HCI Equity Partners Brochure PDF

HCI EQUITY PARTNERS
H
CI Equity Partners is a private equity firm which
invests in growth oriented industrial product and
service companies. The members of the Firm partner
with owners and managers of industrial companies, with
a focus on assisting with operational improvements and
supporting growth initiatives. The HCI Equity team has
extensive experience in both private equity investing and
operational leadership.
ABOUT HCI EQUITY PARTNERS
Key attributes of the
HCI Equity team:
CI Equity Partners is a strategically focused private equity
firm that targets growth oriented industrial product and
service companies in the lower middle market. The Firm has
offices in Washington, DC, Minneapolis, MN, and Chicago, IL.
H
• Experienced, cohesive team
with a strong culture
The professionals at HCI Equity Partners utilize a disciplined
approach to identify attractive opportunities in targeted
sectors where their collective experiences, expertise and
relationships can add value. The investment team has extensive
experience and relationships in both private equity investing
and operational leadership. Seven of nine principals have been
CEO, President or CFO of an industrial company during their
careers. Their combined experience helps HCI Equity Partners
to (i) more efficiently source investment opportunities, (ii) have
a deeper understanding of industry sector trends and business
fundamentals, and (iii) enhance performance of the companies in
which it invests.
• Focused investment strategy in
targeted sectors
• Substantial operating
experience and capability
• Demonstrated ability of adding
value to portfolio companies
The HCI Equity Partners team uses a highly focused approach
to investing and a hands-on operating philosophy to help
grow and improve the profitability of each of its portfolio
companies. The team focuses on building solid relationships
with proven management teams who share its commitment to
integrity, professionalism, achievement, growth and success in
business. HCI Equity Partners works with each of its portfolio
companies to achieve well defined goals by identifying and
supporting growth opportunities and assisting with operational
improvements.
Led by an experienced, cohesive team with a proven strategy of
adding value to industrial product and service growth companies
in the lower middle market, HCI Equity Partners has a track
record of success and is recognized as an exceptional partner and
resource to management teams.
HCI Equity Partners
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INVESTMENT STRATEGY
H
CI Equity Partners has a proven track record of making
successful investments in growth oriented industrial
product and service companies based in North America. HCI
Equity Partners focuses in the lower middle market which
includes companies with approximately $20 to $200 million
in annual revenue. HCI Equity Partners recognizes that a
sustained record of success in the middle market is best achieved
by targeting companies with solid management teams in sectors
where the Principals have a strong understanding of sector
trends, business fundamentals and relationships and where its
team has prior experience.
The team distinguishes itself from other buyout firms in the
lower middle market by its substantial operating and investing
experience. Seven of nine principals have proven operational
leadership experience as CEO, President or CFO of an
industrial company during his or her career. Drawing on their
collective experience, the team works closely and effectively
with the management teams of its portfolio companies to create
significant value including:
HCI Equity Partners will consider
investments in companies with
a strong management team and
an attractive business model
across the spectrum of industrial
products and services industries.
The team also proactively targets
several specific industries
where it believes the Firm has
a unique competitive advantage
based on our prior experience
and relationships. This includes
companies that compete in the
following markets:
• Aerospace / Defense
• Automotive Aftermarket
• Distribution
• Infrastructure Products /
Services
• Assisting with major operational initiatives
• Niche Manufacturing
• Enhancing the sophistication of operational and financial
reporting capabilities
• Test & Measurement
• Developing and assisting with an acquisition strategy
• Transportation and Logistics
• Adding depth to management teams as needed
• Building and leveraging an active board of directors
HCI Equity Partners seeks to partner with proven management
teams who share our long-term growth vision for the company
and wish to retain a stake in the company post-closing. This
alignment of interests from both a strategic and financial
perspective are critical elements in creating the foundation for a
successful investment. Furthermore, we focus on building solid
relationships with management professionals who share our
commitment to integrity, professionalism, achievement, growth
and success in business. A strong partnership with management
enhances the success of achieving our collective goals and is a
requirement for the HCI Equity Partners team.
HCI Equity Partners
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SELECT PORTFOLIO COMPANIES1
CURRENT INVESTMENTS
Anaheim &
Orange, CA
Printed Circuit
Boards
Wixom, MI
Automotive Market
Summit Interconnect was formed
after the completion of two separate
transactions to acquire KCA
Electronics and Marcel Electronics
International (MEI). KCA provides
advanced technology, multi-layer rigid
and flex printed circuit boards. The
company primarily serves the aerospace
and defense sector, providing direct
access to customers or through EMS
customers that support the aerospace
and defense markets. MEI manufactures
complex, multi-layer printed circuit
boards.
