Transcript Maxcor Integrated Management - MTN Capital Partners LLC | Team

MTN Capital Partners LLC
Company Presentation
MTN Capital Partners LLC
New York
www.mtncapital.com
MTN Capital Partners LLC
We are a private equity firm that focuses on companies at the lower end of
the middle market.
We partner with exceptional C-level executives to acquire companies and
enhance shareholder value.
2
Criteria
MTN has access to over $500 million in equity capital.
Focus

MTN invests in healthy as well as underperforming or
distressed companies.

Healthy Companies
Profitable and growing middle-market companies with strong
management.
• Sales $25 to $250 million
• EBITDA $4 to $15 million
• Enterprise Value less than $100 million

Underperforming or Distressed Companies
Companies with revenues of $50 million or more. We will
consider:
• Acquiring companies outside of bankruptcy or in
bankruptcy through a 363 sale process; and
• Obtaining control by buying discounted debt and
converting it into equity.
3
Criteria
Sectors of Interest

Automotive

Manufacturing

Business Services

Marketing Services

Consumer Products

Metals Recyclers and Services

Distribution

Specialty Chemicals

Energy Services

Specialty Retail

Food & Beverage


Healthcare
Telecommunications, Media and
Technology (selectively)

Water Services
Investment Size

$5 to $30 million equity investment per transaction.
Geography

North America
4
Approach
We often find our best opportunities off the beaten track: orphan
subsidiaries of large companies, private companies reluctant to go
through an auction process, companies with an intrinsic value that is
not readily apparent, or businesses offered for sale in imperfect
auctions.
We have recruited industry experts to help us evaluate our investment
opportunities. They are former top executives from major corporations
or successful entrepreneurs.
We carefully study our investment targets from both an operational
and financial perspective, develop our investment thesis with
management and our industry experts, and determine a fair
acquisition price.
Post-acquisition, MTN investment professionals and our industry
experts join the boards of our portfolio companies. We monitor our
companies’ performance and help them achieve their full potential.
Together with management, MTN determines the best time and
strategy for exiting the investment.
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Partnerships
Building Partnerships
Our success depends on building partnerships with the parties that
make our transactions possible.
Owners
We close our transactions expeditiously because our professionals are
experienced in evaluating and financing acquisitions.
If previous owners want to remain involved with their companies postacquisition, we welcome them as senior executives, as shareholders
and as members of the board of directors.
Managers
Key to our success is building a genuine partnership with the managers
of our portfolio companies. We partner with managers who want to
build equity value for their shareholders and themselves.
We structure ownership and incentive plans that offer management
significant rewards for growth and profitability.
Our industry experts, who have experience with much larger
companies, are a valuable resource to our managers.
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Partnerships
Industry Experts
MTN's private equity professionals have a background in finance. Central to our business model
is to partner with experts in the industries in which our portfolio companies operate. Our
industry experts help us with due diligence before the acquisition and join the portfolio
company's board of directors post-acquisition.
They are a resource to the management of our portfolio companies to increase growth and
profitability.
Investment Bankers
MTN's professionals are experienced, dynamic and creative. We are quick in evaluating
transactions and resourceful in getting to the finish line.
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Portfolio Companies
Portfolio Companies at MTN
www.jsistorefixtures.com
www.joliet-equipment.com
In 2012, RFE Investment Partners and MTN co-sponsored with
management the acquisition of JSI Store Fixtures. JSI Store Fixtures is a
market-leading designer and manufacturer of high-quality merchandising
displays for the supermarket industry. The company has won numerous
awards for providing customized solutions for its clients.
Joliet Equipment Corporation (“Joliet”) is a leading supplier of new and
remanufactured AC and DC traction motors for the oil and gas drilling and
exploration industries and other high power, large motor industrial
applications. The Company also provides industrial motor repair services.
Over its 75 year history, Joliet has built one of the most recognizable trade
names in the motor industry, both domestically and internationally.
Argosy Partners was the lead investor.
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Portfolio Companies
www.revolutiondance.com
Revolution Dancewear (the “Revolution") is the leading designer and
marketer of specialty dancewear and footwear as well as dance recital
costumes. Revolution sells its products directly through dance schools
throughout the United States. Founded in 1996, the Company offers a full
product line of footwear, bodywear and recital costumes to serve the needs
of dancers across several dance style categories including tap, jazz, ballet,
and hip hop. MTN Capital Partners co-invested in the deal with PNC
Equity Partners, management and two other equity investors.
Balducci's is a 2009 add-on to Kings Supermarkets. Balducci's is a smallbox gourmet and specialty food retailer with two formats: A traditional
grocery store format branded Balducci's, and an urban food-to-go format
branded Balducci's Gourmet to Go. It has eight locations in New York,
Connecticut, Maryland, and Virginia.
www.balduccis.com
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Portfolio Companies
www.kingswebsite.com
Kings Supermarkets is a high-end grocery store chain with 24 stores located
in Northern New Jersey and Long Island, New York. Kings was a subsidiary
of Marks & Spencer PLC. The Investor Group was able to execute a
sale/leaseback transaction on the owned real estate which funded over twothirds of the purchase price. MTN Capital Partners was a co-sponsor in the
deal alongside Angelo, Gordon & Co, and management.
Sound Lounge is the leading audio post-production company in the United
