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