Adept Plastic Finishing is a premier
supplier offering injection molding,
chrome plating and painting services
for plastic components. Adept has
established itself as the preferred
supplier in the chrome plating industry,
serving select Tier-1 suppliers in the
automotive and Class-8 truck end
markets. The Company’s proprietary
process technology within its chrome
plating segment allows them to handle
a wide array of products, ranging from
heavy-duty class-8 truck grilles to hightouch automotive badges. Adept works
in conjunction with HCI’s portfolio
company, Tribar Manufacturing.
(1) A
bove is a listing of current and past HCI platform equity investments. A complete
list of all prior investments (including add-ons) will be made available upon request.
Cumming, GA
Building Products
Northlake, IL
Transportation &
Logistics
Madison Heights, MI
Automotive Market
The Delaney Company is a designer,
marketer and distributor of residential
and commercial locksets, as well as a
variety of other bath related hardware.
The Company sources product through
Asian manufacturing relationships and
markets under its own Delaney and
Callan brand names. Delaney’s customer
base is largely composed of smallto-medium sized building products
suppliers, installers and DIY outlets.
Go To Logistics is a transportation
service provider focused on the freight
consolidation and LTL market. Go
To provides services ranging from
expedited/guaranteed service to
warehoused consolidation primarily
from Chicago to the Northeast and
West Coast, as well as the Southwest
United States. The Company utilizes
a Midwest-based warehouse for
outbound consolidation and has a
dedicated independent contractor
base that provides linehaul and pick-up
and delivery. Go To’s agent network
augments delivery capabilities and also
provides relationships for outbound
capabilities.
Commercial Steel Treating
Corporation is North America’s largest
provider of engineered protective
coating, pre-treatment, heat treating,
and technical intermediation services
for metal fasteners. CSTC has a history
of being at the forefront of coating
technology since it was founded in 1927
by the Hoensheid family. The Company
meets or exceeds its customers’ anticorrosion performance standards using
state-of-the-art coating equipment,
proprietary IT software, and its deep
base of industry knowledge.
HCI Equity Partners
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SELECT PORTFOLIO COMPANIES1
CURRENT INVESTMENTS
Howell, MI
Automotive Market
Milwaukee, WI &
Mars Hill, ME
Transportation &
Logistics
(Publicly traded as
RRTS on the NYSE)
Cleveland, OH
Bulk Containers /
Distribution
Tribar Manufacturing is a leading
supplier of high profile vehicle badge
assemblies and other highly-engineered
products. Tribar serves the North
American automotive market with a
product portfolio that includes a full
complement of class-A vehicle badge
assemblies, as well as large and complex
two-shot molded components, such as
door seals and liftgate reveals.
Roadrunner Transportation
Systems, Inc. is a leading asset-light
transportation and logistics services
provider offering a full suite of solutions,
including customized and expedited
less-than-truckload, truckload services,
freight consolidation and inventory
management, intermodal solutions and
full transportation management systems.
In May 2010, the company completed
an IPO and simultaneous merger with
Group Transportation Services, another
HCI portfolio company and non-asset
based provider of third-party logistics and
outsourced transportation management
solutions.
Total Container Group, Inc. is
primarily involved in the reconditioning,
servicing, and sale of plastic composite
intermediate bulk containers (or “IBCs”)
used to transport a growing variety of
bulk liquids. The company also provides
tanker truck washing, ISO container
washing, and steel IBC cleaning and
rental services.
(1) A
bove is a listing of current and past HCI platform equity investments. A complete
list of all prior investments (including add-ons) will be made available upon request.
League City, TX
Infrastructure
Products / Services
Denver, CO &
London, Ontario
Transportation &
Logistics
Charleston, SC
Disposable Gloves
CertifiedSafety, Inc. is a leading
independent provider of specialized
safety and productivity services primarily
for plant maintenance events such as
turnarounds, shutdowns, outages,
and ongoing maintenance projects
as well as for large capital investment
programs including construction
and decommissioning. The company
provides numerous safety related
services and personnel needed to help
owners and contractors take a consistent
and proactive approach to safety.
HVH Transportation is an asset-light
transportation provider focused primarily
on dry van truckload services throughout
the Midwest, Southwest and Western
states. The company also provides
regional and dedicated less-than-truckload
services. In April 2014, the company
merged with FTI Transportation, an
asset light transportation provider, created
a larger truckload provider with a broader
lane network, experienced management
team, and multiple opportunities for
synergy realization.
AmerCare is a leading provider of
disposable protective gloves and other
ancillary products for the foodservice,
healthcare and janitorial markets in the
US. The Company also provides other
products including straws, aprons,
wipes, and plastic related items.
