Industrial

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).