Industrial

Centerbridge Acquires Wastequip

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Wastequip, a manufacturer of waste and recycling equipment, announced today that it has completed the recapitalization of its balance sheet and is now majority owned by Centerbridge Partners. As a result of the recapitalization, Wastequip has eliminated over $550 million of debt, reduced its annual interest expense by over 80 percent, and obtained a new $40 million revolving credit facility.

Wastequip is a manufacturer of waste and recycling equipment with an international network of 27 manufacturing facilities and the most extensive dealer network in North America. Wastequip’s range of waste and recycling equipment and systems are used to collect, process and transport recyclables, solid waste, liquid waste and organics. The company’s brands include Wastequip, Toter, Galbreath, Pioneer, Accurate, Cusco, Mountain Tarp and Parts Place. Wastequip was founded in 1989 and is based in Charlotte, NC (www.wastequip.com).

In connection with the completion of the recapitalization, John Scott, President and Chief Executive Officer of the company, announced his retirement. In tandem, the company also announced the appointment of Mr. Martin “Marty” Bryant to succeed Mr. Scott as Chief Executive Officer. Mr. Bryant served as a senior executive of Dana Corporation from 2008 to 2011, most recently as President of the Light Vehicle Products Division.

“I am excited to be joining Wastequip as we begin this new chapter together. The company’s industry-leading products and services, culture of customer service and innovation and strong operating capabilities are key differentiators. We are committed to building long-term value for our customers, employees, communities and shareholders,” said Mr. Bryant.

Centerbridge Partners invests between $50 million and $300 million in US based leveraged buyouts and distressed securities. The firm has $20 billion of capital under management and is based in New York, NY (www.centerbridge.com).

“We commend John and the team for leading the company through a complex recapitalization. Now, with the transaction complete, Wastequip is poised for growth. We are excited to partner with Marty Bryant and Wastequip management to further strengthen the company’s leading market position,” said Kyle Cruz, a Managing Director at Centerbridge.

Gryphon Investors Exits Intelligrated

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Gryphon Investors announced today that it has agreed to sell its portfolio company Intelligrated, a provider of automated material handling solutions, services and products, to private equity firm Permira in a transaction valued at more than $500 million.

Intelligrated designs, manufactures and installs complete material handling automation solutions for the warehousing, distribution, consumer product manufacturing, postal and parcel markets. Solutions include conveyor systems, sortation systems, palletizers and robotics, order fulfillment systems, warehouse control software and advanced machine controls. Intelligrated will remain headquartered in Mason, OH and will retain its operations throughout the United States and in Canada, Mexico and Brazil (www.intelligrated.com).

In partnership with CEO Chris Cole and President & COO Jim McCarthy, Gryphon built Intelligrated into a market leader through the combination of two synergistic acquisitions, numerous new product introductions and the hiring of leading executive talent from throughout the industry. Despite the recession of the past few years, Gryphon and management tripled the size of Intelligrated through the strategic acquisition in June 2009 of the North American assets of FKI Logistex from Melrose.

“After many years of partnership with Intelligrated’s management team, we are delighted to have signed a definitive agreement to sell Intelligrated in a successful transaction for Gryphon’s limited partners, co-investor Tudor Ventures and management shareholders. Gryphon’s unique investment thesis supported Intelligrated’s growth from a small company to North America’s leading industry competitor through aggressive organic growth initiatives, the transformative acquisition of Logistex and perseverance through two industry cycles,” said David Andrews, Gryphon’s CEO and Managing Partner.

“Gryphon has been an exceptionally strong partner for Intelligrated and has added significant value and support as the company has pursued its multi-pronged strategy to become the North American market leader with more than $500 million of revenue,” said Chris Cole, the CEO of Intelligrated. “In particular, management appreciates Gryphon’s deal-making, capital investment and integration planning leadership to consummate the Logistex acquisition during the extraordinarily difficult second quarter of 2009. The transition now from U.S.-focused Gryphon to Permira with its global capabilities is very exciting given Intelligrated’s plans to accelerate our expansion outside of North America on an organic basis and through further acquisitions.”

Gryphon Investors makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $25 to $100 million of capital in companies with sales ranging from $25 to $250 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, health care and hotels. The firm is based in San Francisco, CA (www.gryphoninvestors.com).

Robert W. Baird & Co. served as lead financial advisor to Intelligrated and Gryphon, while Credit Suisse also acted as an advisor. Kirkland & Ellis provided legal counsel.

J.F. Lehman & Company Acquires Chemring Marine

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Drew Marine, a provider services to the maritime industry and a portfolio company of J.F. Lehman & Company, has reached an agreement with Chemring Group to acquire Chemring’s maritime interests for £32 million pounds in cash. Under Drew Marine’s ownership, the business will be named Drew Marine Signal and Safety.

Chemring Marine is a supplier of marine distress signals including hand-flares, man-over-board buoys, line-throwers and other required rescue products under established brands including Pains Wessex, Comet, Aurora and Oroquieta. The company’s products are produced in Bremerhaven, Germany; Pamplona, Spain; and Lara, Australia. The business will continue to be headquartered in Hampshire, UK (www.chemringmarine.com).

Drew Marine is a provider of technical solutions and services to the marine industry specializing in water treatment, fire, safety & rescue, cleaning & coatings, fuel management, welding & refrigeration and sealing products. Drew Marine was acquired by J.F. Lehman & Company in 2009. The company is based in Whippany, NJ (www.drew-marine.com).

“The acquisition of Chemring Marine is a perfect fit with our strategy to provide essential products for safety, reliability and compliance to the global maritime industry. Like Drew Marine, Chemring Marine is known for supplying the highest quality and best performing products to the markets that we serve. The addition of these high quality brands is in keeping with Drew Marine’s philosophy of bringing the best of the market to our customers. In addition, we add a new distribution model to Drew Marine’s capabilities, which should allow us to broaden our customer base and explore additional products suitable for the Company’s global distributor network,” said Len Gelosa, President and CEO of Drew Marine.

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded by Dr. John F. Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has made investments in companies with an aggregate transaction value of approximately $1.6 billion. The firm was founded in 1992 and is headquartered in New York with additional offices in Washington, DC and London. (www.jflpartners.com).