News

Caymus Equity Partners LLC (“Caymus Equity”) announced today the completion of its seventh platform investment. A group formed by Caymus Equity, including Caymus Equity, PNC Mezzanine Capital (“PNC”), Deerpath Capital Management, L.P. (“Deerpath”) and management, has completed the recapitalization of Excel Orthopedic Rehabilitation, P.A. (“Excel” or the “Company”). Headquartered in Hackensack, NJ, Excel is the premier provider of sports and orthopedic physical therapy and rehabilitation services in northern New Jersey.

Founded in 1990, Excel has been a fixture in Bergen County, NJ for over 25 years. The Company operates eight facilities across New Jersey in Fort Lee, Oakland, Hackensack, Waldwick, Cresskill, Rutherford, Montvale and Mahwah, with a ninth under construction in Old Tappan. Excel provides a broad suite of physical therapy services, ranging from therapeutic activities, both active and passive, to neuromuscular re-education, electric stimulation, hydro and laser therapy. The transaction provides Excel with the necessary capital and resources to continue to provide high quality services to its existing customers and further grow its business through de novo center growth and potentially via acquisitions. Caymus Equity is excited to partner with the strong management team at Excel and invest in a company with a long track record of success in an attractive niche industry with significant growth opportunities.

Gary Flink, CEO of Excel, said, “This is an important transaction for Excel to fuel our growth and further develop our position as the premier physical therapy provider in the Greater New York City area. We are excited to partner with Caymus Equity, PNC and Deerpath as we continue to grow the Excel brand and expand into new territories.”

“We are proud to partner with Excel and look forward to working with the management team as they continue to grow their business,” commented Geoff Faux, Managing Partner at Caymus Equity. “Excel has clearly developed a successful business model and we are committed to providing the Company with the necessary resources to continue to thrive.”

Download PDF

A group formed by Caymus Equity Partners LLC (“Caymus Equity”), including Caymus Equity, NewSpring Mezzanine Capital II, L.P. (“NewSpring”), Graycliff Partners L.P. (“Graycliff”) and management, has completed the recapitalization of Alpha/AXS Holding Company, LLC (“Alpha Imaging” or the “Company”).  Headquartered in Willoughby, OH, Alpha Imaging is one of the largest independent sales and service providers of advanced medical imaging equipment in the United States.

Founded in 1986, Alpha Imaging sells, distributes and services a wide range of medical imaging equipment across multiple radiological modalities. The Company’s equipment portfolio is extensive and can address the full range of imaging needs within a healthcare system. The transaction provides Alpha Imaging with the necessary capital and resources to continue to provide high quality products and service to its existing customers and further grow its business organically and via acquisitions. Caymus Equity is excited to partner with the strong management team at Alpha Imaging and invest in a company with a long track record of success in an attractive niche industry with significant growth opportunities.

Michael Perrico, CEO of Alpha Imaging, said, “This is an important transaction for Alpha Imaging to fuel our growth in the medical imaging industry and further develop our position as one of the leading sales and service providers in the United States. We are excited to partner with Caymus Equity, NewSpring and Graycliff as we continue to grow our equipment portfolio and expand into new territories.”

“We are proud to partner with Alpha Imaging and look forward to working with the management team as they continue to grow their business,” commented Geoff Faux, Managing Partner at Caymus Equity. “Alpha Imaging has clearly developed a successful business model and we are committed to providing the Company with the necessary resources to continue to thrive.”

Download PDF

Caymus Equity Partners (“Caymus Equity”), a lower middle market private equity firm, has announced that its portfolio company, FST Technical Services, Inc. (“FST”), has acquired Auburn Metrology Lab, Inc. (“Auburn”). Headquartered in Bowling Green, KY, Auburn is a company that specializes in the calibration and repair of communication service monitors, watt meters, and other electronic test equipment. This acquisition will provide FST with additional service lines, new customers and referral sources, and cost synergies by merging lab and repair services.

“Auburn provides FST with new customers in the telecommunications industry and additional service offerings that will nicely complement our current operations,” said Troy Hall, CEO of FST. “In addition, Auburn provides us with attractive cost synergies as we will be able to bring repair work in-house that was previously outsourced.”