HCI Equity Partners
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SELECT PORTFOLIO COMPANIES1
CURRENT INVESTMENTS
Milan, TN
Transportation &
Logistics
Albany, GA
Transportation &
Logistics
Brookston, IN
Auto & Commercial
Vehicle Suppliers
Hudson, OH
Transportation &
Logistics
Milan Supply Chain Solutions is a
leading provider of regional transportation
and logistics solutions, specializing
in truckload and warehousing and
distribution services.
Southern Ag Carriers is a high growth
transportation and logistics services
provider for agricultural and related
processed food manufacturers.
TDS is a leading designer and
manufacturer of hydraulically powered
drive assist systems and steer axles for
agricultural equipment and on and offhighway vehicles.
Group Transportation Services, Inc.
is a non-asset based third-party logistics
provider offering a full suite of outsourced
transportation management solutions to
over 11,000 middle market clients. Services
include pricing, contract management,
carrier selection, freight tracking, bill
payment, bill audit and dispatch. In May
2010, GTS merged with Roadrunner
Transportation Systems, another HCI
portfolio company, simultaneous with the
consummation of Roadrunner’s IPO.
(1) A
bove is a listing of current and past HCI platform equity investments. A complete
list of all prior investments (including add-ons) will be made available upon request.
Poestenkill, NY
Test & Measurement
Niche Mfg
Amsterdam, NY
Power Generation
Phoenix, AZ
Distribution
Washington, DC
Federal Services
Dynamic Systems, Inc. is the leading
designer and manufacturer of dynamic
thermal-mechanical testing and
physical simulation systems used for
metallurgical analyses in a wide variety
of industries.
Power & Composite Technologies,
Inc. designs, manufactures and
sells highly-engineered composite
components for use in utility-scale
electrical generators as well as custom
composite structures for use in medical,
technology, aerospace and defense
applications.
Naumann/Hobbs Material Handling, Inc.
is a full service material handling dealership
that leases, sells and services a variety of
electric and internal combustion forklifts and
other commercial products. The company
operates along five lines of business which
work together to provide the most attractive
value proposition in this sector in the
southwestern United States.
Quadel Consulting Corporation
provides outsourced program
management, contract administration,
disaster recovery, consulting, training
and educational services. These services
are provided to various federal, local and
state agencies.
HCI Equity Partners
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SELECT PORTFOLIO COMPANIES1
PRIOR INVESTMENTS
St. Louis, MO &
Houston, TX
Aerospace &
Defense
Southfield, MI
Automotive
Aftermarket
Supplier
Grand Rapids, MI
Transportation &
Logistics
Roanoke, VA
Distribution/
Infrastructure
Herndon specializes in providing
value added supply chain management
solutions and third party logistics
for consumable hardware utilized in
military applications including fixed
and rotary wing aircraft, wheeled and
tracked vehicles, and sea vessels. Polygon
Aerospace, which merged with Herndon
Products in 2015, is a leading provider
of aircraft fasteners to the commercial
aerospace supply chain market.
Qualitor, Inc. is a leading diversified
supplier of aftermarket parts for the
automotive and medium to heavy
duty truck industries. The company’s
products include brake components,
wiper blades, engine control devices and
heavy-duty truck parts.
Total Quality, Inc. is a fast-growing,
niche transportation services
company focused primarily on cold
chain transportation and logistics
(transportation of temperature sensitive
shipments ranging from food products
to pharmaceuticals). TQI also provides
brokerage services and third party
logistics services to customers in a
variety of end markets.
Associated Asphalt, Inc. is one of
the largest independent liquid asphalt
resellers in the United States. The
company has been in business for over
50 years and enjoys strong customer
relationships and leading market share.
(1) A
bove is a listing of current and past HCI platform equity investments. A complete
list of all prior investments (including add-ons) will be made available upon request.
Princeton Junction, NJ
Testing &
Measurement
(Publicly traded as
MG on the NYSE)
Toronto, Ontario
Environmental
Services
(Publicly traded as
BIN on the NYSE)
Monterey Park, CA
Aerospace &
Defense
Ionia, MI
Auto & Commercial
Vehicle Suppliers
Mistras Group, Inc. is a leading global
provider of non-destructive testing
equipment, inspection and engineering
services. The company’s products and
services are used to verify structural
integrity of critical equipment, plant
components and industrial and public
infrastructure.
Progressive Waste Solutions Ltd.
is the third largest North American
full-service waste management
company. Progressive Waste provides
non-hazardous waste collection and
landfill disposal services for municipal,
commercial, industrial and residential
customers in five provinces and eleven
US states.
