M&A Deal Summary

CM Equity Partners, Alcentra Capital and Farragut Capital Partners Acquire GracoRoberts

On September 24, 2015, private equity firm CM Equity Partners, mezzanine finance firm Alcentra Capital and mezzanine finance firm Farragut Capital Partners acquired distribution company GracoRoberts from Cotton Creek Capital and Cold Mountain Capital

Acquisition Highlights
  • This is CM Equity Partners’ 1st, Alcentra Capital’s 2nd and Farragut Capital Partners’ 4th transaction in the Distribution sector.
  • This is CM Equity Partners’ 5th, Alcentra Capital’s 48th and Farragut Capital Partners’ 58th transaction in the United States.
  • This is CM Equity Partners’ 1st, Alcentra Capital’s 5th and Farragut Capital Partners’ 5th transaction in Texas.

M&A Deal Summary

Date 2015-09-24
Target GracoRoberts
Sector Distribution
Buyer(s) CM Equity Partners
Alcentra Capital
Farragut Capital Partners
Sellers(s) Cotton Creek Capital
Cold Mountain Capital
Deal Type Secondary Buyout

Target

GracoRoberts

Arlington, Texas, United States
GracoRoberts is a value-added distributor of paints and other coatings, adhesives, sealants, lubricants, composite materials, tapes and safety products used in the manufacture and maintenance, repair and overhaul of commercial, business and military aircraft. GracoRoberts also provides value-added services including custom repackaging, temperature-sensitive material handling, tinting, and supply chain management services to its customers. GracoRoberts was founded in 1938 and is based in Arlington, Texas.

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Buyer(S) 3

Buyer

CM Equity Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

CM Equity Partners is a private equity investment firm that primarily makes controlling investments in middle-market companies operating in the United States and Canada. CM will also selectively consider minority investments. Areas of interest include Federal Services, Aerospace, and Defense. CM Equity was formed in 1994 and is affiliated with the private family office and merchant bank Carl Marks & Co.


DEAL STATS #
Overall 5 of 9
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Texas) 1 of 1
Country (United States) 5 of 9
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-03-30 ATS

McLean, Virginia, United States

ATS Corporation is a provider of Information Technology systems integration and application development, Information Technology infrastructure management and strategic consulting services to federal government agencies.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-18 Systems Planning & Analysis

Alexandria, Virginia, United States

Systems Planning & Analysis is a pure professional services company supporting senior-level U.S. government officials with the resources and options to execute on complex decisions in support of their mission, which often involve key aspects of national security. Systems Planning’s primary services include program management and strategic planning support, policy review and vulnerability assessment, investment prioritization, systems engineering and integration, modeling and simulation, acquisition, and operational support. Systems Planning & Analysis was founded in 1972 and is based in Alexandria, Virginia.

Buy -
Buyer

Alcentra Capital

New York, New York, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1998
PE ASSETS 540M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Alcentra Capital Corporation is the direct investment arm of asset management firm Alcentra. Alcentra capital looks to provide equity and subordinated debt to middle-market companies throughout North America. The Firm looks to invest $5 to $15 million per transaction in profitable companies with $5 to $15 million of EBITDA. Sectors of interest include healthcare, government services, business services, and defense. Alcentra Capital Corporation was formerly known as BNY Mellon-Alcentra Mezzanine Partners. The Group was originally established in 1998 and is based in New York City.


DEAL STATS #
Overall 49 of 52
Sector (Distribution) 2 of 2
Type (Secondary Buyout) 8 of 10
State (Texas) 5 of 5
Country (United States) 48 of 50
Year (2015) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-09-02 RestorixHealth

Metairie, Louisiana, United States

RestorixHealth is a provider of comprehensive wound care treatment centers that offer advanced wound care modalities as well as hyperbaric oxygen therapy (“HBOt”). RestorixHealth focuses on establishing in-hospital centers of excellence to treat the growing incidence of severe grade diabetic wounds of the lower extremities and wounds that are unresponsive to general wound care treatments. RestorixHealth was established in 1997 and is based in Metairie, Louisiana.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-11-02 HealthFusion

Solana Beach, California, United States

HealthFusion, Inc. is a developer of web-based cloud computing software for physicians, hospitals and medical billing services.

Sell $190M
Buyer

Farragut Capital Partners

Chevy Chase, Maryland, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2011
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Farragut Capital Partners LLC is a private investment firm that provides mezzanine and equity capital to help finance buyouts, generational transfers, growth capital financings, and recapitalizations. The Firm prefers asset-light businesses with unique and defensible market positions, stable business models, and reasonable capital expenditure and working capital needs. Sectors of interest include light and niche manufacturing, business services, distribution & logistics, and media. Farragut's target investment size is $2 to $10 million. Farragut Capital Partners was formed in 2011 and is based in Washington, District of Columbia.


DEAL STATS #
Overall 58 of 94
Sector (Distribution) 4 of 6
Type (Secondary Buyout) 5 of 8
State (Texas) 5 of 7
Country (United States) 58 of 94
Year (2015) 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-09-09 Industrial Services Group

Sumter, South Carolina, United States

Industrial Services Group provides high performance protective lining and coating solutions for the power generation, chemical and petro chemical industries.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-09-28 PWNHealth

New York, New York, United States

PWNHealth is a provider of lab connectivity, compliance, and patient outreach solutions for health and wellness, telemedicine, diagnostic labs, and payer markets. PWN services all 50 states and Puerto Rico with telehealth and telegenetic services. PWN model enables safe and easy access to diagnostic testing, ensuring clinical validity, utility, quality consumer education, access to clinicians, and the ability to implement national programs seamlessly. PWNHealth is based in New York City.

Buy -

Seller(S) 2

DESCRIPTION

Cotton Creek Capital is a private equity firm focused on lower middle-market company investments. The Firm has a special interest in businesses facing an inflection point and could benefit from capital and expertise. Cotton Creek will consider opportunities throughout the US, although the Firm has a preference for businesses in the Southwest. Sectors of interest include manufacturing, infrastructure, chemicals, waste services, food/beverages, transportation, business services, consumer products, value-added distribution, healthcare, building products, and industrial services. Cotton Creek Capital is based in Austin, Texas.


DEAL STATS #
Overall 2 of 6
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 1 of 3
State (Texas) 2 of 2
Country (United States) 2 of 6
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-11-03 Coal City Cob

Waxahachie, Illinois, United States

Coal City Cob provides liquid bulk transportation services to the chemical and hazardous waste industries through its network of nine terminals, including a centrally located 27-acre facility in Waxahachie integrating rail-to-truck transfer, fleet maintenance, and tank wash capabilities. Coal City Cob was formed in 1970 and is based in Waxahachie, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-04-04 Sterling Foods

San Antonio, Texas, United States

Sterling Foods LLC is a supplier of baked goods, as well as a provider of gourmet bakery items to the food service and retail industries.

Buy -
DESCRIPTION

Cold Mountain Capital is a private equity firm focused on industrial manufacturing and service companies. Specific areas of interest include aerospace, defense, and other industrial companies. The Firm prefers profitable businesses with $1 to $5 million of EBITDA (up to $20 million in select cases) and will consider opportunities throughout North America and Europe. Cold Mountain Capital was formed in 2011 and is based in Asheville, North Carolina.


DEAL STATS #
Overall 1 of 1
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Texas) 1 of 1
Country (United States) 1 of 1
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-06-10 Camel Manufacturing

Pioneer, Tennessee, United States

Camel Manufacturing Company got its start producing civilian canvas tarps and truck covers made from surplus Army tents.

Buy -