staffing

MidOcean Invests in The Planet Group

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MidOcean Partners has made a significant investment in The Planet Group, a provider of outsourced human capital and consulting services. MidOcean’s investment is in partnership with the existing management team and both founders, CEO Michael Stomberg and CFO Timothy Bauwens, are retaining a significant stake in the company.

The Planet Group consists of six related entities (Planet Pharma, Planet Forward, Planet Healthcare, PFES, UXFactory and Planet Interactive) that provide (i) outsourced human capital services and niche consulting services to pharmaceutical, biotechnology and medical device companies; and (ii) engineers, project managers and project control professionals to utility, manufacturing, oil & gas, power engineering and technology companies. The Planet Group was founded in 2009 and is headquartered near Chicago in Western Springs, IL. The company has two additional Chicago locations and offices in Cleveland, OH; Durham, NC; San Francisco, CA; Birmingham, UK, and London, UK (www.theplanetforward.com).

MidOcean has previously invested in the outsourced human capital industry. In December 2012 it acquired System One, one of the largest professional staffing firms in the US with over 6,000 employees serving the engineering, clinical/scientific, IT, and legal markets. MidOcean sold System One in October 2016 to Thomas H. Lee Partners. In October 2011 MidOcean acquired Global Knowledge, a provider of IT training to corporate clients, which was sold in January 2015 to Rhône Capital.

“MidOcean has tremendous resources and experience building successful business services platforms with founder-owned businesses and a deep understanding of the professional staffing industry which makes them an ideal partner for Planet,” said Mike Stomberg, Planet Co-Founder and CEO. “This partnership with MidOcean will enable us to dedicate additional resources to build out our existing infrastructure and expand Planet’s offerings into other professional service areas both organically and through add-on acquisitions. We have been very impressed with MidOcean’s collaborative approach to developing and helping implement a growth strategy for Planet. Together, we will be able to take Planet to the next level.”

“We are very excited to partner with Mike Stomberg and Tim Bauwens who are proven leaders in the outsourced human capital space,” said Elias Dokas, Managing Director at MidOcean. “Planet has built an impressive business that has experienced strong growth and we believe there are a number of opportunities to expand the company’s service offering into other attractive, high margin professional service areas.  In addition, with increased scale and resources, Planet can offer an even greater level of service to all of its customers across its various end markets.”


MidOcean invests in middle market companies that are active in the business and consumer services sectors.  The firm was founded in 2003 and is based in New York (www.midoceanpartners.com).

Investment bank FocalPoint Partners (www.focalpointllc.com) was the financial advisor to The Planet Group.

© 2018 Private Equity Professional | January 22, 2018

White Wolf Adds to Staffing Platform

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NSC Technologies, a portfolio company of White Wolf Capital since November 2016, has acquired Superior Resource Group (SRG), a provider of contract engineering services, such as skilled trades staffing and direct placements, to a range of clients in a variety of industries.

NSC provides staffing and workforce management services – including both direct hires and contingent employees – to a wide range of markets including defense, marine, energy and industrial. The company was founded in 2000 by Paul Rodriguez and he has continued as the President and CEO of the company under White Wolf ownership. NSC has offices in Bremerton, WA; Honolulu, HI; San Diego, CA; Jacksonville, FL; Mobile, AL; Houma, LA; and is headquartered in Portsmouth, VA (www.nsc-tech.com).

According to White Wolf, this transaction will allows both NSC and SRG to expand their service offerings to their clients. “We are really excited about this acquisition and look forward to partnering with SRG’s management team. NSC is committed to providing the necessary resources and capital to support further growth and expansion,” said Mr. Rodriguez.

SRG is based in Green Bay, WI (www.superior-rg.com).

NSC is seeking add-on acquisitions of both regional and national providers of skilled-labor staffing and workforce management services that have revenues of $5 million to $50 million. Contact Elie Azar, Managing Director, at [email protected].

