safety products

Investcorp Buys Kee Safety from Dunedin and LDC

by

Investcorp has agreed to acquire Kee Safety from Dunedin and LDC for an enterprise value of £280 million ($370 million).

Kee Safety is a provider of safety products associated with working at height. The company’s products include modular barrier systems, guardrails, access platforms, and safety gates. Kee Safety sells its products in more than 60 countries to a range of customers from multi-national corporations to distributors and installers. The company employs 480 people and has operations in 10 countries, including the US and China. Kee Safety was founded in 1934 and is headquartered in Birmingham, UK (www.keesafety.co.uk) with an additional office in Buffalo, NY (www.keesafety.com).

Dunedin and LDC acquired Kee Safety in December 2013. During the term of their ownership Kee Safety completed eleven add-on acquisitions and developed its Asian operations with the opening of a Singapore office.

Investcorp will continue to support Kee Safety’s international growth strategy both organically and through add-on acquisitions, expanding the company’s geographic footprint and strengthening its presence in existing markets.

“We believe that the company is well-positioned to solidify its leading position and gain a greater market share in a sizeable, growing and fragmented industry,” said Jose Pfeifer, a Principal in Investcorp’s European Corporate Investment Group. “We look forward to working in partnership with the current management team as Kee Safety continues to increase its penetration into existing and new markets.”

Investcorp invests in mid-size companies that have total enterprise values of between $200 million and $1 billion and are located in North America or Western Europe. The firm has interests in an array of industries and is effectively industry agnostic. Investcorp has approximately 390 employees and maintains offices in New York; London; Doha, Qatar; Manama, Bahrain; Riyadh, Saudi Arabia; Abu Dhabi, UAE; and Singapore (www.investcorp.com).

“International expansion and an active acquisition strategy have formed key tenets of our growth story over recent years,” said Chris Milburn, Chairman of Kee Safety. “It was therefore extremely important for us to identify the right partner capable of continuing to support us in this period of strong development for the company. We believe that Investcorp’s proven track record, global presence and network will be extremely valuable in this regard. Their experience of working with the management teams of their portfolio companies to help them continue to internationalize makes them a highly complementary partner for Kee Safety and one that will help us realize the full growth potential of the business.”

Kee Safety marks Investcorp’s third investment in the UK in the last 18 months, having previously acquired Nebulas, a provider of cyber security services; and Impero, a provider of online student safety, classroom and school network management software.

Dunedin is a mid-market private equity firm that invests in companies with enterprise values from £20 million to £100 million. Sectors of interest include business services; financial services; industrial; energy; and technology, media and telecom.  Dunedin has offices in London and Edinburgh (www.dunedin.com).

LDC (aka Lloyds Development Capital) is a mid-market private equity firm that invests up to £100 million of capital in companies that have at least £5 million of revenue and £1 million of EBITDA. Sectors of interest include industrials; retail & consumer; travel & leisure; healthcare; construction & property; financial services; and technology, media and telecom. LDC is a subsidiary of Lloyds Banking Group and is headquartered in London, UK (www.ldc.co.uk).

© 2017 Private Equity Professional | October 19, 2017

Penfund Adds to SureWerx

by

SureWerx, a portfolio company of Penfund, has acquired KP Industries, a supplier of professional tools, equipment and safety products. Penfund acquired SureWerx, then known as JET Equipment & Tools, in November 2012.


KP Industries is a designer and manufacturer of knee pad protection products sold under the KneePro brand. The company’s products are used in welding, construction, military, SWAT, and police applications. KP Industries was founded in 1986 by Chuck Knox and is based near Traverse City in Old Mission, MI (www.kpindustries.com).

“KP Industries is the original designer and manufacturer of the now famous KneePro series of knee pads, sold extensively in the US and around the globe since 1990,” said Bill Jeffery, Senior Vice President of Corporate & Brand Development at SureWerx. “The KneePro Ultra Flex III knee pad is regarded as one of the best knee pads on the market.”

SureWerx is a supplier of professional tool, equipment and safety products that are sold to the industrial, construction, safety, and automotive aftermarket sectors. Brands include JET, Strongarm, ITC, STARTECH, Pioneer, Ranpro, PeakWorks, Sellstrom, and American Forge & Foundry. SureWerx is headquartered in Vancouver, BC (www.surewerx.ca).

“The acquisition of KP Industries is perfectly aligned with our corporate strategy to complement our existing safety programs by introducing a complete professional safety portfolio into the Canadian market and to expand our portfolio and reach into the US safety market,” added Mr. Jeffery.

Penfund specializes in providing junior capital to US and Canadian middle market companies.  The firm provides second lien, high yield and mezzanine debt, control and minority equity, as well as bridge facilities, standby lines, underwritten facilities and financial guarantees. Penfund is currently investing out of Penfund Capital Fund IV which has $460 million of committed capital. The firm was founded in 1979 and is based in Toronto (www.penfund.com).

