Prospect Partners Completes Sale of Velvac, Inc.
Prospect Partners has sold its interest in Velvac, Inc., the premier designer and manufacturer of proprietary vision technology for commercial vehicles, to The Eastern Company ("Eastern") (NASDAQ: EML).
Founded in 1934, Velvac serves diverse markets within the heavy and medium duty truck, motorhome and bus markets. Velvac is a Tier 1 supplier of mirrors and camera-enabled vision systems, and sells its aftermarket components and vision systems through aftermarket channels as well as directly to OEM dealers and OEM parts distribution centers.
"Velvac has been a highly rewarding investment for Prospect Partners," said Rick Tuttle, a Founding Principal of Prospect Partners. "It has been an honor to partner with a terrific management team, provide capital support for select strategic acquisitions, and be part of Velvac's exciting transition from an RV-centric supplier to the leading player in multiple attractive niche markets."
Added Prospect Partners' Principal Erik Maurer: "Velvac's Jeff Porter was a great CEO partner who built a first-class operating team and deftly guided the company into new product markets, new distribution channels, and a strong position in every segment it entered."
A leading innovator of proprietary vision systems for commercial vehicles and motorhomes, Velvac introduced its first camera-enabled vision system in 2006 and now sells approximately 45,000 camera-enabled units annually. Velvac recently introduced its Road-iQ™ 360-degree view camera, recording and communication system, and announced TrailerLink™, a new patent-pending solution that supports trailer-to-tractor video and data communications.
"Prospect Partners has been tremendous to work with these past 11 years," said Velvac's CEO Porter. "They supported our management team in good times and bad. Their support during the depths of the Great Recession laid the groundwork for our emergence from the downturn as a much stronger competitor and propelled Velvac to rapid growth these last seven years. The professionalism and integrity exhibited by the Prospect Partners team during their investment period was unmatched."
To discuss related investment opportunities, please reach out to Rick Tuttle, Erik Maurer, or Molly Clark.
Prospect Partners Promotes Brett Holcomb and Brad O'Dell to Principal
Prospect Partners is pleased to announce the promotions of Brett Holcomb and Brad O'Dell to Principal, effective immediately.
Holcomb and O'Dell both joined Prospect Partners as Vice Presidents in 2009. They have played leading roles in analyzing and developing investment opportunities, structuring deals, overseeing due diligence, closing transactions, and managing portfolio companies that occupy widely diverse niche industries.
"We are excited to recognize Brett and Brad, who have been exceptional assets to our team," said Rick Tuttle, Founding Principal. "A guiding mission of our firm has always been to bring on board talented investment professionals who are also passionate about helping entrepreneurs build their companies into true market leaders. Brett and Brad have long been providing wise and enthusiastic counsel to our portfolio companies, and deserve this recognition."
Added Erik Maurer, Principal: "Brett and Brad are strong deal leaders who are making a tremendous contribution to our firm's success in many areas, including deal identification, execution, management, and exit. We feel very confident in their abilities, continued contributions, and increased firm leadership in their expanded role as a Principal of Prospect Partners."
Read the complete press release here.
Prospect Partners Completes Sale of Kronos Foods
Prospect Partners has sold its interest in Mediterranean food manufacturer and distributor Kronos Foods, Inc. (Kronos), of Glendale Heights, Ill. Prospect Partners initially acquired Kronos in 2004.
Kronos's roots date back to 1975, when the Greek food company developed and marketed the first pre-formed gyro cones. Since that time, Kronos has become a highly differentiated manufacturer of Mediterranean and other premium foods, with distribution nationwide through foodservice channels and major retailers, including broadline and specialty distributors, club stores, mass merchants and grocery chains. Its products include gyros meat, pita/flatbreads, hummus, sauces, and desserts primarily under the Kronos and Sinbad Sweets brands. Kronos also produces custom products for QSR, fast-casual, and family dining restaurant chains.
"Kronos has achieved substantial growth through the leadership of its management team, led by CEO Howard Eirinberg," said Lou Kenter, a Founding Principal of Prospect Partners. "We were fortunate to support significant growth initiatives that included a new state-of-the-art 208,000-sq-ft facility in Glendale Heights, extending the product line, and expanding nationwide distribution. The Kronos team did a great job executing the plan and building on the Kronos brand to become the leading company in the Mediterranean food category."
Added Brad O'Dell, a Vice President of Prospect Partners, "With its focus on delivering a wide line of authentic, great-tasting Mediterranean and other specialty foods, Kronos was able to differentiate itself in the market. What's more, we had a lot of fun working with such an energetic team with a deep passion for the business."
Said Kronos CEO Eirinberg: "Prospect Partners has been a terrific partner in every respect. The team shared our entrepreneurial drive and steadfast commitment to product innovation and quality and helped us become the market leader we are today. We are very excited to build on this platform and to continue to enhance the Kronos brand."
Prospect Partners sold Kronos to another private equity firm and management.
To discuss related food and foodservice investment opportunities, please contact Lou Kenter, Brad O'Dell, or Molly Clark.
Prospect Partners Announces Investment in All Glass & Windows
Prospect Partners is excited to announce its investment in All Glass & Windows, Inc. and Direct Window & Door Supply, Inc. (together, "All Glass & Windows"), of Sarasota, Fla.
