Barton Creek Equity Partners (BCEP) has sold its portfolio company FlexXray, a food safety company, to Levine Leichtman Capital Partners.
FlexXray provides testing and inspection services to North American food manufacturers and processors. FlexXray utilizes proprietary X-ray technology and other equipment to pinpoint physical contaminants and defects in food products and raw materials. In addition to FlexXray’s inspection services, the company also provides ancillary services such as contaminant removal, can & jar dud detection, check weighing, and repackaging.
FlexXray’s first inspection system was built in 2001 by Don Forrest when a local bakery contacted him and asked if he could help locate “a missing bolt” in a run of 200 pies baked for a large event. FlexXray found two bolts and saved 198 pies. Today FlexXray serves some of the largest food companies in North America with hundreds of plants from New England to Florida, across mid-America and into Central America, and even out to the west coast. Every day trucks bring food products to FlexXray, and every day FlexXray sends product back to its customers, ready to return to their respective sales and distribution channels. FlexXray is led by CEO Kevin Fritzmeyer, has a 60,000 square foot facility in Arlington, TX (www.flexxray.com).
Over the course of Barton Creek’s two-year investment in FlexXray, the company transitioned from a founder-owned and operated business and invested in significant capacity expansion. As a result, FlexXray grew revenues and EBITDA strongly and doubled its customer base under Barton Creek’s ownership. “Kevin Fritzmeyer and the entire FlexXray team have done a top-notch job of executing on plans for enhanced service, operational professionalization, and growth. As a result, FlexXray has performed extraordinarily well,” said Ron Duncan, a Partner at Barton Creek.
Barton Creek invests in companies based in Texas, Oklahoma, and the surrounding states, that have revenues of $5 million to $50 million, EBITDA of $2 million to $10 million, and enterprise values of $5 million to $50 million. Sectors of interest include aerospace & defense; automotive; building products/construction/infrastructure; energy; environmental; food; healthcare; media/publishing; and transportation/value-added distribution. The firm was founded by Ron Duncan and Michael Sayre and is based in Austin, TX (www.bartoncreekequity.com).
“Barton Creek has been the ideal partner for FlexXray during its transition from a founder-run business to the leading platform in the industry,” said Mr. Fritzmeyer. “We will miss working with Ron and Michael, but are excited about our next phase of growth with Levine Leichtman.”
Houlihan Lokey (www.hl.com) was the financial advisor to FlexXray and Barton Creek, and Greenberg Traurig (www.gtlaw.com) provided legal counsel.
“It’s a special opportunity to get to be a part of the growth and professionalization of a world-class company. Working with Kevin and the team at FlexXray was exceptionally enjoyable. We appreciate the effort and expertise FlexXray and Barton Creek received from Houlihan Lokey and Greenberg Traurig throughout the process. It’s a gift to get to work with such consummate professionals. We wish Levine Leichtman the best in its investment; they have acquired a real gem,” said Mr. Sayre.
Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. Sectors of interest include consumer branded products, franchises, business services, healthcare, education, and engineered products/light manufacturing. The firm is based in Los Angeles with offices in Chicago, Dallas, New York, London and The Hague (www.llcp.com).
© 2017 Private Equity Professional | August 25, 2017
