testing services

Spire Sells PAN to Waud

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Spire Capital Partners has sold Performance Assessment Network (PAN), a provider of testing and management assessment services, to PSI Services, a portfolio company of Waud Capital Partners. Spire acquired PAN in February 2013 from Equifax Workforce Solutions, a subsidiary of Equifax Inc.

Performance Assessment Network (PAN) is a provider of online talent assessments and testing services that aid more than 2,500 corporate and government organizations in hiring and growing top talent. PAN delivers millions of talent assessments annually in both remote and proctored environments and has a testing center network with more than 600 locations. The company, led by CEO Jim Holm, was founded in 2000 and is based in Carmel, IN (www.panpowered.com).

“Jim Holm and the entire PAN senior management team did an extraordinary job in positioning the company in the highly complex and quickly evolving talent measurement industry.  Our strong financial performance and ultimate investment outcome are a direct result of the management team’s vision and execution,” said Bruce Hernandez, a Partner at Spire Capital.

Spire invests from $15 million to $40 million in companies with revenues of at least $10 million and EBITDAs of $5 million. Sectors of interest include business services, information services, media, education and communications. Spire is investing out of its third fund and has managed over $700 million in private equity commitments since its founding in 2000. The firm is led by partners Andy Armstrong, Bruce Hernandez, David Schaible and Sean White and is based in New York (www.spirecapital.com).

“I am proud of the PAN team and what we were able to accomplish,” said Mr. Holm. “As a second time senior leader at a Spire portfolio company, I had a good sense of the strategic insight and business development input the firm would provide, as well as the overall support needed during our aggressive growth period over the last few years.  It was a great partnership from start to finish.”

PAN was the final portfolio company in Spire’s second fund, Spire Capital Partners II, LP, which closed in 2007 with $319 million of committed capital.

PSI Services, the buyer of PAN, provides talent assessments, licensure testing services, certification credentialing services, license management services, and biometric identification authentication services.  The company is headquartered in Burbank, CA (www.psionline.com). PSI has been a portfolio company of Waud Capital Partners since March 2015.

Waud Capital makes investments from $50 million to $100 million in middle-market companies with enterprise values from $50 million to $250 million that operate in the healthcare services and business and technology services sectors. Since its founding in 1993, Waud Capital has made more than 195 investments, including platform companies and add-on acquisitions. The firm is headquartered in Chicago (www.waudcapital.com).

Houlihan Lokey (www.HL.com) was the financial advisor to Spire Capital and PAN.

© 2017 Private Equity Professional | January 26, 2017

Align Invests in Testing Services

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Align Capital Partners has acquired Alliance Source Testing (AST), an outsourced provider of emission testing services to industrial facilities.

AST provides its emissions testing services to industrial facilities for permitting and compliance in accordance with air-quality mandates from local, state and federal regulatory bodies. The company services customers’ facilities on a repeated basis, with the frequency determined by regulations for each industry.

AST’s customers are active in a range of industries including asphalt production; automotive manufacturing; cement production; chemical manufacturing; fiberglass; food & beverage; iron & steel foundry; mineral processing; energy; power generation; metals; printing; pulp & paper production; and wood products. The company, led by CEO Chris LeMay, has operations centers in Decatur, AL (headquarters); Little Rock, AR; Pittsburgh, PA; West Chester, PA; and Tyler, TX (www.stacktest.com).

“We are excited to partner with AST’s management team to build upon the success the company has achieved to date through consistently providing responsive customer service, accurate testing, and timely reporting,” said Robert Langley, Managing Partner at Align Capital Partners. “AST is a great fit with Align Capital Partners’ experience and operating resources, which help grow and professionalize founder-owned businesses.”

Align Capital Partners (ACP) makes control investments in companies that have from $3 million to $10 million of EBITDA. Sectors of interest include specialty manufacturing, distribution and business services. The firm was founded in 2016 by managing partners Steve Dyke, Robert Langley, and Chris Jones – all formerly of The Riverside Company – and has offices in Cleveland and Dallas (www.aligncp.com).

In September 2016, ACP held a first and final close of its inaugural private equity investment fund, Align Capital Partners Fund I, LP, and Align Capital Partners Fund I-A, LP. Align began fundraising in June 2016 with an initial target of $250 million and closed at its hard cap of $325 million.

Managing Partner Chris Jones and Vice President Jack Parks worked alongside Mr. Langley on the AST transaction.

Madison Capital Funding (www.mcfllc.com) provided financing for the transaction.

© 2016 Private Equity Professional

November 29, 2016

Waud Invests in PSI Services

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Waud Capital Partners has made an investment in PSI Services, a provider of professional testing services to corporations, federal and state government agencies, professional associations and other certifying bodies.

PSI provides talent assessments (of job-seeking candidates as well as employee development programs), licensure testing services (for government regulatory agencies), certification credentialing services (for professional associations), license management services, and biometric identification authentication services.  The company is headquartered in Burbank, CA (www.psionline.com).