States providing sound mixing services for television and radio commercials,
and feature films. MTN Capital Partners was a co-sponsor in the deal
alongside Argosy Partners, BIA Digital Partners LP, GMB Mezzanine
Capital, LP, and the management.
www.soundlounge.com
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Former Portfolio Companies
Arizona AFO is a 2011 add-on acquisition to The Orthotics Group.
Arizona AFO sells a variety of ankle foot orthotics products to more than
1,000 orthotists and prosthetists practitioners in North America.
www.arizonaafo.com
www.langerinc.com
One month after the acquisition of TOG, the same investment group
acquired the orthotics business of Langer, Inc. (“Langer”). Langer is the
third largest orthotics manufacturer in the United States. The two
companies were merged creating the second largest orthotics company in
North America.
Headquartered in Markham, Ontario, The Orthotic Group ("TOG") is the
largest Canadian manufacturer and distributor of custom prescription
orthotics, and orthotic footwear. MTN Capital Partners co-invested in the
deal with PNC Equity Partners and management.
www.theorthoticgroup.com
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Portfolio Companies
Transactions
Power Tools Company
www.lexingtonprecision.com
MTN identified a power tools company with revenues of over $30 million
offered for sale in a limited auction. MTN professionals did due diligence
together with their industry expert and selected a capital partner who
acquired the company.
Lexington Precision Corporation (“Lexington”) is one of the premier
suppliers of molded rubber components in the world. Lexington has
achieved dominant positions within its served markets by delivering
advanced product solutions and leveraging its proprietary capabilities in
product
development,
mold
making,
materials
development,
manufacturing and testing. Its two primary product lines are (i) insulators
for automotive ignition systems; and (ii) molded rubber components for
medical devices. These products are sold to a number of blue-chip
companies serving the automotive aftermarket, medical, automotive
original equipment (“OEM”), and general industrial markets.
Lexington emerged from bankruptcy on July 30, 2010. Aurora Resurgence
exchanged an investment in Lexington’s subordinated debt, acquired at a
discount during the bankruptcy, for a controlling equity stake in the
company. Management is also an investor. MTN Capital Partners initiated
this transaction.
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Portfolio Companies
www.capcleaning.com
www.aurahomedesign.com
Capital Contractors, Inc. (“Capital Contractors”), founded in 1963, is one of
the nation’s largest independent janitorial services companies. A leader in
the outsourced facilities maintenance industry, Capital Contractors
provides cleaning and certain other facilities maintenance services to
approximately 4,500 customers in all 50 states, Canada, and Puerto Rico
through a network of approximately 1,600 independent contractors.
Capital Contractors services approximately 7,000 locations per
day. Palladium Equity Partners, LLC is the lead capital provider along with
management. MTN Capital Partners initiated this transaction.
Home Décor Innovations is a leading supplier of mirrored closet doors,
closet organization and wall décor products in North America and Europe.
The Company provides functional and fashionable products to various
channels including home improvement, mass retail, professional builders
and the European retail furniture channel. Home Décor Innovations was a
division of The Stanley Works. Wellspring Capital Management was the lead
investor.
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Prior Portfolio Companies before MTN
Access Line Technologies, Inc.
Provider of personal telecommunication services
Alabama Pine & Pulp Company
Producer of Southern bleached softwood kraft pulp
Citi Trends
Specialty retailer of discount fashion apparel (f/k/a
Allied Fashion, Inc.)
Cost Plus, Inc.
Specialty retailer of home furnishings and gourmet
foods
e.spire Communications, Inc.
Competitive local exchange carrier ("CLEC")
Envirodyne Industries, Inc.
Manufacturer of food packaging
James Cable Partners, L.P.
Cable television multiple system operator
Kasper By A.S.L., Ltd.
Manufacturer and marketer of women's suits and
sportswear
Larizza Industries, Inc.
Manufacturer of plastic automotive components
Marks Bros. Jewelers, Inc.
Retail jewelry chain
Phar-Mor, Inc.
Deep discount drug store chain
The Leslie Fay Company
Manufacturer and marketer of dresses and women's
sportswear
TransCare Corporation
Ambulance and ambulette provider
Note: These transactions were completed by the partners at prior firms and include both private equity and distressed debt
investments.
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Advisory Board
Ralph Dillon
Mr. Dillon was Non-Executive Chairman of the Board of Directors of Party City, the largest party favors
company, between 1999 and 2005. Mr. Dillon also served as Chief Executive Officer of Cost Plus, a specialty
retailer of casual home living and entertainment products, from September 1990 to February 1998. From
August 1987 to August 1990, Mr. Dillon served as President and Chief Operating Officer of Family Dollar
Stores, Inc., a discount retail chain. From 1985 to 1987, he was President and Chief Operating Officer of
Coast America Corporation, a hardware store chain. Prior to the formation of MTN, he was involved with
two retail company acquisitions made by Olivier Trouveroy: he was CEO of Cost Plus and a board member
of Citi Trends.
Henry Driesse
Mr. Driesse spent the majority of his 30 year business career at ITT Corporation with roles of increasing
responsibility including President of ITT Fluid Technology, President of ITT Defense and Electronics, and
President of ITT Avionics. He also served as Chairman of Faradyne Motors, a supplier of submersible
motors for pumping applications, and as a member of the board of directors of Digital Globe, a satellite
imagery company for military and civil applications. Mr. Driesse holds the BSEE degree from Fairleigh
Dickenson University and the MSEE degree from New York University. He is a member of the Board of
Trustees of Chilton Memorial Hospital, NJ.
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Advisory Board
Scott Edmonds
