Secondary Buyout • Manufacturing

TJC Acquires ISG

On December 7, 2022, private equity firm TJC acquired manufacturer ISG from Five Points Capital, KCM Capital Partners and PNC Mezzanine Capital

Acquisition Context
  • This is TJC’s 10th transaction in the Manufacturing sector.
  • This is TJC’s 83rd transaction in the United States.
  • This is TJC’s 2nd transaction in Indiana.

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M&A Deal Summary

Date December 7, 2022
Target ISG
Sector Manufacturing
Buyer(s) TJC
Sellers(s) Five Points Capital
KCM Capital Partners
PNC Mezzanine Capital
Deal Type Secondary Buyout
Advisor(s) Stephens (Financial)

Target Company

ISG

Indianapolis, Indiana, United States
ISG provides services and parts to critical-to-process industrial rotating equipment for a diversified blue chip customer base comprised mainly of large industrial, power, paper, and energy companies. ISG was founded in 2018 and is based in Indianapolis, Indiana.
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Buyer Overview 1

Buyer

TJC

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1982
PE ASSETS 14.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TJC is a private investment firm that specializes in acquiring North American middle-market businesses operating in basic industries. TJC specifically looks to provide liquidity for shareholders, raise capital for corporate growth and 'create significant equity opportunities for key management'. TJC will consider opportunities valued from $100 million to $2 billion in a wide variety of industries. Sectors of interest include aerospace/defense, automotive, building products, chemicals, consumer products, distribution, energy, financial services, healthcare, industrial products, insurance, metals, packaging, retail, transportation/logistics, and telecom. TJC was formerly known as The Jordan Company. The Firm was formed in 1982 and is based in New York City.


Deal Context for Buyer #
Overall 85 of 96
Sector: Manufacturing 10 of 10
Type: Secondary Buyout 30 of 36
State: Indiana 2 of 2
Country: United States 83 of 92
Year: 2022 6 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-11-01 Ned s Home

Fairfield, New Jersey, United States

Ned's Home provides gutter cleaning, soft wash, and other related, non-discretionary residential services, including gutter maintenance, installation, and repair. Ned's Home was founded in 1965 and is based in Fairfield, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-08-07 Worldwide Clinical Trials

Research Triangle Park, North Carolina, United States

Worldwide Clinical Trials is a medically and scientifically driven contract research organization (CRO) providing early and late stage drug development services for pharmaceutical and biotechnology companies. Worldwide Clinical Trials is based in Research Triangle Park, North Carolina.

Sell -

Seller Profiles 3

SELLER

Five Points Capital

Winston-Salem, North Carolina, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 1.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Five Points Capital makes both direct private equity and junior capital investments in US-based middle-market companies. Five Points prefers control based investments and will consider opportunities in a variety of industries. For both equity and mezzanine investments, the Firm looks to commit $5 to $25 million of capital in businesses with at least $10 million in sales and $3 million of EBITDA. Five Points Capital was formerly known as BB&T Capital Partners and re-branded in 2015. The Firm was established in 1997 and is based in Winston-Salem, North Carolina.


Deal Context for Seller #
Overall 51 of 58
Sector: Manufacturing 3 of 4
Type: Secondary Buyout 25 of 26
State: Indiana 2 of 2
Country: United States 51 of 58
Year: 2022 10 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-10-17 OutSolve

Metairie, Louisiana, United States

OutSolve provides HR compliance services including anti-discrimination analysis, compensation analysis, EEO-1 and VETS-4212 reports, and labor law posters. The company helps its diverse customer base manage complex federal, state, and local compliance requirements. OutSolve was founded in 1998 and is based in Metairie, Louisiana.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-01-06 ToxStrategies

Asheville, North Carolina, United States

ToxStrategies is a multidisciplinary scientific consulting firm specializing in toxicology, epidemiology, exposure sciences, industrial hygiene and safety, and regulatory compliance. ToxStrategies is based in Asheville, North Carolina.

Buy -
DESCRIPTION

KCM Capital Partners LLC is a private equity firm focused on investing in lower middle-market business services, value-added distribution, and specialty industrial companies throughout the US. KCM has a preference for 'fundamentals well-positioned' companies undergoing transition or experiencing change. The Firm looks to commit $10 to $50 million per platform investment and will consider transactions valued up to $150 million. KCM Capital Partners LLC was formed in 2017 and is headquartered in Chicago.


Deal Context for Seller #
Overall 2 of 2
Sector: Manufacturing 1 of 1
Type: Secondary Buyout 1 of 1
State: Indiana 1 of 1
Country: United States 2 of 2
Year: 2022 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-11-01 Royal Distributing

Guelph, Ontario, Canada

Royal Distributing is a omnichannel specialty retailer serving the enthusiast powersports market for snowmobile, ATV, UTV, dirt bike, motorcycle, and watersports aftermarket products. Royal Distributing was founded in 1990 and is based in Guelph, Ontario.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2025-03-14 StartKleen

Gunter, Texas, United States

StartKleen provides turn-key contract sanitation services to food processing plants with an emphasis on food safety with social, environmental, and economic responsibility. StartKleen provides services to 42 customer plants located throughout the state of Texas and New Mexico.

Buy -
SELLER

PNC Mezzanine Capital

Pittsburgh, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

PNC Mezzanine Capital is the subordinated debt investing arm of PNC Bank. PNC Mezzanine looks to provide $10 to $50 million of junior capital to middle-market companies in a variety of industries. Prospective companies generally have revenues of $20 million and EBITDA greater than $4 million. Broad sectors of interest include niche manufacturing, value-added distribution, and business or consumer services. PNC will not invest in early-stage or technology-driven businesses; real estate, commodity-based or capital-intensive companies; businesses with high customer or vendor concentration; or declining businesses. PNC Mezzanine was formed in 1989 and is based in Pittsburgh, Pennsylvania.


Deal Context for Seller #
Overall 45 of 50
Sector: Manufacturing 5 of 7
Type: Secondary Buyout 19 of 20
State: Indiana 2 of 2
Country: United States 43 of 48
Year: 2022 6 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-11-17 CST Utilities

Grove city, Ohio, United States

CST Utilities is a turnkey infrastructure service company providing a range of complementary underground services including excavation, boring, drain cleaning, and other pumping services to public utilities, telecom providers, and other businesses. CST Utilities was founded in 1969 and is based in Grove city, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-07-01 Revak Keen Turbomachinery

La Porte, Texas, United States

Revak Keen Turbomachinery remanufactures, modify, and upgrade steam turbines, pumps, gears, and complete steam turbine systems for industrial customers. Revak Keen Turbomachinery was founded in 1981 and is based in La Porte, Texas.

Sell -