Yearly Archives: 2007

Edgewater Announces Sale of Compass Environmental to WRS

CHICAGO – Edgewater Growth Capital Partners has announced the sale of portfolio company Compass Environmental to WRS Infrastructure & Environment.

WRS is an environmental remediation company backed by Equity Group Investments, which is a Chicago-based investment firm founded and led by Sam Zell. Edgewater partnered with Compass’ CEO through an investment in 2003.

Since that time, Compass has become one of the fastest-growing and largest privately held environmental remediation companies in the U.S. The transaction expands the capabilities of both companies and enhances their combined position within the high-growth, public- and private-sector markets.

The sale to WRS created the opportunity for Edgewater to make an investment in WRS to build further value from Edgewater’s investment in this industry. Compass is another example of Edgewater’s investment strategy.

The company was introduced to Edgewater through a personal relationship with one of Edgewater’s partners and the investment was negotiated on favorable terms to Edgewater without an auction process.

Throughout the investment life, Edgewater assisted in the recruitment of senior management and the generation of dozens of business opportunities that created growth and value in the business.

The company successfully expanded both organically and through the 2004 acquisition of Williams Environmental Services. Edgewater will actively assist the combined entity in its continued growth and success.

The Edgewater Funds Acquires American Laser Centers

FARMINGTON HILLS, Mich., Dec. 10 /PRNewswire/—American Laser Centers, the largest provider of laser hair removal and other noninvasive aesthetic services in the United States, announced it has been acquired by Chicago-based private equity firms Code Hennessy & Simmons LLC (“CHS”) and The Edgewater Funds. Specializing in private equity investments and recapitalizations of middle market companies in partnership with management, CHS and The Edgewater Funds become the majority owners of the company.

As part of the ownership transfer process, Gary Graves has been appointed CEO to succeed Founder and CEO Rich Morgan. Prior to joining American Laser Centers, Mr. Graves was CEO of Chicago-based La Petite Academy, Inc., the second largest for-profit preschool educational center which operates 645 schools in 36 states and the District of Columbia, where he gained significant expertise marketing to a female customer base. Prior to that, Mr. Graves was COO of InterPark, the world’s premier owner, manager, and developer of parking facilities. In addition, he has a strong multi-location business management background holding top positions at Boston Market, PepsiCo and Yum Brands. Mr. Graves currently serves as a non-executive Chairman of the Board for Caribou Coffee and is an independent member of Caribou Coffee’s Board of Directors.

“I am eager to lead American Laser Centers,” said Mr. Graves. “This is an exciting time in the aesthetic treatment industry and it is rewarding to be at the helm of the leader in the space.”

Mr. Morgan adds, “To continue American Laser Centers’ rapid growth and expansion, Gary brings a wealth of relevant experience with major consumer brands and the female market paired with a keen understanding of operational efficiency. We know his skills are essential to building upon our strong brand identity and executing our vision to remain the leader in non-surgical cosmetic procedures.”

CHS is a private equity firm, founded in 1988 that manages more than $2.5 billion in capital across five different funds. The Edgewater Funds is a private equity firm with $1 billion in capital. CHS and The Edgewater Funds will provide strategic direction for American Laser Centers through active roles on the Board of Directors.

American Laser Centers was ranked in Inc Magazine’s 2007 list of the fastest-growing private companies in the U.S. and ranked sixth highest in the state of Michigan. The company has experienced more than 53 percent year-over-year sales growth, and performs approximately 75,000 treatments each month.

About American Laser Centers 

American Laser Centers is the largest and most successful laser hair removal, skin rejuvenation and cellulite reduction therapy company, with more than 220 locations in the United States. The company has performed more than two million aesthetic treatments since its founding in 2002. American Laser Centers offers clients treatments using state-of-the-art-technology under a doctor-supervised regimen. American Laser Centers is proud to offer the industry’s only written two-year guarantee for laser hair removal. For more information, please visit http://www.americanlaser.com/.

Edgewater Acquires Horsburgh & Scott Co.