The transaction represents FST’s first strategic acquisition since Caymus Equity partnered with Alcentra Capital Corporation (NASDAQ:ABDC) and management for a majority recapitalization in November 2013, and is part of FST’s strategy to continue diversifying customer and industry representation.

The transaction closed on April 21, 2015. To learn more about FST, visit www.fsttechnical.com.

Download PDF

Plastics News

Management may be best – or worst – feature in acquisition

Financials are not the only measure when considering a potential merger or acquisition in the plastics market, or really an acquisition in any business.

By: Jim Johnson

ATLANTA — Financials are not the only measure when considering a potential merger or acquisition in the plastics market, or really an acquisition in any business.

Existing management of a potential takeover candidate can help determine whether a deal goes through, or potential investors decide to walk away, according to a trio of money men who spoke at The Packaging Conference in Atlanta.

“From my perspective and the investments that we make, if we find an impediment to change, it is generally management,” said Geoffrey L. Faux, managing partner with Caymus Equity Partners LLC of Atlanta. “We really cannot acquire a business if we don’t have a management team to partner with.

“Developing a relationship with a management team is part of the experience of being a financial investor, but also can be a challenge.

“The types of businesses that we invest in, they are typically businesses that are five, 10, 20 years old. Management has been there for a while, tend to get set in their ways. And sometimes it’s hard to get management to change if we challenge them in certain ways,” he said.

“Other times, we see management who is trying to do too much,” Faux said, and is unwilling to bring in additional help, such as financial, sales or manufacturing leaders, to help manage the business.

Brett A. Snyder is president of Nicolet Capital Partners LLC of Chicago. He sees two situations that commonly are impediments to change from management: an unwillingness to both take risks and to establish priorities on initiatives to improve their businesses.

“Often, there’s a lot of good ideas that both senior management and people in the organization have. There’s usually no shortage of ideas, sometimes we can debate whether they are good or not. But there usually are good ideas,” Snyder said.

“What we see a lot is people, for whatever reason, hedging their bets, being unwilling to do the work to analyze different opportunities and then make a decision on a manageable number of initiatives that you can then actually execute,” he said. “You can’t execute 10 or 15 things. That’s just not realistic.

“Those are the two areas that we’ve seen holding a lot of companies back,” Snyder said.

Jack Knott is CEO of investment firm Arion Partners LLC of New York City and former CEO of Coveris, a plastics packaging company.

“Absolutely management is the one impediment that would cause us to walk away from a potential turnaround or acquisition. The other one would be cash flow. If the burn rate was just such that the balance sheet was weak enough that we just could not see our way to support the changes necessary,” he said.

The investors also provided some insight about how they view the current mergers and acquisition market.

“It continues to be a very good market environment for businesses,” Faux said, to “bring in private equity partners like ourselves when management and owners have the opportunity to take some cash out of the business, yet continue run the business in partner with a private equity firm.

“There’s a significant amount of capital in the marketplace today with folks like the three of us looking for attractive investment opportunities,” he said. “I think, from our perspective, it will continue to be a very strong market.”

Not only are financial investors interested mergers and acquisitions these days, Knott said there is an increasing number of family run companies looking to make deals to expand their businesses.

“We’re not going to go back to the way it was in terms of less competition M&A,” Snyder said. “The long arm of history is going to continue to be up and to the right in terms of the competitive environment.

“Sure, there will be cycles,” he said, but that means the market will just pull back. “When that happens, it really means the deal market grinds to a halt. It doesn’t mean there’s great opportunities to buy things at lower prices. Just everything sits still for a while and we all decide to go back to our hijinks again.

“Our answer to that is to be specialized, and we’re increasingly focusing our efforts around plastics and converting packaging businesses under the assumption that if you are going to have to pay a lot and pay more than you would want to pay, presumably at least you would like to know what you are doing or think you know what you are doing,” Snyder said.

Link to original article: http://www.plasticsnews.com/article/20150211/NEWS/150219970

Download PDF

A group formed by Caymus Equity, including Caymus Equity HS Investment Partners LLC, LJC Investments I, LLC, Littlejohn Opportunities Master Fund, L.P., SG Distressed Fund, L.P. and management, has completed the acquisition of HS Solutions Corporation, the holding company of Hospitality Staffing Solutions, LLC (“HSS” or the “Company”).   Headquartered in Atlanta, GA, HSS is the nation’s largest provider of full service outsourced staffing solutions to the hotel, lodging, and gaming industries.

