Edgewater Growth Capital Partners III, L.P. (the “Fund”) is pleased to announce the acquisition of Priority Express Courier, Inc. (“Priority” or the “Company”). Priority provides same-day express delivery services to clinical laboratories, health systems, long-term care pharmacies and other industries requiring a high level of service and quality control. The Company provides both regularly scheduled logistics services as well as on-demand delivery to clients located in Pennsylvania, New Jersey and southern New York. The Company operates on an asset light basis through its utilization of a broad network of independent contractors.
Priority is the first acquisition by the Fund’s new logistics platform which is targeting a build-up of regional express delivery companies. We believe the express delivery market represents an attractive area of growth due to the increased outsourcing of delivery functions to reduce costs, consumers’ greater demand for immediate delivery and improving technologies to enable faster dispatching and product tracking.
Edgewater and the Priority team are evaluating acquisitions of other asset light regional expedited delivery companies. Please contact us if you have any questions or if we can provide additional information.
Edgewater is partnering with Bruce Parker who is Chairman of the platform holding company, U.S. Logistics Solutions, LLC. Mr. Parker has spent his career leading transportation and logistics companies, including as Chairman and CEO of AirNet Systems, Inc. and as an officer of Ryder System, Inc., United Airlines, American Airlines and Sabre Computer Systems.
Edgewater Growth Capital Partners III, L.P. is pleased to announce the acquisition of two additional companies within its portfolio company Unitech Holdings, Inc. (“Unitech”). Unitech, which Edgewater acquired in 2012 in partnership with Acorn Growth Companies, designs, develops and manufactures high performance parts for the aerospace and defense industry in North America. The two recent acquisitions significantly expand Unitech’s global operations and more than doubles the company’s revenue and EBITDA.
Since 2012, Unitech acquired Paul Holdings, Ltd. (“Paul”) and W&J Tod Holdings, Ltd. (“Tods”) in separate transactions. Both companies are based in the United Kingdom and provide outstanding technical design and component manufacturing to aerospace and related industries. Paul specializes in complex aircraft engine assemblies comprised of alloys and exotic metals that are difficult to form. Tods designs and manufactures a broad array of composite products for the aerospace, naval and land based defense industries. These companies serve primarily European based customers including Airbus, Rolls Royce, Augusta Westland, BAE and the Royal Air Force and Navy.
With the acquisitions of Paul and Tods, Unitech has significantly expanded its global footprint, technological design capabilities, customer base and product offering. The combined company is uniquely positioned as a global supplier to the entire aerospace industry by providing specialized components in original equipment manufacturing and maintenance for commercial aircraft and defense industries around the world.
Edgewater Growth Capital Partners III, L.P. is pleased to announce its newest portfolio company, Haystax Technology, Inc. Haystax provides cyber security services and technology products to defense, intelligence agency and commercial clients. In April 2013, Haystax completed its initial two acquisitions, both located in the Washington, D.C. area. Digital Sandbox, Inc. provides specialized “Big Data” analytics and active monitoring solutions for public and private sector clients. Digital Sandbox’s technology platform is utilized in counterterrorism centers, law enforcement, and special events security such as the Super Bowl and Republican National Convention. The second acquisition, FlexPoint Technology, LLC, specializes in delivering secure collaboration solutions to government customers with extremely demanding security requirements. Approximately ninety-five percent of Flexpoint’s employees have top secret security clearance to serve the highest level of the Federal government intelligence community.
Since 2012, Edgewater has partnered with Bill Van Vleet to build a next generation intelligence company that can collect, link, analyze and exploit data for the intelligence community. Mr. Van Vleet was previously CEO of Applied Signal Technology, Inc. (“AST”), a cyber security services and software company which he sold to Raytheon for approximately $500 million. Mr. Van Vleet is the CEO of Haystax and he has been joined by other senior members of his team at AST. Edgewater is working closely with the Haystax team and their many industry relationships to pursue additional acquisitions.
The growth opportunity for Haystax is highlighted with increasing frequency in national and global news headlines. The heightened risk of cyber threat and high profile security breaches require government agencies and private companies to turn to next generation big data and cyber security solutions.
Edgewater Growth Capital Partners III, L.P. is pleased to announce that we have recently completed two add on acquisitions to our portfolio company Industrial Service Solutions Holding Corporation (“ISS”). ISS was formed in 2011 to develop a strategic build-up in the fragmented industrial repair, refurbishment and services market. Through mid-2012, ISS completed five acquisitions, all of which provide the skilled labor, facilities and management leadership necessary to provide solutions for pumps, valves, compressors and motors. These devices are critical for plant operations particularly in the continuous process industries targeted by ISS.