CHICAGO – Edgewater Growth Capital Partners II LP is pleased to announce the recently completed acquisition of Horsburgh & Scott Co. (H&S), which is headquartered in Cleveland. H&S is a leading manufacturer of large-diameter industrial gears and custom mechanical gear drives.

The company also provides specialized services including heat treatment, technical solutions and on-site customer service. The acquisition was completed in partnership with Edgewater affiliate Bolder Capital LLC and the management team at H&S.

H&S products are used in a variety of applications in the steel, mining, sugar, aluminum and power-generation industries.

The company’s large-diameter gears also are critical components for alternative power-generating wind turbines, which represents a high-growth opportunity for H&S. Edgewater is working closely with management to further grow the business by investing in equipment to open up new end-user markets.

Edgewater Funds Gets Drink Concentrate Maker Beverage House

Cartersville, Ga.–Chicago buyout shop Edgewater Funds has gulped down Beverage House Inc., a company that mixes and packages concentrates of liquid tea, coffee, health drinks and other beverages, for an undisclosed amount.

Edgewater Funds is buying the Cartersville, Ga.-based company from a broad group of private shareholders that was looking for an exit, according to Mark Loeffler, a principal at VRA Partners LLC, the Atlanta investment bank that advised the sellers. Members of management, however, are retaining a stake and continuing with the company.

Beverage House formulates drink concentrates for its clients, which include foodservice companies and retailers, and packages them in boxes or plastic bags before being shipped out. No details about its finances were disclosed.

Edgewater was attracted to the company largely due to its activity in teas and other healthy beverages, which are seeing better growth as more Americans choose alternatives to soda and other sugary drinks. As a result, Beverage House has experienced sales growth of about 40% on average over the last four years, according to Dave Tolmie, a partner at Edgewater Funds.

The company has also carved out a nice niche in the tea, coffee and herbal beverage space, a feature that places it on a short list of concentrate manufacturers that companies go to when they need a mix made.

“We also like how much its customers value the capabilities that the company has to develop a superior product,” Tolmie said. “They are a leader in what they do.”

Edgewater Funds is viewing the company as a platform for acquisitions of other makers of “value-added” beverage ingredients, Tolmie said. The firm also plans on making investments to upgrade the company’s manufacturing facility.

Beverage House generated significant interest from both strategic and financial buyers, largely due to a leading position in the space, Loeffler said. In addition, a diverse customer base protects Beverage House from a downside.

Edgewater Funds is investing out of its Edgewater Growth Capital Partners II LP, a $470 million partnership raised last year.

The Edgewater Funds Acquires BarrierSafe Solutions International, Inc.

The Edgewater Funds, along with equity partner Linden LLC, announced today that they have acquired BarrierSafe Solutions International, Inc. (“BSSI”), a leading provider of branded, disposable barrier protection and infection control products, from Riverside Partners and StoneCreek Capital.

Headquartered in Reno, BSSI sells more than six billion gloves annually across 180 product families under two umbrella brands, FoodHandler® and Microflex®. By focusing on premium products, BSSI has built leading market shares in the foodservice, emergency medical services, automotive, dental, laboratory, and industrial markets. BSSI was created in 2004 through the merger of FoodHandler and Microflex, although the two businesses have histories of delivering quality products dating back to 1969 and 1987, respectively.

BSSI’s senior management team, which has over 100 years of experience within the industry, will retain an ownership stake in the company and continue to lead the organization. The team is headed by Chief Executive Officer Mike Mattos, who brings 25 years of experience including senior management roles at Safeskin and Kimberly Clark.

Mr. Mattos said, “BSSI has a leading portfolio of barrier products that enables us to deliver solutions for basic health an safety needs across a broad spectrum of customers. We look forward to working together with our new partners at Edgewater (and Linden) to further grow our business and expand our infection control, food service, and industrial safety platforms through continued organic growth as well as additional acquisitions.”

