food services

New Heritage Closes Continental Add-On

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Continental Services, a portfolio company of New Heritage Capital since February 2017, has acquired Sterling Services.

Sterling Services is a provider of corporate dining management, office coffee service, catering, foodservice consulting and point-of-sale micro markets. The company was founded in 1986 by Chris Peppo and Ray Friedrich and is based near Detroit in Canton, MI (www.sterling-services.com) (www.freshatwork.com).

As part of the transaction, the entire Sterling Services management team and staff will join the Continental team.

Continental provides its customers with a range of services, including corporate cafés, grab-and-go markets, vending, office coffee, and special event catering. The company serves more than 1,000 small and medium-sized businesses, blue-chip corporations, colleges, universities, business, and industrial sites, and hospitals and medical centers.   Continental, one of the largest franchisees of food service provider Compass Group, was founded in 1989 and is headquartered north of Detroit in Troy, MI (www.ContinentalServes.com).

“With its track record of innovation, consistent core values, an outstanding market reputation, and robust sales and service teams, Sterling Services is a great fit,” said Steve LaPorte, president of Continental’s refreshment services group.

This is the fifth add-on acquisition made by Continental in the past 18 months. The four earlier add-ons were United Vending & Market Services (Ferndale, MI) in November 2018; Metro Vending Service (Roseville, MI) in April 2018; 24 Hr. Vending (Brighton, MI) in January 2018; and Satellite Vending Company (Wixom, MI) in September 2017.

New Heritage invests from $15 million to $40 million of minority or majority equity in companies with $4 million to $20 million of EBITDA. Sectors of interest include business services, healthcare and manufacturing. The firm was founded in 2006 and is headquartered in Boston (www.newheritagecapital.com).

© 2019 Private Equity Professional | March 18, 2019

New Heritage Invests in Continental Services

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New Heritage Capital has made an investment in Continental Services, a food-service provider serving corporate clients in Michigan.

Continental provides its customers with a range of services, including corporate cafés, grab-and-go markets, vending, office coffee, and special event catering. The company was founded by Jim Bardy in 1989 and is headquartered in Detroit (www.ContinentalServes.com).

Mr. Bardy will continue to control day-to-day operations of the company and will be active in directing the company’s strategic growth. “We have found true partners in New Heritage who believe in Continental’s mission and will support our exciting plans for growth,” he said. “Heritage’s experience with backing founder-owned businesses will prove invaluable as we enter our next phase of expansion with a continued focus on delivering industry-leading service to our customers.”

“We are excited to partner with an industry leader like Continental that is at the forefront of quality, technology and innovation in food management and look forward to helping management execute on their plan via organic opportunities and the active pursuit of add-on acquisitions,” said Melissa Barry, a Partner at New Heritage.

New Heritage invests minority or majority equity in companies with minimum revenues of $30 million and at least $5 million of EBITDA. Sectors of interest include aerospace, business services, consumer products, distribution, education and training, food and beverage, healthcare and healthcare services, industrial and infrastructure, manufacturing, pet products and services, specialty chemical, and test and measurement. Heritage was founded in 2006 and is headquartered in Boston (www.newheritagecapital.com).

© 2017 Private Equity Professional | February 23, 2017

Olympus Partners Acquires The Lindley Group

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Centerplate, a portfolio company of Olympus Partners, has acquired The Lindley Group, a provider of catering services and a portfolio company of  Sovereign Capital, which acquired the business n 2005.

Lindley is a provider of catering services to stadiums, arenas, racecourses, museums, art galleries, visitor attractions and theatres. The company is based in Stoke-on-Trent, UK (www.thelindleygroup.com).

Centerplate, acquired by Olympus Partners in October 2012, is an event hospitality provider to sports venues, convention centers and entertainment venues. The company serves approximately 250 unique venues and 100 million guests annually. Centerplate has provided event hospitality services to 15 official U.S. Presidential Inaugural Balls, 13 Super Bowls, 20 World Series, and the 2010 Winter Olympic Games. The company is based in Stamford, CT (www.centerplate.com).

Revenues for The Lindley Group and Centerplate are expected to exceed $1 billion in 2013 and the combined entity will have a worldwide workforce of over 35,000. Lindley CEO Adam Elliott will assume the title of President, The Lindley Group, and Executive VP, Centerplate, reporting to Centerplate President and CEO Des Hague.

Olympus Partners, with $3 billion of capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion. Sectors of interest include: business services; transportation and logistics services; healthcare manufacturing and services; financial services; consumer and restaurant; and software and IT services. The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com).

Investment banking firm Livingstone acted as the exclusive financial advisor to The Lindley Group. “Lindley presented a unique opportunity for an international group to gain immediate access, recognition and market share in the UK,” said Livingstone Vice President Ryan Buckley. “Centerplate seized the opportunity and we are delighted to have successfully sold a second business to Centerplate.” Livingstone advised Marsh Supermarkets, a portfolio company of Sun Capital Partners, on the sale of Crystal Food Services to Centerplate in 2008.

Livingstone is an international investment banking firm focused on M&A and private capital transactions with values between $30 and $300 million. Across its principal offices in the US and Europe, Livingstone’s corporate finance professionals specialize in five key sectors: business services; consumer; healthcare; industrial; and media & technology. The firm has offices in Chicago, London and Madrid (www.livingstonepartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-5-13

Gryphon Investors Exits TrustHouse Services Group

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Gryphon Investors has entered into an agreement to sell its portfolio company, TrustHouse Services Group, a contract food service company, to Elior SCA. The transaction is expected to close early in the second quarter.

