Secondary Buyout • Manufacturing

Banyan Investment Partners, Diamond State Ventures, Jefferson Capital, Capital For Business and Northcreek Mezzanine Acquire Waples Manufacturing

On October 8, 2014, mezzanine finance firm Banyan Investment Partners, growth capital firm Diamond State Ventures, private equity firm Jefferson Capital, private equity firm Capital For Business and Northcreek Mezzanine acquired manufacturer Waples Manufacturing from Southlake Equity Group

Acquisition Context
  • This is Banyan Investment Partners’ 2nd, Diamond State Ventures’ 5th, Jefferson Capital’s 1st, Capital For Business’ 9th and Northcreek Mezzanine’s 5th transaction in the Manufacturing sector.
  • This is Banyan Investment Partners’ 66th, Diamond State Ventures’ 19th, Jefferson Capital’s 10th, Capital For Business’ 28th and Northcreek Mezzanine’s 15th transaction in the United States.
  • This is Banyan Investment Partners’ 6th, Diamond State Ventures’ 2nd, Jefferson Capital’s 3rd, Capital For Business’ 2nd and Northcreek Mezzanine’s 3rd transaction in Texas.

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M&A Deal Summary

Date October 8, 2014
Target Waples Manufacturing
Sector Manufacturing
Buyer(s) Banyan Investment Partners
Diamond State Ventures
Jefferson Capital
Capital For Business
Northcreek Mezzanine
Sellers(s) Southlake Equity Group
Deal Type Secondary Buyout
Advisor(s) Quarton Partners LLC (Financial)

Target Company

Waples Manufacturing

Fort Worth, Texas, United States
Waples Manufacturing is an outsourced contract manufacturer that provides highly customized, complex-shaped products from a multitude of materials for small lot and medium volume requirements. Waples provides precision machined solutions for the oil & gas, mining, construction, aerospace, defense, and printing end markets. Waples Manufacturing was founded in 1964 and is based in Fort Worth, Texas.
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Buyers Overview 5

Buyer

Banyan Investment Partners

Miami, Florida, United States

Investor


Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 550M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Banyan is a specialty finance firm that provides mezzanine capital to smaller middle-market companies headquartered primarily in the Southeast US. Banyan looks to invest $5 to $25 million of junior capital in profitable companies. The Firm does not have any industry preferences, however, Banyan will not invest in real estate development, oil and gas exploration, direct lenders, start-ups or turn-around situations. Banyan Mezzanine was formed in 2002 and is based in Miami, Florida.


Deal Context for Buyer #
Overall 67 of 73
Sector: Manufacturing 2 of 4
Type: Secondary Buyout 6 of 6
State: Texas 6 of 6
Country: United States 66 of 72
Year: 2014 6 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-01 BB7

London, United Kingdom

BB7 is an operator of product design and product development consulting firm focused on providing strategy, innovation, design, engineering, prototyping, and testing services through new product implementation. BB7 was founded in 1944 and is based in London, United Kindom.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-12-01 Integrated Aerospace

Lake Stevens, Washington, United States

Integrated Aerospace is a manufacturer of complex, precision turned components ranging from prototypes to production for the aerospace, defense, and medical industries. Integrated Aerospace specializes in precision turned products. Integrated Aerospace is based in Lake Stevens, Washington.

Buy -
Buyer

Diamond State Ventures

Little Rock, Arkansas, United States

Investor


Category Growth Capital Firm
Founded 1999
PE ASSETS 125M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Diamond State Ventures (DSV) is a private equity and venture capital firm focused on small and lower middle-market company investments in Arkansas, as well as the Midwest and Southeast US. DSV looks to commit $1 to $5 million per investment, which can take the form of subordinated debt, preferred equity or a combination of the two. Prospective transaction situations include growth capital financings, management buyouts, family successions, recapitalizations, and early stage investments. Sectors of interest include niche manufacturing, business services, media, consumer products and services, education, healthcare, and technology. DSV will not invest in seed or startup companies. Diamond State Ventures is based in Little Rock.


Deal Context for Buyer #
Overall 19 of 24
Sector: Manufacturing 5 of 5
Type: Secondary Buyout 3 of 3
State: Texas 2 of 3
Country: United States 19 of 24
Year: 2014 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-30 PFI Instore

Hazelwood, Missouri, United States

PFI Instore is a merchandising solution provider to retailers and consumer-branded product companies. PFI's products and solutions can be found in most major convenience, grocery, specialty, and department stores in the United States. PFI Instore was founded in 1956 and is based in Hazelwood, Missouri.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-01 Rio Ranch Markets

Fontana, California, United States

Rio Ranch Markets is an operator of a Hispanic supermarket chain. Rio primarily serves the Hispanic community by replicating the open-air atmosphere of a traditional Latin American marketplace, providing freshly prepared foods, bakery, tortilleria and basic everyday grocery, meat, produce, household needs. Rio Ranch Markets was founded in 1983 and is based in Fontana, California.

Buy -
Buyer

Jefferson Capital

Richmond, Virginia, United States

Category Private Equity Firm
Founded 1988
PE ASSETS 200M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Jefferson Capital Partners (JCP) is a private equity firm that invests in growth financings, management buyouts, and recapitalizations of growing companies. JCP generally looks to invest between $2 and $7 million in companies with up to $75 million in annual revenue. Sectors of interest include consumer products, business services, education, healthcare, and information technology. The Firm's investment horizon is three to seven years. The predecessor to Jefferson Capital Partners was originally established in 1989. Jefferson is based in Richmond, Virginia.


