M&A Deal Summary

TruArc Partners, PennantPark Investment Advisers and Alston Capital Partners Acquire Cascade Drilling

On February 24, 2015, private equity firm TruArc Partners, lender PennantPark Investment Advisers and private equity firm Alston Capital Partners acquired environmental company Cascade Drilling from Environmental Capital Partners and Emigrant Capital

Acquisition Highlights
  • This is TruArc Partners’ 1st, PennantPark Investment Advisers’ 1st and Alston Capital Partners’ 2nd transaction in the Environmental sector.
  • This is TruArc Partners’ 16th, PennantPark Investment Advisers’ 18th and Alston Capital Partners’ 6th transaction in the United States.
  • This is TruArc Partners’ 1st, PennantPark Investment Advisers’ 1st and Alston Capital Partners’ 1st transaction in Washington.

M&A Deal Summary

Date 2015-02-24
Target Cascade Drilling
Sector Environmental
Buyer(s) TruArc Partners
PennantPark Investment Advisers
Alston Capital Partners
Sellers(s) Environmental Capital Partners
Emigrant Capital
Deal Type Secondary Buyout
Advisor(s) Houlihan Lokey (Financial)
Dechert (Legal)

Target

Cascade Drilling

Bothell, Washington, United States
Cascade Drilling is a provider of environmental and geotechnical services. Cascade’s services include track and truck-mounted sonic, air and mud rotary, auger, wire-line coring, and direct push drilling. Cascade Drilling was founded in 1991 and is based in Bothell, Washington.

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Buyer(S) 3

Buyer

TruArc Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 3.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

TruArc Partners is a private equity firm that invests in small to mid-market companies throughout North America. The Firm seeks to invest $50 to $150 million in companies valued between $100 and $500 million. TruArc Partners will consider a variety of transaction types, including leveraged acquisitions, build-ups, recapitalizations, restructurings and growth equity commitments. TruArc Partners was formerly known as Snow Phipps Group. The Firm was established in 2005 and is based in New York City.


DEAL STATS #
Overall 16 of 33
Sector (Environmental) 1 of 1
Type (Secondary Buyout) 7 of 17
State (Washington) 1 of 1
Country (United States) 16 of 32
Year (2015) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-29 Teasdale Latin Foods

Carrollton, Texas, United States

Teasdale Latin Foods is a provider of private label and branded bean and hominy products to the retail, foodservice, and wholesale channels. Teasdale offers a full selection of products including conventional and organic varieties. Teasdale Latin Foods was founded in 1930 and is based in Carrollton, Texas.

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

Falls Church, Virginia, United States

Acentia LLC is an information technology services provider to U.S. government civilian, national security, and intelligence agencies. Acentia provides infrastructure operations, network engineering and architecture, information assurance, specialized relocation and engineering, program management, software development, and strategic planning to its customers with a focus on end-to-end IT solutions and complementary consulting services. Acentia LLC was established in 2001 and is based in Falls Church, Virginia.

Sell $300M
Buyer

PennantPark Investment Advisers

Investor Investor Investor Investor Investor


Category Lender
Founded 2007
PE ASSETS 6.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

PennantPark is a provider of credit solutions to middle-market private equity sponsors. The Firm looks to provide $10 to $100 million of capital and can support a variety of investment structures. PennantPark was formed in 2007 and is headquartered in New York City.


DEAL STATS #
Overall 18 of 22
Sector (Environmental) 1 of 1
Type (Secondary Buyout) 8 of 9
State (Washington) 1 of 1
Country (United States) 18 of 22
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-11-17 RotoMetrics

Eureka, Missouri, United States

RotoMetrics is a manufacturer of precision rotary tooling and related accessories for the converting and printing industries. The Company produces a wide variety of highly engineered, customized rotary tooling products used to perform precision cutting or to create folds in various material substrates.

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

Falls Church, Virginia, United States

Acentia LLC is an information technology services provider to U.S. government civilian, national security, and intelligence agencies. Acentia provides infrastructure operations, network engineering and architecture, information assurance, specialized relocation and engineering, program management, software development, and strategic planning to its customers with a focus on end-to-end IT solutions and complementary consulting services. Acentia LLC was established in 2001 and is based in Falls Church, Virginia.

