FS

Griffin Holdings Acquires Tufco Technologies

by

Griffin Holdings has completed the acquisition of Tufco Technologies, a contract manufacturer of wet and dry wipes. Tufco’s Business Imaging division, HAMCO Manufacturing, was also purchased in this transaction.

Tufco is one of the largest contract manufactures of branded wet and dry wipes in the Unites States. The company also offers custom formulation development and blending as well as microbiological services. Tufco is also a provider of business-to-business wide web flexographic printing, and hot melt adhesive laminating. The company was founded in 1992 and is headquartered in Green Bay, WI (www.tufco.com). HAMCO, a provider of custom printed POS and ATM rolls and other business forms, is based in Newton, NC (www.hamco.com).

According to Griffin Holdings, Tufco’s presence in four different industries will allow it the firm to cast a wide net when looking for strategic acquisitions, add-ons and tuck-ins for this platform company.

Griffin Holdings invests from $5 million to $30 million of equity in leveraged buyouts, management buyouts, growth equity and recapitalizations. Typical targets will have EBITDA between $3 million and $30 million. Griffin was founded in 2008 and is based in Los Angeles (www.griffinhld.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-11-14

Swander Pace Exits Pineridge Bakery

by

Swander Pace Capital has reached an agreement to sell its portfolio company Pineridge Bakery to Switzerland-based global food business ARYZTA AG for $340 million. The sale is subject to review by the Canadian Competition Bureau and is expected to close in the second quarter of 2014.

Pineridge Bakery is a specialty bakery, manufacturing and marketing frozen and fresh specialty baked goods produced by two operating subsidiaries, Oakrun Farm Bakery and Gourmet Baker. The company sells private label and branded products in the foodservice, in-store bakery, convenience and grocery channels in North America. Pineridge Bakery is based in Ancaster, Ontario (www.pineridgegroup.ca).

“This transaction is the culmination of a successful six-plus-year partnership, and it’s a great result for all parties,” said Andrew Richards, Managing Director at Swander Pace Capital. “Pineridge Bakery will be able to transition their momentum to a new partner with tremendous experience and global reach; ARYZTA acquires a leader in its space in North America; and we are able to return a significant result to our investors while leaving a growing company in capable hands. We couldn’t be more thrilled.”

Swander Pace Capital invests in middle-market consumer products companies including branded and non-branded, manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $300 million in revenues. Swander Pace was founded in 1996 and has offices in San Francisco, CA; Bedminster, NJ; and Oakville, ON (www.spcap.com).

Since its 2007 acquisition by Swander Pace Capital, Pineridge Bakery has invested nearly $40 million in growth capital to support customer initiatives, expand the company’s product base and drive operating efficiencies. These investments have contributed to building an efficient, flexible manufacturer able to serve a broad customer base within the foodservice and grocery retail categories. Annual revenues for Pineridge are approximately C$230 million. During the term of its ownership by Swander Pace, Pineridge added in excess of 100 new jobs.

“We are extremely proud of our partnership with Pineridge Bakery and CEO Roger Dickhout, which has paved the way for the company’s next chapter of growth,” said Heather Smith Thorne, Director at Swander Pace Capital. “We collaborated with management on a number of strategic growth initiatives to help the company expand its reach across Canada and into the United States and we look forward to watching Pineridge Bakery continue its success as part of ARYZTA.”

Rothschild acted as financial advisor and Stikeman Elliott as legal advisor to Swander Pace Capital on the sale.

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-10-14

Blackstone Invests in Versace

by

Blackstone has agreed to invest €210 million ($287 million) for a 20% equity interest in luxury products company Gianni Versace SpA (DBA Versace). The transaction values the equity of the company at just over €1 billion ($1.4 billion).

Blackstone will invest €150 million of equity capital into Versace in return for a 14.3 percent equity interest and will invest €60 million in GIVI Holding, the Versace family holding company, in return for a 5.7 percent equity interest.

Versace is one of the world’s leading international fashion houses. Versace designs, markets, and distributes luxury clothing, accessories, makeup, and home furnishings under the various brands of the Versace Group. The company employs approximately 500 and had annual revenues of approximately €480 million in 2013. Versace was founded in 1978 by Gianni Versace who died in 1997. The company is currently owned 30% by Santo Versace (Gianni Versace’s brother), 20% by Donatella Versace (sister) and 50% by Allegra Versace (Donatella Versace’s daughter). Versace is headquartered in Milan, Italy (www.versace.com).

“This investment in the company, together with our clear direction and our outstanding management team, will enable us to achieve Versace’s potential,” said Donatella Versace in a released statement.

Blackstone is one of the world’s leading investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone is headquartered in New York (www.blackstone.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-27-14

HKW Exits Qualis Automotive

by

Hammond, Kennedy, Whitney & Company (HKW) has sold its portfolio company Qualis Automotive to CWD, LLC (DBA Centric Parts). HKW acquired Qualis Automotive in June 2004.

Qualis is a supplier of brake, chassis and hydraulic products to the North American automotive aftermarket. Products include drums and rotors (2000 SKUs), steering and suspension components (5000 SKUs), and hydraulics such as cables, brake lines & hoses (5000 SKUs). The company sells to retailers, national installers, warehouse distributors and original equipment suppliers. Qualis was founded in 1999 and is headquartered in the Detroit suburb of Troy, MI with a distribution center in Hebron, KT (www.qualisauto.com).

Centric Parts is a manufacturer and supplier of aftermarket brake components and systems for cars, work-duty vehicles and performance vehicles under the Centric, StopTech and PosiQuiet brands. Centric was founded in 2000 and is headquartered in City of Industry, CA (www.centricparts.com).