Mr. Edmonds was until 2009 the Chairman and CEO of Chico's (NYSE:CHS), a specialty retailer of
women’s apparel, where he led the company's growth from $155 million in sales and 200 locations to $1.5
billion and 1,076 locations over a ten year period. He is currently Chairman and CEO of Bellfield Investment
Partners, a private equity firm that specializes in emerging growth companies. He is a director of J.Jill, a
multichannel retailer of apparel, accessories, and footwear for women with over 1,000 employees. He is also
on the board of directors of Revolution Dancewear, an acquisition co-sponsored by Incline Equity Partners
and MTN Capital Partners.
Jack Glover
Mr. Glover co-founded in 2011 Incline Equity Partners, a private equity firm, that manages $300 million in
its first fund. Before that he was co-head of PNC Equity Partners which he joined in 1996. In 2011, PNC
Equity had $800 million assets under management. He has made dozens of private equity investments that
he led to successful exits. He currently serves on the board of directors of Double E Company, Revolution
Dancewear, Wheaton Industries, Oracle Elevator, APEX Analytix, Caldwell & Gregory, Orthotic Holdings,
Inc. (OHI), and Faucet Queen. Mr. Glover has an MBA from the University of Chicago. He made two
investments in partnership with MTN Capital Partners.
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Advisory Board
Robert LeBlanc
Mr. LeBlanc was President and Chief Executive Officer of Handy & Harman, a $400 million diversified
manufacturer of electronic materials, specialty fasteners and connectors, specialty wire and tubing products,
and fabricated precious metals, between 1998 and 2003. Previously, he was Executive Vice President of Elf
Atochem North America, a $1.7 billion specialty chemical and polymer subsidiary of Elf Aquitaine, France.
He is currently a director of Church & Dwight Co. (NYSE: CHD), a $2.4 billion manufacturer of consumer
packaged goods and specialty chemicals, and Jetera Inc., a technology based precision media company. He
worked with MTN on the acquisition of Joliet Equipment Corporation and joined the company’s board of
directors.
Honorable Robert L. (“Bob”) Livingston
Mr. Livingston was elected to the U.S. House of Representatives from Louisiana in 1977 and was re-elected
to eleven successive two-year terms. He served as a member of the Appropriations Committee through most
of his time in Congress and for the maximum period of six years on the Permanent Select Committee on
Intelligence. From 1995 through 1998, he served as the Chairman of the Appropriations Committee,
shepherding 13 appropriations bills through the legislative process. Following his departure from Congress
in 1999, Mr. Livingston established The Livingston Group which grew to be today the 10th largest
independent lobbying firm, a bipartisan enterprise with over 60 principals and consultants, and 14
international affiliates. Among its clients have been countries such as Turkey, Morocco and Azerbaijan, and
companies such as Goodyear, Rolls Royce and Verizon Wireless.
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Advisory Board
Stephen Key
Mr. Key was Executive Vice President and Chief Financial Officer of Textron, Inc., a $13 billion multiindustry conglomerate, between 1995 and 2001. He was Executive Vice President and Chief Financial
Officer of ConAgra, Inc., a $15 billion retail food company in North America, between 1992 and 1995. Mr.
Key also held top management positions at Ernst & Young and its predecessor, including managing partner
of the New York office, founder of the M&A practice, and member of the management committee and of the
board of partners. He is currently a director of Greenhill, Inc., a publicly-traded merchant bank with almost
$2 billion in market capitalization, and a member of the Board of Trustees of the Rhode Island School of
Design.
John Kirwin
Mr. Kirwin co-founded Argosy Capital, an investment firm that makes equity, mezzanine debt and real
estate investments, in 1990. Argosy's assets under management are currently over $550 million. His has
made successful investments in over 70 companies. Before Argosy Capital he practiced law with special
emphasis on public and private securities offerings, and venture capital and buyout transactions. He was a
member of the board of directors of four public companies. He currently serves on the board of directors of
several private companies. Mr. Kirwin holds a Juris Doctor from George Washington University. He made
two investments in partnership with MTN Capital Partners.
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Advisory Board
Peter Reiter
Mr. Reiter is a Managing Director with RFE Investment Partners, a private equity firm founded in 1979 that
currently manages its seventh fund. RFE's assets under management are over $400 million. Peter has
served on the boards of directors of several RFE portfolio companies and is currently a director of CBT
Technology, iMedX, Lectrus and Plantation Products. Before joining RFE he was an auditor with KPMG
Peat Marwick. Mr. Reiter has an MBA from New York University.
Lou Terhar
Between 1992 and 1999 Mr. Terhar was President and CEO of David J. Joseph, the largest US metal recycler
with $1.1 billion in revenues at that time. Between 2004 and 2005 he was president and CEO of Integris
Metals, Inc, a $2.2 billion revenues joint venture between Alcoa and BHP Billiton that was the largest
aluminum and stainless steel distributor in North America. In 2005 he founded Strategic Planning Advisors
LLC, a senior level consulting firm. In 2011, he became a member of the Ohio House of Representatives. Mr.
Terhar is a graduate of the United States Naval Academy, Syracuse University, and Harvard University. He
is a Commander, US Navy (Retired). He also teaches in Xavier University's Executive MBA program.
Bruce Weitz
Mr. Weitz is currently a member of the board of directors of JSI Store Fixtures, an MTN portfolio company.
From 2006 to 2010 he served as Chief Executive Officer of Kings Supermarkets, Inc., another MTN portfolio
company. Mr. Weitz served as Chief Executive Officer and President of Today's Man Inc. from 2000 to
2003. He served as the President, Chief Executive Officer and Chairman of Duane Reade Drugstores from
1992 to 1996. From 1988 to 1992, he served as President and Chief Operating Officer of Grossman's Inc., a
Massachusetts based home improvement chain. He was a Director of the Food Marketing Institute between