White Wolf makes investments in companies with $10 million to $100 million in revenues and up to $10 million in EBITDA.  Industries of specific interest include manufacturing, business services, information technology, security, aerospace and defense. The firm was founded in 2011 and is based in New York (www.whitewolfcapital.com).

© 2017 Private Equity Professional | July 7, 2017

Thomas H. Lee Acquires System One from MidOcean

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Thomas H. Lee Partners (THL) has signed an agreement to acquire System One, a provider of managed staffing services, from MidOcean Partners which invested in the company in December 2012. The transaction is expected to close in the fourth quarter of 2016,

System One is one of the largest professional staffing firms in the US with over 6,000 employees serving the engineering, clinical/scientific, IT, and legal markets. The company is led by CEO Troy Gregory and is headquartered in Pittsburgh (www.systemoneservices.com).

“Since we first invested in System One four years ago, the company has realized exceptional growth – organically and through the completion of four add-on acquisitions – nearly tripling EBITDA during this period,” said Elias Dokas, Managing Director at MidOcean.

MidOcean invests in middle market companies active in the business and media services, consumer, and industrial services sectors.  The firm was founded in 2003 and has offices in New York and London (www.midoceanpartners.com).

“System One is a leader in the professional staffing industry, and Troy, COO Greg Lignelli, and their entire team have built a fantastic company that serves a variety of markets and offers a robust array of specialized, mission-critical workforce solutions,” said Josh Bresler, Managing Director at THL. “System One’s track record of growth, skilled employees, attractive end markets, and history of developing strong customer relationships make this an exciting investment opportunity for THL.”

Thomas H. Lee Partners was founded in 1974 and is one of the oldest private equity investment firms in the United States. Industries of interest include consumer and healthcare, media and information services, and business and financial services. Since its founding, THL has raised approximately $20 billion of equity capital and invested in more than 130 businesses with an aggregate purchase price of more than $150 billion. The firm is based in Boston (www.thl.com).

Credit Suisse (www.credit-suisse.com) acted as the financial advisor and Weil, Gotshal & Manges (www.weil.com) acted as legal advisor to THL. Harris Williams & Co. (www.harriswilliams.com) and Houlihan Lokey (www.hl.com) acted as financial advisors, and Kirkland & Ellis (www.Kirkland.com) and Clark Hill (www.clarkhill.com) acted as legal advisors to System One and MidOcean Partners. Lowenstein Sandler (www.lowenstein.com) acted as legal advisor to System One management.

© 2016 Private Equity Professional • 9-23-16

MSouth Acquires Hire Dynamics

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MSouth Equity Partners has acquired Hire Dynamics, a staffing company that specializes in call centers, manufacturing facilities, logistics, e-commerce operations and office support.

Hire Dynamics was co-founded in 2001 by CEO Dan Campbell and CFO Jon Neff. With this transaction closed, MSouth now holds a majority equity interest in the company while Mr. Campbell remains the largest individual shareholder. Mr. Campbell will remain with the company as executive chairman and Mr. Neff will continue in his role as CFO.

Effective May 15, Larry Feinstein will become the new CEO of the company. Mr. Feinstein was most recently a senior vice president at ADP, an outsourced provider of payroll services and human resources functions.

Hire Dynamics places an average age of 4,500 people to work every week and has approximately 550 clients. The company has 12 branch offices and 22 on-sites locations across Georgia, North Carolina, South Carolina, Tennessee, Alabama and Texas and is headquartered in Duluth, GA (www.hiredynamics.com).

“We are excited about our investment in Hire Dynamics,” said Peter Pettit, who led the transaction for MSouth. “Hire Dynamics has a long standing reputation for great people, service and consistent growth. Along with its standing as one of the top 1% of staffing companies in the US, it is also a ‘Best Places to Work’ in every market where it operates. We look forward to partnering with the Hire Dynamics senior team to grow the business.”

