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Prospect and Schilling Acquire Cyclonaire

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cyclonaire nfProspect Partners and Schilling Ventures have acquired Cyclonaire, a provider of pneumatic conveying systems. Cyclonaire is the seventh platform company in Prospect Partners’ $200 million third fund and the third investment for Schilling Ventures.

Cyclonaire provides custom-engineered and manufactured pneumatic conveying systems for the transfer of dry bulk materials including cement, chemicals, food, minerals, petrochemicals, proppants (used in hydraulic fracturing) and sand. The company’s products are used in railcar unloading, locomotive track sanding, dust collection, automation, batching and blending, and aeration systems. Cyclonaire will continue to be led by Jerry Elfring, President, who has been with the company almost since its inception in 1973. Cyclonaire is headquartered near Lincoln in York, NE (www.cyclonaire.com).

“Prospect Partners and Schilling Ventures felt like the right fit from the start,” said Mr. Elfring. “They fully embrace our emphasis on top-quality equipment, design integrity, and exceptional customer service. We look forward to their support and guidance as we grow our core business and expand into new markets. We are excited about what the future holds for Cyclonaire.”

“With a stellar reputation, a superb management team, specialized technology, and significant continued growth potential, Cyclonaire stands out as a market leader in the fragmented pneumatic conveying industry,” said Maneesh Chawla, a Principal at Prospect Partners.

With the purchase of Cyclonaire, Prospect and Schilling are now seeking add-on acquisitions of other pneumatic conveying and material handling companies as well as manufacturing automation and controls businesses. “We look forward to supporting management in building a larger company in the broader material handling space and to partnering with Schilling Ventures, a skilled operator with a focus on lean manufacturing initiatives,” said Mr. Chawla.

Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues of less than $75 million. Since 1998, Prospect Partners has invested nationwide in more than 105 companies in a range of niche manufacturing, distribution, and specialty service markets. The firm has $470 million of capital under management and is based in Chicago with an additional office in Menlo Park (www.prospect-partners.com).

Schilling Ventures invests in companies that have revenues of $2 million to $20 million and EBITDAs of $500,000 to $5 million. Sectors of interest include non-automotive transportation, building products, material handling, food, water treatment, and energy components. The firm is headquartered in the Chicago suburb of Naperville (www.schillingventures.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-8-14

KKR Acquires The Crosby Group and Acco Material Handling

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crosby nfKKR has signed an agreement to acquire The Crosby Group and Acco Material Handling Solutions from Melrose Industries for approximately $1 billion.

The Crosby Group manufactures lifting and rigging products, such as shackles, blocks, sheaves, fittings, hooks, swivels, and clamps used in the oil and gas, construction, mining and industrial sectors. Brand names include Crosby, McKissick, National and Lebus. Crosby has over 1,300 employees and is headquartered in Tulsa, OK (www.thecrosbygroup.com).

Acco manufactures material handling products including monorail cranes and hoists, grabs, lifters, tracks, crane components, hand trucks, and casters. Brand names include Louden, Wright and Nutting. The company has approximately 130 employees is headquartered in York, PA (www.accomhs.com).

“Crosby and Acco have long and distinguished histories of providing distributors and end customers with the highest quality products and customer support to meet their lifting and rigging needs. We are excited to partner with the many dedicated employees of both companies and look forward to working together to begin a new chapter of growth and global expansion,” said Pete Stavros, a Member of KKR and Head of the firm’s Industrials investing team.

KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $83 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).

Fully committed financing for this transaction will be provided by Morgan Stanley, UBS Investment Bank, and KKR Capital Markets.

Rothschild and Simmons & Company International served as lead financial and M&A advisors to KKR, and Morgan Stanley, UBS Investment Bank, and RBC Capital Markets also served as M&A advisors. Kirkland & Ellis served as legal counsel to KKR.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-10-13

Incline Equity Partners Exits Portec Group

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Portec Group International, a manufacturer of conveyor belt turns and spirals and a portfolio company of Incline Equity Partners, has been sold to The Interroll Group. Incline Equity Partners (previously PNC Equity Partners) acquired Portec from Code Hennessy & Simmons in March 2005.

