Industrial

CI’s Tech Air Keeps Adding-On

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Tech Air, a portfolio company of CI Capital, has acquired Speed Industrial Supply. This is the 26th add-on acquisition completed by Tech Air since being acquired by CI Capital in December 2010.

Speed Industrial Supply is a distributor of industrial and welding supplies serving the Galveston Bay area near Houston. The company’s customers include large industrial welding and maintenance companies that serve the heavy industrial sector, such as oil rigs and refineries.

Speed Industrial is headquartered in Kemah, TX (www.speedindustrialsupply.com).

Tech Air is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies.  The company has more than 45,000 customers that operate across a range of industries and operates through 45 branch and fill locations in the Northeast, Southeast, Southwest and West.  Tech Air was founded in 1935 and is headquartered in Danbury, CT (www.techair.com).

The acquisition of Speed Industrial provides Tech Air a base from which to launch a new regional operation in the Houston area, and continues Tech Air’s geographic expansion throughout the United States. In February 2018, Tech Air completed the acquisition of North Hollywood, CA-based Leeper Brothers, distributor of medical gases – oxygen, nitrous oxide, helium, and nitrogen – used by dentists and oral surgeons; and in April 2018 it acquired Denver, CO-based Colorado Distributing, a distributor of hardgoods to the power and utilities sectors.

“We are very pleased with Tech Air’s expansion through the acquisition of such high-quality businesses,” said Myles Dempsey, Jr., CEO of Tech Air. “Speed has a well-established reputation and strategic value in the attractive Galveston-Houston area and we look forward to building on this acquisition in the region. Colorado Distributing builds upon our growth strategy in that state and strengthens our service offerings. The acquisition of Leeper Brothers greatly enhances our position in Southern California, and we are excited to have added medical gas business to our business mix.”

“Through 26 add-on acquisitions, Tech Air has transformed a regional company to one with significant operations coast-to-coast,” said Joost Thesseling, Managing Director at CI Capital. “We remain committed to supporting the company and its acquisition strategy.”

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 290 acquisitions representing over $9 billion in enterprise value. The firm is based in New York (www.cicapllc.com).

© 2018 Private Equity Professional | August 20, 2018

Investcorp Exits FleetPride

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Investcorp has completed the sale of FleetPride, North America’s largest truck and trailer parts distributor, to TPG for more than $1 billion.

Since its acquisition of FleetPride in 2006, Investcorp has supported 31 different add-on acquisitions by the company, strengthening its cross-country supply chain and adding total acquired sales of over $270 million. Investcorp helped increase FleetPride’s branch count to 248 with operations in 45 U.S. states. Investcorp’s initiatives increased the company’s EBITDA from $52 million at the time of purchase in June 2006 to over $100 million forecasted for 2012, helping generate a net return of more than 200% for investors.

“FleetPride represents the type of core, mid-market corporate investment that we typically target in the U.S. We worked closely with FleetPride’s management team from a very early stage in our investment to successfully implement strategic growth plans, thereby enhancing the company’s operations. The success of the FleetPride investment is a testament to our ability to grow our portfolio companies, even during challenging economic conditions, while maximizing the returns for our investors,” said Steve Puccinelli, Managing Director at Investcorp and Head of Corporate Investment for North America and Europe.

FleetPride is a supplier and retailer of heavy-duty truck and trailer parts. The company carries a full line of brand-name parts as well as an assortment of private label brand parts. FleetPride also offers in-house remanufactured products such as brake shoes and driveline components and truck and trailer repair services. The company has 248 locations in 45 states and is based in The Woodlands, TX (www.fleetpride.com).

Investcorp invests in mid-size companies operating in a wide array of industry sectors that have total enterprise values of between $200 million and $1 billion and are located in North America or Western Europe. The group has offices in London, UK and New York, NY (www.investcorp.com).

TPG is a private investment firm founded in 1992 with approximately $51 billion of assets under management. Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare. TPG makes investments throughout North America, Europe, Asia and Australia. The firm has offices in San Francisco, Fort Worth, Austin, Beijing, Chongqing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, Sao Paulo, Shanghai, Singapore and Tokyo (www.tpg.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-27-12

Nova Capital Management Acquires Portfolio of Five US Industrial Businesses

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Nova Capital Management has completed the previously announced acquisition of five industrial businesses that comprised all of the operating subsidiaries of Latshaw Enterprises, a US based industrial group.

