Recapitalizations in 2020

Golden Gate Capital announced an investment in Covia as the company emerged from Chapter 11 after completing a financial restructuring that reduced long-term debt by approximately $750 million and cut fixed costs, including railcar obligations, by about $300 million. Golden Gate and its affiliates are the largest individual shareholder in Covia, a supplier of mineral-based material solutions headquartered in Independence, Ohio with an extensive network of plants and terminals across North America.

Riata Capital Group completed a recapitalization of Greenix Pest Control in partnership with CEO Bob Nilsen and the company's management team. Greenix is a subscription-based residential pest control platform operating in 14 markets across the Midwest, Mid-Atlantic and Eastern United States; Riata plans to support the company's continued expansion and pursue synergistic add-on acquisitions.

Chicago-based private equity firm Benford Capital Partners completed a recapitalization of Brothers International Food Corporation, partnering with founder and CEO Travis Betters who will remain in place. The capital will be used to invest in sales, marketing, R&D and new product development across Brothers' ingredients and Brothers All-Natural divisions, and to pursue add-on acquisitions in the healthy snacks and food ingredients space.

Golden Gate Capital has recapitalized Tidal Wave Auto Spa, partnering with founder and CEO Scott Blackstock, who will remain CEO and a significant shareholder. The transaction will provide development resources to support aggressive new-unit expansion, acquisitions and continued growth of the company's Unlimited Wash Club membership program; terms were not disclosed.

Calera Capital completed a majority recapitalization of FitzMark, LLC, partnering with founder and CEO Scott Fitzgerald to support the company's growth. FitzMark, a Indianapolis-headquartered third-party logistics firm serving truckload, flatbed, refrigerated and LTL markets, will leverage the partnership to pursue organic growth and targeted acquisitions; terms were not disclosed.

Affiliates of Lindsay Goldberg acquired a majority interest in Pike Corporation, a leading U.S. provider of infrastructure, construction and engineering services to utilities. The transaction supplies Pike with new equity and an incremental term loan B to support growth and strategic initiatives while founder J. Eric Pike and other existing investors remain significant shareholders.

NMS Capital has partnered with Strive Medical's management on a recapitalization of Strive Medical, a direct-to-patient provider of urological and wound care supplies headquartered in Irving, Texas. Terms were not disclosed; NMS said the investment will be used to expand market penetration, geographic coverage and the company's product offering while management remains in place.

Boston-based private equity firm Abry Partners completed a recapitalization of GreenPages Technology Solutions, a hybrid cloud services provider and systems integrator. The recapitalization will provide capital to accelerate GreenPages’ organic growth, support M&A activity and expand its go-to-market for cloud, security, and managed IT services.

KLH Capital, alongside J2 Partners, invested in Jackson Infrastructure Services to recapitalize B. Jackson Construction and Engineering, LLC and certain affiliates. Founder and CEO Bart Jackson will remain in place as the firms provide liquidity and capital to support growth across telecom, power, gas and other infrastructure markets.

Berkshire Partners has completed a recapitalization of FoodChain ID, acquiring the company from Paine Schwartz Partners. The transaction positions FoodChain ID to pursue its next phase of growth — including strategic add-on acquisitions and expanded global food safety, testing and sustainability offerings.

Private equity firm The Halifax Group completed an investment to recapitalize PJU Holdings, Inc. ("PJ United"), the largest Papa John’s franchisee. Halifax partnered with CEO Doug Stephens and PJ United's existing management team to support growth and operational expansion across the company's 194 stores.

Harvest Partners has signed a definitive agreement to acquire a majority interest in Galway Holdings, the holding company for EPIC Brokers & Consultants and JenCap Holdings. Existing investors Oak Hill Capital and The Carlyle Group will reinvest alongside management and employee shareholders in a recapitalization intended to provide capital to support Galway's continued growth across its insurance distribution platforms; terms were not disclosed.

H.I.G. Growth Partners (via an affiliate) completed a strategic growth investment and recapitalization in Pinnacle GI Partners, the management services organization affiliated with The Center for Digestive Health (CDH). The investment is intended to support expansion of gastrointestinal services across Michigan, preserve independent physician practices, and leverage CDH's existing infrastructure and ancillary services.

