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Odyssey Adds to Staffing Firm

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Addison Group, a portfolio company of Odyssey Investment Partners since December 2016, has acquired Mondo, a professional staffing firm specializing in information technology and digital marketing.

Mondo specializes in high-end, niche IT, tech, and digital marketing placements at midsize to enterprise-level companies, along with recently VC-funded startups. The company, led by CEO Tim Johnson, is based in New York City with nine additional offices across the US (www.mondo.com). Mondo will continue to operate within their current office spaces and retain its senior management team.

Addison Group is a professional staffing company with specialties across multiple verticals and end markets for both temporary and permanent placements. Addison primarily places information technology, finance, accounting, non-clinical healthcare, human resources, and administrative employees at its clients. Addison is headquartered in Chicago and has 15 additional offices across the US (www.addisongroup.com).

The acquisition of Mondo complements Addison’s existing information technology business with the addition of a digital marketing vertical and expands its geographic coverage into Atlanta and Los Angeles. The company’s growth strategy is to broaden its national service offerings through both organic growth and the acquisition of additional specialized staffing firms.

“The opportunity to leverage Addison Group’s proven performance and high-caliber information technology staffing teams across the country while expanding to LA and Atlanta was an extremely attractive one, and we are excited to expand our portfolio of services with the addition of digital marketing,” said Thomas Moran, CEO of Addison Group. “This partnership will allow us to utilize our combined strengths to continue to bring the highest level of service to our shared client base, while also presenting new opportunities to expand the Addison Group brand.”

Odyssey makes control investments in middle-market companies that have from $20 million to $100 million of EBITDA. Sectors of interest include industrial and business services. The firm has offices in New York and west of Los Angeles in Woodland Hills, CA (www.odysseyinvestment.com).

Bowstring Advisors (www.bowstringadvisors.com) was the financial advisor to Mondo on this transaction.

© 2018 Private Equity Professional | December 11, 2018

AEI Completes Buy of CDI

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AE Industrial Partners (AEI) has closed its acquisition of publicly-traded CDI Corp., a provider of engineering, information technology, and staffing services, for approximately $157 million.

CDI (NYSE: CDI) is a provider of engineering, information technology, and staffing services to customers in multiple industries, including aerospace, chemicals, energy, industrial equipment, infrastructure, and technology, as well as municipal and state governments and the US Department of Defense. According to the most recent financial information available, the company has TTM revenues of $818 million and a negative TTM EBITDA of $8 million. CDI is headquartered in Philadelphia (www.cdicorp.com).

“We are excited to partner with CDI’s leadership team and market-leading brand,” said Michael Greene, Managing Partner of AEI. “We believe that the company’s capabilities and reputation, combined with AEI’s deep operating expertise in engineering, IT solutions, and human capital management, will allow the company to expand and strengthen its relationships and its value proposition to key customers.”

AEI invests in the aerospace, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

Houlihan Lokey was the financial advisor to CDI and Lincoln International was the financial advisor to AEI. Kirkland & Ellis provided legal counsel to AEI.

© 2017 Private Equity Professional | September 15, 2017

AE Industrial Partners to Buy CDI

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AE Industrial Partners (AEI) has entered into an agreement to acquire publicly-traded CDI Corp. for approximately $154 million. The agreement has been unanimously approved by the company’s Board of Directors following a review of strategic alternatives that the company announced in March 2017.

CDI (NYSE: CDI) is a provider of engineering, information technology, and staffing services to customers in multiple industries, including aerospace, chemicals, energy, industrial equipment, infrastructure, and technology, as well as municipal and state governments and the US Department of Defense. According to the most recent financial information available, the company has TTM revenues of $818 million and a negative TTM EBITDA of $8 million. CDI is headquartered in Philadelphia (www.cdicorp.com).

“After a review of strategic alternatives by our Board of Directors, we are pleased to reach this agreement with AEI, which provides our shareholders with immediate liquidity and substantial certainty of value,” said Michael Castleman, President, Interim CEO and Chief Financial Officer of CDI.  “AEI has a proven track record of partnering with company management, is a strategic-minded and growth-oriented investor that has substantial experience in many of our core end markets, and has a strong understanding of the company’s capabilities and business model.”

“We are excited to partner with CDI’s leadership team and market-leading brand,” said Michael Greene, Managing Partner of AEI. “We believe that the company’s capabilities and reputation, combined with AEI’s deep operating expertise in engineering, IT solutions, and human capital management, will allow the company to expand and strengthen its relationships and its value proposition to key customers.”

AEI invests in the aerospace, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

Houlihan Lokey is the financial advisor to CDI and Lincoln International is serving as the financial advisor to AEI.

The transaction is expected to close in the third quarter of 2017.

© 2017 Private Equity Professional | August 1, 2017

Palladium Acquires TransForce

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transforce nf1Palladium Equity Partners has acquired TransForce, a staffing and recruiting company that specializes in the trucking industry.