“We are delighted to have completed this portfolio acquisition.  It fits perfectly with our strategy of buying groups of companies in a single transaction, which are well managed and have strong market positions but where we feel we can accelerate their growth through the deep operational and international experience which we can bring to bear.  This is our third deal in the US and we believe that this will open up other opportunities for us,” said Tom Leader of Nova.

Equity financing for the acquisition was provided by a syndicate comprising Nova Capital Management and Caledonia Investments.  GSO Capital Partners (part of the Blackstone Group) and PNC Bank provided the debt financing.

The five acquired businesses have aggregate sales of approximately $90 million and employ more than 450 people in 5 operating facilities across the USA.  The businesses acquired are: Wescon Products Company, an OEM manufacturer of mechanical controls, cable assemblies and screw machined components primarily for the lawn & garden sector, based in Wichita, KS (www.wesconproducts.com);  Wescon Plastics, a manufacturer of custom plastic injection molded parts using highly-engineered resins primarily for the battery and heavy duty truck industries, based in Wichita, KS (www.wesconproducts.com);  MC Electronics, an assembler of custom electronic cables, harnesses, electro-mechanical assemblies and full system integration, based in Hollister, CA (www.mcelectronics.com);  Coast Wire & Plastic Tech, a manufacturer of custom electronic wire and cable products, for the medical, instrumentation and commercial electronic industries, based in Carson, CA (www.coastwire.com); and Anderson & Forrester, a manufacturer of orifices, fittings and gauging tools for the natural gas and propane industries, based in Wheat Ridge, CO (www.andersonforrester.com).

Following the acquisition, three of Nova’s partners, Jan Kreminski (Operating Partner), Tom Leader (Investment Partner) and Mike Nevin (Investment Partner) will join the boards of each business to support the executive management teams of the acquired businesses.

Debt advisory services were provided to Nova by Alvarez & Marsal and Lincoln International. Nova was advised on the acquisition by Goodwin Procter.

Nova Capital Management was established in 2002 and has acquired or taken over the management of portfolios representing a total transactional value of over €1 billion.  Nova currently manages investments in over 25 businesses primarily operating in Western Europe and North America across a range of sectors. The firm is based in London, UK (www.nova-cap.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-14-12

Penfund Acquires Jet Equipment & Tools

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Penfund has acquired JET Equipment & Tools and its subsidiaries, Pioneer Protective Products and American Forge & Foundry, from Diamond Investment Group.

“JET and its subsidiaries are market leading suppliers of professional grade tools and equipment. The company has strong brands, long standing customer relationships, an extensive distribution and sourcing network and a proven management team,” said Richard Bradlow, a Partner at Penfund. “JET’s strong market position combined with Penfund’s significant investment experience in the automotive aftermarket and industrial distribution sector make this acquisition a compelling investment opportunity and excellent platform for future growth.”

JET Equipment & Tools is a Canadian wholesale distributor and marketer of branded professional tools, material handling equipment, automotive and heavy duty lifting equipment, abrasives and outdoor power equipment. Products are sold through independent distributors and retailers who supply the industrial sector, automotive and heavy duty aftermarket and outdoor power equipment market. The company operates a wholesale distribution network with six warehouses across Canada and employs over 170 people. JET was founded in the 1950’s and is headquartered in Vancouver, BC (www.jetequipment.com).

Pioneer Protective Products is a Canadian supplier of safety and protective apparel. The company was founded in 1887 and is located in Vancouver, BC (www.pioneerprotectiveproducts.com).

American Forge & Foundry is a supplier of automotive and heavy duty lifting equipment used to meet the lifting, shop equipment, shop maintenance, lubrication and material handling needs of service facilities and repair shops nationwide. The company was founded in 1963 and is based in Guilderland Center, NY (www.affjaxx.com).

Penfund is a Canadian private equity firm specializing in providing junior capital to middle market companies throughout North America. Penfund provides high yield and mezzanine debt, control and minority equity, as well as bridge facilities, standby lines, underwritten facilities and financial guarantees. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund IV which has $460 million of committed capital. The firm was founded in 1979 and is based in Toronto, ON (www.penfund.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-5-12

The Sterling Group Acquires Dexter Axle

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The Sterling Group has completed its acquisition of the Dexter Axle business from Tomkins Industries, a subsidiary of Pinafore Holdings B.V. This investment is Sterling’s fourth investment in its third fund, an $820 million fund raised in 2010. Dexter is the second business Sterling has acquired from Tomkins in the last fourteen months.