Founded in 1990, HSS’s full service offering includes housekeeping, food and beverage, janitorial, stewarding, laundry, and grounds maintenance staffing for commercial hospitality locations in over 35 states in the U.S. Caymus Equity has had a long-standing relationship with HSS since Caymus Partners LLC, the investment banking predecessor to Caymus Equity, advised the Company in three separate transactions, including the sale of the Company to an institutional investor in 2010. Post-transaction initiatives, including a significant increase in the corporate office and turnover in the field supervisor team, contributed to cash flow difficulties for the Company and ultimately led HSS to default on its loans in the spring of 2013. Because of the strong relationship with the management team and in-depth knowledge of the Company, Caymus Equity teamed with the management team and initiated the restructuring transaction. Shortly thereafter, Caymus Equity, in partnership with Littlejohn, formulated and executed the planned acquisition of the assets of HSS. The acquisition provides HSS with the necessary capital and strategic support to emerge from the transaction as a stronger company with a revitalized operating model.

“While this transaction was unique for us, we are excited about the opportunity to work alongside a management team of HSS that we have had a longstanding relationship with, as well as the opportunity to invest and work side-by-side with one of the premier distressed securities investors – Littlejohn & Co.,” said Geoffrey Faux, a managing partner with Caymus Equity.  “We believe HSS’s market leadership in its service offerings and reputation, combined with the vision and strategic support from Caymus Equity and Littlejohn allow for a significant opportunity for the Company to return to and surpass previous operating benchmarks. We have known Angus Littlejohn for a long time and are delighted to have the opportunity to work with him on this exciting opportunity.”

Download PDF

A group formed by Caymus Equity Partners LLC (“Caymus Equity”), including Caymus Equity, Bank of New York Mellon-Alcentra Mezzanine Partners (“BNY Mellon-Alcentra”) and management, has recapitalized FST Technical Services, Inc. (“FST” or the “Company”). Headquartered in Gilbert, AZ, FST is the nation’s leading provider of a full range of outsourced technical services for the semiconductor, microelectronics, and biopharmaceutical industries.

Founded in 1984, FST’s full service offering includes the quality assurance/quality control and analytical testing for ultra-pure gas and liquid delivery tubing in semiconductor and biopharmaceutical production facilities, equipment services, specialty equipment sales, and technical staffing for its customers. The transaction provides FST with the necessary capital and resources to continue to provide high quality services to its existing customers, further grow its business organically and via acquisitions. Caymus Equity sourced the opportunity, engaged the owners, structured the terms of the recapitalization, and provided growth capital for the transaction in partnership with BNY Mellon-Alcentra.

Caymus Equity, with offices in Atlanta, GA, New York, NY, and Phoenix, AZ, is a private equity firm that invests in profitable, lower middle market companies with excellent growth prospects.  As reflected in our investment in FST, Caymus Equity focuses on industry sectors where we have had a track record of investment and operating success.

“We are excited about the opportunity to work alongside a strong management team in a company we expect to continue on its path of excellent growth,” said Geoffrey Faux, a managing partner with Caymus Equity.  “We believe FST’s market leadership in its service offerings and its reputation as a trusted and valuable partner with its customers creates a robust platform for attractive and strategic opportunities.”

Troy Hall, chief executive officer of FST, said, “We are thrilled to partner with Caymus Equity and BNY Mellon-Alcentra to grow our business.  We have always focused on providing innovative and high quality solutions to our customers and believe that working with Caymus Equity and BNY Mellon-Alcentra will help us to further expand our service offering through internal investment and future acquisitions.”

Download PDF

Caymus Equity Partners, a private equity firm with offices in Atlanta, New York and Phoenix, recently launched its new website, www.caymusequity.com.

