Kohlberg & Co Buys Majority Stake in Insurance Broker Risk Strategies Co

Kohlberg & Co. has paid an undisclosed amount for a majority stake in Risk Strategies Co. (RSC), a national insurance & benefits brokerage based in Boston, according to a statement about the deal. Kohlberg made the investment from Kohlberg Investors VII, which recently closed on $1.6 billion, the statement said. The capital will be used to grow the company. RSC’s executive team remains intact and the company’s management and employees have also retain “significant ownership,” the statement said.

Corinthian Capital Closes Sabre Sale

Corinthian Capital Group has completed the sale of Sabre Industries to Kohlberg & Co. Financial terms weren’t announced. Sabre produces engineered structures – including towers, poles, building systems, and related infrastructure products – for the electric transmission and distribution, wireless communications, renewable energy, and government and defense end markets. PRESS RELEASE Corinthian Capital Group, LLC, […]

Mezz Shop Plots $500M Fund III

Arrohead Mezzanine is seeking $500 million for its latest fund, its first since spinning out of Gleacher & Co. , as sponsor use of sub debt is on the rise.

Babson Provides Debt for SouthernCare Deal

Babson Capital announced that it provided $22.2 million of mezzanine debt financing and made an equity co-investment of $2.2 million to support Kohlberg & Co.‘s acquisition of SouthernCare Inc. SouthernCare is based in Dallas and is a provider of hospice care. The company was formed in 1994.

Former Co-Managing Partner Transitioning Out Of Kohlberg & Co.

Former Kohlberg & Co. Co-Managing Partner Chris Lacovara is transitioning out of the firm as it seeks to raise $1.5 billion for its next fund, sister publication Buyouts reported. The mid-market buyout fund, started by Kohlberg Kravis & Roberts & Co. co-founder Jerome Kohlberg in 1987, has so far raised $520 million for Kohlberg Investors […]

Harris Williams Advised Niagara LaSalle in Sale to Optima Specialty Steel

Harris Williams, an investment bank focused on middle-market transactions, announced today that it advised Niagara LaSalle Corp. on its pending sale to Optima Specialty Steel. Niagara, which makes cold finished steel bars, is a portfolio company of the private equity firm Kohlberg & Co. Optima Specialty Steel is a subsidiary of Optima Acquisitions, a U.S.-based investment […]

Phillips Plastics to Acquire Medisize

PE-backed Phillips Plastics will acquire Medisize Corp. from Ratos AB and other shareholders. Medisize is a European outsourcer of manufacturing and design services for healthcare companies. White & Case Oy served as local counsel in Finland. Ropes & Gray represented Phillips Plastics Corporation and its parent company, private equity firm Kohlberg & Company. Specifics of the transaction were not publicized.

Kohlberg’s Chronos Life Group Buys Majority of Life Equity

Kohlberg & Co. portfolio company Chronos Life Group completed the acquisition of a majority ownership stake in Life Equity LLC, an Ohio-based life settlement provider and asset servicer. Ranks will be shuffled as part of the deal; Kyle Kibler, who was COO of Life Equity, will succeed company co-founder Brian Smith as CEO.

Kohlberg Eyes Top-Shelf Shot with Bauer IPO

After three years, Bauer Performance Sports, the hockey equipment maker, plans to part ways with Kohlberg & Co.

Bauer, which makes skates and boots used by many NHL players, plans to go public in Canada. Bauer didn’t disclose how many shares it planned to sell on the Toronto Stock Exchange or how much it would raise via the IPO. That information will come in future filings. However, The Globe and Mail says the IPO is expected to raise $75 million and Kohlberg is looking to sell a 20% stake.

Kohlberg Acquires Maverik Lacrosse

Kohlberg & Co. has acquired Maverik Lacrosse, a Long Island City-based maker of lacrosse equipment, apparel and accessories. No financial terms were disclosed. The company will be merged into the Kohlberg Sports Group platform, which also recently acquired hockey equipment manufacturer Bauer Hockey.

