NAIC Home Run Club

The NAIC Home Run Club recognizes deals completed by NAIC member firms that have returned at least 4X to their limited partners. This will be an ongoing tribute to those diverse managers who have generated superior return.

Deal: Sale of Evans Food Group to Highlander Partners

4.0X
In August 2019, Wind Point Partners sold Evans Food Group to Highlander Partners for a 4.0x cash-on-cash return. Based in Chicago, Illinois, Evans produces and sells a diverse portfolio of finished pork rinds and pork rind pellets to customers in the U.S., Canada and more than 10 countries across Latin America. Wind Point acquired Evans in April of 2016 in partnership with existing management and industry veteran José Luis Prado, who joined the company as CEO. Prado built a world-class management team and added considerable commercial and industry expertise to the company. During Wind Point’s ownership period of just over three years, Evans’ revenue grew, and margins increased through a combination of organic growth, two complementary acquisitions, and various operational initiatives.

Deal: Sale of ValicorEnvironmental Services to Pritzker Private Capital

4.5X
In July 2019, Wind Point Partners completed the sale of ValicorEnvironmental Services to Pritzker Private Capital for a 4.5x cash-on-cash return. Based in Monroe, Ohio, Valicor provides non-hazardous wastewater treatment services to more than 5,000 customers throughout North America. Leveraging its extensive fleet of tankers and a network of strategically located centralized wastewater treatment facilities, the company transports and processes diverse wastewater streams that result from the manufacture of industrial and consumer goods. Wind Point acquired Valicor in June of 2017 in partnership with existing management and industry veteran James Devlin, who joined the company as CEO. During Wind Point’s two-year ownership period, Valicor’s revenue grew and margins were increased through a combination of organic growth, four complementary acquisitions, and various operational initiatives.

Deal: Topspin Partners’ Sale of JD Beauty Co., LLC

7.8X
In March 2019, Topspin Partners completed the sale of JD Beauty Co., LLC, to Goody Products, Inc. for a 7.8x return. JD Beauty, a leading marketer and manufacturer of professional beauty products, is the company behind the popular Wet Brush branded hair care accessories, Bio Ionic hair styling tools and Ouidad hair care. Since making the investment, Topspin and the JD Beauty team grew the company by launching several new product lines, expanding distribution capabilities, completing add-on acquisitions (including Bio Ionic and Ouidad) and growing the sales, marketing and product development teams.

Deal: NexPhase Capital’s Sale of CPS Group Holdings to Frazier Healthcare Partners

4.83X
In March 2019, NexPhase Capital completed the sale of CPS Group Holdings, Inc. to Frazier Healthcare Partners for a 4.83x return. Founded nearly 50 years ago and employing over 2,500 clinical, regulatory and operational pharmacy professionals, CPS is one of the nation’s largest providers of pharmacy solutions to more than 700 hospitals and health system facilities across the United States and Puerto Rico. CPS helps hospital pharmacists tackle complex problems such as medication reconciliation, hyper-inflated drug costs, standardization, centralized distribution, regulatory and compliance, and 340B programs leading to increased quality, reduced admissions, and lower costs.

Deal: Clearlake Capital’s Sale of ConvergeOne to CVC Fund VII

10.6X
In January 2019, Clearlake Capital Group, L.P. completed the sale of ConvergeOne to affiliates of CVC Fund VII in a $1.8 billion deal. Founded in 1993, ConvergeOne is a leading global IT services provider of collaboration and technology solutions for large and medium enterprises with decades of experience assisting customers to transform their digital infrastructure and realize a return on investment. Over 10,400 enterprise and mid-market customers trust ConvergeOne with collaboration, enterprise networking, data center, cloud and security solutions to achieve business outcomes. Driven by Clearlake’s O.P.S. value creation framework, ConvergeOne achieved significant organic and inorganic growth under Clearlake’s ownership, resulting in revenue growth of 277% for the trailing twelve-month period at June 2014 to December 2018. The transaction will result in a total gross MOIC of 10.6x.

Deal: Clearlake Capital’s Sale of Sage Automotive to Asahi Kasei

10.0X
In September 2018, Clearlake Capital Group, L.P. closed the sale of Sage Automotive to Asahi Kasei (TSE: 3407) for a purchase price of $1.06 billion. Sage Automotive Interiors is a leading provider of automotive interior materials—seating, door panel surfaces, and headliners—to automotive Original Equipment Manufacturers (OEMs). Global offices and manufacturing locations include the U.S., Japan, China, Brazil, Korea, India, Thailand, Mexico, and Europe. Assuming full release of the escrow, total proceeds and gross MOIC is 10.0x (inclusive of the two previous dividend recapitalization transactions). Under Clearlake’s ownership, Sage executed an investment thesis focused on growth and transforming the company into a diversified global platform. As a result, in addition to delivering on significant topline growth, the strategy helped drive margin expansion and significant geographic, product and customer diversification.

