M&A Deal Summary

Champion-Arrowhead Acquires Arrowhead Brass Products

On October 3, 2006, Champion-Arrowhead acquired building materials company Arrowhead Brass Products from Greyrock Capital Group and Caltius Equity Partners

Acquisition Highlights
  • This is Champion-Arrowhead’s 1st transaction in the Building Materials sector.
  • This is Champion-Arrowhead’s 1st transaction in the United States.
  • This is Champion-Arrowhead’s 1st transaction in California.

M&A Deal Summary

Date 2006-10-03
Target Arrowhead Brass Products
Sector Building Materials
Buyer(s) Champion-Arrowhead
Sellers(s) Greyrock Capital Group
Caltius Equity Partners
Deal Type Add-on Acquisition

Target

Arrowhead Brass Products

Los Angeles, California, United States
Arrowhead Brass Products, Inc., located in Los Angeles, California is the premier domestic manufacturer of exterior plumbing fixtures designed for high-end professional builders and home owners. The Company's products are primarily brass and include hose bibs, gas values, wall hydrants and other assorted valves used in the home. Arrowhead sells its products through wholesale plumbing distributors and retailers.

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Buyer(S) 1

Buyer

Champion-Arrowhead

Los Angeles, California, United States

Category Company
Founded 1936
Sector Manufacturing
DESCRIPTION

Champion-Arrowhead, LLC manufactures irrigation and plumbing products in the United States. Its products include valve bodies, timers, pressure reducing and globe valves, spay heads, evaporative cooler faucets, hydrant boxes, copper compression stop and straight stop valves, washing machine and meter valves, boiler drains, rotors, and irrigation components.


DEAL STATS #
Overall 1 of 1
Sector (Building Materials) 1 of 1
Type (Add-on Acquisition) 1 of 1
State (California) 1 of 1
Country (United States) 1 of 1
Year (2006) 1 of 1

Seller(S) 2

SELLER

Greyrock Capital Group

Walnut Creek, California, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 350M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Greyrock Capital Group provides mezzanine debt and equity capital to finance buyouts, recapitalizations and growth needs of middle market companies. Greyrock looks to invest between $8 and $40 million of equity and/or junior capital in companies with minimum revenues of $10 million and at least $2 million of EBITDA. Greyrock prefers companies in defensible markets with low cost structures. Greyrock Capital was formed in 2002 and has offices in San Francisco, California; Chicago, Illinois; and Westport, Connecticut.


DEAL STATS #
Overall 3 of 45
Sector (Building Materials) 1 of 4
Type (Add-on Acquisition) 3 of 24
State (California) 1 of 11
Country (United States) 3 of 45
Year (2006) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-06 Openfirst

Milwaukee, Wisconsin, United States

Openfirst is a leading direct mail marketing and statement processing company that combines state-of-the-art imaging and fulfillment operations with advanced personalization and data management capabilities. Headquartered in Milwaukee, WI with additional operations in Fredericksburg , VA , Openfirst serves the automotive, insurance, financial services, and cable TV industries producing hundreds of millions of communication pieces each year. Mailings are customized, strategically timed and accurately tracked so that clients can asses the efficacy of their direct marketing programs.In November 2002, Greyrock provided $5.25 million of subordinated debt to support the acquisition of Openfirst by Prairie Capital, River Cities Capital and management.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-01 National Mobile Television

Torrance, California, United States

National Mobile Television, Inc. is a provider of mobile television production facilities and related equipment and services. NMT's fleet of mobile units is rented by major and regional broadcast networks and used to produce live telecasts, primarily of sporting events.

Buy -
SELLER

Caltius Equity Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Caltius Equity is the private equity arm of Caltius Capital Management. Caltius Equity focuses on making equity investments valued from $10 to $30 million. The Group looks to acquire control or substantial minority positions in businesses with defensible market positions, growth potential, history of profits, proprietary products/services, and limited technology risk. Funds are generally used to support generational transfers, management buyouts, growth financings, and corporate divestitures. Sectors of interest include business and infrastructure services, education services, facilities management and services, healthcare products/services, and speciality chemicals/coatings. Caltius Equity Partners was formed in 1999 and is based in Los Angeles, California.


DEAL STATS #
Overall 7 of 22
Sector (Building Materials) 1 of 1
Type (Add-on Acquisition) 2 of 10
State (California) 5 of 11
Country (United States) 7 of 22
Year (2006) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-01 Starpoint Health

Newport Beach, California, United States

Starpoint Health is an operator of multi-specialty ambulatory surgery centers in Southern California. These facilities offer procedures across a variety of specialties including orthopedics, pain management, gastrointestinal, podiatry, and ear, nose, and throat. Starpoint Health was founded in 1989 and is based in Newport Beach, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-30 Northwest Coatings

Oak Creek, Wisconsin, United States

Northwest Coatings Corp is a developer and manufacturer of customized specialty energy-curable (UV/EB, ultraviolet and electron beam) and water-based coatings and adhesives servicing the tag and label, packaging, printing and other industries.

Sell $72M