Deal Context for Buyer #
Overall 10 of 10
Sector: Manufacturing 1 of 1
Type: Secondary Buyout 3 of 3
State: Texas 3 of 3
Country: United States 10 of 10
Year: 2014 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-04-26 Branch Brook Holdings

Bedminster, New Jersey, United States

Branch Brook Holdings is a producer of organic and natural consumer products. Branch Brook Holdings invests in organic, natural, and specialty consumer product companies in North America. Branch Brook Holdings was founded in 2012 and is based in Bedminster, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-14 MicroMass Communications

Cary, North Carolina, United States

MicroMass Communications is a US-based healthcare communications agency specialising in behavioural science and change strategies on behalf of pharmaceutical companies. Behavioural science is the scientific and systematic study of behaviour to explain why people behave in certain ways and how their behaviour can be changed. In healthcare, this can be used to improve outcomes. MicroMass is based in Cary, North Carolina, with more than 100 employees. It uses its unique expertise in health behaviour to change patient and provider behaviour and deliver optimal health outcomes. MicroMass provides services across four areas: patient engagement and support; relationships marketing; precommercial and clinical; and health behaviour and consulting. MicroMass clients include leading pharmaceutical companies worldwide such as GlaxoSmithKline, Sanofi, Merck, Novo Nordisk, Novartis, Gilead and Teva pharmaceuticals.

Sell $76M
Buyer

Capital For Business

St. Louis, Missouri, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1959
PE ASSETS 200M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Capital for Business (CFB) is a private investment firm focused on providing junior capital to growing lower middle-market companies with at least $10 to $100 million in sales. CFB targets businesses serving niche consumer, commercial, distribution, manufacturing, and service markets throughout the United States. Funds are typically used to support management buyouts, leveraged buyouts, recapitalizations, corporate divestitures, growth financings, and going-private transactions. CFB will not invest in start-ups, turnarounds, unproven technologies, biotech, real estate, and financial institutions. Capital for Business was founded in 1959 and is headquartered in St. Louis, Missouri.


Deal Context for Buyer #
Overall 28 of 56
Sector: Manufacturing 9 of 17
Type: Secondary Buyout 1 of 2
State: Texas 2 of 5
Country: United States 28 of 56
Year: 2014 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-30 PFI Instore

Hazelwood, Missouri, United States

PFI Instore is a merchandising solution provider to retailers and consumer-branded product companies. PFI's products and solutions can be found in most major convenience, grocery, specialty, and department stores in the United States. PFI Instore was founded in 1956 and is based in Hazelwood, Missouri.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-01 SoTel Systems

St. Louis, Missouri, United States

SoTel Systems specializes in the wholesale distribution of new and refurbished telephone, data services, and voice over internet protocol ('VOIP') communications equipment. SoTel Systems was founded in 1981 and is based in St. Louis, Missouri.

Sell -
Buyer

Northcreek Mezzanine


Category Private Equity Firm
Founded 2010
PE ASSETS 250M USD
Size Small
Type Sector Agnostic
DESCRIPTION


Deal Context for Buyer #
Overall 15 of 28
Sector: Manufacturing 5 of 5
Type: Secondary Buyout 3 of 4
State: Texas 3 of 3
Country: United States 15 of 28
Year: 2014 6 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-09-12 Pat Tank

Port Arthur, Texas, United States

Pat Tank specializes in the design, fabrication, erection and repair of above-ground steel-welded storage tanks and related steel structures for the petroleum, natural gas, agriculture, power generation and chemical industries. Pat Tank was founded in 1945 and is based in Port Arthur, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-07 PC Treasures

Auburn Hills, Michigan, United States

PC Treasures is a multi-channel distributor of licensed OEM multimedia bundles and patented products including PC, tablet and smartphone accessories, power products and digital entertainment under its Digital Treasures brand. PC Treasures was founded in 1998 and is based in Auburn Hills, Michigan.

Buy -

Seller Profile 1

SELLER

Southlake Equity Group

Southlake, Texas, United States

Investor Investor Investor


Category Private Equity Firm
Founded 2007
Size Small
Type Sector Agnostic
DESCRIPTION

Southlake Equity Group is a private equity firm focuses on lower middle-market manufacturing, distribution and services companies headquartered in the South Central US. The Firm looks to invests $20 to $50 million in companies with an enterprise value of $20 to $200 million and revenues of $25 to $200 million. Specific areas of interest include consumer products, business services, healthcare services or devices, industrial components, scientific instruments, furniture, shelving and storage fixtures, specialty packaging, specialty printing, and building materials. The Firm will not invest in restaurants, high-tech, commodities, real estate, and financial services. Southlake Equity Group was formed in 2007 and is based in Southlake, Texas.


Deal Context for Seller #
Overall 2 of 4
Sector: Manufacturing 2 of 3
Type: Secondary Buyout 1 of 2
State: Texas 2 of 3
Country: United States 2 of 4
Year: 2014 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-01-12 PJ Trailers

Sumner, Texas, United States

PJ Trailers has become the premier trailer manufacturer in North America. The PJ Trailer brand is synonymous with high-end, superbly constructed trailers. We manufacture Flatdecks, Deckovers, Tilts, Dumps, Carhaulers, & Utilities.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-01 American Trailer Works

Sumner, Texas, United States

American Trailer Works is a manufacturer and distributor of utility and cargo trailers in North America. American Trailer Works sells trailers through independent dealers and national retailers under the PJ Trailers, Carry-On Trailer, RC Trailers, Middlebury Trailers and other private-label brand names.

Sell -