Gemini Investors completed a majority recapitalization of Action Equipment & Scaffold Company, Inc. and its Colorado division Waco Scaffolding & Equipment Company in December 2020. The transaction brings Gemini as the majority investor to support growth and continuity as CEO Howard Schapira and his family transition ownership while the companies continue to serve industrial, commercial, and municipal customers across Arizona and Colorado.

Seaport Capital has made a significant investment to recapitalize Exacom, a developer of multimedia recording and logging solutions for public safety, government, utilities, healthcare and other mission-critical markets. The transaction converts Exacom’s ESOP ownership structure and provides capital to accelerate growth while keeping the existing management team, led by President and CEO Al Brisard, in place.

The Vistria Group made a strategic growth investment in Edmentum and will become the company's majority stakeholder. Existing investors New Mountain Finance Corporation and funds managed by BlackRock will retain ownership positions as Vistria supports Edmentum's expansion of K–Adult digital curriculum and assessment offerings.

Telesat Canada reached an agreement with Loral Space & Communications and the Public Sector Pension Investment Board (PSP Investments) to form Telesat Corporation, a new publicly traded Canadian company. Under the transaction Telesat Canada and Loral will become subsidiaries of Telesat Corporation, which will list on the Nasdaq to provide access to public equity to support growth initiatives including Telesat's Low Earth Orbit (LEO) satellite network.

Carousel Capital has partnered with Ethos Risk Services' management in a recapitalization of Ethos Risk Services, a tech-enabled provider of fraud and claims investigation services headquartered in St. Petersburg, Florida. The deal was funded with equity from Carousel Capital’s fifth fund and senior debt from Freeport Financial Partners to support technology investment and expansion of Ethos’ investigator workforce.

Shore Capital Partners completed a recapitalization of Old World Spices and Seasonings, a custom spice, seasoning and ingredient manufacturer based in Overland Park, Kansas. Shore will partner with management to invest in business development, R&D, sales and production infrastructure and pursue organic growth and inorganic consolidation through add-on acquisitions.

Expedition Capital Partners and Tecum Capital led a majority recapitalization of Cox Transportation Services, with subordinated debt and a minority equity investment from Ironwood Capital to back CEO Jay Smith. Cox, a truckload freight carrier and brokerage founded in 1982 and based in Ashland, Virginia, will use the capital to pursue organic growth and add-on acquisitions to expand its routes and customer base.

Vesey Street Capital Partners completed a recapitalization of QualityMetric, a provider of patient-reported outcome (PRO) surveys, enabling technology and health outcomes analytics. VSCP funds provided equity while First Eagle Alternative Credit and Morgan Stanley Credit Partners provided debt financing to support QualityMetric’s next phase of growth; terms were not disclosed.

Gemini Investors partnered with management to recapitalize Alexis Russell Jewelry, a Buffalo-based direct-to-consumer designer and manufacturer of bridal and fine jewelry. Separately, Gemini portfolio company AOTCO, a metal finishing services provider near Boston, acquired Plating for Electronics, a Waltham-based anodizing and electroplating services provider, as a portfolio add-on.

Clearview Capital (Fund IV), in partnership with its holding company Vertikal Brands, recapitalized Revo Brand Group d/b/a Real Avid, a Plymouth, Minnesota-based designer and supplier of premium shooting and outdoor accessories. The transaction provides Real Avid with growth capital and pairs the company with Vertikal Brands' outdoor industry expertise to support organic and inorganic expansion.

Owner Resource Group (through ORG Opportunity Fund III, LP) made a recapitalization investment in SURESTAFF, LLC, a light-industrial staffing provider headquartered in Itasca, Illinois. The company's founder-operators Ray Morelli, Dave Mehr and Doug Howard remain on the executive team while Timothy Faber joins as CEO; the capital will fund geographic expansion, technology and people investments, and position SURESTAFF for future acquisitions.

Conyers Park II Acquisition Corp. completed its previously announced business combination with Advantage Solutions, resulting in the combined company trading as Advantage Solutions Inc. The transaction included a private placement and a comprehensive debt refinancing (new term facility, senior secured notes and a revolving credit facility) to strengthen the company's capital structure and support growth.

Frazier Healthcare Partners led a recapitalization of Accuity Delivery Systems on October 26, 2020, with participation from 22C Capital and existing shareholders including WindRose Health Investors, founder Dr. Eric Moskow, and Accuity senior leadership; Adams Street Partners provided debt financing and a meaningful equity co-investment. The investment will support Accuity’s growth, expanded leadership team, and continued investment in its proprietary technology platform and physician-led Revenue Integrity and Clinical Documentation Improvement (CDI) services for hospitals and health systems.

