construction

Generation Growth Exits Martell

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Generation Growth Capital has sold its portfolio company Martell Construction, a construction services company.

Martell is a construction services company specializing in sidewalks, curb and gutter, and concrete pavement. The company acts primarily as a subcontractor on larger projects and its core markets include the Fox Valley, northeastern Wisconsin and Upper Michigan.  Martell is active in the commercial, municipal, residential, industrial, heavy highway and marine segments. The company is based in Green Bay, WI (www.martellco.com).

Generation Growth Capital (GGC) invested in Martell in December 2008. During GGC’s ownership, Martell maintained solid margins and steady growth in a difficult construction economy. The transaction realized an approximate two times cash on cash return, and an IRR in excess of 20% over a nearly five-year period.

“We are very pleased with our investment in Martell and wish the ownership group continued success in taking the company to the next level,” said Cory Nettles, Managing Director of GGC.

Generation Growth Capital invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).

“GGC was a great partner that helped us establish operational and financial systems that allowed us to better manage the business,” said Mike Carney, former President of Martell. “GGC’s approach to investing for growth worked out well for the company.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-18-13

Fulcrum Capital Partners Invests in Nilex

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Fulcrum Capital Partners has made an investment in Nilex, a construction materials company. Nilex is the seventh investment made by Fulcrum’s fourth private equity fund.

Nilex provides construction materials, technologies and services to the civil, resource and environmental industries, which lessen the environmental impact and lower the cost of construction projects. The company’s products are used in the construction of roads; MSE (mechanically stabilized earth) walls and slopes; erosion and sediment control; drainage; and  containment. Nilex was founded in 1977 and is headquartered in Edmonton with eight other locations in Canada and the United States (www.nilex.com).

Fulcrum Capital Partners manages over C$750 million of capital and invests both equity and subordinated debt in companies with revenues of C$10 million to C$250 million. Sectors of interest include services, manufacturing, consumer products, distribution, food and retail. The firm has office in Vancouver and Toronto (www.fulcrumcapital.ca).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-23-13

Fulcrum Invests in Tradesmen

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Fulcrum Capital Partners has made a C$20 million equity investment in Tradesmen Enterprises, a facility and pipeline construction contractor. Tradesmen is the sixth investment for Fulcrum’s fourth investment fund.

Tradesmen Enterprises is a facility and pipeline construction contractor with a particular focus on modular fabrication. The company has completed over 300 projects throughout Northern Alberta and British Columbia. Tradesmen Enterprises was founded in 2006 and is headquartered in Grande Prairie, Alberta (www.tradesmenenterprises.com).

The new investment will be used to facilitate Tradesmen’s growth plans, including the planned construction of a new fabrication and modular construction facility that will more than triple the company’s capacity.

Fulcrum Capital Partners manages over C$750 million of capital and invests both equity and subordinated debt in companies with revenues of C$10 million to C$250 million. Sectors of interest include services, manufacturing, consumer products, distribution, food and retail. The firm has office in Vancouver and Toronto (www.fulcrumcapital.ca).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-15-13

Prophet Equity Acquires USA Mobile Crane

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Allegiance Crane & Equipment, a provider of crane and rigging services and a portfolio company of Prophet Equity, has acquired the assets of USA Mobile Crane. “The successful acquisition of USA Mobile Crane accomplishes multiple strategic objectives, including expanding our high quality customer and employee base as well as continuing to enlarge our fleet, diversifying our customer and service offerings and extending our geographic reach and facility base,” said Ross Gatlin, CEO and Managing Partner of Prophet Equity.

USA Mobile Crane is a provider of mobile cranes (60 – 225 tons in capacity) and trucks, trailers and other assets. The company has branch locations in San Antonio and Carrizo Springs, TX (no website found).

Allegiance Crane & Equipment was formed in August 2010 to purchase assets from Gulfstream Crane. Allegiance operates an equipment fleet comprised of over 100 cranes and hoists and a supporting fleet of trucks, trailers and other assets. The crane fleet (ranging from 20 – 600 tons in capacity) includes mobile cranes, crawler cranes and tower cranes. These assets are utilized to provide services to customers in a variety of markets including the oil and gas, petrochemical, refining, marine, power and the commercial and infrastructure construction industries. The company is based in Pompano Beach, FL (www.allegiancecrane.com).