During its thirty year history, Sterling has sponsored the carve-out of 22 businesses from larger corporate parents, including multiple acquisitions from DuPont, British Petroleum and Tomkins. “We are excited about the opportunity to draw on our deep experience with corporate carve-outs to transition Dexter to a stand-alone business,” said Kevin Garland, Partner at The Sterling Group. “We look forward to partnering closely with management to achieve new levels of profitability and create value for all shareholders.”

The Dexter Axle business manufactures trailer axles, brake and suspension assemblies and related replacement parts and components. Its products are used in the recreational vehicle, military, cargo, horse, utility and equipment trailer industries. Dexter became a wholly-owned subsidiary of Tomkins, an industrial conglomerate based in London, in 1990. Dexter was founded in 1960 and is based in Elkhart, IN (www.dexteraxle.com).

“For over 50 years, Dexter has provided customers with the highest quality axles in the industry,” said Adam Dexter, CEO of Dexter. “The entire team is thrilled by Sterling’s support of our business, our culture, and our commitment to delivering the best customer service and product quality in the trailer running gear market.”

The Sterling Group targets controlling interests in basic manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million. Sterling has sponsored the buyout of 41 platform companies and numerous add-on acquisitions for a total transaction value greater than $9.5 billion. The firm was founded in 1982 and is located in Houston, TX (www.sterling-group.com).

The acquisition was financed with equity from Sterling Group Partners III, L.P. and several other co-investors. Senior debt financing was arranged by BNP Paribas and mezzanine debt was provided by Hancock Capital Management and Fifth Street Capital.

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-2-12

Industrial Opportunity Partners Exits Gulf Coast Machine & Supply Company

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Industrial Opportunity Partners has completed the sale of its portfolio company Gulf Coast Machine & Supply (Gulfco) to Altus Capital Partners. The divestiture represents the firm’s third investment realization from its initial $185 million committed fund. Industrial Opportunity Partners acquired Gulfco in February 2008.

Gulfco is a provider of large format forgings. Capabilities include ring rolling, open die forging, machining, heat treating, and testing for products formed into large format discs, shaped dies, seamless rolled rings, bushings, and blocks. The company’s products are used in subsea production facilities, refineries, offshore oil and gas rigs, and mining. Gulfco is based in Beaumont, TX (www.gulfco.com).

“It has been a pleasure to work with Gulfco’s talented management team over the last four years. Supported by IOP’s continuing strategic direction and investment, Gulfco has broadened its capabilities, increased its capacity, and improved its manufacturing processes. The company is well positioned in its niche market,” said Nick Galambos, Gulfco’s former Chairman of the Board and current IOP Operating Principal.

Industrial Opportunity Partners (IOP) focuses on acquiring and overseeing middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. IOP targets businesses with strong product, customer, and market positions and provides management and operational resources to support sales growth and operational improvements. The firm was founded in 2005 and is headquartered in Evanston, IL (www.iopfund.com).

“Altus is acquiring an excellent business with the potential to grow through expansion of its products and markets. In addition to being an excellent investment for IOP, Gulfco has great prospects with Altus,” said Ken Tallering, a senior managing director of IOP.

Altus Capital Partners invests in corporate divestitures, management-led buyouts and privately held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm has offices in Wilton, CT and Lincolnshire, IL (www.altuscapitalpartners.com).

Harris Williams & Co. acted as financial advisor and McDermott Will & Emery provided legal representation to Industrial Opportunity Partners in connection with this transaction.

Prospect Capital provided a $42 million senior secured loan to support the acquisition of Gulfco by Altus Capital Partners.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-16-12

Azalea Capital Invests in Orbital Tool

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Azalea Capital has made an investment in Orbital Tool Technologies, a provider of in-house and on-site machining and repair services for utilities and power generation companies. Azalea made the investment in Orbital Tool Technologies through its third fund. To supplement Orbital’s organic growth, Azalea is seeking to acquire complimentary companies that also serve the power generation industry.

Keith Ravan, the former CEO of Power Equipment Maintenance (an Azalea Fund I investment), co-invested with Azalea in the Orbital transaction and has joined the company as CEO. Terry Orcholski, the Founder of Orbital, will remain with the company as President. Additionally, Dennis McLaughlin, former owner of The Atlantic Group, which was acquired in 2007 by Day & Zimmerman, co-invested with Azalea and will serve on Orbital’s Board of Directors.