MSouth invests from $10 million to $50 million in lower middle market companies typically valued between $25 and $125 million. Sectors of interest include business services, distribution, specialty manufacturing, telecommunications and media. MSouth is headquartered in Atlanta (www.msouth.com).

“MSouth’s industry expertise and quality reputation for working with management teams was a natural fit for us. Their substantial capital and M&A experience will allow us to scale our business while building on our strengths of industry-leading internal employees providing superior service to our clients and jobs that matter for our talent,” said Mr. Campbell.

CHILDS Advisory Partners (www.childsadvisorypartners.com) was the financial advisor to Hire Dynamics.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-3-16

Sverica Sells Bartech to Impellam

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Sverica Capital Management has sold the Bartech Group, a provider of outsourced management services, to Impellam Group. Sverica acquired a majority interest in Bartech in March 2012.

Bartech is a professional services firm that provides workforce management and staff augmentation services to Fortune 1000 companies and other large users of non-employee labor.  Bartech is among the top ten managed services providers in the world and manages or employs over 30,000 consultants daily across multiple end markets and manages over $3.5 billion of client expenditures.  Bartech is led by David Barfield, President and CEO. The company was founded in 1977 by John Barfield and is headquartered in the Detroit suburb of Southfield, MI (www.bartechgroup.com).

“My parents founded Bartech in 1977 and I’ve had the privilege to lead and reshape our company’s strategy, operations and culture since 2009,” said Mr. Barfield. “My team and I have enjoyed our partnership with Sverica. Their support of our team and vision to position Bartech to compete in the growing and evolving staffing industry has resulted in a better and stronger Bartech.”

Sverica invests in service oriented businesses and light industrial manufacturers. The firm targets companies with enterprise values under $100 million and EBITDAs greater than $3 million. Sverica was founded in 1993 and has raised over $500 million of capital across multiple funds.  The firm has offices in Boston and San Francisco (www.sverica.com).

“It is tough letting go of a great company like Bartech, but together with the leadership of David and his management team, we have grown the company over the last three and a half years into an asset that is well positioned to now go to the next level leading Impellam’s North American contingent labor strategy,” said Dave Finley, Managing Director at Sverica.

Impellam Group is the 2nd largest staffing business in the UK and the 12th worldwide. The company operates across the UK, North America, Asia Pacific, and mainland Europe. Impellam Group is publicly traded (LON: IPEL) and is headquartered north of London in Luton, UK (www.impellam.com).

“It has been a pleasure partnering with David and his team to build an industry leading company in the human capital management industry,” said Jordan Richards, Managing Director at Sverica. “It is gratifying to see all of the hard work not only translate into strong revenue and EBITDA growth over our investment period, but also the recognition by our clients and industry peers for the high quality of service Bartech provides.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-11-15

AE Industrial Partners to Acquire Belcan

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AE Industrial Partners has signed an agreement to acquire Belcan Corporation, a provider of engineering services and technical staffing. The transaction is expected to close by the third quarter of 2015.

Belcan is a provider of engineering services and technical staffing to the aerospace, power generation and industrial markets. The company has more than 6,000 employees in 49 locations, including 26 engineering design centers and 23 TechServices locations. Belcan is headquartered in Cincinnati and has been family-owned since its founding in 1958 (www.belcancorporation.com).

AE Industrial Partners (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.  AEI and The Carlyle Group, through the Carlyle Equity Opportunity Fund, have a partnership agreement to invest in the aerospace and industrial gas turbine markets. AEI is headquartered in Boca Raton (www.aeroequity.com).

“AEI has first-hand experience with Belcan’s capabilities and reputation within large original equipment manufacturers, so we have a special appreciation not only for the company’s unique niche in the propulsion industry but also for its highly attractive growth potential in related markets,” said David Rowe, Managing Partner of AEI.

“Our family has guided Belcan through nearly 60 years of growth and success,” said Candace McCaw, Chairman of Belcan. “I believe that AEI will not only continue the legacy that has made Belcan the company it is today, but will also lead the company forward on a strategic path to a successful future.”