TEAC Aerospace Technologies,
Inc. is a leading global supplier of
airborne video and data recording
products as well as debriefing systems
to the defense industry. TEAC is
also a key provider of distributed
in-flight entertainment systems to the
commercial airline industry.
BHM Technologies, LLC was formed
with the merger of three portfolio
companies: Brown, Heckethorn and
Morton. The combination created a
superior automotive and commercial
vehicle supplier able to cross-sell
products into complimentary markets
and customers.
HCI Equity Partners
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HCI EQUITY PARTNERS
The team distinguishes itself from other buyout firms in
the lower middle market by its substantial operating and
investing experience with seven of nine principals having
been CEO, President or CFO of an industrial company during
their careers, HCI Equity Partners’ investment professionals
are clearly distinguished from other buyout firms in the lower
middle market.
MANAGING PARTNERS
Dan Dickinson is a Co-Founder and Managing Partner at HCI Equity Partners and oversees the
origination, management and development of the Firm’s investments. Current portfolio companies that
he is actively involved with include TDS Drive, Inc., Dynamic Systems, Inc., Power and Composite
Technologies, Inc., and CertifiedSafety Inc. Mr. Dickinson joined the HCI team as a Managing Partner
in 2001. Additionally, he serves on the Board of Directors of Caterpillar, Inc, the Board of Visitors for
the Pratt School of Engineering at Duke, the Board of Directors of the U.S. Olympic and Paralympic
Foundation, and the Board of Trustees of the Cove School.
Doug McCormick is a Co-Founder and Managing Partner at HCI Equity Partners and oversees
the origination, management and development of the Firm’s investments. Current portfolio
companies that he is actively involved with include Herndon Products, Inc., Naumann/Hobbs
Material Handling, Inc., Quadel Consulting Corporation, Total Container Group, Inc., AmerCare,
and Polygon Aerospace, Inc. He joined the HCI team in 1999 and has served as a Managing Partner
since 2006. Mr. McCormick serves as a board member of Team Red White and Blue, a veterans
service organization, and is a Henry Crown Fellow.
Scott Rued is a Co-Founder and Managing Partner at HCI Equity Partners and oversees the origination, management and development of the Firm’s investments. Current portfolio companies that he is
actively involved with include Roadrunner Transportation Systems, Inc., SouthernAg Carriers, Inc.,
HVH Transportation, Inc., Milan Supply Chain Solutions, Tribar Manufacturing, Commercial Steel
Treating Corporation, Go To Logistics and Adept Plastic Finishing. Mr. Rued joined the HCI team as
a Managing Partner in 2003 and previously was the Co-Founder, President and CEO of Hidden Creek
Industries (a partnership with Onex Corporation) which was founded in 1989. In addition he also served
as CFO of both Automotive Industries and Tower Automotive through much of their growth period,
including during their initial public offerings.
Operating Partners
Kevin Cramton
Jim Forese
VPs & Associates
Brendon Biddle
Brad Cain
Andrew Carraway
Tyler Collins
Kelsey Deerin
Tim Frend
Nate Novak
Brendan Reardon
Joe Rued
Chris Taylor
Managing Directors
Scott Gibaratz
Dan Moorse
Carl Nelson
Judy Vijums
Finance
Lisa Costello
Peggy Espejo
Amy Stremmel
Biographies available at
www.hciequity.com
HCI Equity Partners
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FOR MORE INFORMATION
Led by an experienced, cohesive team with a proven strategy of adding value to industrial product
and service growth companies in the lower middle market, HCI Equity Partners is known to be an
exceptional partner and resource to management teams.
If you are interested in more information about HCI Equity Partners, please email us at
[email protected] or contact our offices at:
Washington, DC Office
HCI Equity Partners
1730 Pennsylvania Ave., N.W.
Suite 525
Washington, D.C. 20006
202.371.0150 p
202.312.5300 f
Minneapolis, MN Office
HCI Equity Partners
IDS Center
80 South 8th St., Suite 4508
Minneapolis, MN 55402
612.332.2335 p
612.332.2012 f
Chicago, IL Office
HCI Equity Partners
1033 Skokie Blvd.
Suite 260
Northbrook, IL 60062
847.291.9259 p
847.897.6212 f
www.hciequity.com
Disclaimer
• This brochure is not an offer to sell or the solicitation of an offer to purchase an interest in any private equity fund managed or
supported by HCI Equity Partners or its affiliates.
• All information with respect to portfolio companies and industry data have been obtained from sources believed to be reliable and
current, but accuracy can not be guaranteed.
• All information regarding portfolio companies is provided to demonstrate HCI Equity Partners’s ability to provide operational
leadership and to serve as a source of financing to portfolio companies.
HCI Equity Partners
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