All Glass & Windows installs and distributes impact-resistant glass and glass-related products for general contractors and builders serving residential, commercial and retail customers across Florida. Many of the company's products, which include windows, doors, and commercial storefront and curtain walls, are made with glass that can withstand hurricane-force wind speeds of up to 180 mph. All Glass & Windows offers comprehensive, full-service project management for new construction, in addition to the renovation and replacement market. The company is led by David Fleeman, President, and Chris Harris, CEO.
"All Glass & Windows is fast-growing, with an exceptional reputation for product quality, execution and customer service," said Prospect Partners Founding Principal Rick Tuttle. "We are thrilled to support the management team, proven operators in the niche glass and glazing market with strong relationships and deep industry knowledge, as they continue to build their business and deliver superior service and innovative solutions to their customers."
Going forward, All Glass & Windows plans to expand its service offering and enter adjacent markets. The company actively seeks to acquire providers of glass installation and/or distribution services in Florida and other southeastern states.
To discuss related opportunities, please contact Rick Tuttle, Mike McInerney, or Molly Clark.
New Platform Waste Harmonics Acquires Consolidated Waste Management
Waste Harmonics, a leading provider of outsourced waste management services, has acquired waste broker waste broker Consolidated Waste Management, LLC (CWM). Prospect Partners also partnered with independent sponsor Expedition Capital Partners, LLC, in the transaction.
CWM, with offices in Columbus, Ohio, and Hartford, Conn., increases the presence of the rapidly-growing Waste Harmonics. Waste Harmonics offers an integrated outsourced waste management solution for North American companies with multiple locations spread across a wide geographic territory. Its programs cost-effectively consolidate all components of its customers' waste-management needs, including pick-up, hauling, recycling, sustainability, invoicing, and reporting.
"One of our top objectives is to support management's ability to make add-on acquisitions of other strong waste brokerage companies that expand Waste Harmonics' reach and services," said Maneesh Chawla, a Principal of Prospect Partners. "CWM is a well-run business with loyal customers and a great cultural fit."
Going forward, Waste Harmonics continues to seek acquisitions of other waste brokers and waste services providers.
To discuss related opportunities, please contact Maneesh Chawla, Brett Holcomb, or Molly Clark.
Platform Prospect Water Co. Completes 15th Add-On
Water treatment services provider Prospect Water Co. continues its torrid acquisition pace. The water treatment platform has completed 7 add-ons since April, 2015. Its latest, Gulf Coast Water Solutions, of Fort Walton Beach, Fla., brings the platform's add-on total to 15, and marks a "new region for us," said Lou Kenter, a Founding Principal of Prospect Partners. "We are very excited to continue to build our presence in the Southeast."
In addition to Culligan dealers, which primarily serve residential end-markets, Prospect Water Co. also seeks acquistiions of filtration and processing dealers reaching commercial and industrial users.
Prospect Water Co.'s franchises now serve customers in 12 states from coast to coast: Alabama, California, Connecticut, Florida, Illinois, Indiana, Massachusetts, New York, Ohio, Oregon, Rhode Island, and Washington.
To discuss related opportunities, please contact Lou Kenter, Mike McInerney, or Molly Clark.
Prospect Partners Recapitalizes Waste Harmonics
Prospect Partners is pleased to announce the management-led recapitalization of Waste Harmonics, LLC, a leading provider of outsourced waste management services based in Victor, New York. Prospect Partners partnered with Chicago private equity investment firm Expedition Capital Partners, LLC, in the transaction.
Waste Harmonics, led by Michael Hess, President and CEO, offers an integrated outsourced waste management solution for North American companies with multiple locations spread across a wide geographic territory. Since 2001, Waste Harmonics has customized programs for businesses in a wide range of industries, cost-effectively consolidating all their waste-management needs, including pick-up, hauling, recycling, and sustainability. Waste Harmonics operates as a single point of contact, managing all invoicing and reporting, even providing analytical tools that measure waste volume, equipment usage, and waste service frequency needs. Since customers have many locations, the ability to understand efficiency for each one can result in significant annual savings. Waste Harmonics also provides rental waste equipment, like containers and compactors, as well as equipment installation and repair services, and temporary containers for construction waste.
"We are very excited to be partners with Mike and his exceptionally talented management team," said Maneesh Chawla, a Principal of Prospect Partners. "Waste Harmonics' success is due both to its savvy leaders and its genuine core focus on customer service. We look forward to supporting management's many forward-thinking initiatives and see significant opportunities for continued growth."
Going forward, Waste Harmonics seeks to acquire other waste brokers and waste services providers.
Earlier this year, Waste Harmonics was recognized by the Rochester Business Journal as the seventh fastest-growing privately-held business in 2015 in the Rochester, N.Y., area in the publication's annual Rochester Top 100 ranking.
Strong History With Outside Partners
Developing relationships with outside partners — including independent equity sponsors and veteran operating executives — has always played a key role in helping Prospect Partners build successful platform companies. More than one-third of the firm's total portfolio — 18 of 47 platforms — has resulted from partnerships with seasoned outside specialists.
Expedition Capital Partners, which partners with experienced operators to acquire and grow businesses in the middle- and lower-middle markets, will play an active role in Waste Harmonics, in particular directing the company's business development and acquisition strategy.
Said Michael Hendrie, Expedition Capital Partners' Managing Director: "I am excited to work with Prospect Partners and such a strong management team. Waste Harmonics is built for growth, particularly through acquisition."
To discuss related opportunities, please contact Maneesh Chawla, Brett Holcomb, or Molly Clark.