BelFlex Staffing Network, Belcan’s light industrial staffing subsidiary, is not included in the transaction and will continue to be owned and operated by the McCaw family. “We launched BelFlex as a separate, sister company to Belcan early in 2014 to focus on the light industrial staffing market,” said Michael McCaw, CEO of BelFlex. “Our family is now excited to place our focus and resources on growing BelFlex into an industry leader.”

Kirkland & Ellis served as legal advisor and PricewaterhouseCoopers served as financial advisor to AE Industrial Partners.

© 2015 PEPD • Private Equity’s Leading News Magazine • 6-9-15

New MainStream Capital Invests in ettain

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New MainStream Capital (NMS) has made an investment in ettain group, an IT staffing company founded in 1996 by Jeff Harris and Brian Deblitz. Both of ettain’s founders will continue in their roles at the company and will also remain significant shareholders.

“We had conversations with over 50 potential investors over the last 24 months. NMS supports our vision, mission, values and growth strategy which led us to enthusiastically choose to work with them,” said Jeff Harris, Co-Founder and CEO of ettain. “NMS has established an impressive track record in the staffing industry, and we believe their understanding of our business and the IT staffing market, will allow us to accelerate the growth of ettain.”

ettain group is an IT staffing company serving the healthcare, financial services, and retail sectors. The company has approximately $100 million in annual revenues and has more than 150 full-time employees and nearly 800 independent consultants. Ettain has offices in Charlotte (headquarters), Atlanta, Dallas, Jacksonville, Nashville, Raleigh, Washington D.C. and Winston-Salem (www.ettaingroup.com).

“ettain exemplifies the type of company that we at NMS seek to invest with – a high caliber management group with a dedicated team of employees providing blue chip clients with first rate service,” said Kevin Jordan, NMS Co-Founder and Managing Partner. “The company’s growth and success have been impressive, and we’re thrilled to have the opportunity to partner with them.”

New MainStream Capital (NMS) makes equity investments of $10 million to $50 million in companies with enterprise values less than $300 million. Sectors of interest include healthcare services, consumer products and services, and specialized business services. The firm was formed through the spin-out of a group of companies from the Goldman Sachs Merchant Banking Division in 2010. NMS is led by its founders and managing partners Martin Chavez and Kevin Jordan and has offices in New York and Dallas (www.nms-capital.com).

In connection with the transaction, NMS Operating Executive Council member Robert Livonius will serve as a board member of ettain. Mr. Livonius is currently the President of Work Force Solutions for AMN Healthcare, a large healthcare staffing company, and was previously the CEO of Medfinders and Chief Operating Officer of Spherion. Mr. Livonius is also the former Chairman of the American Staffing Association, the primary trade group representing staffing firms in the United States.

Financing for the transaction was provided by Regions Bank and Fifth Third Bank. Wells Fargo Securities served as lead financial advisor to ettain and McGuireWoods served as legal advisor to the company. CHILDS Advisory Partners served as strategic advisor to the management team of ettain. Greenberg Traurig provided legal advice to New MainStream Capital.

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-27-14

Riordan Lewis & Haden Exits CyberCoders

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Riordan Lewis & Haden has agreed to sell its portfolio company CyberCoders, an IT recruiting firm, to On Assignment, Inc. Riordan Lewis & Haden first invested in CyberCoders in 2009.

CyberCoders is a national recruiting firm that specializes in permanent placement of mid to senior-level professionals with experience in IT, engineering, healthcare and life sciences. The company is based in Irvine, CA (www.cybercoders.com).

During RLH’s term of ownership the revenue of CyberCoders has increased five-fold and EBITDA even more rapidly, entirely through organic growth. Since RLH’s investment, CyberCoders has been recognized numerous times as among the “best places to work” and the company’s founder and CEO, Heidi Golledge, was selected as an Ernst & Young 2013 Entrepreneur of the Year.