Orbital Tool Technologies performs inspections, in-house and on-site machining and repair services, shaft and journal repairs, fan shaft restoration, and steam valve repairs for utilities and power generation companies. The company services the utilities, pulp and paper, municipal power, and turbine/valve OEM industries. Orbital Tool deploys field technicians, field service equipment, and numerous portable machine shops to handle both planned outages and emergency work. The company also performs in-house and on-site machining to remove and replace repaired parts, optical and laser alignment, reverse engineering, and turbine part replacement. Orbital Tool was founded in 1996 and is based in Belvidere, IL (www.orbitaltool.com).

“Orbital Tool is excited to be partnering with Keith Ravan, Dennis McLaughlin, and the Azalea Capital team,” stated Terry Orcholski, President of Orbital Tool. “Now more than ever, power utilities and OEMs are looking for dependable and customer-focused service providers. Azalea’s investment in Orbital will help us to further differentiate our service offering to our valued clients and to build on our 16 year reputation in the power generation industry.”

Azalea Capital invests in middle market companies that have minimum annual revenues of $10 million and EBITDAs of $2 million to $10 million that are located in the Southeastern US. Industries of interest include manufacturing, business services, consumer products, value-added distribution, and healthcare. Azalea Capital is seeking new investment opportunities for its third fund, The Azalea Fund III, L.P. Current portfolio companies of Azalea include Star Packaging (Atlanta, GA); Modus (Washington, DC); KLMK Group (Richmond, VA); ETAK Systems (Charlotte, NC); and Sunbelt Chemicals (Palm Coast, FL). The firm was founded in 1996 and is headquartered in Greenville, SC (www.azaleacapital.com).

PEPD 8-14-12

Bison Capital Partners Invests in Solarsilicon Recycling Services

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Bison Capital Partners has made an investment in Solarsilicon Recycling Services, a recycler and servicer of silicon for the solar and semiconductor industries. Bison’s investment was made in conjunction with the company’s recent facility expansion which will significantly scale operations and enhance processing capabilities.

Solarsilicon Recycling Services (SRS) is a recycler and servicer of silicon for the solar and semiconductor industries. The company obtains unusable and off-spec silicon from both silicon suppliers and solar wafer manufacturers and applies a proprietary reprocessing method to create production-ready silicon. The company is headquartered in Camarillo, CA and recently expanded into a new facility in Ventura, CA (www.solarsilicon.com).

“SRS was on the verge of upgrading and expanding its operations by moving into a larger, more technologically sophisticated facility; however, industry volatility and regulatory complications led the company to seek capital to finish its expansion. Bison came in and provided SRS the necessary capital to stabilize its business, complete its expansion, and provide growth capital for future business opportunities. It was a real pleasure to work with Bison and its partners on this transaction. We continue to look forward to leveraging their business expertise as we take the next steps to further grow our business,” said Rob Bushman, Chief Executive Officer of SRS.

Bison Capital makes equity investments in public and private middle-market companies that have revenues of $20 million to $500 million and EBITDAs greater than $5 million. The firm is based in Los Angeles, CA with an office in New York, NY (www.bisoncapital.com).

PEPD 8-14-12

“With its industry leading management and silicon processing capabilities, we believe SRS is uniquely positioned to take advantage of the growing global demand for silicon supply in the solar and semiconductor markets. We are excited to have the opportunity to support SRS in its growth objectives,” said Doug Trussler, a partner at Bison Capital.

PEPD 8-14-12

Hanover Partners Acquires Quick Attach

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Hanover Partners has announced the purchase of Quick Attach Attachments and related companies (“Quick Attach”), a designer, manufacturer, and marketer of attachments for skid-steers and other similar equipment.

“We were particularly impressed with Quick Attach’s strong financial performance through the recent recession, a testament to the quality of the company’s talented management team. We are excited to partner with Todd and his team to support the company’s substantial growth opportunities. Our acquisition of Quick Attach is another example of Hanover’s long-standing focus on investing in market leading, proprietary product companies,” said Andrew Ford, Principal with Hanover Partners.

Quick Attach is a designer, manufacturer, and marketer of attachments for skid-steers, mini skid-steers, compact tractors, utility terrain vehicles, and all terrain vehicles. The company has developed over 90 different attachments sold direct to end-users and, under a separate brand, through a dealer network. The company’s attachments are designed to universally fit across all major machinery platforms such as Bobcat, CNH, Caterpillar, and John Deere and are used for numerous applications such as landscaping, agriculture, snow removal, excavation, and light-construction. The company has 90 employees and was founded in 2002. Quick Attach is headquartered in Alexandria, MN (www.quick-attach.com).

Hanover Partners acquisition of Quick Attach was completed with financing provided by Northstar Mezzanine Partners (www.northstarcapital.com).  A significant re-investment was also made in the transaction by the company’s founders, Todd and Amber Olson, and Mr. Olson will remain with the company as President and CEO.

