material handling

Bertram Capital Adds-on with Valley Roller

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Maxcess International, a portfolio company of Bertram Capital, has signed an agreement to acquire Valley Roller Company.  Valley Roller joins Webex, Fife, Tidland and MAGPOWR under the Bertram Capital-owned Maxcess International ownership umbrella.

Valley Roller manufactures rubber covered rollers that are used in web or sheet handling applications in the pulp and paper, tissue, converting, plastics, coating and laminating sectors. The company was founded in 1984 and is headquartered in Appleton, WI with a second facility located near Dallas in Mansfield, TX (www.valleyroller.com).

Maxcess is a designer and manufacturer of industrial rolls, converting components, and specialized machinery for web handling and converting applications. The company is headquartered in Oklahoma City, OK (www.maxcessintl.com).

“This acquisition marks our third add-on acquisition for the Maxcess platform, and reaffirms our commitment to building a complete offering of web handling solutions,” said Kevin Yamashita, Partner at Bertram Capital.  “We’re thrilled to partner with the Valley Roller team and look forward to providing our global customer base with a full portfolio of roller products and services.  We also look forward to continuing our buy and build strategy with market leaders like Valley Roller.”

Maxcess was acquired by Bertram Capital in January 2014 from Merifin Capital and Windjammer Capital which had acquired the company in 2005. Bertram Capital merged the operations of Maxcess into its existing portfolio company Webex which it had acquired in April 2013.

“The acquisition of Valley Roller Company, our second acquisition in eight months, highlights our continued buy and build market strategy to broaden our one-stop-shop product and service offering,” said Greg Jehlik, CEO of Maxcess. “Being deeply focused on expansion through organic growth, targeted product development and acquisitions, Valley Roller Company is a perfect example of a category leader and an addition that will add significant capabilities at other Maxcess facilities moving forward.”

Bertram Capital invests in middle-market business services, consumer, healthcare, industrial and technology companies that have revenues from $30 million to $250 million and EBITDA of $5 million to $30 million. The firm is located in San Mateo, CA (www.bertramcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-6-15

Sterling Acquires ProcessBarron

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The Sterling Group has completed its acquisition of ProcessBarron, a provider of air and material handling equipment.  Sterling acquired the business from the founding family and management team who are reinvesting alongside Sterling in the new transaction.

ProcessBarron is a designer, manufacturer, and installer of air, gas, and material handling equipment for a variety of heavy industrial applications in the pulp and paper, iron and steel, utility, cement, lime, wood products, textile, foundry and mining industries.  The company’s systems are used to move air, gas, or materials to and from boilers, kilns, and furnaces.  Process Barron also offers repair and maintenance services.  The company was founded in 1981 and is headquartered south of Birmingham in Pelham, AL (www.processbarron.com).

“Process Barron has a unique value proposition in its niche markets,” said Greg Elliott, Partner at The Sterling Group.  “We look forward to working with the Process Barron team to continue to broaden their product offerings and geographical reach to provide value to their customers.”

“Over the past 30 years, Process Barron has provided best in class service and equipment to a variety of process industries,” said Ken Nolen, President of Process Barron. “The entire Process Barron team looks forward to partnering with Sterling to further expand the business.”

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 46 platform companies and numerous add-on acquisitions for a total transaction value greater than $10 billion. Currently, Sterling has over $1 billion of assets under management through two active funds.  Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet, Specified Air Solutions and American Bath Group.  The firm was founded in 1982 and is headquartered in Houston (www.sterling-group.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-6-15

Levine Leichtman Completes Buy of FMC Material Handling

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FMC Technologies has completed the divestiture of its material handling products business to Syntron Material Handling, a new platform company formed by Levine Leichtman Capital Partners.

With the transaction closed, Syntron Material Handling is now a manufacturer of conveyor and vibratory equipment used to load, transport and feed bulk materials. Products are sold to customers throughout the world in the mining, aggregates, packaging and food industries. Syntron is headquartered in Tupelo, MS and has operations in Changshu, China and Salt Lake City, UT (no website found).

Senior debt financing was provided by CIT Finance (as Sole Lead Arranger, Sole Lead Bookrunner and Sole Administrative Agent), Siemens Financial Services (as Syndication Agent) and Ares Capital Corporation (as Documentation Agent).

Levine Leichtman Capital Partners manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 5-1-14

Levine Leichtman Acquires FMC Material Handling

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Levine Leichtman Capital Partners (LLCP) has entered into an agreement to acquire the material handling products business of FMC Technologies. Upon closing of the transaction, expected early in the second quarter, the business will be re-named Syntron Material Handling.

Upon closing, Syntron Material Handling will be a manufacturer of conveyor and vibratory equipment used to load, transport and feed bulk materials. The products are sold to customers throughout the world in the mining, aggregates, packaging and food industries. Syntron will be headquartered in Tupelo, MS and will have operations in Changshu, China and Salt Lake City, UT.

“FMC Technologies’ material handling business has been a market leader in its core markets for decades and is known for manufacturing the highest quality bulk material handling equipment throughout the world,” said Lauren Leichtman, Co-Founder and CEO of LLCP. “We are excited to partner with the experienced senior management team and look forward to supporting the future growth of the company.”

Senior debt financing will be provided by CIT Finance (as Sole Lead Arranger, Sole Lead Bookrunner and Sole Administrative Agent), Siemens Financial Services (as Syndication Agent) and Ares Capital Corporation (as Documentation Agent).

Levine Leichtman Capital Partners manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-25-14

Prospect and Schilling Acquire Cyclonaire

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Prospect 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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KKR 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