“We are in the business of creating long-term value. We do it with a clear focus and vision. We look to partner with talented executives possessing successful track records of building market-leading companies with diverse business portfolios and global infrastructures,” said Matt Clary, Partner at Waud Capital.  “We are thrilled to partner with the PSI team and we have significant equity capital available to support and enhance the company’s service offering and continue building the business. PSI is an exceptional platform and we look forward to a partnership full of exciting growth potential.”

Waud Capital Partners makes investments from $20 million to $100 million in middle-market companies with enterprise values from $30 million to $300 million that operate in the healthcare services and business services sectors.  The firm was founded in 1993 and is headquartered in Chicago (www.waudcapital.com).

“Based on the excellent growth and diversity of PSI’s business portfolio, combined with its superior financial performance over the past four years, Waud Capital has made a significant equity investment in the company,” said Stephen Tapp, PSI’s Chief Executive Officer.  “The interest of such a highly respected financial partner is a real testimony to our management team, our client and partners worldwide and our future growth strategy for high-stakes testing and assessment solutions.”

David Lowenberg, an Executive Partner at Waud Capital will join the Board of PSI as its Executive Chairman.  “I welcome the opportunity to work with Steve Tapp and his management team to continue PSI’s success in servicing its clients, adding to its value proposition and growing the business,” said Mr. Lowenberg. Prior to joining Waud Capital in 2013, Mr. Lowenberg was Chief Operating Officer of Express Scripts and President and Chief Executive Officer of its Curascript subsidiary, a specialty pharmacy business.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-5-15

Tonka Bay Exits AeroSystems Engineering

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Tonka Bay Equity Partners has completed the sale of AeroSystems Engineering, a provider of testing and engineering services, to Gen Cap America.

AeroSystems Engineering is a global provider of testing and engineering services to the aerospace, energy, and military markets.  The company is based in St. Paul (www.aseholdings.com).

Tonka Bay acquired AeroSystems Engineering in 2006 and during the course of its ownership the firm worked with the senior management team of the company to develop a key account strategy to increase the company’s customer base and opened new markets in the energy and military sectors.

“Given AeroSystems’ reputation and technical expertise, we saw a very attractive opportunity to take advantage of the growth and changes in the aerospace industry,” said Peter Kooman, a Managing Principal at Tonka Bay and AeroSystems’ Chairman of the Board.  “It has been a pleasure working with the AeroSystems team.  I have no doubt that the foundation they have built is equipped to handle the anticipated growth for years to come.”

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).

AeroSystems Engineering is led by Tom Moll, the company’s CEO.  “I’ve enjoyed our partnership with Tonka Bay, said Mr. Moll.  “Not only have they proven to be a patient and supportive capital partner but also a great sounding board which allowed me to more effectively lead the business.  Through the partnership with Tonka Bay and the dedication of my team, we are well positioned to capitalize on the global market opportunity within our aerospace and energy end markets.  ”

Gen Cap America, the buyer of AeroSystems Engineering, invests in companies with revenue between $5 million and $100 million that are active in the manufacturing, distribution or service sectors.  The firm is actively investing Southwest Fund VI, a $165 million fund which began making investments in May 2010. Gen Cap was founded in 1985 and is based in Nashville (www.gencapamerica.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-29-14

Teakwood Capital Sells ExamSoft to Spectrum

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ExamSoft, a provider of computer-based testing services and a portfolio company of Teakwood Capital, has been acquired by Spectrum Equity.  Daniel Muzquiz, Chief Executive Officer, and David Schnabel, President, as well as the rest of the senior management team of ExamSoft will continue to lead the company. Teakwood acquired ExamSoft in June 2010.

ExamSoft is a provider of computer-based testing software to academic institutions and professional certification entities.  ExamSoft is used by more than 550 clients, including an array of higher education institutions and 43 of the 50 US state bar examiners.  The company has offices in Dallas (headquarters) and Boca Raton (www.examsoft.com).

Teakwood Capital invests equity capital primarily in technology enabled business-to-business companies with revenues of less than $25 million and EBITDAs from $500,000 to $3 million. The firm focuses on management buyouts as well as control growth equity investments. Teakwood Capital was founded in 2005 and is based in Dallas (www.teakwoodcapital.com).

“Teakwood is proud of this investment and what ExamSoft’s talented management team has achieved. The team briskly grew revenues by expanding within its core markets while also developing new products to target large, adjacent markets,” said Shawn Kelly, Managing Director at Teakwood Capital. “ExamSoft is a great example of the operational and strategic value Teakwood delivers by working closely with a portfolio company team to jumpstart growth and achieve its true potential.”

The buyer of ExamSoft, Spectrum Equity, invests in growth companies in the information industry with particular interest in internet and digital media; communications, media and entertainment; and software and information. Spectrum Equity has raised $4.7 billion in capital across six funds. The firm was founded in 1994 and has offices in Boston and Menlo Park (www.spectrumequity.com).