2008 and 2010. Mr. Weitz worked with MTN in the acquisition of both Kings Supermarkets and JSI.
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Team – Managing Partners
Olivier Trouveroy – Managing Partner
Mr. Trouveroy co-founded MTN Capital Partners in 2005. Since then, MTN and its
portfolio companies have been involved in acquisitions totaling almost $500 million.
Mr. Trouveroy, a professional with over 25 years of business experience, was a founding
partner of ING Equity Partners and its successor Hampshire Equity Partners. The funds
he co-managed made investments totaling over $500 million in both performing and
underperforming companies. He built a very successful investment track record over a
nine year period.
He was also head of GE Capital's leveraged finance business in France.
Mr. Trouveroy worked for six years in the mergers and acquisitions department of Drexel
Burnham in New York where he became a partner. He handled M&A transactions totaling
over $4 billion.
Mr. Trouveroy is a director of Sound Lounge, Kings Supermarkets, and Joliet Equipment
Corporation.
Mr. Trouveroy has an M.B.A. from the University of Chicago and an M.A. in Economics
from the University of Louvain in Belgium. He passed the C.P.A. examination.
Mr. Trouveroy is a board member and chairman of the finance committee of the Belgian
American Educational Foundation.
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Team – Managing Partners
Dan Negrea – Managing Partner
Mr. Negrea co-founded MTN Capital Partners in 2005. Since then, MTN and its
portfolio companies have been involved in acquisitions totaling almost $500
million.
Before MTN, Mr. Negrea was an investment banker for 20 years.He held senior
positions in leveraged finance at Drexel Burnham, Bear Stearns, Chase Securities,
and ING Barings. At ING Barings, he served as head of high yield capital markets.
During his career, Mr. Negrea worked with companies in almost every industry and
has raised over $15 billion in capital through a variety of financial instruments
including high yield bonds, senior secured notes, bank loans, mezzanine loans, and
equity securities.
Mr. Negrea is a director of Kings Supermarkets, Revolution Dancewear and JSI
Store Fixtures. He is a former director of The Orthotic Group.
Mr. Negrea has an M.B.A. from Cornell University and an M.A. in International
Finance from the University of Bucharest, Romania.
Mr. Negrea is a member of the Order of Malta.
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Team – Investment Professionals
Pierre Dahmani – Managing Director
Mr. Dahmani joined MTN in 2012 and is responsible for transaction origination and execution.
Before MTN he was Managing Director of Global Partners, a merchant bank with offices in the
US and Europe that he co-founded in 2002. Global Partners’ focus has been M&A transactions
and principal investing involving US and European companies. His private equity experience
runs the gamut from being an M&A advisor, to making control equity investments, and to having
senior management roles in his portfolio companies. Mr. Dahmani’s most recent control
investment was in Miller and Company, one of the most diversified suppliers of raw materials to
the ferrous foundry and steel industry in the U.S., Canada and Mexico. Before Global Partners he
practiced law for ten years. Mr. Dahmani studied international business at Universite de Paris,
Sorbonne before attending the University of Michigan. He has a J.D. from the University of
Detroit.
Ivan L. Lustig – Managing Director
Mr. Lustig joined MTN in 2012 and is responsible for transaction origination and execution. Mr.
Lustig has over 30 years as an investment banker specializing in mergers and acquisitions and
financings having worked on over $200 billion of transactions. He was most recently a Senior
Managing Director at Duff & Phelps and was, prior to that, Head of M&A in the Americas for The
Royal Bank of Scotland, Head of M&A in North America for predecessor firm ABN AMRO and
Head of Media and Communications Investment Banking at ING Barings (acquired by ABN
AMRO). Prior to that, he was Head of Telecom, Media and Technology Investment Banking at
Wertheim Schroder & Co. Mr. Lustig graduated from Cornell University with a B.S. M. Eng. and
M.B.A. as a Knight Scholar. Mr. Lustig is also Vice Chairman of the Museum of the Moving Image
in New York City, a member of the Cornell Engineering College Council, an Advisory Board
Member of Cornell’s Financial Engineering Graduate Program and a Board Member of ARIF, a
private foundation
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Team – Investment Professionals
Steven J. Ross – Managing Director
Mr. Ross joined MTN in 2011 and is primarily responsible for transaction origination. Mr.
Ross has over 25 years of senior management experience, ranging from high growth private
companies to multi-billion dollar divisions of public enterprises.
Immediately prior to joining MTN, Mr. Ross was CEO of National Investment Managers
(NASDAQ: NIVM) from 2006 until its going private in 2011. Under Mr. Ross' leadership,
the company made several acquisitions and became the largest independent retirement
services company in the US with over $11 billion in assets under administration and
operations in 17 cities. Prior to that, Mr. Ross served as Chairman and CEO of DynTek, a
leading provider of information technology services with annual revenues of over $100
million. He was also General Manager of the Computer Systems Division of Toshiba
America with overall responsibility for Toshibas $3 billion computer business in the US and
South America. Mr. Ross served as Vice-Chairman of the Board of the Computing
Technology Industry Association (COMPTIA) and as a board member of the US Internet
Industry Association (USIIA). Mr. Ross is an alumnus of Harvard University and graduated
from the Advanced Management Program at the Harvard Business School.
Mr. Ross is currently the lead director for the Longhai Steel Company (OTC:LGHS), a $1
billion revenue steel wire producer based in Xingtai, China.
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Team – Investment Professionals
James Kim – Director
Before joining MTN in 2002, Mr. Kim was a member of Bear Stearns’ corporate finance
department.
At Bear Stearns, Mr. Kim was mainly involved in mergers and acquisitions in the aerospace,
defense and information services industries.
Mr. Kim has worked with senior management and boards of directors of a variety of
