Yearly Archives: 2009

Edgewater Announces Dantom Add-On Acquisition

Edgewater Growth Capital Partners is pleased to announce the add-on acquisition recently completed by our portfolio company Dantom Systems, Inc. Dantom is a leading provider of collection letter services to the Accounts Receivable Management marketplace. In October, Dantom acquired the collection letter services business of Diversified Data and Communications (“DIVDAT”). DIVDAT’s operations will be consolidated into Dantom’s facility in Wixom, Michigan.

Earlier in 2009, Dantom also acquired the collection and receivables division of Antares Information Technologies, Inc, consolidating Antares operations into its Wixom facility. Both the DIVDAT and Antares acquisitions have been highly accretive as significant revenues have been added with only a negligible increase in Dantom’s operating expenses. Through these two acquisitions, Dantom has further distinguished itself as the premier company in its industry. Edgewater’s Dantom investment has been completed in partnership with our affiliate Bolder Capital, LLC. We are continuing to work closely with Dantom’s management team on additional acquisition opportunities.

Edgewater Sells IT Solutions to Snow Phipps Group

PRESS RELEASE
Edgewater Sells IT Solutions to Snow Phipps Group

Edgewater Growth Capital Partners II, L.P. announced that they have completed the sale of its portfolio company ITS Holding Company (“ITSolutions”) to Snow Phipps Group, LLC, a New York-based private equity firm. Mr. Stefan Lalos, Co-Founder and CEO of ITSolutions, as well as current and former employees participated with Snow Phipps in the acquisition. Mr. Lalos will continue to lead the company as CEO.

ITSolutions, headquartered in Silver Spring, Maryland, is a leading information technology services provider to U.S. government civilian, national security, and intelligence agencies. ITSolutions 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.

“We have enjoyed a terrific relationship with Edgewater and look forward to partnering with Snow Phipps in the next phase of our development,” said Mr. Lalos. “We are delighted to share our vision and build our business with the support of Snow Phipps. We look forward to the strategic guidance they will provide to take advantage of the opportunities for both organic and acquisition oriented growth.”

“Our partnership with the IT Solutions team has been a tremendous success for everyone involved,” said Jeff Frient, partner with Edgewater Growth Capital Partners. “Since our initial investment in December 2005, we have worked closely with management to complete two strategic acquisitions and significantly expand the company’s customer base. During this time, IT Solutions has increased in size over three-fold and they have built an outstanding reputation in their industry.”

“Stefan Lalos and his team have built a company that is differentiated by its superior customer service and its strategic market positions,” said Leif Soderberg, Snow Phipps Operating Partner. “We have worked diligently to identify the right investment opportunity in the federal IT services marketplace and believe that our partnership with Stefan and Leif will result in the future growth and continued success of ITSolutions,” added Snow Phipps Investment Partner Sean Epps.

BB&T Capital Markets | Windsor Group acted as the exclusive financial advisor to ITSolutions.

About ITSolutions, LLC

Established in October 2001, Interactive Technology Solutions (ITSolutions) is a privately held management and information technology consulting company. ITSolutions employs over 500 professionals located in the Washington, DC metropolitan area. ITSolutions has consulted with over 19 government agencies and private companies by providing customers with expertise and solutions in the areas of program and project management, strategic planning, infrastructure operations, call center consulting, and network engineering and operations.

About Snow Phipps Group, LLC

Snow Phipps is a New York-based private equity firm founded by Ian Snow and Ogden Phipps that seeks to acquire middle market businesses in attractive industries by leveraging the expertise of exclusive Operating Partners who are seasoned industry executives.

American Piping Products Receives Equity Investment from The Edgewater Funds

American Piping Products, Inc. (“APP”), announced that it has received a growth equity investment from a leading private equity firm to accelerate APP’s growth. The equity investment was led by The Edgewater Funds (“Edgewater”) in partnership with APP’s senior management team. APP is a rapidly growing distributor of specialty steel pipe, fittings, and valves to global infrastructure customers in the energy, manufacturing, and construction industries. APP is recognized for its in-stock availability of niche products that meet its customers’ demands in a complex, international supply chain. APP sources and stocks inventory from a network of qualified producers and suppliers with whom it enjoys long standing relationships based on quality and performance at high service levels.

The recapitalization positions APP for continued growth by providing capacity for expanding its product offering and investing further in scalable operating assets. Since its founding in 1994, APP has developed a strong competitive position in the supply of heavy-all, seamless pipe. The company currently employs 34 people in its headquarters in Chesterfield, Missouri; its service center in Houston, Texas and sales office in Philadelphia, Pennsylvania.

“We are delighted to have partnered with Edgewater,” commented Michael Phelan, President and founder of APP. “We look forward to taking the next step in our company’s growth with the resources and experience Edgewater brings to APP,” added Al Rheinnecker, COO of APP, “This investment will allow us to take advantage of the significant opportunities we see in supplying global infrastructure initiatives, both now and over the next several years.”

Jeffrey Frient, Partner at Edgewater, said “We are excited to partner with APP and the two highly successful entrepreneurs who have led the company to date. Together with them, we will move quickly to enhance APP’s competitive position and strengthen its ability to capture future, profitable growth.”

About American Piping Product, Inc. American

Piping Products, Inc. is an international supplier of steel pipe and related products to the energy, manufacturing, and construction industries. American Piping focuses on the distribution of heavy-wall carbon, stainless, and chrome-moly pipe, tube, fittings and valves. From its Houston Texas service center, American Piping receives, processes, and ships product to throughout the North America, Europe, and the Far East. American Piping is recognized for its depth and breadth of stock inventory in the product categories it supports. Other services include logistics support, quality assurance, export packaging, production saw cutting, and same day shipments. For information, visit www.amerpipe.com.