Portec Group International is a manufacturer of power belted turn and spiral conveyors and related parts for the airport baggage handling, distribution and warehousing, postage and parcel, and manufacturing industries. The company has an installed base of over 60,000 units, most of which were customized to exact customer specifications. Portec had revenues in 2012 of $20 million and is headquartered in Cañon City, CO (www.portec.com).

The Interroll Group is a global manufacturer of products for unit load handling systems, internal logistics and automation. Sectors served include airports, parcel and postal services, distribution centers and food processing facilities. The company has annual revenues of approximately CHF 300 million. The Interroll Group was founded in 1959 and is based in Sant’ Antonino, Switzerland (www.interroll.com).

Incline Equity Partners invests from $10 million to $25 million in support of leveraged buyouts, recapitalizations, and large minority financings of lower middle market growth companies with enterprise values between $25 million and $100 million across a variety of sectors including light manufacturing, value-added distribution, and business and industrial services. The firm was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-14-13

Odyssey Acquires Fischbein

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Odyssey Investment Partners has acquired Fischbein, a supplier of packaging machinery and material handling equipment, from a group of investors led by MSouth Equity Partners. The Fischbein senior management team has invested in the transaction alongside Odyssey and will continue to lead the company. The investment in Fischbein marks Odyssey’s 10th portfolio investment in Odyssey Investment Partners Fund IV.

“Fischbein is a market leader within each of its niche product applications and serves a variety of attractive end markets. We believe Fischbein is an excellent platform for expansion through organic growth and strategic add-on acquisitions, and we are excited to partner with Fischbein’s outstanding management team to continue Fischbein’s strong track record of growth,” said Dennis Moore, Principal of Odyssey.

Fischbein supplies packaging equipment and material handling products to customers across multiple end markets. Fischbein’s Packaging Equipment division provides components, systems and aftermarket replacement parts that fill, close, weigh and handle open mouth bags. Products are used in the agriculture, food, pet food, minerals and chemicals end markets. The Material Handling Group is a manufacturer of flexible and rigid conveyors used to load and unload non-palletized items on and off trucks in retail stores and distribution centers. Products are used in the retail, distribution center, parcel/post and e-commerce sectors. The company has 11 manufacturing and sales/distribution facilities throughout the US, Europe and Singapore and is headquartered in Suwanee, GA (ww.fischbein.com).

“The Odyssey team’s deep understanding of our industry and end markets will be a valuable resource as we build on our considerable experience in the packaging and material handling equipment sectors. Together with our new strategic partner, we plan to expand our capabilities to better serve existing and future customers, and to strategically enhance our growth prospects in North America and around the world,” said Jeff Reed, CEO of Fischbein.

Fischbein was represented by Sagent Advisors, an investment bank with offices in New York, Charlotte, Chicago, San Francisco, and McLean, VA (www.sagentadvisors.com).

Odyssey Investment Partners is a middle-market private equity firm with more than $3 billion under management. Odyssey makes control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has offices in New York and Woodland Hills, CA (www.odysseyinvestment.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-13-13

The Pritzker Group Acquires Intersystems

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The Pritzker Group has acquired Intersystems, a manufacturer of material handling equipment used in the agriculture industry.  The entire Intersystems management team invested alongside The Pritzker Group and will continue to lead the company.

Intersystems is a designer and manufacturer of specialized material handling equipment serving the agriculture industry.  The company’s product portfolio includes en-masse and enclosed belt conveyors, bucket elevators, bulk weighers, truck probes, grain samplers, gravity screeners, distributors, micro ingredient systems, and bolted bin systems. The company was founded in 1959 and is based in Omaha (www.intersystems.net).

“We see great opportunities for Intersystems in the world grain and feed markets,” said Tom Schroeder, Intersystems chief executive officer. “The resources of The Pritzker Group will ensure our continued growth by helping us add new products and services to better meet the needs of our customers.”

The Pritzker Group’s middle-market investment team acquires North American-based companies with enterprise values between $75 and $400 million, focusing on businesses with leading positions in the manufactured products, healthcare, and services sectors. The firm’s middle-market and venture capital teams have acquired or invested in more than 100 companies over the past decade. The Pritzker Group is based in Chicago (www.pritzkergroup.com).

“Intersystems has grown significantly under Tom and his team’s stewardship, and we are proud to partner with them,” said Michael Barzyk, vice president of The Pritzker Group.  “Intersystems serves as a great example of our strategy to invest in leading companies serving the global agricultural market.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-16-13

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