“We are thrilled with the new opportunities that Hanover Partners and Northstar provide to Quick Attach. Both investors have a consistently strong track-record of helping build and grow medium-sized niche manufacturing companies. We look forward to working together as we continue to create and build innovative products in our core and new markets, invest in and expand our manufacturing operations, and continue to give our customers the highest-quality service in the industry,” said Mr. Olson.

Hanover Partners invest in lower middle-market manufacturers with highly engineered products, as well as consumer products and business services companies, with operating income from $1.5 million to $8 million.  With the addition of Quick Attach, Hanover’s current portfolio consists of six companies located across the United States.  The firm has offices in Oswego, OR and San Francisco, CA (www.hanoverpartners.com).

PEPD 8-13-12

Audax Acquires Electrical Specialty Products

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Winchester Electronics Corporation, a portfolio company of Audax Group, has completed the acquisition of Electrical Specialty Products, a manufacturer of cable assemblies. This is the third add-on acquisition completed by Audax since it acquired Winchester in June 2006. The firm added acquired Kings Electronics (Rock Hill, SC) in May of 2007 and Advanced Interconnect (Franklin, MA) in April of 2007.

Electrical Specialty Products (“ESP”) is a manufacturer of wire harnesses, cable assemblies, and electro-mechanical assemblies. Sectors served include industrial OEMs, instrumentation, transportation, food & beverage, weight & measurement, and heavy equipment. The company was founded in 1992 and is based in Spartanburg, SC (www.esp-sc.com).

Winchester is a designer and manufacturer of connectivity products, including both connectors and cable assemblies, for the medical, military, energy & power, and ruggedized industrial markets. The company is based in Wallingford, CT (www.winchesterelectronics.com).

“Winchester is a leader in its market segments within the electronic connectors industry. The acquisition of ESP diversifies its customer base and product offering. We will continue working with Kevin Perhamus and the Winchester management team to build the business through new product offerings, global expansion, and synergistic add-on acquisitions,” said Oliver Ewald, Managing Director of Audax Group.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace and defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, MA and New York, NY (www.audaxgroup.com).

Business Acquisition & Merger Associates advised ESP. K&L Gates served as counsel to Winchester and McGuire Woods served as counsel to ESP.

PEPD 8-9-12

Grey Mountain Partners Acquires Bone Frontier

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Bolttech Mannings, a portfolio company of Grey Mountain Partners, has acquired Bone Frontier, a designer and manufacturer of heat induction equipment.

Bone Frontier designs, develops, manufactures, and services heat induction equipment utilized in power plants, petrochemical facilities, refineries and other process-intensive settings. The company is headquartered in Brighton, CO (www.bonefrontier.com).

“We are very enthusiastic about the Bone Frontier acquisition and expect the company’s technical expertise and industry leading heat induction equipment to enhance the products and services Bolttech Mannings provides to its customers. This combination will further Bolttech Mannings’ position as a pioneer in thermal technologies used in critical maintenance and repair operations,” said Beth Lesniak, Vice President of Grey Mountain.

Bolttech Mannings provides maintenance and emergency joint integrity services in the power generation, refinery, and petrochemical markets. The company has 23 field offices located throughout the U.S. and is headquartered in New Versailles, PA (www.bolttech.com).

“The combination of Bolttech Mannings and Bone Frontier is an excellent opportunity to capitalize on the strengths of both organizations,” stated David and Marla Bone, Vice President and President of Bone Frontier. “We look forward to being a catalyst for continued growth of Bolttech Mannings’ innovative products and services.”

Grey Mountain Partners invests in middle market companies with enterprise values between $30 million and $150 million. The firm is based in Boulder, CO (www.greymountain.com).

Marlin Equity Partners Acquires ATC Drivetrain

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It was announced today that Marlin Equity Partners has acquired ATC Drivetrain, a remanufacturer of transmissions, from GENCO ATC. “The ATC Drivetrain team and I are extremely proud and excited to be joining forces with a first-class organization like Marlin Equity Partners,” said Michael LePore, ATC Drivetrain’s president and CEO. “We are in the midst of an explosive growth period and look forward to future product expansion with our new partners.”

ATC Drivetrain is a remanufacturer of transmissions, engines, advanced battery packs, and related components for light-, medium- and heavy-duty vehicles. The company’s services include process and salvage engineering, warranty root cause analysis and testing, machining for repair and salvage of components, and recycling of non-reclaimable material. ATC Drivetrain serves automotive original equipment manufacturers and aftermarket distributors throughout the United States. The company is based in Oklahoma City, OK (www.atcdrivetrain.com).