SmartBear announced that Vista Equity Partners has made a significant investment and will join Francisco Partners as equal owners of the company. The capital infusion is intended to help SmartBear broaden and strengthen its DevOps and software quality solutions and to pursue continued organic and inorganic growth. SmartBear is headquartered in Somerville, Massachusetts and serves millions of developers across thousands of organizations.

Clearview Capital Fund IV recapitalized Capitol Imaging Services, partnering with founder Dr. John Hamide and management to provide capital for organic growth and add-on acquisitions. Headquartered in Metairie, Louisiana, Capitol Imaging operates 20 freestanding outpatient diagnostic imaging centers offering MRI, CT and mammography; Dr. Hamide remains on the board and retains a meaningful equity stake while management continues to run day-to-day operations.

Atairos has acquired a substantial ownership position in Arcis Golf, the U.S. operator of public and private golf clubs. Fortress Investment Group will retain a significant ownership stake and Arcis Golf's management will continue to run the company as the new capital supports national expansion and enhancements to member amenities.

The Access Group, a UK-based provider of business management software, secured a substantial strategic investment from its two largest shareholders, Hg and TA Associates, who will retain joint control alongside the management team. The transaction (terms undisclosed) is intended to accelerate The Access Group's organic and acquisitive growth and support geographic expansion.

Accel-KKR completed a majority equity investment in Surgical Information Systems (SIS) on October 15, 2020, in a recapitalization that sees Norwest Equity Partners retain a minority ownership stake and invest alongside Accel-KKR. The transaction will support SIS’s growth and accelerate adoption of its cloud-based EMR and perioperative SaaS offerings for ambulatory surgery centers and hospitals; financial terms were not disclosed.

Abry Partners made a recapitalization investment in Benefit Recovery Group (BRG), a Memphis-based tech-enabled payor services provider that specializes in healthcare subrogation and compensation recovery. The partnership will support BRG's sales investment and product development to accelerate growth; Abry partner T.J. Rose will join BRG's board.

Shoreline Equity Partners has partnered with Bay Area Pools and Spas Holdings, LLC (operating as Pool Troopers) in a recapitalization to provide growth capital and support an aggressive add-on acquisition strategy. Pool Troopers, headquartered in Tampa, Florida, will continue to be led by CEO Gary Crayton and President Dave Hahmann, who will retain a significant ownership stake while leveraging Shoreline's capital and integration expertise to expand across the Sunbelt.

Onex Corporation (the Onex Group) agreed to acquire a majority ownership stake in OneDigital from New Mountain Capital, with the transaction valuing OneDigital at $2.65 billion and including an approximate $960 million equity investment by Onex. OneDigital, a leading U.S. employee benefits brokerage and retirement/wealth advisory firm headquartered in Atlanta with more than 2,000 employees, will have Onex and employees owning roughly 83% upon closing; New Mountain will sell down its position. The deal is expected to close in late 2020 pending customary approvals, including HSR clearance.

Red Barn Equity Partners, through its special purpose vehicle Red Barn Franchise Holdings LLC (RBFH), made a strategic investment in Dogtopia, acquiring interests from Thomas Franchise Solutions USA LLC and Dogtopia Enterprises LLC. Following the transaction Christopher Kempner (Red Barn) will become Chairman while Neil Gill will remain CEO as Dogtopia pursues further franchise unit growth across the U.S. and Canada.

Lincolnshire Management announced a private investment in Schumacher Electric Corporation, a long-standing manufacturer of battery chargers, testers and power accessories. Founder Don Schumacher agreed to reinvest alongside Lincolnshire; financial terms were not disclosed and Lincolnshire said it will support Schumacher’s global growth, R&D and recent European expansion.

Pritzker Private Capital completed a recapitalization of Energy Distribution Partners (EDP), investing alongside Concentric Equity Partners and Duchossois Capital Management to support EDP's expansion. EDP's management will remain in place as the partners provide capital to accelerate the propane distributor's growth and add-on acquisition strategy across the U.S.