“The continued strong financial performance and industry leading balance sheet of the Allegiance platform, combined with the backing of Prophet Equity, have allowed us to create and expand a uniquely flexible credit facility, enabling acquisitions of strategic add-ons and equipment wherever necessary for our growing business”, said Pelham Smith, Managing Director of Allegiance.

Prophet Equity makes control investments in strategically strong, asset-intensive, underperforming companies in the lower and middle market. The firm seeks to make equity investments of $5 million to $50 million in companies with annual revenues of up to $500 million and enterprise values of $10 million to $250 million. Sectors of interest include financial services; healthcare; manufacturing; natural resources and energy; technology related; automotive & transportation; business and consumer services; consumer products; defense & aerospace; and distribution. The firm is located in Southlake, TX (www.prophetequity.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-11-12

O2 Investment Partners Acquires Greco Aluminum Railings

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Greco Aluminum Railings, a welded aluminum balcony railing manufacturer, announced today that O2 Investment Partners has partnered with Frank and Larry Greco and acquired a majority interest in the company.

Greco is a manufacturer of welded aluminum balcony railing systems for the North American multifamily housing market. Greco serves both the new construction and restoration markets for high, medium and low-rise condominiums, apartment buildings, hospitality and senior living facilities. The company was founded in 1991 and has 40 employees. Greco is headquartered in Windsor, ON with offices in Toronto and Bloomfield Hills, MI (www.grecorailings.com).

“We are very pleased by the confidence that O2 Investment Partners has shown in Greco Aluminum Railings and we look forward to working with O2 to further grow our business, both in Canada and the U.S. markets,” said Frank Greco, President of Greco Aluminum Railings. “As Larry and I looked for partners to help us take Greco to the next level, it was important to us and to our business that we have an investor and partner who shares our vision for growing the business. In addition to O2 Investment Partners’ experience in building manufacturing businesses, several of its principals also have significant experience in the real estate, construction and multifamily housing markets.”

O2 Investment Partners makes control investments in companies with EBITDAs from $2 million to $8 million located anywhere in the US and Canada but has a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $5 million to $50 million. Industries of interest include manufacturing, niche distribution, select service and technology businesses. O2 Investment Partners is based in Bloomfield Hills, MI (www.o2investment.com).

“We are very pleased with our investment in Greco and its employees. The vision that Frank and Larry Greco and their management team have developed for this business are truly exciting and we look forward to supporting the Greco team in achieving their plan,” said Jay Hansen, President of O2 Investment Partners. “We believe that Greco has the right combination of a talented and experienced workforce, efficient manufacturing processes, diversified customer base, and diversified markets to be extremely competitive in the North American multifamily housing market, which we expect to present significant growth opportunities in the years ahead. With this team and the support of our financial partners, such as Comerica and Penn Mezzanine, we are very optimistic about realizing these growth opportunities.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-11-12

The Anderson Group Acquires Wellnitz

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Oberfields, a concrete block manufacturer and a portfolio company of The Anderson Group, has acquired Wellnitz, a producer of concrete block and masonry products. This acquisition adds to Oberfields’ position as one of the leading producers of concrete masonry and landscape products in the Midwest.

Oberfield’s is a manufacturer of concrete block and other masonry and landscape products in Ohio and surrounding states. Oberfield’s is the dominant block manufacturer in northwestern and central Ohio. The company is based in Columbus, OH (www.oberfields.com).

Wellnitz is a Southeast Ohio based producer of concrete block and masonry products and is headquartered in Columbus, OH (www.wellnitz.com).

The Anderson Group is an operationally focused private equity firm investing its principal’s committed capital in companies at the lower end of the middle market. The firm is industry agnostic and makes control investments in companies with revenues from $10 to $100 million and EBITDA of $1 to $8 million. The firm is located in Bloomfield Hills, MI (www.andersongroup.biz).

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12