Quarton Partners (www.quartonpartners.com) acted as the exclusive financial advisor to Qualis. Quarton provides mergers and acquisitions, private capital raising, restructurings, valuations, and other financial advisory services to privately held and publicly traded companies as well as private equity firms. Quarton Partners is headquartered near Detroit in Birmingham, MI and is an affiliate of Spearhead Capital (www.spearheadllc.com).

Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Over the past 29 years, HKW has completed 44 platform management buyouts of small middle-market companies throughout North America as well as 48 add-on acquisitions. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-26-14

L2 Capital Acquires reQuire

by

L2 Capital has acquired reQuire, an online lien release tracking and reporting service for the real estate settlement services sector.

reQuire provides settlement companies and real estate attorneys with an automated means of tracking and releasing property liens after settlement, ensuring any previous liens are fully repaid and properly removed from court records. The company was founded in 2002 by Daniel Morris and is based in Virginia Beach, VA (www.titletracking.com).

“reQuire’s patent-pending process provides a unique opportunity to redefine lien release compliance in all residential real estate transactions,” said Bob Levine, Managing Partner of L2 Capital. “Unreleased liens create headaches for all parties involved, and the number of liens that remain unreleased a year after a residential closing is astounding. We are looking forward to supporting organic and external growth through further penetrating the US market and leveraging the company’s defensible market position with additional products and services.”

L2 Capital invests in privately-owned manufacturing, service and distribution companies with revenues of $10 million to $75 million and valuations of up to $50 million. The firm has over $50 million in available capital and invests from $1 million to $10 million in each transaction. L2 Capital is headquartered in the Philadelphia suburb of Radnor, PA (www.L2Capital.net).

“Bob Levine and the entire L2 Capital team are the perfect match for reQuire. Their experience, contacts and resources, as well as their hands-on operational and strategic support constitute an unbeatable investment partnership. We could not be better suited for accelerated growth,” said Daniel Morris, CEO of reQuire.

Farragut Capital Partners (www.farragutcapitalpartners.com) invested subordinated debt and equity to support the acquisition of reQuire by L2. “We’re pleased to partner with reQuire CEO Daniel Morris and L2 on this transaction,” said Javier Aguirre, Partner of Farragut. “reQuire simplifies the lien tracking process in hundreds of thousands of transactions every year, and we’re excited to work with L2 as they help to introduce this compelling service to a wider audience.”

Boxwood Partners, a merchant bank based in Richmond, VA (www.boxwoodpartnersllc.com), acted as the exclusive advisor to reQuire. The transaction was led by Managing Directors Patrick Galleher and Bobby Morris as well as Associate Brian Alas.  “reQuire’s industry-leading platform simplifies a complicated process for all stakeholders of a real estate transaction,” said Mr. Galleher. “The management team of reQuire has shown the ability to execute the company’s growth strategies and is well positioned to continue that growth with L2 as their new partner.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-26-14

Black Diamond Buys Assets of Star Growers of Colorado

by

Color Spot Nurseries, a portfolio company of Black Diamond Capital Management, has acquired certain assets of Color Star Growers of Colorado through a Chapter 11 Section 363 process which closed last month.

Color Star was a grower and wholesaler of flowers and nursery stock with greenhouses and distribution centers in nine locations in Colorado, Missouri and Texas. The company was the fourth largest bedding plant distributor in the US based on square footage, with market positions in over 20 states (www.colorstargrowers.com).

The demise of Color Star was caused by stagnant consumer spending, slow housing starts, retailer consolidation and adverse weather conditions during the company’s peak growing season in 2013. As a result, the company faced liquidity constraints and filed for Chapter 11 Bankruptcy protection in the US Bankruptcy Court for the Eastern District of Texas in December 2013. SSG Capital Advisors (www.ssgca.com) was retained in September 2013 as Color Star’s investment banker to explore strategic alternatives, including a sale of substantially all of the company’s assets.

SSG coordinated the sale of Color Star’s assets to three buyers – Color Spot Nurseries, Altman Plants, and Raindrop Partners. Color Spot purchased Color Star’s Sanger, TX assets. Altman Plants purchased the company’s Giddings, TX, Harrisonville, MO and Peyton, CO assets; plus equipment and inventory at the Austin, TX, Carthage, MO and Jasper, MO facilities. Raindrop Partners purchased all of the company’s Old Fort Lupton, CO and New Fort Lupton, CO assets.

Black Diamond ‘s portfolio company, Color Spot Nurseries, is a distributor of bedding plants, vegetables, herbs, shrubs, premium blooming plants, ground cover, and ornamentals to more than 2,000 retail and commercial customers throughout the United States. The company operates 12 production facilities throughout the United States and is headquartered in Fallbrook, CA (www.colorspot.com).

Black Diamond invests in performing and distressed markets through the following four platforms: control distressed/private equity; hedge fund; mezzanine funds; and CLOs and other structured vehicles. The firm was founded in 1995 and employs more than 80 people across multiple offices, including Greenwich, CT; Lake Forest, IL; and London, UK (www.bdcm.com).

Raindrop Partners makes equity investments of up to $5 million in Colorado-based companies with revenues of up to $20 million and EBITDA of up to $3 million. Sectors of interest include business and consumer services; consumer staples and food; real estate, construction, and building products; and minerals & mining. Raindrop Partners owns Circle Fresh Farms, a Colorado-based greenhouse vegetable operation focused on providing locally grown, fresh produce year-round to Colorado’s metropolitan areas, including Denver, Boulder and Colorado Springs. Raindrop Partners is headquartered in Denver (www.raindroppartners.com).

Altman Plants is the nation’s fifth largest grower for the horticulture industry with 1,100 employees and 6 million square feet of greenhouse operations over 1,200 acres in three states. Altman Plants is headquartered in Vista, CA (www.altmanplants.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-21-14