“As technology and software continue to impact education, and as curricular design, testing and accreditation continue to shift in response to these changes, we believe market demand for assessment management solutions will continue to grow,” said Steve LeSieur, Principal of Spectrum Equity. “We view ExamSoft as a growth platform with exceptional management and technology that should scale considerably over the coming years as the company expands its portfolio of products and services offered to clients. We feel very fortunate to be partnered with Daniel, David and the entire ExamSoft team.”

Mid-market investment bank MHT MidSpan (www.mhtmidspan.com) acted as the exclusive financial advisor to ExamSoft in the transaction.

© 2014 PEPD • Private Equity’s Leading News Magazine • 5-8-14

Aurora Acquires National Technical Systems

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National Technical Systems, a provider of testing and engineering services, has entered into an agreement to be acquired by Aurora Capital Group for $23 per share in cash which equates to an equity valuation of approximately $267 million.

National Technical Systems (NASDAQ: NTSC) is a provider of engineering services to the aerospace, defense, telecommunications, automotive and high technology markets. Services provided include design engineering, compliance, testing, certification, quality registration and program management. The company was founded in 1961 and is based in Calabasas, CA (www.nts.com).

“We believe Aurora Capital Group, based on its proven expertise in many industries that are important to NTS, like aerospace, defense and transportation, to name just a few, is the right partner for us. We look forward to working closely with them and continuing to build a bright and prosperous future for NTS and all our stakeholders,” said NTS President and CEO William McGinnis.

Aurora Capital focuses principally on control-investments in middle-market industrial, manufacturing and service oriented businesses. The firm has $2 billion of capital under management and is headquartered in Los Angeles (www.auroracap.com).

Houlihan Lokey served as the financial advisor to National Technical Systems.

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-16-13

Grey Mountain Acquires Red Flame Industries

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Bolttech Mannings, a portfolio company of Grey Mountain Partners, has acquired Red Flame Industries, a provider of inspection and other services to the oil and gas industry.

Red Flame provides plant, pipeline, and engineering and certification services for the oil, gas, petrochemical, and renewable resource industries. Services include equipment inspection, certification, specialty mechanical services, data management, and non-destructive testing. The company is based in Red Deer, Alberta (redflameindustries.com).

Bolttech Mannings provides maintenance and emergency joint integrity services in the power generation, refinery, and petrochemical markets. The company has 24 field offices located throughout the US and is headquartered in New Versailles, PA (www.bolttech.com).

The acquisition of Red Flame provides Bolttech Mannings with access to the Canadian market, a new service line, and differentiated technology. “Red Flame is a natural fit with Bolttech Mannings. Not only do the companies provide complementary services within the same industries, but we also share the same core values of focusing on customer needs, worker safety, and quality work,” said Ed Komoski, CEO of Bolttech Mannings.

Grey Mountain Partners is actively seeking add-on acquisitions for Bolttech Mannings. Targets would include companies that provide bolting, heat treating, hot tapping, non-destructive testing, and other niche services to the oil, gas, petrochemical, power generation, and refinery industries.

Grey Mountain Partners invests in middle market companies with enterprise values between $30 million and $150 million. The firm invests up to $75 million in control acquisitions across a range of industries. Grey Mountain is currently investing from its second fund, Grey Mountain Partners Fund II, LP. The firm was founded in 2003 and is based in Boulder, CO (www.greymountain.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-30-13

Spire Capital Acquires Performance Assessment Network

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Spire Capital has acquired Performance Assessment Network, a provider of testing and management assessment services, from Equifax Workforce Solutions, a subsidiary of Equifax Inc.

Performance Assessment Network (PAN) is the provider of online talent assessments and testing services that aid more than 2,500 corporate and government organizations in hiring and growing top talent. PAN delivers millions of talent assessments annually in both remote and proctored environments and has a testing center network with more than 600 locations. The company was founded in 2000 and is based in Carmel, IN (www.panpowered.com).

“I am very excited to be leading PAN as we enter this phase of significant growth,” said Doug Cole, Chief Executive Officer. “Our goal has always been to provide the best quality content, superior technology and the highest level of service to our customers. Partnering with Spire will provide the strategic focus and resources to fuel our growth in the coming quarters and years.”

Spire Capital invests from $15 million to $40 million in companies with revenues of at least $10 million and EBITDAs of $5 million.  Sectors of interest include business services, information services, media, education and communications.  Spire Capital is currently investing out of its $320 million second fund.  The firm is based in New York with an additional office in West Conshohocken, PA (www.spirecapital.com).

“Today’s organizations view human capital as an asset to be developed and optimized,” said Bruce Hernandez, Partner of Spire Capital. “We absolutely embrace this line of thinking and believe PAN is perfectly positioned to benefit from our partnership which will leverage the company’s unique technology platform, publisher agnostic assessment catalog and vast test center network to grow with both new and existing customers.  Spire brings significant industry expertise to the partnership and looks forward to working with the team at pan to accelerate growth.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-5-13