On Assignment (NYSE: ASGN) is a provider of in-demand, skilled professionals for temporary, contract-to-hire, and direct hire assignments in the IT, healthcare, and life sciences sectors. The company is based in Calabasas CA (www.onassignment.com).

Riordan, Lewis & Haden invests in high growth, lower middle market companies that have revenues from $20 million to $200 million. Sectors of interest include business services, healthcare, and government services. The firm currently manages over $600 million of assets and is actively seeking new portfolio companies. Riordan, Lewis & Haden is based in Los Angeles (www.rlhequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13

Lake Capital Partners Exits Addison Group

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Addison Group, a professional staffing firm and a portfolio company of Lake Capital Partners, has entered into an agreement to be acquired by Trilantic Capital Partners. The management team of Addison Group is participating in this transaction alongside Trilantic. Lake Capital first invested in Addison Group in May 2006.

Addison Group provides specialized temporary and permanent placement of finance and accounting, information technology, and clerical personnel. Addison’s wholly owned subsidiary, inSync Staffing (www.insyncstaffing.com), specializes in providing staff augmentation services to the managed service provider market. Addison Group was founded in 1999 and is headquartered in Chicago and has offices in Boston, Houston, and Schaumburg, IL (www.addisongroup.com).

“We are thrilled to begin this partnership with Addison Group. Through its exceptional client and candidate service and its focus on hard-to-find skill-sets, management has successfully built Addison into a highly regarded professional staffing business. Their superior top line growth is a testament to their dedication to operational excellence. We plan to provide substantial additional strategic capital to fuel Addison’s organic growth and support future acquisitions,” said Jon Mattson, Partner at Trilantic.

Trilantic Capital Partners makes control and significant minority investments in North America and European companies. Sectors of interests include consumer, energy, financial and business services. Trilantic was formed in 2009 by the former principals of Lehman Brothers Merchant Banking. Trilantic currently manages two institutional private equity funds with total capital commitments of $5.6 billion. The firm is based in New York (www.trilantic.com).

“Lake Capital was pleased to work closely with management to build Addison Group, a world-class, client-focused staffing enterprise,” said Lake Capital principal Terence Graunke. “This initiative represents well our firm’s mission to partner with entrepreneurs and management teams to build leading service-based companies through strategically-directed organic and acquisition-enhanced growth. We thank and congratulate the Addison team and Trilantic Capital Partners, and wish them continuing success.”

Lake Capital invests in service-based enterprises. Service sectors of specific interest include marketing, finance, operations and infrastructure, healthcare services, specialty consumer, technology, and business process outsourcing. The firm currently manages more than $1 billion in equity commitments and is based in Chicago (www.lakecapital.com).

“We look forward to Trilantic’s strategic and financial support as we continue to execute on our growth strategy, which includes expanding nationally through both organic initiatives and executing tuck-in acquisitions,” said Thomas Moran, Chief Executive Officer of Addison Group. “We are very excited about this new chapter for Addison Group.”
William Blair & Company acted as the exclusive financial advisor to Addison Group.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-30-13

Highlander Partners Exits Martin, Fletcher

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Highlander Partners has sold its portfolio company, Martin, Fletcher, to Parallon Business Solutions, a subsidiary of HCA Holdings.

Martin, Fletcher is a provider of locum tenens and permanent placement healthcare staffing services. It has served over 2,000 hospitals and clinics nationwide since its founding in 1999. The company is headquartered in Irving, TX (www.martinfletcher.com).

Highlander made its investment in Martin, Fletcher in 2005, when the company was focused predominantly on permanent placements of physicians and nurses.  Since acquisition, Highlander oversaw the firm’s successful expansion into locum tenens that began in 2008 and continued through the downturn in the economy.

Parallon Business Solutions was formed by HCA in June 2011 to provide business services to the healthcare industry.  Services include group purchasing, staffing management, supply chain, project management, revenue cycle and other business processes. The company is based in Franklin, TN (www.parallon.net).