Marlin Equity Partners invests in businesses across multiple industries that are in the process of undergoing varying degrees of operational, financial or market-driven change. The firm is based in is a Los Angeles, CA (www.marlinequity.com).

“We are excited to partner with the industry’s leading transmission remanufacturer and are committed to building on ATC Drivetrain’s longstanding relationships with its blue-chip customers. Our substantial investment reflects our confidence in the platform and our strong belief in the company’s continued growth,” said Steve Johnson, a principal at Marlin.

Angle Advisors acted as the exclusive investment banking advisor to GENCO ATC and ATC Drivetrain in managing this transaction. “We hired Angle Advisors for their deep experience in the automotive aftermarket and vehicular industries, in addition to their hands-on approach and customized processes. Their strategy proved highly successful and we are very happy to have consummated such a successful transaction for our customers and teammates,” said Todd Peters, vice chairman at GENCO ATC.

Angle Advisors, with offices in the United States, Germany, the United Kingdom, and China, specializes in a variety of industries including the vehicular and industrial sectors. The firm’s 32 professionals provide mergers and acquisitions, capital raising, and debt advisory services to multinational corporations, privately-held companies, private equity funds and public sector clients. The firm is based in Birmingham, MI (www.angleadvisors.com).

GENCO ATC is North America’s second largest and a global Top 25 third-party logistics company. GENCO ATC serves more than 150 customers worldwide, including many Fortune 500 manufacturers, retailers, and government agencies. With over $1.5 billion in annual sales, GENCO ATC maintains 130 operations throughout North America and has more than 10,000 employees. The company was founded in 1898 and is based in Pittsburgh, PA (www.genco.com).

BC Partners and The Carlyle Group Acquire Hamilton Sundstrand Industrial

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BC Partners and The Carlyle Group today announced an agreement to acquire Hamilton Sundstrand Industrial, a manufacturer of pumps and compressors used in the industrial, infrastructure and energy markets, from United Technologies Corporation for $3.46 billion.

“Hamilton Sundstrand Industrial is a world-class platform and we are excited about the company’s significant growth prospects, including in key emerging markets,” said Raymond Svider, Co-Chairman and Managing Partner of BC Partners.

The transaction is expected to close in the fourth quarter of 2012.The investment in Hamilton Sundstrand will be funded in an equal partnership with equity from BC Partners and The Carlyle Group as well as third-party debt provided by a banking consortium. External debt financing commitments have been provided by Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley, RBC Capital Markets and UBS.

Hamilton Sundstrand comprises three businesses as follows: Sundyne is a manufacturer of high-speed pumps and compressors used principally for mission-critical, down-stream oil and gas and chemical/industrial infrastructure; Milton Roy is a provider of metering pumps used in chemical, oil and gas and water treatment applications; and Sullair is a global manufacturer of rotary screw air compressors used to power air-driven industrial equipment and tools used in the industrial manufacturing and the energy, mining and chemicals industries. Hamilton Sundstrand operates 19 manufacturing facilities in the U.S., France, China, Australia, the U.K., Spain and India and is headquartered in Windsor Locks, CT (www.hamiltonsundstrand.com).

BC Partners has $16.4 billion of capital under management and invests in companies in a variety of sectors that have significant European operations. The firm has offices in London, Hamburg, Milan, New York and Paris (www.bcpartners.com).

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The firm is based in Washington, DC (www.carlyle.com).

Carlyle and BC Partners have a history of successful industrial investments including Carlyle’s ownership of Allison Transmission, Rexnord Corporation and AxleTech International and BC Partners’ investments in Brenntag, SGB-SMIT Group and Interpump.

KPS Capital Partners Acquires CWS Industries

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KPS Capital Partners today announced that its portfolio company International Equipment Solutions (IES) has acquired CWS Industries, a manufacturer of highly-engineered attachment products. This is the fourth acquisition by IES since its formation.

CWS is a manufacturer of highly-engineered attachment products, including tire manipulators, cable reelers, grapples, buckets and various large excavator attachment products. Its customers include a global network of dealers and end-users in the mining, oil & gas, forestry and construction markets. The company employs 140 people at two facilities, located in Surrey, British Columbia and Edmonton, Alberta, Canada (www.cwsindustries.com).

Financing for the transaction was provided by a syndicate of institutional investors agented by Regiment Capital Advisors and PNC Bank.

