Secondary Buyout • Automotive

Seven Mile Capital Partners, Kayne Anderson Capital Advisors, Bratenahl Capital Partners and Triangle Capital Acquire Huron

On September 2, 2015, private equity firm Seven Mile Capital Partners, asset manager Kayne Anderson Capital Advisors, family office Bratenahl Capital Partners and private equity firm Triangle Capital acquired automotive company Huron from Trive Capital

Acquisition Context
  • This is Seven Mile Capital Partners’ 1st, Kayne Anderson Capital Advisors’ 1st, Bratenahl Capital Partners’ 3rd and Triangle Capital’s 5th transaction in the Automotive sector.
  • This is Seven Mile Capital Partners’ 4th, Kayne Anderson Capital Advisors’ 121st, Bratenahl Capital Partners’ 28th and Triangle Capital’s 102nd transaction in the United States.
  • This is Seven Mile Capital Partners’ 1st, Kayne Anderson Capital Advisors’ 2nd, Bratenahl Capital Partners’ 1st and Triangle Capital’s 6th transaction in Michigan.

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M&A Deal Summary

Date September 2, 2015
Target Huron
Sector Automotive
Buyer(s) Seven Mile Capital Partners
Kayne Anderson Capital Advisors
Bratenahl Capital Partners
Triangle Capital
Sellers(s) Trive Capital
Deal Type Secondary Buyout

Target Company

Huron

Lexington, Michigan, United States
Huron is a manufacturer of value-added precision components, primarily bar-turned products and tubular assemblies that are used in automotive engine, transmission, fuel and climate control systems. Huron was founded in 1943 and is based in Lexington, Michigan.
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Buyers Overview 4

Buyer

Seven Mile Capital Partners

New York, New York, United States

Investor


Category Private Equity Firm
Founded 2011
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Seven Mile Capital Partners is a private equity firm focused on acquiring middle-market profitable companies with $5 - $50 million of EBITDA. The Firm will consider a variety of transaction situations including companies undergoing transition, carve-outs, or in need of restructuring. Industries of interest include aerospace/defense, diversified manufacturing, building products, automotive, specialty material manufacturing, value-added distribution, and logistics. Seven Mile Partners was formed in 2011 with the purchase of a legacy portfolio of private equity investments from Citigroup. The Firm is based in New York City.


Deal Context for Buyer #
Overall 7 of 8
Sector: Automotive 1 of 1
Type: Secondary Buyout 2 of 3
State: Michigan 1 of 2
Country: United States 4 of 5
Year: 2015 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-11 Lontra

Warwickshire, United Kingdom

Lontra is a developer of energy-saving compressors and engines. Technologies include the Blade Compressor, Blade Supercharger, Blade Expander, and the novel Lindsey Engine. Lontra was established in 2004 and is based in Warwickshire, United Kingdom.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-09 United Subcontractors

St. Paul, Minnesota, United States

United Subcontractors, Inc. is an independent insulation subcontractor in the U.S. and one of the major shell contractors in Florida. USI has become a major building solutions provider in the United States by combining local market savvy with outstanding employees, superior technology, and the infrastructure of a national network. USI provides the nation’s residential and commercial contractors with a wide range of construction services.

Sell -
Buyer

Kayne Anderson Capital Advisors

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1984
PE ASSETS 36.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Kayne Anderson Capital Advisors is an alternative investment management firm focused on hedge funds, public funds, energy private equity, growth private equity, real estate private equity, and mezzanine finance opportunities. Kayne's energy private equity group focuses on $20 to $100 million investments in high-growth exploration and production, midstream and oilfield service companies. The energy group considers both majority or minority stakes in public and private businesses. Kayne's growth private equity practice involves structured investments in public and private companies looking for capital to finance expansion. This group will also consider middle-market leveraged transactions and management buyouts. Kayne's real estate private equity group invests in established, cash-flow generating projects. Areas of interest include student housing and campus-oriented retail properties, amongst other opportunistic investments. The Group looks for acquisitions of $25 to $100 million. Kayne's mezzanine team looks to provide $20 to $35 million of capital for mid-market businesses with $100 to $500 million of sales and $10 to $50 million of EBITDA. Kayne Capital Advisors was formed in 1984 and is based in Los Angeles with additional offices in Armonk, New York; New York City, and Houston.