Sell $300M
Buyer

Alston Capital Partners

New York, New York, United States

Investor Investor


Category Private Equity Firm
Founded 2011
Size Small
Type Sector Agnostic
DESCRIPTION

Alston Capital Partners is a lower middle-market private equity firm focused on investing in specialty manufacturing, environmental, and technology companies. Within specialty manufacturing, Alston looks for market leading, low fixed asset companies that produce high value-added products. Within the environmental sector, Alston targets businesses that reduce waste and improve resource consumption. Alston will consider a variety of transaction situations including buyouts, recapitalizations, divestitures, growth equity, turnarounds and minority investments. The Firm seeks opportunities with $10 to $150 million headquartered throughout the US and Canada. Alston Capital Partners was formed in 2011 and is based in New York City.


DEAL STATS #
Overall 6 of 8
Sector (Environmental) 2 of 2
Type (Secondary Buyout) 1 of 1
State (Washington) 1 of 1
Country (United States) 6 of 7
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-01 Compass Systems and Sales

Barberton, Ohio, United States

Compass Systems and Sales is a provider of highly engineered material handling solutions specializing in systems requiring dilute phase pneumatic capabilities. Compass Systems and Sales was founded in 1998 and is based in Barberton, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-26 USA DeBusk

Deer Park, Texas, United States

USA DeBusk is a provider of highly specialized mechanical and industrial cleaning services including hydro blasting, transportation services, hydro cutting, vacuum services, chemical cleaning, hydro excavation, pigging and decoking services, hot and fixed bed inert catalyst handling and cleaning services, and specialty turnaround services. The company operates out of 22 field offices, providing services for customers in a wide variety of end-markets such as the downstream refining, petrochemical, power generation, and manufacturing sectors. USA DeBusk was founded in 2012 and is based in Deer Park, Texas.

Sell -

Seller(S) 2

SELLER

Environmental Capital Partners

New York, New York, United States

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

Environmental Capital Partners (ECP) is a specialist private equity firm which targets investments in established, mid-sized companies operating in the environmental industry. ECP looks to invest $5 to $25 million of equity capital in majority or minority situations. Target companies have revenues of $10 to $150 million and at least $1 million of EBITDA. Specific areas of interest include environmental services & equipment, 'green' products, and renewable energy. The Firm prefers companies located in the US or Canada. ECP was formed in 2007 and is based in New York, New York.


DEAL STATS #
Overall 2 of 2
Sector (Environmental) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Washington) 1 of 1
Country (United States) 2 of 2
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-11-23 Intechra Group

Jackson, Mississippi, United States

Intechra Group is a information technology asset disposition ("ITAD") company. Intechra offers comprehensive, proven, end-to-end IT asset disposition services.

Sell -
SELLER

Emigrant Capital

New York, New York, United States

Investor Investor Investor Investor


Category Corporate Investor
Founded 1998
PE ASSETS 200M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Emigrant Capital Corp is the investment arm of family-owned Emigrant Saving Bank. Emigrant provides both debt and equity capital to lower middle-market companies headquartered in the US. Through its affiliation with Emigrant Saving Bank, Emigrant Capital provides financial solutions including traditional equity investments, hybrid debt/equity securities, mezzanine, and senior debt financing. Emigrant Capital focuses on profitable companies with strong management teams, large addressable markets, diversified revenues and customers, revenues between $10 - $100 million, and EBITDA of $2 - $15 million. Emigrant looks to invest $5 to $30 million per transaction. Specific areas of interest include healthcare, technology, and manufacturing. The Firm will consider a variety of transaction types, including buyouts, recapitalizations, growth equity, turnarounds, and special situations. Emigrant Capital Corp was formed in 1998 and is based in New York City.


DEAL STATS #
Overall 4 of 5
Sector (Environmental) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Washington) 1 of 1
Country (United States) 4 of 5
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-01 M Cubed

Newtown, Connecticut, United States

M Cubed develops and markets advanced composite products to original equipment manufacturers in semiconductor, display, industrial, and defense markets worldwide.

Sell $71M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-31 East West

Atlanta, Georgia, United States

East West is a manufacturer of complex, precision components, electronics, and motors. East West was founded in 2001 and is based in Atlanta, Georgia.

Buy -