Yearly Archives: 2012

Edgewater Announces Sale of PGI International

Edgewater Growth Capital Partners II, L.P. (the “Fund”) is pleased to announce the recent sale of our portfolio company PGI International, Ltd (“PGI” or the “Company”). PGI designs, manufactures and distributes highly engineered products and instruments for the energy and agricultural industries. The Fund acquired majority ownership of PGI in May 2007 and partnered with the founding investors HM International to expand the Company through organic growth, acquisition and international expansion.

Shortly after acquiring PGI, Edgewater and the board recruited a new CEO and helped lead the Company through a five year plan centered on three strategic initiatives. First, manufacturing was expanded to serve a growing global market with production facilities in Houston, Texas, Queretaro, Mexico and Changzhou, China. Distribution and sales centers were established in Russia, Singapore and Germany. Second, operating costs were lowered through lean manufacturing programs. Third, Drilling Production Resources, Inc (“DPR”) was acquired in 2011 to expand the Company’s product line into new, fast-growing industry segments. From the initial acquisition in 2007 through 2012, PGI’s sales more than doubled while EBITDA increased nearly three-fold. This performance was particularly positive in light of the market downturn in 2008 and 2009 which negatively affected most of the Company’s customer segments. We are grateful to PGI’s outstanding management team for their excellent leadership and performance.

About The Edgewater Funds

The Edgewater Funds (“Edgewater”) is a Chicago-based private equity firm with approximately $1.4 billion in committed capital. Through Edgewater Growth Capital Partners II, L.P. and other private funds, we partner with management to help accelerate growth in their businesses. Edgewater focuses on funding high quality middle market companies where we can add substantial value through our capital, our experience and our broad network. Edgewater leverages the experiences of its Operating Partners and Strategic Advisory Board who have distinguished themselves as successful CEOs and business leaders.

Edgewater Announces the Acquisition of MEDS, a Leading Patient Eligibility Services Provider

Edgewater Growth Capital Partners III is pleased to announce the recent acquisition of Monti Eligibility and Denial Solutions, Inc. and the Monti Group, Inc., collectively called MEDS (“MEDS” or the “Company”). MEDS is an outsourced provider of patient eligibility, enrollment and revenue recovery services to hospitals and health systems. MEDS customers are located primarily in Florida with additional operations in Indiana and Ohio.

MEDS is the first acquisition completed by our newly formed portfolio company Bolder Healthcare Solutions LLC (“BHS”). The ever-increasing complexity of the U. S. health care system is requiring greater expertise for health care providers to receive full payment for the services they render to patients, whether paid through private insurance or government programs. BHS has been created to provide these specialized services to health care providers to improve the performance of their revenue cycle and cash flow. BHS will strategically acquire key companies to bring together best of breed products and technologies to provide revenue cycle solutions for both hospitals and physician groups.

Edgewater is partnering with Michael Shea who is Chief Executive Officer of BHS. Mr. Shea was previously the founder and CEO of MedAssist, an innovator and leader in patient eligibility and other revenue cycle services. Edgewater and the BHS team under Mr. Shea’s leadership are actively engaged in additional acquisition activities.

Edgewater Acquires Water Infrastructure Services

Edgewater Growth Capital Partners is pleased to announce the recent acquisition of LMK Technologies, LLC, (“LMK”). LMK is the recognized industry leader in Cured-In-Place-Pipe (CIPP) solutions for trenchless repair and rehabilitation of underground water and sewer pipes. LMK has been awarded over 90 U.S. and global patents for its products and processes. The Company supplies its technology, products and equipment directly to customers and through licensed contractors throughout the U.S. and in a growing number of international markets.

Leaks from broken and deteriorated pipes are the leading causes of inflow and infiltration of potable and waste water to storm and sanitary sewer systems, causing numerous problems including ground water pollution. The CIPP market is growing rapidly due to: i) accelerated aging and deterioration of in ground piping infrastructure, ii) increasing regulatory enforcement around ground water pollution and iii) rising awareness of the benefits of this trenchless technology as an economically superior method compared to traditional dig and replace.