TrustHouse Services Group is a food service provider focused on the healthcare, education and corrections sectors. Divisions of TrustHouse include Aladdin Food Management (Wheeling, WV); AmeriServe Food Management (Columbia, MO); Fitz Vogt & Associates (Walpole, NH); A’viands (Minneapolis, MN); Lindley Food Services (New Haven, CT); and Valley Services (Jackson, MS). TrustHouse manages over 675 client accounts across 45 states. The company is headquartered in Charlotte, NC (www.trusthouseservices.com).

In partnership with Michael Bailey, the former CEO of Compass Group, Gryphon formed TrustHouse in March of 2008, as a result of an initiative targeting the fragmented contract food service sector in the under-penetrated healthcare, education and corrections end-markets. During Gryphon’s ownership, Mr. Bailey and management team led organic growth initiatives and integrated three acquisitions, resulting in operations expanding from 22 to 45 states and in EBITDA more than quadrupling.

“We congratulate Mike and the TrustHouse team on achieving the objective of building a truly differentiated sector leader, and on signing a definitive agreement to sell the company to Elior. Thanks to their considerable efforts, there was significant value creation for all stakeholders, including our limited partners,” said Nick Orum, Gryphon’s President.

Elior provides contract catering and related services worldwide. It offers catering and services within the education, business and industry, and healthcare and seniors sectors, as well as in leisure, culture and travel sectors. The company also provides support services, including cleaning services and facilities management services. In addition, it operates concessions in the national museums sector, railway stations, and the leisure market. Elior’s concessions business comprises food services, retail facilities, and a range of related services provided on a daily basis at motorway service areas, airports, sports stadia, railway stations, and national museums. The company was founded in 1991 and is headquartered in Paris, France (www.elior.com).

“Gryphon has been a valuable partner and I appreciate their support of the original vision, including our organic growth plans and acquisition strategy. Despite the challenging economic conditions early on, we were successful in executing our investment thesis of building a leading contract food services platform. We are enthusiastic about partnering with Elior and believe we are well positioned for our next phase of growth,” said Mr. Bailey.

Gryphon Investors makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $35 million to $100 million of capital in companies with sales ranging from $50 million to $250 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, health care and hotels. The firm is based in San Francisco (www.gryphoninvestors.com).

“The agreement to sell TrustHouse represents the culmination of a successful five-year partnership with Mike Bailey and the TrustHouse team and further bolsters Gryphon’s strong track record in the food and facility services sectors. We have enjoyed working with TrustHouse, and thank Mike for his leadership in successfully building a national platform in the growing market for contract food service in the healthcare, education and corrections sectors. We believe TrustHouse will continue to thrive as a market leader in partnership with Elior,” said Keith Stimson, a Gryphon Partner and the head of Gryphon’s Consumer Products and Services Group.

Jefferies & Company acted as lead financial advisor and McColl Partners acted as a financial advisor to TrustHouse and Gryphon. Kirkland and Ellis and Parker Poe provided legal counsel to Gryphon and TrustHouse.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-19-13

Graham Partners Acquires Universal Cold Storage and Universal Pasteurization

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Graham Partners has completed its initial investment in the food processing technology space, having formed UCS & UPC Holdings Company to acquire Universal Cold Storage and Universal Pasteurization (Universal), providers of cold storage and high pressure pasteurization services.

“We have established ourselves as the nation’s leading independent high pressure pasteurization service provider,” said John Jacobson, Universal’s founder and CEO.  “Our industry leading reputation for unmatched customer service and state-of-the-art facilities enables us to offer an unbeatable solution. Graham is the ideal partner for Universal with its strategic vision and broad operating resources.”

Universal is a provider of cold storage, high pressure pasteurization, and other value-added services to domestic food manufacturers.  The company is based in Lincoln, NE (www.universalcoldstorage.com).

High pressure pasteurization (HPP) is a non-thermal, non-chemical based method of pasteurization.  Demand for HPP is driven by its ability to offer enhanced food safety while enabling food manufacturers to offer all-natural products with improved nutritional value and extended product shelf life.  In Universal’s case, a conversion is underway towards HPP from traditional methods of pasteurization, creating the opportunity for growth as penetration continues.  Industry research suggests that adoption of HPP may increase as much as 20-30% annually as consumer awareness increases and the technology continues to gain acceptance.  Graham Partners proactively identified HPP as an attractive investment niche and initiated a direct calling effort targeting businesses in the industry, which yielded the Universal acquisition opportunity.

 “Graham’s focused sourcing efforts paid off,” said Andrew Snyder, Managing Principal at Graham Partners. “We believe this is the ideal time to invest in the HPP niche, where Universal has established itself as the industry leader. Universal’s complementary value-added services offering has enabled Universal to become a key strategic partner with its customers. We are excited to work with the management team to further expand the business and drive strategic growth initiatives.”

Graham Partners seeks to acquire industrial companies with revenues between $30 million and $500 million that participate in manufacturing niches where it can leverage its combination of operating resources and financial expertise.  The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsource manufacturing.  Graham Partners is headquartered in Philadelphia (www.grahampartners.net).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-20-12