In December 2012, ISS completed the acquisition of Madison-Smith Machine & Tool Co. (“MSMT”). MSMT provides plant maintenance, field/service repair and a centralized source of precision machined components. The company is headquartered in Kentucky and services manufacturing plants operating in a variety of end markets in the Southeast including food, automotive, agriculture, consumer products and packaging. This acquisition increases ISS’s customer base, expands the ISS team focused on scheduled plant maintenance and bolsters the precision machining capability within ISS.
In February 2013, ISS acquired RAM Industrial Services, Inc. (“RIS”). RIS provides repair services and replacement parts for pumps, motors and related equipment. RIS’s 150 employees service over 1,500 industrial customers primarily in the transportation, energy and metals sectors. RIS is headquartered in Leesport, PA and its experienced management team will play a leading role in the continued growth of the pumps and motors vertical.
ISS has now completed seven acquisitions and continues to seek complementary acquisition opportunities.
Edgewater Growth Capital Partners III, L.P. is pleased to announce five acquisitions completed since mid 2012 which significantly expand its platform company Testing Services Holdings, LLC (“TSH”). Edgewater initially invested in TSH in 2011 to provide services and equipment which monitor and enhance employee workplace safety in environmentally sensitive conditions. With these recent acquisitions, TSH has expanded its geographic coverage, customer base and service offerings. The company serves a wide range of industries including chemical, manufacturing, construction, mining, oil and gas, healthcare and first responders to environmental catastrophes. In June 2012, TSH completed the acquisition of the laboratory business of White Environmental Consultants, Inc (“White”). White’s geographic coverage has increased TSH’s customer base in the growing and highly regulated oil and gas industry. The Argus Group, Inc. (“Argus”) was then acquired in July 2012 to provide TSH’s customers with equipment used in workplace safety monitoring. Argus sells, rents and services industrial hygiene and safety equipment including gas monitoring and measurement devices, respiratory and air control, industrial hygiene supplies and personal protective equipment. In November 2012, TSH added to Argus’s equipment rental and distribution business with the acquisition of TRS-Environmental (“TRS”).
In January 2013, TSH acquired Inalab, Inc. (“Inalab”) and Occupational Environmental Health Laboratory (“OEHL”). Both companies have customers who can be serviced out of existing TSH facilities which should create cost savings. Inalab and OEHL expand TSH’s customer base in Hawaii and Canada and provide access to potential customers in Japan and other parts of Asia. Testing Services Holdings is well positioned for continued growth both organically and through additional acquisitions. Market demand for TSH’s services and products should expand with the proliferation of additional regulations for workplace quality, safety, health and environmental (“QSHE”) standards both in the U.S. and internationally.
Edgewater Growth Capital Partners III, L.P. (the “Fund”) is pleased to announce two recent acquisitions to the Funds’ platform company focused on water treatment products, services and infrastructure.
In December 2012, the Fund acquired Klenzoid Company Ltd. and Eldon Water, Inc. (collectively “Klenzoid”). Klenzoid is a water treatment chemicals supplier and services company based in Toronto, Canada. Klenzoid treats boilers, water cooling towers and process water systems for customers in industrial, commercial and health care industries in Canada and the Great Lakes area in the U.S. Klenzoid is a complementary acquisition for our first water treatment company, Nashville Chemical, which we acquired in 2011. These two companies will now be able to service a broader geographic base of customers while leveraging scale, procurement and best practices.
The Fund also recently completed the acquisition of a second company in the water infrastructure sector. The Fund’s first company in this sector is LMK Technologies, LLC (“LMK”) which was completed in August, 2012. LMK is the recognized leader in Cured-In-Place-Pipe (CIPP) solutions for trenchless repair and rehabilitation of underground water and sewer pipes. LMK primarily serves the municipal market with products and processes that have received over 90 U.S. and global patents. The second acquisition was completed in December to serve the residential and commercial customer base which has, to date, not been covered by LMK. Sales to all customer channels will further establish LMK as the industry leader. The CIPP market is growing rapidly due to the deterioration of in-ground piping infrastructures, increased regulatory enforcement around ground water pollution and the rising awareness of the benefits of this trenchless technology.
Additional acquisitions are being pursued in the following water industry sectors: water treatment products, chemicals, services and pipeline infrastructure products and services.