KPS formed IES in September 2011 as a platform for investments serving the construction, agriculture, landscaping, infrastructure, recycling, demolition, mining, and energy industries. At that time, KPS announced IES’s first two acquisitions, Paladin Brands Holding, Inc. and Crenlo LLC, from Dover Corporation. In November 2011, Stephen Andrews was retained as Chief Executive Officer of IES to lead the integration of the first two acquisitions and to grow and globalize the company. As part of its globalization strategy, IES acquired Siac do Brasil, a manufacturer of cab enclosures in Brazil, in June 2012. IES employs over 2,500 people and operates 15 manufacturing facilities in the United States, Germany, and Brazil. The company is based in Oak Brook, IL (www.iesholdings.com).

“We are very proud of the progress IES has made to date. In only a brief ten months, KPS has created a truly global manufacturing company as a result of four highly synergistic acquisitions. The company has dramatically improved its profitability under our ownership and exceeded all of our expectations for growth. IES continues to capitalize on opportunities to grow its business internationally, and we believe that with each acquisition and subsequent integration, IES increases the value proposition offered to its customers,” said Raquel Palmer, a Partner at KPS.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $2.9 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. KPS has created new companies to purchase operating assets out of bankruptcy; established stand-alone entities to operate divested assets; and recapitalized highly leveraged public and private companies. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. The firm is located in New York, NY (www.kpsfund.com).

“The acquisition of CWS is another important step towards the globalization and diversification of IES. We are very impressed with CWS’s rapid growth trajectory, customer base, engineering capabilities and broad portfolio of highly engineered attachment products,” said Stephen Andrews, Chief Executive Officer of IES. “This acquisition not only strategically enhances our footprint with dealers in Canada and the U.S. Pacific Northwest, but also opens up IES to a growing base of sales relationships located internationally in South America, Russia and Asia. Additionally, the acquisition enhances IES’ product portfolio to include a suite of attachments with applications in the high-growth mining, oil & gas and forestry end-markets, which are currently underserved by IES. As demonstrated with both this acquisition and the acquisition of Siac do Brasil, IES remains committed to supporting our customer’s global expansion initiatives with localized supply, technical resources, and parts and service support. IES intends to invest significant additional capital and resources into CWS to ensure the highest level of production quality and capacity for our customers. IES has made tremendous progress in our first ten months and I am very confident our future is bright.”

May River Capital Acquires Hi-Tech Manufacturing

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May River Capital has announced the acquisition of Hi-Tech Manufacturing in partnership with management, the Pohlad family, Yukon Capital Partners, and other co-investors. Cleary Gull served as financial advisor to Hi-Tech and the selling shareholders in this transaction.

Hi-Tech is a manufacturer of low-to-medium volume, mission-critical precision machined components and assemblies for the energy, medical equipment, scientific laboratory and industrial end markets. The company is based in Schiller Park, IL (www.hi-tech-mfg.com).

“We are excited to partner with May River, the Pohlad family and Yukon. Our new partners provide significant capital backing, strategic support and experience in the manufacturing sector, as well as within our core end-markets, that will help our company continue to grow and deliver world class quality, service and value to our customers,” said Tim Weaver, CEO of Hi-Tech.

May River raises equity capital on a deal-by-deal basis from family offices, mezzanine funds, co-invest funds, industry executives, high net worth individuals, and other private equity firms. May River was founded in January 2012 and is based in Chicago, IL (www.mayrivercapital.com).

“Hi-Tech’s talented management team, strong customer relationships, demonstrated track record of growth, and commitment to operational excellence were central to our interest in the company. Tim and his team relish competition and excel in it,” said Dan Barlow, Partner of May River.

Fifth Third Bank provided senior debt financing, while Yukon Capital Partners provided subordinated debt financing beyond its equity co-investment.

Sentinel Capital Partners Exits LTI Boyd

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Sentinel Capital Partners announced today the sale of LTI Boyd, a manufacturer and supplier of high performance, custom engineered components for large, multinational OEMs. During Sentinel’s ownership, LTI Boyd’s revenue increased nearly five-fold through organic growth and the completion of three acquisitions. “We are extremely pleased with LTI Boyd’s performance,” said John McCormack, Senior Partner at Sentinel. “We have been fortunate to partner with LTI Boyd’s talented management team and wish them continued success as they enter their next stage of growth.”

