Investment Summary

Sand Oak Capital Partners Exit LCR Contractors

On March 15, 2019, private equity firm MFG Partners and mezzanine finance firm ORIX Private Equity Solutions invested in construction company LCR Contractors from Sand Oak Capital Partners

Investment Highlights
  • This is MFG Partners’ 1st and ORIX Private Equity Solutions’ 3rd transaction in the Construction sector.
  • This is MFG Partners’ 2nd and ORIX Private Equity Solutions’ 23rd transaction in the United States.
  • This is MFG Partners’ 1st and ORIX Private Equity Solutions’ 5th transaction in Texas.
Investment Fate
  • LCR Contractors was sold to a publicly-traded strategic buyer in 2021.

Investment Summary

Date 2019-03-15
Target LCR Contractors
Sector Construction
Investor(s) MFG Partners
ORIX Private Equity Solutions
Sellers(s) Sand Oak Capital Partners
Deal Type Recapitalization
Advisor(s) Pinecrest Capital Partners (Financial)

Target

LCR Contractors

Hutto, Texas, United States
LCR Contractors specializes in providing spray applied to fireproof and spray thermal insulation services to commercial and residential construction projects. LCR Contractors was founded in 1984 and is based in Hutto, Texas.

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Investor(S) 2

DESCRIPTION

MFG Partners acquires controlling stakes in founder and family-owned industrial, manufacturing, distribution, and business services companies valued from $25 to $100 million. MFG will consider opportunities throughout North America and looks to collaborate with existing company leadership to identify and execute on growth opportunities and operational initiatives. MFG Partners was formed in 2016 and is headquartered in New York City.


DEAL STATS #
Overall 2 of 7
Sector: Construction M&A 1 of 1
Type: Recapitalization M&A Deals 1 of 1
State: Texas M&A 1 of 1
Country: United States M&A 2 of 7
Year: 2019 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-31 Mail Communications Group

Des Moines, Iowa, United States

Mail Communications Group is a presort mailing service company with capabilities in laser printing, letter processing, data collection, and electronic document presentation. Mail Communications Group serves clients in financial services, health care, insurance and other industries. Mail Communications Group was founded in 1987 and is based in Des Moines, Iowa.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-01 Elgen

Closter, New Jersey, United States

Elgen manufactures and markets ductwork accessory products that are used by HVAC contractors in commercial buildings. Elgen offers a combination of standard parts and custom components tailored to meet its customers' specific product requirements. Elgen is based in Closter, New Jersey.

Buy -
DESCRIPTION

ORIX Mezzanine & Private Equity is the direct investment arm of asset manager ORIX. ORIX Mezzanine & Private Equity looks to invest $10 to $20 million to support buyouts, acquisitions, growth capital needs, and sponsored led transactions of profitable (greater than $5 million of EBITDA) companies throughout North America. ORIX will consider a variety of investment structures, including subordinated and convertible debt to common, preferred and convertible preferred equity. ORIX Mezzanine & Private Equity is headquartered in Dallas, Texas.


DEAL STATS #
Overall 25 of 27
Sector: Construction M&A 3 of 3
Type: Recapitalization M&A Deals 5 of 6
State: Texas M&A 5 of 6
Country: United States M&A 23 of 25
Year: 2019 M&A 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-14 Flexo Transparent

Buffalo, New York, United States

Flexo Transparent, Inc. provides multi-colored flexible packaging including custom-printed rollstock, bags, pouches, and sleeves primarily for food grade and retail consumer products with a focus on private label accounts with short to medium-sized production runs. Flexo Transparent, Inc. was founded in 1954 and is based in Buffalo, New York.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-04 Custom Ink

Fairfax, Virginia, United States

Custom Ink provides custom apparel and accessories for groups, events, and special occasions. The company helps group organizers bring their families, friends, teammates, and colleagues together with inspired designs they are proud to wear. Custom Ink makes the customization process fun and easy with innovative design tools, caring customer service, creative design inspiration and high-quality merchandise. Custom Ink was founded in 2000 and is based in Fairfax, Virginia.

Sell -

Seller(S) 1

DESCRIPTION

Sand Oak Capital is a private investment firm focused on investing in and acquiring lower middle-market manufacturing and industrial companies. Specific areas of interest include industrial services, industrial manufacturing, building materials, capital equipment, distribution, environmental services, testing/inspection, packaging components, and engineering. Sand Oak prefers majority positions, but will consider select minority investment opportunities. The Firm's target investment size is $10 to $50 million per transaction. Sand Oak Capital was formed in 2009 and is based in Sarasota, Florida.


DEAL STATS #
Overall 1 of 1
Sector: Construction M&A 1 of 1
Type: Recapitalization M&A Deals 1 of 1
State: Texas M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2019 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-16 LCR Contractors

Hutto, Texas, United States

LCR Contractors specializes in providing spray applied to fireproof and spray thermal insulation services to commercial and residential construction projects. LCR Contractors was founded in 1984 and is based in Hutto, Texas.

Buy -