Kohlberg & Co. Buys Bauer Hockey

(Reuters) – A unit of private equity firm Kohlberg & Co said on Thursday it acquired a maker of lacrosse equipment for an undisclosed amount, adding to holdings that include ice hockey equipment maker Bauer Hockey. Kohlberg Sports Group Inc said Maverik Lacrosse and Bauer Hockey will operate independently while sharing information in such areas […]

U.S. Infrastructure Corp Switches Sponsors

Kohlberg & Co. has sold U.S. Infrastructure Corp., a provider of outsourced sub-surface utility locating services in the U.S., to OMERS Private Equity. No financial terms were disclosed for the deal, which was managed by Harris Williams & Co.

Pick-Up in PE Handoffs a Symptom of “Use It or Lose It”?

Sponsor-to-sponsor deals aren’t always popular, but they’re certainly in vogue right now.

The first quarter of this year saw a surge in sponsor-to-sponsor, or secondary buyouts, in which one private equity firm sells a portfolio company to another private equity firm (or group of firms). Data provider Preqin reports 24 such transactions last quarter worth $7 billion in deal value, compared to just $5.1 billion for 43 deals in all of 2009. And this doesn’t even include a rash of transactions announced today (see below).

What’s driving the activity? First, private equity pros are desperate to do deals. Despite everyone’s peacocking that ’08 and ’09 were “the best investing opportunities of our lives,” most buyout pros were all talk. The deal volume speaks for itself-PE pros were largely on the sidelines during

U.S. Infrastructure Corp. Switches Sponsors

OMERS Private Equity has agreed to acquire U.S. Infrastructure Corp. from Kohlberg & Co. No financial terms were disclosed. USIC is an Indianapolis-based provider of outsourced sub-surface utility locating services, and was formed in 2008 via the merger of SM&P and CLS.

BioScrip Buying Critical Homecare for $343 Million

BioScrip Inc. (Nasdaq: BIOS) has agreed to buy Critical Homecare Solutions from Kohlberg & Co. for $343.2 million in cash and stock. The deal also includes the issuance of 3.4 million BioScrip warrants with a $10 exercise price.

Critical Homecare Solutions provides home infusion and home health agency services to patients suffering from chronic and acute medical conditions. It had agreed to be acquired for $534 million two years ago by a blank-check acquisition company called MBF Healthcare Acquisition Corp., but the deal was later renegotiated down to $469 million and then mutually-terminated.

Centerplate Closes Boston Culinary Purchase

Centerplate, a Stamford, Conn.-based concessions company owned by Kohlberg & Co., has completed its acquisition of smaller rival Boston Culinary Group Inc. No financial terms were disclosed, except that the deal is worth less than the $210 million Kohlberg paid for Centerplate last January.

Weekly Downgrade Wrap-Up

As usual, we have a week’s worth of ratings actions (mostly downgrades) on the debt of LBO-backed companies from ratings agencies S&P and Moody’s.

This week brought some good news from the debt raters. S&P sees encouragement in the performance of Dana Holding Corp., the giant auto parts maker that Centerbridge bought out of bankruptcy. Meanwhile Moody’s feels comfortable enough about the performance of Bain Capital’s Sensata Technologies B.V. to upgrade the company’s ratings. The ratings agencies served up two more downgrades as well, for companies owned by Kohlberg & Co., Versa Capital Management, Apax Partners and Trimaran Capital Partners.

Company: Dana Holding Corp.
Sponsor: Centerbridge Capital Partners LP
Action: S&P raised its corporate credit rating on Dana to ‘B’ from ‘B-’ and raised the debt ratings. The outlook is stable.
Highlight: “Dana’s earnings and cash flow for the third quarter were better than we expected, reflecting benefits from aggressive restructuring actions after emerging from Chapter 11 in early 2008, despite weak auto sales. In addition, Dana reduced debt by $254 million in the first nine months of 2009 through a Dutch auction, market purchases of debt, and raising funds through a common equity offering. As a result, the company’s covenant cushion has improved.”

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