FirstLight Financial Corporation and CIT Healthcare LLC co-managed the senior debt and Brown Brothers Harriman & Co.’s BBH Capital Partners III and Metropolitan Life provided the subordinated debt financing and an equity co-investment. Kirkland & Ellis provided legal advice to the buyers. Financial terms of the transaction were not disclosed.

About BarrierSafe Solutions International, Inc. 

BarrierSafe is a leading developer and marketer of branded disposable hand protection and related products. The company offers an extensive selection of high quality disposable gloves and other specialized products for a diverse range of growing niche markets, including the foodservice, dental, laboratory, emergency medical services, non-acute healthcare, automotive, and general industrial segments, in which branding, quality, innovation, and features are key differentiators that drive end-user demand and loyalty. For additional information, please visit www.barriersafe.com.

Edgewater Growth Capital Partners II, L.P. in Partnership with its Affiliate Bolder Capital

The Edgewater Funds, a leading private equity firm, announces the sale of it’s portfolio company, Mid America Recycling to Greenstar North America, the recycling business of NTR plc.

Mid America Recycling (MAR or the Company), on of the nation’s largest recycling companies with plants and facilities across America, is a multi-material recycling company processing 1.5 billion pounds of paper, plastics, metals and glass annually. Originally founded as Container Recovery, Incorporated in 1979, Bolder partnered with MAR CEO, Brian Meng, in a management buyout of the founding shareholders in 2004.

“We are very proud of our role as a partner to Brian Meng and the exceptional team at MAR during this exciting growth phase, including support of the company’s successful acquisition and single stream strategies,” said Bolder Managing Director, Todd Hamilton. “We have enjoyed an outstanding partnership with management and the new relationship with “Greenstar represents an exciting new chapter in the MAR story.”

“I’d like to thank Bolder for their unwavering support in helping MAR become an industry leading company,” said MAR CEO, Brian Meng. “I am looking forward to Mid America’s partnership with Greenstar, America. “Our companies share a similar commercial vision for the future as well as a focus on bringing the latest recycle processing technology to market. Together, we will be well positioned for growth in the recycling industry.”

“MAR is a remarkable business in the rapidly changing global recycling industry. Joining forces with the company’s top notch management team has been a tremendous success for Edgewater. We wish the MAR team continued future success,” added Edgewater Managing Partner, Jim Gordon.

“Mid America’s leadership in recycling, particularly with new investments in single stream processing, and its global trading business directly complements our North American strategy,” said Steve Ragiel, Greenstar CEO.

MAR’s legal counsel was provided by Sonnenschein, Nath, Rosenthal, LLP. Legal counsel was provided by Locke, Liddell & Sapp, LLP for Greenstar.

About Mid America Recycling (“MAR”) 

Mid America Recycling Incorporated, one of the nation’s fastest growing and largest private recycling companies, is comprised of multi-material recycling facilities across the Central United States whose efforts are greatly contributing to the growth of recycling in America today.

The organization that began operation from a single plant in Des Moines, Iowa nearly 30 years ago as Container Recovery Incorporated (CRINC) has since matured and expanded into a national multi-material recycling leader. Mid America companies provide expertise in creating cost effective, quality driven recycling programs for recyclers, waste haulers, landfills, cities and governments. These programs create solid market fundamentals that encourage and allow both small businesses and large corporations to recycle profitably while reducing waste hauling expenses and landfill stress.

Today, processing over 1.5 billion pounds of paper, plastics, metals and glass annually, the Mid America companies are growing by shaping positive recycling and environmental solutions for the 21st century and beyond.

About Greenstar North America (“Greenstar”) 

Greenstar North America is a leading provider of sustainable recycling solutions in the recycle processing, commodity upgrading and commodity trading sector of the US solid waste market. The Mid America transaction is Greenstar’s fourth partnership in the U.S. including Recycle Management of Pittsburgh Pennsylvania, Todd Heller Inc of Allentown Pennsylvania, and Delta Management of Normal Illinois. Greenstar is now one of the largest private recycle processors in the U.S. handling over 1 million tons per year of recyclables through a network of 15 processing facilities. The company is focused on the recycle sector and does not expect to enter the landfill or waste collection areas of the solid waste market.