Caymus Equity Partners and its predecessor, Caymus Partners LLC, were originally founded in 2001 as a merchant banking firm focused on middle and lower middle market principal investing and advisory services. In 2010, Caymus Equity Partners made its first principal investment, Phoenix Aromas & Essential Oils, Inc., followed by two subsequent principal investments in 2011 and 2012, GA Communications, Inc. (now PureRED) and Direct Marketing Solutions, Inc., respectively. Today, Caymus Equity Partners is exclusively focused on making private equity investments in profitable middle and lower middle market companies with significant growth potential in business services, healthcare services, consumer and niche manufacturing.

According to Geoffrey L. Faux, Managing Partner of Caymus Equity Partners, “we are excited to unveil our new website which signifies the completion of our transition from merchant banking to our sole focus of private equity investing.”

Download PDF

Hospitality Staffing Solutions, LLC (“HSS”), a leading provider of outsourced staffing solutions for the hospitality industry, today announced that it has reached agreement to enter into an asset purchase agreement with HS Solutions Corporation, an entity formed by LJC Investments I, LLC and a group of investors including Littlejohn Opportunities Master Fund, L.P., Caymus Equity Partners and Management, under which HSS proposes to sell its assets as a going concern through a court-supervised process. The transaction, which is expected to close by the end of the fourth quarter of 2013, is subject to a competitive bidding process and Court approval. This transition will allow HSS to substantially reduce its outstanding indebtedness, shed certain legacy obligations and emerge with the strong financial backing of a new owner.

HSS will continue uninterrupted service to its customers through the sale process. In addition, HSS does not expect to make any meaningful reductions to its workforce through the sale process. HSS team members will continue to work their usual schedules and be paid in the normal course, pending customary Court approval.

Rick Holliday, president and CEO, said, “This transaction will allow us to clean up our balance sheet and emerge as a stronger company with new owners. Importantly, the process will enable HSS to continue to provide its customers with the same high-quality, industry-leading staffing solutions they’ve come to expect.”

To facilitate the sale, HSS has filed a voluntary petition for relief with the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 of the U.S. Bankruptcy Code. To ensure that the Company can continue providing ongoing access to staffing solutions to its customers, and to protect the value of the Company’s assets, HSS will seek to sell its assets under Section 363 of the U.S. Bankruptcy Code, subject to higher and better bids.

Download PDF

A group formed by Caymus Equity Partners, including Caymus Equity Partners, Centerfield Capital Partners and management, has recapitalized Direct Marketing Solutions, Inc. (“DMS” or the “Company”) in a transaction that closed in September 2012.

Based in Portland, Oregon, DMS is a leading, vertically integrated direct marketing service provider that develops and executes strategic direct marketing programs on behalf of Fortune 1000 companies. With over 30 years of experience in the industry, the owners have built DMS into a leading direct marketing agency with a strong market position and renowned reputation for executing high quality direct marketing campaigns for long time, marquee clients.

Caymus Equity Partners uncovered the opportunity, structured the terms of the recapitalization, and negotiated and arranged all necessary third-party capital. In addition to third-party senior debt, Caymus Equity Partners and Centerfield Capital Partners invested in junior capital comprised of subordinated debt and preferred stock of DMS to provide the Company with the necessary capital to further grow the business and better serve its customers.

Caymus Equity Partners is excited to partner with the strong management team at DMS and invest in a company with a long track record of success in an attractive niche industry with significant growth opportunities.

Geoffrey Faux, Managing Partner of Caymus Equity Partners, stated, “We are particularly excited to partner with Mike and Steve Sherman, who will maintain their ownership interest in, and management roles with, the Company.” DMS’ management added, “DMS is presently experiencing record growth thus our decision to move forward with Caymus Equity Partners was based on our shared customer centric focus. The experience and resources Caymus Equity Partners brings to the table will help ensure that DMS continues as a leader in the direct marketing industry.”

MidSpan Partners served as exclusive financial advisor to DMS.

Download PDF

A group formed by Caymus Equity Partners LLC acquired GA Communications, Inc. (“GA|PRC” or the “Company”) in a transaction that closed in October 2011.

