offshore lighting

JMH Exits Industrial Rental Services

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JMH Capital has sold the assets of its portfolio company Industrial Rental Services to publicly-traded United Rentals (NYSE: URI).

In 2008, JMH formed Industrial Rental Services to acquire Service Radio Rentals (SRR) and Industrial Blind Solutions (IBS).  Industrial Rental Services is headquartered in Houston with additional sales and service offices in major petroleum and oil refining centers.

SRR was founded in 1997 and rents two-way radio communications equipment (radios, repeaters and related accessories) to industrial maintenance providers serving the US oil refinery, petrochemical, pulp & paper, and power generation industries.  The company is the largest independent radio rental company serving this market (www.serviceradio.com).

IBS was founded in 2005 to provide both sale and rental of isolation and hydrotest blinds to the US oil refinery industry. Isolation and hydrotest blinds are used in the oil and gas and other industries to isolate a section of pipe, sealing it off so that nothing can flow through, allowing work and inspection crews to perform needed tasks. IBS also provides racking systems that are used to both deliver and store blinds on site (www.industrialblindsolutions.com).

The buy of SRR and IBS expands United Rentals’ specialty tool rental fleet by over 35,000 isolation blinds, flanges and racking systems for industrial applications, as well as approximately 16,000 radios, repeaters and accessories for plant maintenance and construction personnel.

United Rentals is the largest equipment rental company in the world with locations in 49 states and every Canadian province. The company is headquartered in Stamford, CT (www.unitedrentals.com).

JMH Capital makes control investments of up to $25 million to acquire companies that have from $5 million to $150 million of revenue. Sectors of interest include niche manufacturing, specialty chemicals, building products, medical devices, business services, value-added distribution, analytical instruments, food products, and business services. The firm is headquartered in Boston (www.jmhcapital.com).

BlackArch Partners (www.blackarchpartners.com) was the financial advisor to JMH Capital and Industrial Rental Services.

© 2018 Private Equity Professional | April 12, 2018

BDT Capital Acquires Casa Dragones

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BDT Capital Partners has made a majority equity investment in Casa Dragones, an ultra-premium and luxury maker of tequila.

Casa Dragones is a small-batch, independent producer of sipping tequilas noted for their Joven (blended) and Blanco (unaged) sipping tequilas. There are five industry categories for tequila: Blanco tequila is bottled right after production; Reposado tequila has to be stored for at least 2 months; Añejo tequila has to be stored for at least a year; Extra Añejo tequila has to be stored for at least 2 years; and Joven (blended) tequila is Blanco mixed with Reposado or Añejo. Casa Dragones was founded in 2009 and is headquartered in Manhasset, NY (www.casadragones.com).

The investment by BDT Capital Partners – the firm’s first in the spirits category – will be used to help Casa Dragones continue its growth and build its position in the ultra-premium and luxury tequila category worldwide.

Casa Dragones, under the leadership of Co-founder and CEO Bertha González Nieves, helped spearhead the ultra-premium “sipping tequila” trend in the US, and now has become a category leader with a significant presence in key markets.  Ms. González Nieves will continue as CEO under BDT ownership and she is the second largest shareholder in the company. Her career is based in the consumer luxury goods market. In 2013, Forbes identified her as one of the 50 most powerful women in Mexico. Prior to co-founding Casa Dragones, she spent over ten years as a top executive for Grupo Jose Cuervo, the largest tequila company in the world.

“Our mission is to shape the tequila industry for the future and we believe this investment from BDT, and their role as our lead investor, will help us accelerate our momentum, growth and reach,” said Ms. González Nieves. “We welcome this investment from BDT because they share our values and long-term commitment to building on the strong foundation of Casa Dragones. BDT will help us accelerate growth and reach more markets across the US and internationally. Their experience partnering with founders and entrepreneurs, as well as their network of successful global business owners, will be valuable to our company’s next phase of growth.”

“We are impressed with Bertha’s entrepreneurial spirit and the quality of the Casa Dragones product and brand. We believe our investment in the company represents an opportunity to partner with a visionary founder in an attractive industry and category,” said Byron Trott, Chairman and CEO of BDT Capital Partners. “We look forward to working closely with the team at Casa Dragones to build upon that strength and momentum of the business and help expand their reach both domestically and internationally.”

Robert Pittman – current CEO of iHeartMedia (formerly Clear Channel), the creator of MTV, and Managing Partner of Pilot Group (a NY-Based investment firm) – who co-founded Casa Dragones with Ms. González Nieves, will continue to be a minority shareholder and remain as an advisor and board member. “Casa Dragones has emerged as the leading tequila for connoisseurs and has pioneered the sipping tequila category,” said Mr. Pittman. This has been both a great investment for Pilot Group and a personal passion of mine, and I’m pleased that BDT is stepping in to help the company reach its full potential. I am excited to continue my role as both an investor and board member.”

BDT Capital Partners was founded in 2009 by former Goldman Sachs Vice Chairman Byron Trott. The firm manages more than $9 billion across its committed funds and $3.7 billion of co-investments from its limited partners. The firm is a bit secretive and does not have a web presence but does maintain offices in Chicago, New York, London, and Frankfurt.

© 2018 Private Equity Professional | April 9, 2018

Rock Hill Sees the Light with Tideland Signal Add-On

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Tideland Signal Corporation, a portfolio company of Rock Hill Capital Group, has acquired IMT BV Group of Companies. Tideland Signal was acquired by Rock Hill in June 2012. According to Rock Hill, the Tideland and IMT product mix is highly complementary and together the two companies comprise the broadest marine aids-to-navigation products portfolio in the industry.

IMT makes and sells lighting, navigation and signalization products and systems used by offshore wind farms, oil and gas companies, and marine, construction and governmental organizations. IMT is headquartered in The Netherlands and has subsidiaries in Singapore, the UK and Germany (www.imt.eu/en).

Tideland Signal provides marine aids-to-navigation (AtoN) systems worldwide that are used by Coast Guards, Navies, ports and harbors, offshore oil and gas companies, and other marine authorities. Products and services include rotationally molded polyethylene buoys, self-contained LED lanterns, conventional LED lanterns, range lights, fog signals, fog detectors, solar power systems, rotating beacons and related installation and repair services. The company was founded in 1954 and is headquartered in Houston with additional offices in the US, Canada, Singapore, United Arab Emirates, China and the United Kingdom (www.tidelandsignal.com).

“The IMT acquisition represents a synergistic expansion of Tideland’s geographic and product capabilities that compliments the company’s strategic goal of being the world’s leading AtoN provider,” said Randall Hale, Founder and Managing Director of Rock Hill.

Rock Hill Capital Group invests in small-to-lower middle market companies with enterprise values up to $75 million and EBITDA of less than $10 million that are located in the South and Southeast regions of the US. Sectors of interest include industrial and energy services and value-added distribution. The firm was founded in 2008 and is based in Houston (www.rockhillcap.com).

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-6-16