About NTR plc 

NTR plc is a leading international developer and operator in renewable energy and sustainable waste management. The company employs 1,600 people, has an annual revenue of in excess of $500 million and a market capitalization in excess of $1.6 billion. NTR has operations in Ireland, UK, Germany and the US.

The Edgewater Funds Announces a Strategic Alliance with Robert B. Covalt and Associates

The Edgewater Funds is pleased to announce it has formed a strategic alliance with Robert B. Covalt and Associates. This alliance is focused on buyout opportunities of high quality middle market companies in the Specialty Chemical Industry, with an emphasis on adhesives, sealants and coatings.

Mr. Covalt was Founder, Chairman, President and CEO of Sovereign Specialty Chemicals, Inc. and successfully led Sovereign’s growth from $0 to almost $400 million in revenues through a combination of nine acquisitions and organic growth. Prior to Sovereign, Mr. Covalt served as Morton International’s Corporate Executive Vice President and previous to that served as President of Morton’s Specialty Chemicals Group. As President, he led the growth of its specialty chemicals business from $175 million to $1.3 billion in sales and completed 13 acquisitions ranging in size from $3 to $170 million.

Former Sovereign executives, CFO John Mellett and Vice President Paul Gavlinski, are working with Mr. Covalt in this endeavor.

Scott Meadow, Partner with The Edgewater Funds, commented, “We are excited to be associated with a top notch group of executives. Bob, John and Paul are very experienced and have an outstanding track record. We view the Specialty Chemical Industry as an attractive investment area particularly given the large number of companies with sales of $25 to $300 million.”

Mr. Covalt added, “We are delighted to have an experienced financial partner who can assist us with our acquisition plans.”

Edgewater Acquires PGI International

CHICAGO – Edgewater Growth Capital Partners II has recently completed the acquisition of PGI International. PGI designs, manufactures and distributes instrumentation and engineered products for the energy and agricultural industries worldwide.

The company has manufacturing operations in Houston; Queretaro, Mexico; and Changzhou, China. Management and the company’s previous controlling shareholders partnered with Edgewater in the transaction and have retained significant ownership in PGI.

Edgewater believes PGI represents an opportunity to invest in the growth of the global energy industry. As countries such as China and India continue to develop, demand for oil and gas around the world will continue to increase. This will drive the growth of energy industry suppliers such as PGI.

Through acquisitions and the growth of the company’s low-cost country manufacturing capabilities, Edgewater believes PGI can become a leading provider of engineered products to the global energy industry.

Interactive Technology Solutions, LLC Acquires ITEQ Integrated Technologies, Inc

Effective June 12, 2007, Interactive Technology Solutions, LLC (ITSolutions) announced that it signed a definitive agreement to acquire ITEQ Integrated Technologies, Inc. (ITEQ), a U.S. federal government information technology services company based in Silver Spring, MD.

Through this acquisition, ITSolutions staff will increase to more than 500 professionals and as importantly will expand its suite of services provided to the federal, state, and local government services sector to include the following verticals:

IT Strategic Planning,

Program Management,

Infrastructure Operations,

Network Engineering and Architecture,

Information Assurance,

and Data Center Relocation.

The acquisition gives ITSolutions several additional significant government contracts and expands its client base to include: Health and Human Services, the Food and Drug Administration, the Internal Revenue Service, the Department of Treasury, the Department of Defense, Alcohol Tobacco and Firearms, Office of Personnel Management, the Department of State and the DC Government. The combined company will operate as a prime contractor on nearly 70% of its contracts.

“ITEQ has a great reputation with its clients and a strong team of talented professionals that make it an excellent fit with the ITSolutions team,” said Stefan Lalos, CEO of ITSolutions. He added, “The capabilities of ITEQ and ITSolutions allow us to provide a greater level of service to our clients in support of their important missions.”