© 2016 Private Equity Professional • 6-21-16

 

Tonka Bay Sells Checkers to Audax

by

Tonka Bay Equity Partners has sold Checkers Industrial Safety Products to Audax Group.

Checkers is a designer, manufacturer, and marketer of branded industrial products used for vehicular safety, asset protection, and workplace safety.  The company is based near Denver in Broomfield, CO (www.checkersindustrial.com).

Tonka Bay acquired Checkers in December 2010 after partnering with an industry executive to execute a search targeting safety products companies.  The firm’s investment strategy was to capitalize on a highly fragmented market of niche, high-margin safety-related businesses with add-on acquisition opportunities.

In 2011 Checkers acquired Peterson Systems International, a manufacturer of cable protectors and in 2012 acquired HBM Canada Manufacturing, a manufacturer of industrial warning whips and vehicle identification lights. Also in 2012, Checkers bought C&C Signal, a manufacturer of barricade lights, strobes, and other LED lighting products used in traffic safety.  Other efforts during the course of Tonka Bay’s ownership included recruiting an experienced and active board of directors and senior management team; expanding the company into international markets; and investing in new product development.

“Given their attractive portfolio of branded safety products, compelling customer value proposition, global reach, and strong management team, Checkers proved to be a successful investment for Tonka Bay,” said Shane Slominski, Principal at Tonka Bay.  “Ray Torres and his management team have done a tremendous job establishing the company as a growth platform.”

Tonka Bay Equity Partners invests in highly-engineered manufacturing, value-added distribution and business services companies with EBITDA greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).

“Tonka Bay has been a value-added partner,” said Ray Torres, CEO of Checkers. “They have provided guidance and capital to make strategic investments, which has allowed us to accelerate growth and further establish Checkers as an industry leader of safety products.”

The buyer of Checkers, The Audax Group, makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).

“Checkers is a leading manufacturer of branded industrial safety products with an unparalleled reputation for quality and service,” said Geoffrey Rehnert, Co-CEO of Audax Group.  “We look forward to partnering with Ray Torres and the rest of the Checkers team to continue growing the business organically and through strategic add-on acquisitions.”

Madison Capital Funding (www.mcfllc.com) and GMB Mezzanine (www.gmbmezz.com) provided financing for the transaction.  BB&T Capital Markets (www.bbtcapitalmarkets.com) advised Checkers.

2014 PEPD • Private Equity’s Leading News Magazine • 11-21-14

The Sterling Group Acquires Seon Design

by

Safe Fleet Holdings, a portfolio company of The Sterling Group, has completed the acquisition of Seon Design, a manufacturer of video surveillance equipment used in the school and transit bus markets.

“Seon has developed and built an industry-leading software and hardware platform for mobile surveillance and fleet asset tracking and management,” said John Knox, Safe Fleet President and CEO.  “The Seon products and capabilities are a great addition to Safe Fleet’s existing portfolio and will help us further serve our fleet vehicle customers.”

Seon is a manufacturer of video surveillance and fleet management products used in the school and transit bus markets.  The company also offers fleet management products used for live vehicle tracking, passenger ridership tracking, and school bus routing. Seon was founded in 1999 and is based in Coquitlam, BC (www.seon.com).

Seon is Safe Fleet’s second add-on acquisition in the last nine months. In December 2013, Fire Research Corporation, a Safe Fleet subsidiary, completed the acquisition of FoamPro from Pentair. FoamPro manufacturers foam proportioning and refill systems that are used by firefighters worldwide (www.foampro.com).

Safe Fleet provides safety-and productivity-oriented products used in the emergency vehicle, truck and trailer, utility vehicle, school bus, and transit bus end markets. Company brand names include ROM, Bustin, Prime Design, FRC, Specialty Manufacturing (SMI), Pretoria, Transpec, FoamPro, and now Seon.  Safe Fleet was formed through the simultaneous acquisitions of ROM Corporation and Specialty Manufacturing in 2013.  The company is headquartered south of Kansas City in Belton, MO (www.safefleetsolutions.com).

“Safe Fleet is committed to increasing its ability to provide critical safety products to its loyal customer base,” said Gary Rosenthal, a Partner at The Sterling Group.  “Safe Fleet will continue to pursue new acquisition opportunities to expand the products and solutions it offers its fleet vehicle customers.”

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 45 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 three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Liqui-Box, Dexter Axle, Safe Fleet and Roberts-Gordon.  The firm was founded in 1982 and is headquartered in Houston (www.sterling-group.com). 

2014 PEPD • Private Equity’s Leading News Magazine • 9-23-14