Stanley Capital Partners V, the most recent fund raised by Morgan Stanley Global Private Equity, and the fourth in the business services sector.

“Creative Circle is the premier creative staffing agency in North America. The rapid expansion of interactive and digital media has created a tremendous demand for highly qualified creative talent as well as a unique opportunity for Creative Circle to build on its strong record of business growth,” said Aaron Sack, Managing Director of Morgan Stanley Global Private Equity.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-5-12

Aurora Capital Group Acquires Market Track

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Aurora Capital Group today announced that it has acquired Market Track, a provider of promotional tracking services, from Monitor Clipper Partners which acquired the company in June 2008.  Key leadership, including CEO Wayne Mincey and President Paul Salay, will remain in their respective roles.

Market Track is a provider of subscription-based, data driven services that enable retailers, manufacturers and brokers to analyze their promotional and pricing initiatives to make more informed decisions.  Market Track currently serves over 450 retailers and manufacturers across all classes of trade and product categories, providing insight into how trade promotions are impacting consumers’ purchase decisions. Market Track was created in January 2004 through the consolidation of the two largest retail print ad tracking suppliers in the United States (Market Advantage and Advertising Processing). Market Track is based in Chicago, IL (www.markettrack.com)

“We have been extremely impressed with Market Track’s performance over the last several years, including contract value retention rates that have averaged close to 100% and substantial organic growth through the consistent addition of new blue-chip customers,” said Josh Klinefelter, Partner of Aurora. “Additionally, our independent due diligence revealed Net Promoter Scores for Market Track that were at the very top of the market research industry and rivaled some of the best companies in the world.  We have the utmost confidence in Market Track’s management team and look forward to supporting them with the financial, strategic and operational resources we make available to our partners.”

Barclays Private Credit Partners led the debt financing while other current capital partners, Northwestern Mutual Capital and Golub Capital, will continue to support Market Track.

Gibson, Dunn & Crutcher acted as legal advisor to Aurora.  Jefferies & Company acted as financial advisor to Monitor Clipper Partners and Market Track and Weil, Gotshal & Manges acted as their legal advisor.

Aurora Capital focuses principally on control-investments in middle-market industrial, manufacturing and service oriented businesses.  The firm has $2 billion of capital under management and is located in Los Angeles, CA (www.auroracap.com).

Monitor Clipper Partners pursues management buyouts and late stage growth equity investments and seeks transactions in which it can invest between $10 million and $70 million of its capital.  Sectors of interest include natural/organic foods, specialty retail, health care services, gaming, logistics, mortgage technology, marketing services, financial services, and metals. The firm was founded in 1998 and has invested approximately $1.7 billion in equity since its formation. Monitor Clipper Partners is based in Cambridge, MA ((www.monitorclipper.com).

PEPD 8-13-12