Included in the group are Caymus Equity Partners, RFE Investment Partners, Starboard Capital Partners and Company management. The transaction allowed GA|PRC to transfer ownership to senior management and provide necessary capital to further grow the business, as well as cash out certain shareholders, including the Company’s previous employee stock ownership plan (“ESOP”). Caymus Equity Partners uncovered and introduced the right partners to GA|PRC’s management team, helped structure the terms of the acquisition, and successfully negotiated and arranged all necessary third-party capital. Caymus Equity Partners, RFE Investment Partners and Starboard Capital Partners have partnered with a strong management team at GA|PRC and have invested in a company with a long track record of success in an attractive niche business with significant growth opportunities.

Founded in 1967, GA|PRC is a leading outsourcing marketing services provider based in Stone Mountain, GA. The Company’s marketing campaigns include in-store circulars, free standing inserts for newspapers and mailers, in-store displays, in-store promotional fliers, online marketing, email & social media campaigns, catalogues and website management. GA|PRC specializes in creating and managing content, increasing advertising production efficiencies, and streamlining workflows across all media channels. The Company acts as a single source provider of customized turnkey marketing/advertising solutions for national retailers including Dollar General, Duane Reade, Kohl’s, Lowe’s, Michaels, Safeway, SUPERVALU and S.P. Richards among others. The Company designs, manages and executes marketing/advertising programs for national retailers, including six of the 25 largest retailers in the country.

Caymus Equity Partners invests in profitable middle and lower-middle market companies in attractive niches with strong growth potential. Caymus Equity Partners focuses on opportunities where it can leverage its prior experience and creativity to generate substantial value through a combination of organic and strategic acquisition growth.

Download PDF

A group formed by Caymus Equity Partners LLC (“CEP”), including CEP, Gemini Investors and management, recapitalized Phoenix Aromas & Essential Oils, Inc. (“Phoenix” or the “Company”) in a transaction that closed in January 2010.

The transaction allowed Phoenix to partner with two experienced private equity firms and provided all of the capital necessary to continue its growth and better serve its customers. CEP invested in junior capital comprised of subordinated debt, preferred stock and common stock of Phoenix to complete the recapitalization, which allowed management to take a distribution while maintaining significant minority ownership. Houlihan Lokey served as exclusive financial advisor to Phoenix during the transaction.

Phoenix was founded in 1994 by its current CEO, JP Benveniste, and his father. Phoenix is a leading flavor and fragrance value-added distributor that provides a broad portfolio of essential oils, aroma chemicals, and absolutes & oleoresins to a highly diverse base of leading consumer product and flavor and fragrance manufacturers. Using its substantial market knowledge and expertise in global sourcing, Phoenix sources its products worldwide and is a key strategic distribution partner for many of its suppliers. Phoenix’s flavor and fragrance components are used to create hundreds of end products in a variety of growing markets including food & beverage, fragrance, and personal care. Phoenix has maintained customer loyalty by offering a compelling value proposition based primarily on its distinctive ability to provide its customers with products of the right quality at the right time at the right price.

Caymus Equity Partners invests in profitable middle and lower-middle market companies in attractive niches with strong growth potential. Caymus Equity Partners focuses on opportunities where it can leverage its prior experience and creativity to generate substantial value through a combination of organic and strategic acquisition growth.

Download PDF

Caymus Partners, a leading boutique investment bank, announced today the launch of Caymus Equity Partners. Caymus Equity Partners is the private equity affiliate of Caymus Partners LLC.

Caymus Equity Partners was created to invest in profitable middle and lower-middle market companies in attractive niches with strong growth potential.

Caymus Equity Partners focuses on opportunities where it can leverage its prior experience and creativity to generate substantial value through a combination of organic and strategic acquisition growth.

“We very much appreciate the support we received from our board of directors as well as our Limited Partners. We attribute these long-term commitments to the strong relationships we’ve developed over our investment banking, private equity and operating careers,” said Geoffrey Faux, Caymus Equity Partners, Managing Partner.

Download PDF

CAYMUS EQUITY PARTNERS LLC

Securities Offered through Caymus Securities LLC, Member FINRA/SIPC

CONTACT INFO
ATLANTA

One Paces West
2727 Paces Ferry
Road SE, Suite 1650
Atlanta, GA 30339
T (404) 995-8300

NEW YORK

641 Lexington Avenue
17th Floor
New York, NY 10022
T (212) 755-3600