HCA is a provider of healthcare services comprised of locally managed facilities that includes about 163 hospitals and 110 freestanding surgery centers in 20 states and England and employing approximately 199,000 people. The company was founded in 1968 and is based in Nashville (www.hcahealthcare.com).

Highlander Partners makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include healthcare, basic manufacturing, food, and building materials. The firm has over $400 million in capital under management and is based in Dallas, TX (www.highlander-partners.com).

“We have supported Martin, Fletcher’s growth plans through the economic downturn and we are very pleased to see the exceptional growth achieved by the company in the locum tenens sector.  We believe that Martin, Fletcher’s combination with Parallon will bring tremendous benefits to both organizations and will allow Martin, Fletcher to expand the scope of its operations,” said Alex Guiva, Partner at Highlander and former Board Member of Martin, Fletcher.

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

Taglich Brothers Private Equity Acquires American Partners

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BG Staffing, a temporary staffing company and a portfolio company of the Taglich Brothers Private Equity Group, has acquired of substantially all of the assets of American Partners, an information technology staffing company.

American Partners is a national niche staffing firm specializing in providing experienced, highly skilled, and highly sought after information technology resources. The company is headquartered in Pawtucket, RI (www.americanpartnersinc.com).

“We are pleased to add American Partners to our platform.  American Partners strengthens and expands our existing information technology operations,” said L. Allen Baker, Jr., BG Staffing’s President and Chief Executive Officer.

BG Staffing is a temporary staffing platform that has integrated several regional and national brands.  The company provides staffing services to a variety of industries through its information technology, light industrial and multi-family divisions.  BG Staffing is headquartered in Dallas (www.bgstaffing.com).

The Taglich Brothers Private Equity Group makes equity investments of $3 million to $15 million in companies with revenues of $15 million to $150 million and EBITDAs of $5 million to $15 million.  Sectors of interest include manufacturing, consumer products and business services. The group is the alternative investment arm of Taglich Brothers, a provider of services to microcap companies seeking to raise capital through private placements including secured notes, mezzanine financing, and preferred and common equity.  Taglich Brothers Private Equity Group is based in New York (www.taglichpe.com).

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

Ares Management Invests in Insight Global

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Insight Global, a provider of information technology staffing services and a portfolio company of Harvest Partners, has received an investment by Ares Management. The transaction is expected to be completed in the fourth quarter of 2012.

“We believe Insight Global’s dedication to serving its clients will allow the company to continue expanding its footprint within the IT sector, and we are excited to partner with Harvest and such an outstanding management team,” said Matt Cwiertnia, Senior Partner at Ares Management.

Insight Global provides long term, short term, and temp-to-permanent technical staffing services throughout the United States and Canada. Since its founding in 2001, the company has grown to be recognized as one of the premier staffing companies in the country with 28 office locations in major metro markets. In 2011, Insight Global was recognized by Staffing Industry Analysts as the 8th largest IT temporary staffing firm in the U.S. and the 20th largest firm in the U.S. across all staffing sectors. The company is based in Atlanta (www.insightglobal.net).

Ares Management has $54 billion in capital under management and invests in private equity, leveraged loans, high-yield bonds, distressed debt and private debt. The firm has approximately 450 employees and is headquartered in Los Angeles, CA with offices in New York, London Chicago, and Atlanta (www.aresmgmt.com).

“We appreciate all of the effort by the Insight Global team since our original investment in 2010. Going forward, we are excited to partner with Ares and management by making a new investment to support future growth,” said Jay Wilkins, Managing Director at Harvest Partners.

Harvest Partners invests in management buyouts and growth financings. Sectors of interest include business and industrial services, manufacturing and distribution, healthcare, midstream energy, and consumer products and retail sectors. The firm was founded in 1981 and is based in New York (www.harvpart.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-10-12