LTI Boyd manufactures products for gasket, sealing, insulation, and impact protection applications in the heavy truck, recreational vehicle, enterprise electronics, off-highway, aerospace, and consumer electronics markets. LTI Boyd operates seven manufacturing facilities across the United States and in China. The company is based in Modesto, CA (www.ltiboyd.com).

“Sentinel was an ideal partner for our team,” said Mitch Aiello, LTI Boyd’s CEO. “Sentinel’s support and help was a crucial component of LTI Boyd establishing its leading market position.”

Sentinel Capital Partners invests in smaller middle market companies in the United States and Canada in partnership with management. The firm invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of established businesses with EBITDAs of between $7 million and $35 million. Sectors of interest include aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare products and services, and industrials. The firm is located in New York, NY n(www.sentinelpartners.com).

Robert W. Baird & Co. advised LTI Boyd in the transaction. William Blair & Company served as co-advisor. Kirkland & Ellis served as legal advisor to LTI Boyd.

Hammond, Kennedy, Whitney & Company Exits OakRiver Technology

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It was announced today that Hammond, Kennedy, Whitney & Company has sold its portfolio company OakRiver Technology, a manufacturer of automation equipment, to PaR Systems.

OakRiver Technology is now part of the new PaR Life Science and Process Automation group and will serve as a platform to lead PaR Systems’ expansion in the life sciences market.

OakRiver Technology is a manufacturer of high precision automation equipment to the medical device and high tech industrial sectors. The company is based in Oakdale, MN (www.oakrivertechnology.com).

PaR Systems is a designer and manufacturer of automation equipment and a portfolio company of MML Capital Partners. Industries served include aerospace, defense/marine, hazardous material/nuclear, heavy material handling, industrial manufacturing, and life sciences. The company was founded in 1961 and is based in St. Paul, MN (www.par.com).

“OakRiver Technology brings to PaR deep engineering talent with superior technology know-how. They have a great combination of strong operational and engineering expertise and focus while sustaining steady growth. Like PaR, their customer base views them as a trusted partner for demanding and complex solutions and they continually adopt new technologies to add to their solutions arsenal. We are excited about the market opportunities OakRiver brings to the mix, and pleased to add this quality organization to the PaR family,” said Mark Wrightsman, President and CEO of PaR Systems.

Greene Holcomb & Fisher (GH&F) served as the exclusive financial advisor to OakRiver Technology. GH&F, with offices in Minneapolis, Phoenix, Seattle and Atlanta, is an investment banking firm that specializes in mergers and acquisitions, private placements and financial advisory services for the middle market (www.ghf.net).

“OakRiver is an extremely well-run company with an outstanding management team and track record of delivering high quality engineered products to its customers. We worked together with the management team and HKW to find a strong partner for the business in PaR Systems,” said GH&F Managing Director, Ken Higgins.

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 40 platform management buyouts of small middle-market companies throughout North America as well as 42 add-on acquisitions. The firm is headquartered in Indianapolis, IN with an additional office in New York, NY (www.hkwinc.com).

Genstar Capital Acquires Hi-Tech Machine

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MW Industries, a manufacturer of specialty springs and fasteners and a portfolio company of Genstar Capital, announced today that it has completed the acquisition of substantially all of the assets of Hi-Tech Machine. “We continue to identify growth oriented companies and to successfully integrate them into our growing platform,” said Bill Marcum, CEO of MW Industries. “We have been working to build the company into a leading national competitor and each strategic acquisition has added enhanced product offerings and broadened MW’s geographic reach.”

Hi-Tech is a precision machining business that serves the medical, aerospace, military/defense and hand power tool markets. The company is based in of Concord, NC (no website found).

MW Industries is a provider of highly engineered springs, specialty fasteners and other precision components to more than 23,000 customers. Its 40,000 plus products are sold through a combination of direct sales, catalogs and distributors to original equipment manufacturers and aftermarket customers in a number of industries, including medical, heavy truck, electronics, agriculture and construction, military and aerospace, energy and automotive. The company is based in Logansport, IN (www.mw-ind.com).

It is planned that Hi-Tech’s equipment and customers will be integrated into MW’s Springmasters Division, based in Greer, SC, over the next few months. Brad Gryder, Owner and President of Hi-Tech, will be joining the Springmasters Organization to work on integration of the existing business base and drive growth opportunities.

Genstar Capital invests in middle-market companies and builds value in those businesses by utilizing the expertise of its operating partners. Genstar has more than $3 billion of committed capital under management and targets investments within the life sciences, healthcare services, financial & business services, software & software services and industrial technology industries. The firm was founded in 1988 and is based in San Francisco, CA (www.gencap.com).