Deal: One Rock Capital’s Sale of Airxcel to L Catterton Affiliate

4.2X
In April 2018, One Rock Capital Partners sold Airxcel, one of the largest suppliers of industry-leading branded products to the RV industry and niche segments of the industrial and commercial HVAC market, to L Catterton. Since its acquisition by One Rock in 2014, Airxcel has nearly doubled earnings through strong organic growth, internal operational improvements and the acquisition and integration of three highly complementary businesses. The transaction represents a gain of approximately 4.2X for investors.

Deal: DXA Investments’ Sale of Interest in Zee Dog SA to Management

12.4X
In March 2018, DXA Investments completed the sale of its stake Zee Dog SA (operating as Zee.Dog) to the company’s founders in a deal that resulted in a return on invested capital of 12.4X. Based in Rio de Janeiro, Zee Dog manufactures pet accessories that are sold in more 20 countries by way of approximately 3,000 outlets. The company also owns a branded store in New York’s SoHo neighborhood and another in Las Vegas. DXA made the investment when Zee Dog was pre-revenue, and following that investment, helped the entrepreneurs create an expansion plan that resulted in significant top- and bottom-line growth and worldwide sales.

Deal: Farol Asset Management’s Sale of Delphon Industries

4.7X
In January 2018, Farol Asset Management LP, in partnership with Fulham & Co and Brooke Private Equity Associates, led the sale of Delphon Industries, LLC to PWP Growth Equity. Delphon is a leading provider of innovative, materials-based solutions and services for the handling, processing, packaging and marking of high-value technology and medical components, serving customers primarily in the semiconductor, optoelectronics, data storage and medical end markets.

Deal: Clearlake Capital’s Sale of Futuris Global Holdings

6.7X
In August 2017, Clearlake Capital Group, L.P. announced a definitive agreement to sell Futuris Global Holdings LLC to an affiliate of Adient plc (NYSE: ADNT) for approximately $360 million including the assumption of approximately $18 million of net debt. Futuris, which was acquired by Clearlake in 2013 for $62.1 million, is a leading supplier of seating solutions to the global automotive industry, with an active and rapidly growing presence in North America and Asia. Under Clearlake’s ownership, Futuris executed a successful restructuring of its operations to transition from an Australian-focused supplier to a global operator with differentiated capabilities and profitable relationships with leading global automotive OEM customers. In addition, the Company successfully consummated the acquisitions of CNI Enterprises and Kongsberg Automotive’s North American headrest and armrest business.

Deal: One Rock Capital’s Sale of SRLH Holdings to Elementis plc

5.2X
In March 2017, One Rock Capital Partners, LLC sold SRLH Holdings, Inc. (SummitReheis) to Elementis plc, a global specialty chemical company. SummitReheis is a leading global specialty chemicals platform that produces a wide breadth of critical active ingredients and materials tailored for use in non-discretionary and regulated personal care, pharmaceutical and dental products. The deal had an enterprise value of $360 million, which resulted in a gain of 5.2X for investors.

Deal: Sale of Novolex to The Carlyle Group

7.9X
In November 2016, Wind Point Partners sold Novolex (fka Hilex Poly) to The Carlyle Group for a 7.9x cash-on-cash return. Novolex is one of North America’s leaders in sustainable packaging in both paper and plastic products with unique product offerings that contain high levels of recycled materials. Wind Point acquired Novolex in 2012 in partnership with Chairman and CEO Stan Bikulege, formerly President and CEO of Renaissance Mark, a leading manufacturer of labels. Management and Wind Point utilized a robust Value Creation Plan to grow sales from $500 million to over $2.0 billion and increased profitability through new products, conversion cost reduction, and five transformative add-on acquisitions.

Deal: Verus Investment Partners’ Sale of CAPS Payroll

10.1X
In August 2016, Verus Investment Partners, LLC completed the sale of CAPS Payroll to Cast & Crew Entertainment Services. CAPS Payroll is a technology-driven payroll services company serving film and TV studios, commercial production companies, as well as venues, music tours, and live events. CAPS offers cloud-based, end-to-end production payroll and accounting solutions that simplify payroll processing for clients of all sizes. The company was founded in 1991 and is headquartered in Culver City, California.