Deal Context for Buyer #
Overall 132 of 178
Sector: Automotive 1 of 1
Type: Secondary Buyout 4 of 6
State: Michigan 2 of 2
Country: United States 121 of 161
Year: 2015 12 of 16
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-09-01 Willow Bend Oil

Addison, Texas, United States

Willow Bend Oil is a private exploration and production company based in Addison, Texas that focuses on the acquisition of conventional oil properties with identifiable exploitation and development upside in the Permian Basin and Mid-Continent regions.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-09-14 You.i TV

Ottawa, Ontario, Canada

You.i TV provides a proprietary user-interface engine to enterprise-level media and telecommunications companies to create world class video applications that run across multiple media devices, including mobile phones, tablets, game consoles, smart TVs and set-top boxes. You.i TV was founded in 2008 and is based in Ottawa, Ontario.

Buy -
DESCRIPTION

Bratenahl Capital Partners is a family-backed private investment group focused on fund as well as direct/co-investment opportunities. The Firm's direct investment practice seeks to commit $500K to $15 million in partnership with other funded or unfunded sponsors. Bratenahl does not have any sector preferences, but does prefer companies with diversified customers and experienced management in place. Bratenahl Capital Partners was formed in 2003 and is headquartered in Cleveland, Ohio.


Deal Context for Buyer #
Overall 33 of 35
Sector: Automotive 3 of 3
Type: Secondary Buyout 8 of 8
State: Michigan 1 of 1
Country: United States 28 of 30
Year: 2015 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-03-19 Sun America

Alliance, Ohio, United States

Sun America is a manufacturer of specialty paper baking cups and thermoformed plastic trays used by commercial bakeries, branded food products companies, supermarkets, foodservice distributors, and retail food service providers. Sun America was founded in 1993 and is based in Alliance, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-12-01 Hunt Valve

Salem, Ohio, United States

Hunt Valve specializes in severe-duty valves and complementary engineered components and system solutions for applications that include primary metals (steel, aluminum), energy (nuclear, hydro, downstream oil & gas), process (chemical), and U. S. Navy nuclear-powered vessels, including all submarines and carriers in operation as well as the Virginia Class, Ford Class, and Columbia Class. Hunt Valve was founded in 1919 and is based in Salem, Ohio.

Buy -
Buyer

Triangle Capital

Raleigh, North Carolina, United States

Category Private Equity Firm
Founded 2007
Size Middle-Market
Type Sector Agnostic
DESCRIPTION


Deal Context for Buyer #
Overall 103 of 114
Sector: Automotive 5 of 5
Type: Secondary Buyout 17 of 20
State: Michigan 6 of 6
Country: United States 102 of 112
Year: 2015 6 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-08-01 YumEarth

Ridgewood, Connecticut, United States

YumEarth sells natural and organic lollipops, fruit snacks, gummies, candy drops, licorice, sour jelly beans and other treats with its main focus on organic, non-GMO, gluten-free, nut-free, and treats made with no food colorings, high fructose corn syrup, or preservatives. YumEarth is based in Stamford, Connecticut.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-09-03 RCI

Slidell, Louisiana, United States

RCI is a provider of landscaping maintenance and construction services in the southeastern United States. RRCI was founded in 1976 and is based in Slidell, Louisiana.

Buy -

Seller Profile 1

SELLER

Trive Capital

Dallas, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2012
PE ASSETS 7.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Trive Capital is a hands-on, operationally-focused private equity firm that targets complex or special situations in 'out of favor' but protected market niches. The Firm will consider businesses throughout North America offering differentiated products/services with leading/defensible industry positions. Trive looks to commit $10 to $300 million per investment in businesses generating revenues of $40 million to $1.5 billion. Sectors of interest include automotive, transportation, aerospace/defense, building products, construction, infrastructure, healthcare, manufacturing, industrial, chemicals, distribution, consumer goods, energy services, business services, and communications. Trive Capital was founded in 2012 and is based in Dallas, Texas.


Deal Context for Seller #
Overall 1 of 17
Sector: Automotive 1 of 2
Type: Secondary Buyout 1 of 5
State: Michigan 1 of 2
Country: United States 1 of 16
Year: 2015 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-07-14 Amteck

Lexington, Kentucky, United States

Amteck is a provider of design-build electrical services for a diverse mix of greenfield and expansion-related facility construction projects across the United States. Amteck was founded in 1977 is based in Lexington, Kentucky.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-17 East West Copolymer

Baton Rouge, Louisiana, United States

East West Copolymer LLC is a manufacturer and supplier of synthetic rubber to a broad base of customers across the industrial and tire markets. East West Copolymer is based in Baton Rouge, Louisiana.

Buy -