The LMK investment is being led by Mike Reardon, as the CEO of Triwater Holdings, Edgewater’s portfolio company focused on water treatment products and services. Previously Mike was President of Culligan and COO of U.S. Filter, a diversified water services company that completed over 200 acquisitions and was sold for over $8 billion.

Edgewater Expands Industrial Service Solutions Platform

Edgewater Growth Capital Partners is pleased to announce that we have recently completed four add-on acquisitions to our portfolio company Industrial Service Solutions Holding Corporation (“ISS”). ISS was formed to develop a strategic build-up in the fragmented industrial repair, refurbishment and services market. The initial platform investment for ISS was completed with the acquisition of Southern Parts and Engineering. Over the past three months, ISS has completed four additional add-on acquisitions, many of which have been in various stages of discussion with us for two to three years. These completed acquisitions are:

  • Commodore Group (operating as Bay Valve), a provider of industrial valve in-shop repair and field services (completed April 2012)
  • Gator Compressor, an independent dealer of used and reconditioned compressors and related equipment (May 2012)
  • National Compressor Services, a provider of compressor in-shop repair and field services (June 2012)
  • Pennsylvania Electric Motor Services, a provider of repair and rebuild services for electric motors and related equipment.

The ISS investment thesis is built on the need in the industrial manufacturing sector for skilled mechanical and engineering services to maintain, repair and replace specialized equipment typically found in most manufacturing plants. This mechanical equipment includes compressors, valves, gearboxes, motors/generators, pumps and other devices that are critical to maintaining productive plant operations but frequently require prompt repairs.

Edgewater is partnering with Jim Rogers who is CEO of ISS. Since 2007, Mr. Rogers has been chairman and interim CEO for Edgewater’s portfolio company Horsburgh & Scott, an industrial manufacturing company located near Cleveland, Ohio. Previously, Mr. Rogers was CEO of GE’s Industrial Controls Division and subsequently ran several industrial companies for private equity firm Clayton Dubilier & Rice. Edgewater and the ISS team have numerous additional companies in various stages of the acquisition process.

Edgewater Announces Unitech Acquisition

Edgewater Growth Capital Partners III, L.P. is pleased to announce the recent acquisition of Unitech Holdings, Inc. (“UHI” or the “Company”). UHI designs, develops and manufactures high performance parts and assemblies for the aerospace and defense industries. UHI was formed through a combination of three complementary companies, Unitech Composites, Inc., Integrated Composites, Inc. and Hill Aerosystems, Inc. UHI provides high performance composite and metal parts for all segments of the aircraft industry including new production and aftermarket service for both commercial and defense aircraft. The Company has manufacturing facilities in California, Washington and Idaho and is led by a highly experienced leadership team.

Edgewater has partnered with Acorn Growth Companies, a private equity firm focused exclusively on aerospace and defense companies. UHI is the first investment toward building a leading aerostructures platform. We are seeking to grow through additional acquisitions of composite and metal aerostructures companies.

Edgewater Announces Amptek, Inc. Acquisition

Edgewater Growth Capital Partners III, L.P. is pleased to announce the recent acquisition of Amptek, Inc. (“Amptek” or the “Company”). Amptek designs and manufacturers instrumentation used to identify composition of materials using x-ray fluorescence (“XRF”). Amptek was founded in 1977 and has grown to be the largest manufacturer of x-ray detectors using the XRF methodology. Amptek’s products are sold to OEM’s that manufacture non-destructive testing devises to measure elemental composition in metal production, pharmaceutical products, electronics, environmental samples and to meet various regulatory requirements. Amptek serves customers on a global basis in North America, Europe and Asia. Amptek is the second company acquired under Edgewater’s portfolio company Sensor Solutions Holdings LLC which has been formed in partnership with our affiliate Bolder Capital, LLC.

Sensor Solutions Holdings was formed in 2010 to execute a build-up strategy in the fast growing, highly fragmented $48 billion global sensors market. The build-up focuses on two industry verticals, non-destructive testing and environmental sensors, that benefit from increased regulatory requirements, innovative product offerings and growing demand for productivity enhancing instruments.