companies on transactions including exclusive sales, buy-side M&A engagements,
recapitalizations, and acquisition financings.
Mr. Kim has a B.S. in Economics with a dual concentration in Finance and Accounting from
the Wharton School of Business at the University of Pennsylvania.
Christopher G. Muneio – Director
Mr. Muneio is responsible for transaction origination and execution. Prior to joining MTN in
2011, Mr. Muneio was President of CM Capital Advisors, an outsourced business
development company for private equity firms, high-yield funds, and family office groups.
Between 2004 and 2010, Mr. Muneio worked at The Comvest Group, most recently as a Vice
President. The Comvest Group is a private equity firm focused on buyouts and restructurings
for lower middle market companies. He was instrumental in growing the firm's assets under
management from $165 million to just under $1 billion. He sourced new business, executed
transactions and analyzed portfolio companies to maximize return on investment.
He originated transactions totaling $500 million.
Mr. Muneio graduated from Palm Beach Atlantic University with a degree in Business
Administration.
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Team – Investment Professionals
Wendy Gallagher – Vice President
Ms. Gallagher is responsible for transaction origination.
Prior to joining MTN in 2012, she was a Vice President at BKB Investments, a hedge fun,
where she was responsible for capital raising.
Between 2002 and 2010 she was a Vice President in private wealth management at
Morgan Stanley Smith Barney where she was a specialist in investment products and
services for high net worth individuals.
Miss Gallagher has a B.S. in Economics, International Business and Management
Information Systems from Drexel University where she was on the varsity lacrosse team.
Morgane Chang– Analyst
Ms. Chang joined MTN in 2013 and is primarily responsible for business development.
Ms. Chang is also involved in due diligence related to MTN acquisitions. She lived in and
taught English in China.
Ms. Chang received a BA cum laude from Wake Forest University.
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News - MTN Managing Partner chairs the 2013 Capital
Roundtable Independent Sponsor Conference
Independent Sponsor Dealmaking
In Partnership with Capital Sources
Why Growth in This Community
Is Outpacing That of Committed Funds
CHAIRED BY
Dan Negrea, Managing Partner
MTN Capital Partners LLC
Featuring 20 Expert Speakers Including –
- James S. Athanasoulas, Sankaty Advisors LLC
- John F. Bingaman, Cerca Group LLC
- Jeffrey I. Brodlieb, Centripetal Capital Partners
LLC
- Mark G. Fornasiero, Clarendon Group II LLC
- Laurens M. Goff, Stone-Goff Partners LLC
- Joseph A. Hawke, Hawke Aerospace Group
- James A. Illikman, Peninsula Capital Partners LLC
- David M. Kirby, Kirby Capital Advisors LLC
- Thao Le, Pepper Hamilton LLP
- Brian V. Mankwitz, Mantucket Capital Corp.
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-
R. Peter Reiter, RFE Investment Partners
Mark A. Riser, Morningside Private Investors Ltd.
Christopher A. Rossi, Pepper Hamilton LLP
John A. Sadden, Valesco Industries Inc.
Thomas S. Shattan, Shattan Mendel Enterprises
LLC
Christopher S. Sheeren, Huron Capital Partners
LLC
Kevin J. Smith, RBC Capital Markets Corp.
Martin W. Stein, Blackford Capital LLC
Jeffrey L. Teeven, Consumer Growth Partners LLC
Lane W. Wiggers, CS Capital Partners
News – MTN Portfolio Company Sold
April 8, 2013
PRESS RELEASE
The Orthotic Group, a portfolio company of MTN Capital Partners, was sold to Frazier Healthcare in April 2013.
The Orthotic Group is the largest manufacturer and distributor of custom prescription orthotics, orthotic
footwear, and gait analysis equipment in Canada and the second largest in North America. The company serves a
broad range of health care professionals in the chiropractic, podiatric, orthopedic, and physical therapy markets.
The investors’ vision was to build a leading North American orthotics company. The initial acquisition of The
Orthotic Group, a Canadian company, was followed by the acquisition of Langer Biomechanics and Arizona AFO,
both US companies.
MTN’s capital partner for this transaction was Incline Equity Partners.
For more information regarding the transaction, please call Dan Negrea at 212-400-2670.
For more information regarding MTN, please visit www.mtncapital.com
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News – Notice in Pitch
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News – Dow Jones Article
Incline Equity, MTN Capital Sell Orthotic Holdings to Frazier
Amy Or
April 09, 2013
(c) 2013 Dow Jones & Company, Inc.
Incline Equity Partners and MTN Capital Partners have sold Orthotic Holdings Inc. to Frazier Healthcare, as the health-care focused
firm re-enters the foot- and ankle-care space.
Frazier sold Ascension Orthopedics, which develops and sells a range of implants for the shoulder, elbow, wrist, hand, foot and ankle,
to Integra LifeSciences Corp. for $65 million in September 2011.
The firm, which has offices in Seattle and Menlo Park, Calif., said in a news release that the foot and ankle market is one of the fastest
expanding spaces in orthopedics as obesity and diabetes, two of the more increasingly prevalent diseases in the U.S., often result in foot
and ankle related health conditions.
Terms of the Orthotic transaction weren't disclosed. Frazier invests in companies with annual earnings before interest, taxes,
depreciation and amortization of $5 million to $30 million.
Markham, Ontario-based Orthotic makes, markets and distributes custom-made and branded medical products that treat foot, ankle
and leg related conditions and diseases through three brands: Langer Biomechanics, Arizona AFO and The Orthotic Group.
Pittsburg-based Incline, set up by three managing partners of PNC Equity Partners, acquired Orthotic in September 2008, in
conjunction with New York firm MTN Capital and the company's management. Incline invested from its $272 million PNC Equity
Partners II LP fund, which the firm manages while being independent of PNC.
During its four-plus years of ownership of Orthotic, Incline said the company doubled its earnings, with "process enhancements
through the implementation of foot scanning technology, significant growth achieved by entering new sales channels and three targeted
acquisitions."