Deal: Clearlake Capital Group’s Sale of Stake in Ashley Stewart

5.8X
In June 2016, Clearlake Capital Group and FirePine Group sold a controlling interest in Ashley Stewart, Inc. to an affiliate of The Invus Group LLC. Founded in 1991 and headquartered in Secaucus, NJ, Ashley Stewart is a leading global lifestyle brand for plus size women’s fashion. Under Clearlake and FirePine’s ownership, Ashley Stewart has achieved record profitability, growth and market share expansion. Less than three years removed from not having wi-fi at its former corporate offices, Ashley Stewart now boasts industry leading e-commerce and mobile penetration, customer engagement on its social media platforms and organic revenue growth.

Deal: Vista Equity Partners’ Sale of Accruent, LLC

7.7X
In May 2016, Genstar Capital announced the acquisition of Accruent, LLC, the world’s largest provider of real estate, facilities, and asset management software. By offering solutions that span the entire real estate, facilities, and asset management lifecycle, Accruent has grown its customer base to over 5,400 organizations. Customers include 40 percent of the top 100 retailers, 20 percent of the Fortune 500, 40 percent of the leading universities, all of the top five U.S. wireless carriers, 55 percent of U.S. hospitals, and leading service providers managing more than 4 billion square feet of real estate.

Deal: Vista Equity Partners’ Sale of Mitratech Holdings

8.64X
In September 2015, Vista Equity Partners agreed to sell enterprise legal services provider Mitratech Holdings Inc to private equity firm TA Associates Management LP, in a deal valued at more than $300 million. Based in Austin, Texas, Mitratech provides management software for the legal departments of companies, including more than 25 percent of the Fortune 500 companies. Since Vista’s investment in 2011, Mitratech completed three strategic acquisitions, and expanded into Europe, ultimately becoming the largest privately held provider of corporate legal management software in the world.

Deal: ICV Partners’ Sale of Stauber Performance Ingredients

4X
In December 2015 ICV Partners completed the sale of Stauber Performance Ingredients, a leading distributor of nutraceutical ingredients, to Hawkins, Inc. (Nasdaq: HWKN), for $157 million. Founded in 1969, Stauber offers specialty products and ingredients to the nutritional, food, pharmaceutical, cosmetic and pet care industries with approximately 160 employees, and facilities in California and New York. ICV acquired Stauber in January 2011 and expanded the company’s product offering and develop manufacturing capabilities. The ICV team and management implemented several initiatives and executed a significant add-on acquisition that enabled Stauber to grow.

Deal: Sale of Argotec to Schweitzer-Mauduit International

4.8X
In September 2015, Wind Point Partners completed the sale of Argotec to Schweitzer-Mauduit International, Inc. (NYSE: SWM) for a 4.8x cash-on-cash return. Argotec is a supplier of custom-engineered, high-performance, polyurethane film and sheet products for a wide variety of critical applications. The company provides TPU film and sheet products globally to the international specialty films market, including adhesive coaters, plastics converters and fabricators, and direct to OEMs. Wind Point acquired Argotec in May 2013 in partnership with Guy Broadbent, former President of the $1.8 billion Laboratory Products Group at ThermoFisher Scientific. Over the course of the investment, Argotec and Wind Point executed a robust Value Creation Plan centered around launching new products, pursuing sales in new markets including medical and graphic films, and significantly expanding the company footprint geographically.

Deal: ICV Partners’ Sale of Mallet & Company

5.25X
In August 2015, ICV Partners LLC completed the sale of its portfolio company Mallet & Company, Inc., to Vantage Specialty Chemicals, Inc., a portfolio company of The Jordan Company, L.P. Headquartered outside of Pittsburgh, Mallet is a leading manufacturer of value-added specialty ingredients including food grade release agents, specialty blends, emulsifiers and icing stabilizers. Additionally, the Company designs and builds customized spray equipment to apply many of its specialty ingredients. The company provides best-in-class products and services to a broad range of channel leading customers, including commercial bakeries, packaged food companies, frozen pizza manufacturers, and national pizza retail chains.

Deal: Vista Equity Partners’ Sale of Relias Learning to Bertelsmann

4.91X
In October 2014, Vista Equity Partners agreed to sell Relias Learning, LLC to Bertelsmann. Relias Learning is a leading e-learning provider in the healthcare and compliance sectors, and profits from the three global megatrends of education, health, and digitization. Relias Learning was born in 2012 from the merger of Essential Learning and Silverchair Learning Systems. The company offers a robust learning management system and online training for employees in multiple industries, including senior care and other healthcare professions such as behavioral health and care for the disabled. Relias has over 4,000 institutional clients and offers some 2,500 different online courses; each year, people complete more than 20 million of its courses.

This information is being provided by NAIC to highlight specific successes of several of our member firms. It is not indicative of the typical fund performance of these firms and should not be interpreted as such.

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