outsourced services

Gladstone and Slate Acquire Horizon Facilities Services

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Gladstone Investment Corporation and Slate Capital Group have acquired Horizon Facilities Services. Gladstone Investment provided the majority equity and senior secured debt to support the transaction.

Horizon is a provider of outsourced services to the rental car industry and provides commercial janitorial services. The company’s rental car services, sold under the Managed Labor Solutions brand, include shuttling, maintenance-related vehicle transportation, registration and agency support, demand-based staffing, fleet and turnback services, and other grounds related services. Horizon’s commercial janitorial services are sold under the Professional Maintenance Co. brand.  Horizon is headquartered in Allentown, PA (www.managedlabor.net).

“Horizon’s ability to solve complex staffing and logistical problems for its clients sets Horizon apart from its peers. We are very excited to partner with Slate Capital and the talented team at Horizon and look forward to helping the company as it enters its next phase of growth,” said Peter Roushdy, a managing director of Gladstone Investment.

Gladstone Investment (NASDAQ: GAIN) is a publicly traded business development company that makes debt and equity investments in US-based small to middle-market businesses. The firm generally invests from $5 million to $30 million of debt and equity in companies that have from $3 million to $20 million in EBITDA. Gladstone Investment is based in McLean, VA (www.gladstoneinvestment.com).

Slate Capital Group invests in Eastern US-based companies that have annual cash flow of $3 million to $15 million. Sectors of interest include business services, specialty retail, healthcare services, distribution and light manufacturing. The firm was founded in 2004 by Rick Corcoran and Erik Ginsberg and is headquartered in Baltimore, MD (www.slatecap.com).

© 2019 Private Equity Professional | July 16, 2019

TZP Invests in Family Entertainment Group

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TZP Group has made an investment in Family Entertainment Group, an outsourced operator of family entertainment and amusement facilities.

Family Entertainment Group (FEG) is an outsourced designer, developer, and operator of family-oriented amusement facilities. The company’s services range from game brokerage and facility design to fully outsourced facility management.  FEG manages and operates amusement facilities for family-oriented resorts, family entertainment centers, movie theatres, bowling centers, and restaurants. The company is led by George Smith, President and Chief Executive Officer. FEG was founded in 2003 and is headquartered in the Chicago suburb of Barrington, IL (www.fegllc.com).

“FEG’s breadth and depth of services provides a compelling value proposition to the broader amusement and family entertainment center industries,” said TZP Growth Partner, Rodney Eshelman.  “We are thrilled to partner with George Smith and the management team to continue to build the business by driving new customer acquisition, penetrating new markets, and pursuing synergistic acquisitions.”

TZP Group makes investments of between $20 million and $100 million in companies with enterprise values between $50 million and $250 million. The firm has assets under management of more than $600 million.  Sectors of interest include franchising, outsourced business and IT services, marketing and media services, travel and hospitality services, real estate services and specialty finance.  TZP was founded in 2007 and is led by Sam Katz, its Managing Partner. The firm is headquartered in New York (www.tzpgroup.com).

Balance Point Capital Partners provided mezzanine financing and made an equity co-investment in this transaction alongside TZP Group.  “We were able to differentiate ourselves in this transaction by providing a creative solution for TZP while at the same time customizing capital for FEG.  We look forward to supporting TZP and the FEG management team as they continue to grow in existing amusement markets and new ones as well,” said Justin Kaplan, a Partner with Balance Point.

Balance Point invests from $5 million to $20 million of mezzanine and equity in lower middle market companies that have revenues of $10 million to $150 million and EBITDAs between $2 million and $25 million. Sectors of interest include business services, niche manufacturing, consumer & industrial, branded products, aerospace & defense, healthcare, and technology.  Balance Point was founded in 1988 and is based in Westport, CT (www.balancepointcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 6-12-15

Mason Wells Invests in CE Power

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Mason Wells has made an investment in CE Power Solutions, a provider of engineering, testing, and maintenance services to the utility and industrial sectors.

“Mason Wells is pleased to support the existing management team of in CE Power in their growth strategy,” said Kevin Kenealey, Senior Managing Director at Mason Wells. “We believe the company provides an excellent platform for growth and is well positioned to capitalize on a number of favorable market opportunities.”

CE Power provides electrical power engineering, testing, and maintenance services to utility power plants, alternative energy facilities, transmission & distribution substations, industrial facilities, and institutional facilities. The company’s core focus is on power systems operating in the 480 volt through 765 kilovolt range.  CE Power is led by CEO Bill McCloy and is headquartered in Cincinnati (www.cepower.net).

“We are excited about the opportunity to partner with Mason Wells to continue the growth of CE Power,” said Mr. McCloy.  “Mason Wells will provide us with the additional resources needed to achieve our long-term growth initiatives and with their strong financial backing we plan to expand our geographic footprint and anticipate adding new locations around the country, including through acquisition.”

Mason Wells makes investments in Midwest-based companies with revenues of $25 million to $300 million and EBITDAs of at least $5 million. Sectors of interest include consumer packaged goods, packaging materials & converting, outsourced business services, and engineered products & services.  The firm is currently investing through Mason Wells Buyout Fund III, a $525 million fund.  Mason Wells was founded in 1982 and is based in Milwaukee (www.masonwells.com).

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

Vicente Capital Partners Acquires Intellectual Technology

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Vicente Capital Partners has acquired a controlling interest in Intellectual Technology, a provider of outsourced services to motor vehicle departments.  This is the firm’s seventh investment out of its $165 million Growth Equity Fund.

Intellectual Technology (ITI) is a provider of technology solutions and outsourced services to state motor vehicle departments across North America.  ITI’s service kiosks allow people to renew their vehicle registrations and renew their driver’s license at locations other than the physical offices of the DMV.  ITI currently provides kiosks to DMV offices in California, Nevada, South Dakota and New York. ITI also offers a fulfillment solution, whereby states can outsource their entire DMV registration operation to ITI’s corporate facility.  The company is based in Carlsbad, CA with a logistics and operations office located in Fort Wayne, IN (www.iti4dmv.com).

ITI’s management team is led by President Craig Litchin and Director of Operations Drew Nicholson. “We are excited to partner with Craig, Drew and their team,” said Jay Ferguson, Managing Partner of Vicente Capital Partners. “For over 20 years, ITI has maintained excellent customer service and developed long-term relationships with some of the largest jurisdictions in North America. We look forward to partnering with management to help the company accelerate its growth and capabilities.”

Intellectual Technology was represented by Imperial Capital, an investment bank servicing institutional investors and middle market companies.  OneWest Bank provided debt financing for this transaction.

Vicente Capital Partners is a private equity firm specializing in both non-control and control investments in businesses that have annual revenues between $5 million and $50 million. Sectors of interest include business services (outsourced services, Internet services, telecom services); consumer services (healthcare services, residential delivery, education); and specialty manufacturing (aerospace & defense, environmental products, networking/telecom equipment).  The firm is based in Los Angeles, CA (www.vicentecapital.com).

“Vicente Capital Partners shares our drive to modernize and improve the customer experience at DMVs across North America.  We are excited about this partnership and believe that together we can continue to grow and expand our offering,” said Craig Litchin, ITI President. “This partnership is a win for our customers, partners, employees, and suppliers.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-15-12