Incline focuses on investments of $10 million to $25 million in lower midmarket growth companies with enterprise values of $25
million to $100 million across a variety of industry sectors including specialized light manufacturing, value-added distribution, and
business and industrial services.
MTN Capital also targets companies at the lower end of the midmarket.
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News – JSI Store Fixtures Press Release
January 7, 2013
PRESS RELEASE
RFE and MTN Acquire JSI Store Fixtures
RFE Investment Partners and MTN Capital Partners acquired JSI Store Fixtures, Inc. (www.jsistorefixtures.com)
in partnership with JSI’s management. The acquisition closed in December 2012.
JSI is a Milo, Maine-based designer and manufacturer of high-quality refrigerated and non-refrigerated wood
merchandising displays for the supermarket industry. The Company was first-to-market with a patented line of
closed-cell foam merchandising surfaces for produce. The Company’s merchandising displays are used by
many of North America’s top supermarket, grocery and food retail chains. JSI has established itself as an
innovator and leader within its niche, with commanding market shares in its primary product categories.
RFE Investment Partners is a private equity investor with over 30 years of middle market buyout experience
investing in growth companies in partnership with strong management teams. RFE’s investments are
concentrated in three broad industry sectors: niche manufacturing, business services and healthcare services.
MTN is a private equity firm that has extensive experience in working with talented management teams to grow
middle-market companies. MTN brings both the capital and the operational resources needed to achieve
success. MTN’s portfolio companies operate in the building products, supermarkets, media services, medical
products, industrial motors, and leisure product industries.
For more information on the transaction, please call Dan Negrea at 212-400-2670.
For more information regarding MTN, please visit www.mtncapital.com
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News - MTN Managing Partner speaks at 2011 Capital
Roundtable Independent Sponsor Conference
Best Practices for Successful
Independent Private Equity Sponsors -Financing Deals, Gaining Differentiation,
& Overcoming Roadblocks
CHAIRED BY
Scott S. Johnson, Chief Executive Officer
SJ Partners LLC
Featuring 30 Expert Speakers Including –
● Richard N. Baum, Consumer Growth Partners
● R. David Bergonia, North American Funds LLC
● Hector A. Bultynck, Peninsula Capital Partners LLC
● Joseph J. Catalano, Sentinel Capital Partners LLC
● Peter G. Davies, Stonehenge Partners Inc.
● Bart J. deBie, Prospect Capital Corp.
● Mac Gerlach, Expedition Capital Partners
● Laurens M. Goff, Goff Management Inc.
● Jeffrey A. Gonyo, Geneva Glen Capital LLC
● Stephen A. Greene, Tri-Artisan Capital Partners LLC
● Robert M. Horak, Lincoln International LLC
● James C. Humphlett, ValuePoint Growth Partners
● Richard A. Izzi, Radius Partners LLC
● Raymond J. Kane, Duff & Phelps LLC
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● Loren Kennedy, Kennedy Advisors LLC
● Bruce N. Lipian, StoneCreek Capital Inc.
● Dan Negrea, MTN Capital Partners LLC
● J. Herbert Ogden, Westfield Capital Corp.
● Gretchen B. Perkins, Huron Capital Partners LLC
● Robert T. Puopolo, Epic Partners LLC
● M. Tatum Pursell, Unlimited Horizons Inc.
● James T. Rich, Gemini Investors
● John A. Rogers, Herrick Feinstein LLP
● Douglas S. Rose, Gardner Webster Capital Partners
● James D. Rosener, Pepper Hamilton LLP
● Marceau N. Schlumberger, Coral Reef Capital
● Alexander K. Schneider, Keystone Capital Inc.
● Martin W. Stein, Blackford Capital LLC
News - MTN Capital Partners wins JULY M&A DEAL
WINNERS from Global M&A Network
CONGRATULATIONS to REVOLUTION INC, PNC EQUITY PARTNERS and
MTN CAPITAL PARTNERS
August 14, 2010: New York, NY: Acquisition and recapitalization of Revolution Inc. by PNC Equity Partners and
cosponsor MTN Capital Partners are the winners of the JULY M&A DEAL of the MONTH, Honors program.
"We are thrilled to win the Deal of the Month Honors for the second time this year. Revolution is a niche market leader
with a talented management team, compelling value proposition and unique distribution model. We look forward to the
continued success of the Revolution Dancewear brand in the marketplace.” Jack Glover, Partner of PNC Equity Partners.
“We are delighted with the acquisition of Revolution, a company with talented and driven management. Revolution
has an impressive growth history and outlook, as well as excellent profitability. This is the second time in two years
that we’ve teamed up with PNC Equity to make an acquisition and we are very pleased with the relationship we’ve
built with PNC.” said Dan Negrea, Managing Partner at MTN Capital Partners.
“We congratulate Revolution Inc., PNC Equity Partners, and co-sponsor MTN Capital Partners for winning JULY
DEAL of the MONTH honors. Transaction reflects winning attributes — deal structure, timeliness, specialty sector
space and portfolio integration synergies.” Global M&A Network.
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News - Lexington Precision Corporation Press Release
MTN Capital Partners initiated this Transaction
Aurora Capital Buys Lexington Precision Group
Posted on: August 11th, 2010
Aurora Capital Group has acquired a majority stake in Lexington Precision Corp., a New York-based maker of tight-tolerance rubber
components. No financial terms were disclosed. Lexington emerged from Chapter 11 bankruptcy protection at the end of last month.
PRESS RELEASE
An affiliate of Aurora Capital Group (”Aurora”) has successfully reorganized and acquired a majority ownership position in Lexington Precision
Corporation (”Lexington” or the “Company”).
Lexington manufactures tight-tolerance rubber components for use in medical, automotive, and industrial applications. Medical products include
injection sites for intravenous feeding systems, plunger tips for syringes, and seals for minimally-invasive surgical instruments. Automotive products
include seals for wiring systems and insulators for original-equipment and aftermarket ignition-wire-sets. The Company’s cutting-edge tooling
technology and automated production processes support high-quality, low-cost manufacturing.
Steve Martinez, Managing Director of Aurora Resurgence, commented, “We are pleased to partner with Lexington’s management team to capitalize on