ITSolutions (http://www.itsolutions-llc.com) is a provider of information technology services to federal, state, and local government agencies. Headquartered in Gaithersburg, Maryland, ITSolutions was recognized in 2006 by Inc. Magazine as the nation’s 29th fastest growing private company (2nd in the technology sector), and by the Washington Business Journal as the 5th fastest growing company in the metro-DC area. The company was founded by Stefan Lalos and Mike Dietz and has a minority investment from the Edgewater Funds, a $1 billion private equity firm based in Chicago, Illinois.

Nation’s Top-Ranked Integrated Health System Chooses ECIN For Utilization/Case Management

The Toledo, Ohio-based ProMedica Health System, which topped Modern Healthcare Magazine’s 2006 list of the nation’s top integrated health systems, has chosen ECIN to automate case management at its nine hospitals.

ECIN’s ExtendedCare ProfessionalTM software streamlines the daily case management functions of discharge planning and utilization management into a single work list, empowering case managers to decrease denials and avoidable days and optimize length of stay, while increasing throughput, staff efficiency, quality and patient satisfaction.

“Case Managers at ProMedica play an increasingly larger role in helping drive better clinical, financial and patient satisfaction outcomes,” said Gladeen Roberts, President. “It makes sense to give them the market’s most powerful and case management-specific tools available and ECIN’s unique offering integrating utilization management and discharge planning across many facilities is just that.”

ProMedica case managers will be able to communicate automatically with payers and post-acute care providers, eliminating hours wasted daily phoning and faxing and drastically reducing the amount of paper-based documentation they currently must generate.

Hospital case management places one person in charge of coordinating all phases of patient care, from admission through discharge, and has two fundamental tasks: Utilization Management– the process of securing payer authorization – and Discharge Planning, planning patient discharge and securing any necessary post-acute care options.

Integrating both applications into a single solution has proven to provide a series of benefits to hospitals across the country:

Boosted productivity due to single database/consolidated work-list. Not having to jump between discharge planning and utilization management systems — nor waste hours re-keying data – has saved existing ECIN clients several hours every day.
Reduced denials and excess days via automated payer communication. Delivering patient data via secure Web communication proves information delivery and eliminates the very common “Lack of Information Denial”(LOI) payers often cite when data is relayed via phone or fax.
Increased patient focus by virtually eliminating faxes and phone calls. Less clerical time with phones and fax machines means more clinical time for patients.
Better management reporting when “patient lives in ECIN.” Case management- captured data can be converted into actionable business intelligence when captured and processed via the ECIN system.
Higher patient satisfaction. Reaching out electronically to dozens of post-acute care facilities at one time greatly expands the choices presented to patients and families.

ECIN’s industry-defining discharge planning solution is used by more than 340 hospitals nationwide. Automating post-acute facility referrals eliminates the cumbersome and costly process that has a case manager or discharge planner wasting hours every week phoning and faxing to secure post-acute care services one provider at a time. Instead, the ExtendedCare ProfessionalTM application sends a detailed electronic referral across ECIN’s proprietary database of 86,000 providers and interested facilities reply – often within minutes. The patient and family then receive a discharge packet that details their facility options, making that decision process more transparent and informed. That packet’s breadth of options and depth of information on each provider allows patients and families to make an extended care facility choice that precisely meets their needs. Physicians and families still control the discharge process, but have exponentially more information in a fraction of the time.

About ECIN 

ECIN’s web-based case management software and consulting enables hospitals to fully automate and streamline the entire care management process – from admission to discharge. Unifying discharge planning and utilization management applications into a single integrated solution allows case managers to work from a single screen to decrease denials and avoidable days and optimize length of stay, while increasing throughput, staff efficiency, quality and patient satisfaction. ECIN’s automated data capture also allows case management departments to better document and measure key quality and performance indicators to drive process improvement efforts. Founded be healthcare professionals, ECIN’s product and services are utilized by over 320 hospitals and 4,000 post-acute care providers. For more information, please visit www.extendedcare.com. ECIN is based in Chicago, Illinois.