TransForce’s staffing and recruiting services provide qualified commercial truck drivers to third-party logistics companies, private fleets, and trucking companies. TransForce operates 47 branches across 24 states and dispatches more than 2,500 drivers to its customers on a daily basis. The company is led by David Broome, President and CEO, and is headquartered in Alexandria, VA (www.transforce.com).

Luis Zaldivar nf3“We believe TransForce has established a differentiated position in the industry through its broad geographic footprint, full service offering, strong safety track record, regulatory expertise, and excellent customer service,” said Luis Zaldivar, a Managing Director of Palladium. “My partners and I look forward to supporting the growth of TransForce into new geographies through expected de novo branches and acquisitions.”

Palladium invests from $50 million to $150 million of equity in companies that have $10 million to $75 million of EBITDA.  Sectors of interest include business services, consumer, food, financial, healthcare, industrial, energy, and media. Palladium has a focus on companies that operate in the US Hispanic market.  In April 2014, Palladium held a final closing of Palladium Equity Partners IV, LP with $1.1 billion of capital, significantly above the firm’s target.  Since its founding in 1997, Palladium has invested over $1 billion of capital in more than 20 platform investments and completed over 50 add-on acquisitions.  The firm is based in New York (www.palladiumequity.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-6-15

Morgan Stanley Exits EmployBridge

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Employbridge nf1Morgan Stanley Global Private Equity has completed the sale of its majority interest in EmployBridge, a provider of staffing services, to The Select Family of Staffing Companies, a national provider of workforce management services, for approximately $410 million.

Morgan Stanley Global Private Equity (MSPE) and Constitution Capital, citing strong trends in post-recession labor usage by US companies, acquired EmployBridge for $165 million in May 2011.  During the course of their ownership, EmployBridge completed four add-on acquisitions.

jim howland nf1“MSPE works closely with portfolio companies to evaluate organic growth and acquisition strategies, and we are proud of EmployBridge’s many successes over the course of the investment period,” said Jim Howland, Managing Director and an Operating Partner of MSPE. “Since 2011, we have worked with EmployBridge management to successfully complete four add-on acquisitions and achieve substantial growth in revenue during our ownership.”

EmployBridge is a provider of outsourced HR and specialty-branded temporary staffing services.  The company operates primarily under the ResourceMFG, ProLogistix and ProDrivers brands, and provides personnel for specialty manufacturing, warehousing and logistics, and transportation companies. EmployBridge is headquartered in Atlanta (www.employbridge.net).

MSPE makes private equity and equity-related investments of $75 million to $150 million in companies with enterprise values of $100 million to $1 billion. To date, MSPE and its affiliated funds have invested over $6 billion of equity across a variety of industries.  MSPE is based in New York (www.morganstanley.com/privateequity).

“We have focused on human capital management because we believe the companies in this sector have played a critical role during the recent recovery of the US economy and will continue to prosper in the coming years,” said Aaron Sack, Managing Director of MSPE. “Businesses of all sizes have benefited from the flexibility and efficiencies that contingent labor and outsourced human resources provides.”

Constitution Capital makes co-investments alongside private equity firms in middle market companies that have revenues generally less than $500 million. The firm is headquartered in Andover, MA (www.concp.com).

MSPE was advised on the transaction by William Blair & Company.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-12-15


 

Littlejohn and Caymus Acquire Hospitality Staffing Solutions

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HSS NFHS Solutions Corporation, a new company formed by Littlejohn & Co. and Caymus Equity Partners, has acquired the assets, under Section 363 of the US Bankruptcy Code, of Hospitality Staffing Solutions. In October 2013, the company voluntarily filed for Chapter 11 bankruptcy as part of a strategy to facilitate this asset sale. The management team of Hospitality Staffing invested alongside Littlejohn and Caymus.

Hospitality Staffing Solutions (HSS) is a provider of hospitality staffing services. HSS provides room attendants, laundry, grounds maintenance, food & beverage, janitorial, and stewarding workers to hotels, resorts and casinos located in 32 states and 71 markets across the country. The company was founded in 1990 and is based in Atlanta (www.hssstaffing.com).

“Today is an exciting new day for our company and marks the final step in the plan we laid out last October. With the significant financial resources and backing of our new investor group, we are even better positioned to grow and continue to deliver the highest quality service to our valued customers across the country,” said Rick Holliday, President and CEO of HSS.

Littlejohn & Co. makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth. The firm is currently investing from Littlejohn Fund IV which has over $1.3 billion in capital commitments. Littlejohn & Co. is based in Greenwich, CT (www.littlejohnllc.com).

Caymus Equity Partners invests from $3 million to $25 million in middle and lower-middle market companies that have revenues of $10 million to $100 million and at least $2 million in EBITDA. Sectors of interest include business services, healthcare, consumer, and media & communications. The firm is based in Atlanta (www.caymuspartners.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-28-14

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