Copley Equity Partners completed an investment to recapitalize and facilitate the merger of Aethon Aerial Solutions and Flight Evolved, creating a combined aerial inspection and asset-management platform serving utilities. The combined business brings together helicopter-based inspections, UAV/LiDAR sensing, spatial data and machine‑learning-driven analytics to expand capabilities and support global growth in utility asset inspection and wildfire-risk mitigation.

Mortgage Contracting Services (MCS), a Lewisville, Texas–based provider of property preservation and field services to mortgage servicers and other financial institutions, completed a sponsor-led recapitalization. The new ownership group is led by Littlejohn & Co. and includes Lynstone SSF Holdings Sàrl, funds advised by Neuberger Berman Alternatives Advisers, and Crescent Capital Group.

Cotton Creek Capital completed a majority recapitalization of ConeCraft, LLC, a Fort Worth, Texas-based engineer and manufacturer of customized equipment for the pharmaceutical and single-use biopharmaceutical market. The investment (made through Cotton Creek Capital Partners III, L.P.) will partner with existing management to support ConeCraft’s growth and operational expansion; terms were not disclosed.

Detroit-based private equity firm Rockbridge Growth Equity has made an investment in Quartile Digital to recapitalize the company and fund direct sales and marketing expansion, product enhancements and further international growth. Quartile is an AI/ML-driven advertising optimization and spend-management SaaS platform used by brands and sellers across Amazon and other online marketplaces; the deal closed on September 29, 2020, with CG Petsky Prunier advising Quartile.

Carousel Capital has recapitalized Landscape Workshop, partnering with the company's management team and McKinney Capital to provide growth capital and support continued platform expansion. Landscape Workshop is a route-based commercial landscaping services provider headquartered in Birmingham, Alabama, serving over 2,800 commercial properties across nine locations in the Southeastern United States.

An affiliate of H.I.G. Capital has made a strategic investment in Construction Forms, Inc. (Con Forms), partnering with the company's family shareholders and existing management to support and accelerate organic and inorganic growth. Con Forms, headquartered in Port Washington, Wisconsin, is a manufacturer of abrasion-resistant piping systems and accessories for concrete pumping and industrial end markets with manufacturing operations in the U.S. and Germany.

Ampersand Capital Partners completed a majority recapitalization of American Laboratory Products Company (ALPCO) to provide growth capital for expanding ALPCO's diagnostics test kit offering, geographic reach, and R&D/production capabilities. Founders Richard and Jan Conley will remain shareholders, Sean Conley will continue as CEO, and Larry McCarthy, PhD was named Board Chairman.

Stirling Square Capital Partners’ Fourth Fund has made an additional investment in DOCU Nordic Group Holdings AB and becomes the majority shareholder, while TA Associates acquires a significant minority stake from Stirling Square’s Third Fund. The investment will support DOCU Nordic’s product and geographic expansion—including recent acquisition of Vortal in Portugal—and accelerate buy-and-build growth across construction, real estate and healthcare markets.

SSI Acquisition, LLC — an acquisition vehicle formed by TCW Asset Management, Cerberus Capital Management and Lantern Capital Partners — acquired substantially all assets of School Specialty, Inc. in a transaction that recapitalizes the business and restructures its balance sheet. Post-closing the business will operate as School Specialty, LLC, with Ryan M. Bohr named President and CEO.

Caymus Equity Partners completed a recapitalization of PlanIT Group LLC, an Atlanta-based IT consulting and staffing firm, and named Mike Gallagher as CEO. The investment provides PlanIT with capital and resources to expand into underserved industries and pursue add-on acquisitions to scale its IT consulting and staffing services across healthcare, government and commercial markets.

Wagepoint has completed a majority recapitalization and strategic growth investment led by funds advised by Providence Strategic Growth (PSG), receiving more than $10 million of new capital. The investment will fund product innovation, scale go-to-market and customer support, and enable Wagepoint to pursue strategic acquisitions as it serves over 12,000 small-business customers across North America.

Primus Capital has made a growth equity recapitalization investment in Rev.io to support the SaaS billing and customer management platform's growth and scalability. The investment will help Rev.io accelerate product and operational scalability for communications, IoT, and other technology service providers.

Great Point Partners completed a growth recapitalization of Liberty Lake, Washington-based Family Resource Home Care to support the company's acquisitive growth strategy and geographic expansion across the Pacific Northwest. Family Resource Home Care operates nine field offices across Washington and Idaho and is a leading independent provider of private-duty, non-medical home care services.