the Company’s exceptional engineering, manufacturing and materials-formulation capabilities.”
Michael Lubin, Chief Executive Officer of Lexington, noted, “For many years, Lexington has been a company with great competitive strengths, but with
an overly burdensome level of debt. The Aurora team recognized this and helped the Company utilize the reorganization process to create a strong
balance sheet and substantial liquidity. We are now looking forward to working with Aurora to expand our business as we progress forward.”
Lexington emerged from Chapter 11 of the United States Bankruptcy Code on July 30, 2010. As part of Lexington’s successful reorganization effort,
Aurora purchased public debt of the Company and then converted those securities into equity. Aurora also made a direct cash investment in Lexington
to help fund the Company’s reorganization plan. Aurora is now the majority owner of the newly reorganized company.
About Aurora Capital Group:
Aurora Capital Group is a Los Angeles-based private equity firm managing over $2.0 billion with two distinct investment strategies. Aurora Resurgence invests in debt
and equity securities of middle-market companies and targets complex situations that are created by operational or financial challenges either within a company or a
broader industry. Aurora Equity focuses principally on control-investments in middle-market industrial, manufacturing and selected service oriented businesses. For
more information about Aurora Capital Group, visit www.aurorares.com or www.auroracap.com.
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News - Mergers & Acquisitions Article
PNC, MTN Recap Revolution
PNC Equity Partners provides cash to Revolution Dancewear, with MTN Capital Partners co-sponsoring.
By JONATHAN MARINO
July 7, 2010
PNC Equity Partners provided an unspecified amount of cash to Revolution Inc., maker of Revolution Dancewear. The company
will join another PNC portfolio asset, The Orthotic Group, which makes orthopedic footwear for sale in Canada.
“They both have leading market positions within fragmented channels of distribution,” said Jack Glover, partner of PNC Equity
Partners, speaking with the M&A Journal.
Glover was joined in the transaction by PNC vice presidents Mike Hand and Michael Rost; all three will be on Revolution’s board of
directors going forward.
Lately, PNC has been on a bit of a roll making deals. Last month, it bought Wheaton Industries Inc., a New Jersey-based maker of lab
packaging products. It also acquired Oracle elevator Company, a non-union elevator maintenance and repair company with locations
all over the US. Glover said that, with the unspecified Revolution investment, the PE firm’s second fund is about 70% deployed.
MTN Capital Partners, the New York-based private equity firm, was a co-sponsor of the deal.
Deals in the clothing and sporting goods space have grown in recent months. Most notably was the March deal in which Phillips-Van
Heusen acquired Tommy Hilfiger Corp. from Apax Partners for $3 billion. Additionally, more sporting goods deals, like the Kohlberg
Sports Group’s acquisition of New York-based Maverik Lacrosse, have taken place in recent months.
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News - MTN initiated this Transaction
MTN CAPITAL PARTNERS initiated this Transaction
Palladium Equity Partners Completes Acquisition of Capital Contractors, Inc.
New York, NY, September 21, 2009 — Palladium Equity Partners, LLC and its affiliates (“Palladium”) announced today that it has advised Palladium Equity Partners III,
L.P. (“Fund III”) on the acquisition of Capital Contractors, Inc. and its affiliates (“CCI” or the “Company”) in partnership with Dennis Kaplan, the Company’s President
and Chief Operating Officer. Based in Melville, New York, CCI is one of the largest privately held providers of janitorial and facilities maintenance services in North
America. The transaction terms were not disclosed.
CCI offers a comprehensive range of cleaning and maintenance solutions to thousands of facilities throughout the U.S., Canada and Puerto Rico. With the resources of a
large firm and the benefits of a local office network from coast to coast, the Company’s customers range from Fortune 500 companies with hundreds of locations
throughout the country to local single-location start-ups. Founded and privately held since 1932, CCI specializes in simplifying the lives of its customers with costeffective and complete cleaning and maintenance solutions, including recently expanded facility maintenance capabilities.
Erik Scott, Principal of Palladium, said, “CCI is well known by its customers for providing high quality support and responsive customer service at a competitive price for
over 75 years. With its network of offices throughout the U.S. and Canada, the Company is well-positioned to manage large-scale national accounts through a single point
of contact, while also serving local businesses with its local knowledge and expertise. We see significant long-term growth potential for a proven, cost-effective provider
like CCI, particularly given promising industry trends in outsourcing and vendor consolidation.”
Mr. Scott continued, “We look forward to partnering with Dennis Kaplan and his management team to continue the Company’s growth, including enhanced service
offerings, expanded industry specializations and continued focus on top-notch customer service.”
Dennis Kaplan, President of CCI, stated, “I am extremely pleased to be working with Palladium, a firm with a strong track record as an investor and many years of
experience helping companies grow. We believe we are very well-positioned to serve large national customers and local businesses, and with expanded capabilities we
look forward to working with current and prospective customers to meet all of their cleaning and facilities needs.”
Fund III provided both equity and debt financing for the transaction and Palladium will have three representatives joining the Company’s Board of Directors including
Mr. Scott, David Perez and Justin Green. The Company will continue to be run by Dennis Kaplan, who has maintained a meaningful ownership stake in the Company.
About Capital Contractors, Inc. (www.capitalcontractors.com)
Capital Contractors, Inc. and its affiliates (“CCI”), is one of the largest privately held providers of janitorial and facilities maintenance services in North America. With
offices throughout the U.S. and Canada, CCI maintains thousands of facilities and has been successfully serving customers for more than 75 years.
About Palladium Equity Partners (www.palladiumequity.com)
Palladium Equity Partners, LLC, along with its affiliates (“Palladium”) targets investments in business services companies as well as in financial services,
consumer/retail, food/restaurants, healthcare, manufacturing and media businesses. Palladium has a focus on companies that are well-positioned to capitalize on the
fast-growing U.S. Hispanic market. The principals of Palladium have directed investments of over $2.5 billion of equity in more than 65 portfolio companies over the last
two decades.
35
News - MTN Managing Partner speaks at 2009 Capital
Roundtable Independent Sponsor Conference
Fifth Semi-Annual MasterClass™
On PE Dealmaking by Independent (aka "Fundless")
Sponsors & the Investors Who Back Them
How Independent Sponsors
Can Prosper During the
Recession-Without an Institutional
Safety Net
CHAIRED BY
Richard N. Baum, Managing Partner
Consumer Growth Partners LLC
Featuring 20 Expert Speakers
Including -● Drew H. Adams, Stone Creek Capital Inc.
● Marc C. Bergschneider, Starboard Capital Partners
● Brent E. Brown, Madison Parker Capital
● Howard Brod Brownstein, Nachman Hays Browstein Inc.
● Carl C. Cordova III, Cordova Smart & Williams LLC
● Christopher M. Daley, Pilgrim Capital Partners LLC
● Dominick P. DeChiara, Nixon Peabody LLP
● Brian A. Demkowicz, Huron Capital Partners LLC
● Laurens M. Goff, Goff Management Inc.
● Bennet Goldberg, Hunt Private Equity Group Inc.
● Stephen A. Greene, Eureka Capital Markets LLC
● Neil A. Marks, Praesidian Capital
● Patrick S. Martin, Laurus Transaction Advisors LLC
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● Dan Negrea, MTN Capital Partners LLC
● Daniel E. Pansing, Merit Capital Partners LP
● J. P. Paquin, Brown Brothers Harriman & Co.
● George A. Pfeil III, G. L. Ohrstrom & Co. Inc.
● Drew T. Sawyer, 2SV Capital LLC
● Durant D. Schwimmer, Churchill Financial LLC
● John P. Sheehan, Equis Capital Partners LLC
● William M. Smith, Global Reach Capital LLC
● Jeffrey L. Teeven, Consumer Growth Partners LLC
● David K. Wassong, Soros Fund Management LLC
News - Acquisition Press Release
PRESS RELEASE
Argosy Partners and MTN Capital Partners Acquire Joliet Equipment Corporation
* Reuters is not responsible for the content in this press release.
Last update: 9:00 a.m. EST Dec. 3, 2008
WAYNE, Pa. & NEW YORK, Dec 3, 2008 (Business Wire) -- Argosy Partners and MTN Capital Partners announced today they have acquired Joliet
Equipment Corporation (www.jolietequipment.com), a leading supplier of new and remanufactured AC and DC traction motors for the oil and gas
drilling and exploration industries and other high-power, large-motor industrial applications. The company also provides industrial motor repair
services. Over its 75 year history, Joliet has built one of the most recognizable names in the motor industry, both domestically and internationally.
Mr. Robert LeBlanc, an MTN Operating Partner, advised the investors in this acquisition and has joined Joliet’s board of directors. Mr. LeBlanc was
formerly Chief Executive Officer of Handy & Harman, a $400 million manufacturer of industrial products.
Senior Debt was provided by Fifth Third Bank and Mezzanine Debt was provided by Ironwood Mezzanine Capital. Equity capital was provided by
Argosy, MTN, Mr. LeBlanc, Ironwood Mezzanine Capital, and Joliet Equipment Corporation management. Joliet President Jim Keck will remain
active as a consultant to the company and the Joliet management team and employees will continue to provide customers top quality products and
service.
About Argosy Partners
Based in Wayne, Pennsylvania, Argosy Partners (www.argosycapital.com) invests in middle market manufacturing and business service companies
and has more than $300 million under management. Joliet is its first investment from AIP IV, a $150 million fund that recently held its first closing.
About MTN Capital Partners
MTN Capital Partners (www.mtncapital.com) is a private equity firm based in New York that focuses on acquiring middle-market companies.
Rubenstein Associates
Alex J. Stockham, 212-843-8297
[email protected]
Copyright Business Wire 2008
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News - Acquisition Press Release
PRESS RELEASE
MTN Transactions: Acquisition of The Orthotics Group and of Langer, Inc.
In September 2008, an investment group comprised of PNC Equity Partners, MTN Capital Partners (“MTN”)
and the management of The Orthotic Group, Inc. (“TOG”) acquired TOG from its founder. Bank of Montreal
provided the senior debt. TOG is the largest Canadian manufacturer of prescription orthotics and orthotic
footwear and does business in North America, Europe and Australia. TOG’s new Chief Executive Officer is Mr.
Bruce Marrison, a 12 year company veteran who has been responsible for the company’s impressive growth.
In October 2008, TOG acquired Langer, Inc., the third largest orthotics manufacturer in the United States who
also has a presence in Canada. The combined entity is the second largest orthotics manufacturer in North
America.
MTN identified the TOG and Langer acquisition opportunities in partnership with Mr. Jason Kraus, a former top
executive with Langer and a recognized orthotics industry leader.
For questions regarding these transactions, please call Mr. Dan Negrea at 212-400-2670 or Mr. James Kim at
212-400-2669.
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News - Acquisition Press Release
39
News - Acquisition Press Release
40
News - Acquisition Press Release
41
News - Company Press Release Regarding MTN Offer
42
Contact Us
Managing Partners
Olivier Trouveroy
Managing Partner
212-400-2667
[email protected]
Dan Negrea
Managing Partner
212-400-2670
[email protected]
Investment Professionals
Pierre Dahmani
Managing Director
(312) 493-0688
[email protected]
Ivan L. Lustig
Managing Director
(212) 400-2674
[email protected]
Steven J. Ross
Managing Director
949-836-7591
[email protected]
James Kim
Director
212-400-2669
[email protected]
MTN Capital Partners LLC
489 Fifth Avenue
21st Floor
New York, NY 10017
Christopher G. Muneio
Director
941-730-7150
[email protected]
Wendy Gallagher
Vice President
(312) 589-0738
[email protected]
Fax: 212-986-1781
Joyce Kim
Analyst
212-400-2660
[email protected]
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