Recap: Current Capital Partners’ 2021 Year in Review
New York, New York, January 13, 2022 – Thank you to all of our clients, Advisory Board and Executive Network members, and friends for your continued support in 2021. We are gratified by our clients’ accomplishments last year and excited about 2022 and beyond. We hope to work with you this year. Our 2021 highlights are summarized below.
2021 Financial Advisory Highlights:
We offer high quality financial advisory services – including ideas, buy-side and sell-side execution, strategic and capital structure reviews, capital raising, restructuring advisory and related services – for corporate and investment firm clients seeking an independent perspective and senior attention.
Mergers and Acquisitions Advisory
The Sterling Group Acquired L&S Mechanical
L&S Mechanical, a leading provider of turnkey plumbing, HVAC, and electrical installation services in the Texas residential market, was acquired by The Sterling Group. Current Capital advised The Sterling Group, providing deep industry knowledge and operating expertise, along with industry leaders from the sector. Current Capital also co-invested alongside Sterling as part of the transaction.
Ares Management Acquired Kuecker Pulse Integration
Kuecker Pulse Integration, a newly formed company created from the integration of Kuecker Logics Group, Inc., Pulse Integration, and QC Software LLC, was acquired by the private equity group of Ares Management. Current Capital’s expertise in automation, Executive Network, and M&A advisory services helped the Ares Private Equity Group make this new platform investment outside of an auction process.
Aludyne Acquired Shiloh Industries’ CastLight Business
CastLight, Shiloh Industries’ die casting solutions division that produces a slate of high-ductile aluminum and magnesium alloy products, was acquired by Aludyne, Inc., a global lightweighting solutions and components supplier to the mobility industry. Current Capital advised Aludyne on the acquisition, providing senior attention, deep automotive expertise and financial analysis. The carve-out transaction was negotiated following the sale of Shiloh to a private equity firm in a Chapter 11 bankruptcy process.
Jet Edge Raised Senior Secured Debt Financing from KKR
Jet Edge, a leading provider of large cabin and super midsize private jet charter and aircraft management services, raised significant senior secured debt financing from KKR, a leading global investment firm. Current Capital served as Financial Advisor and Placement Agent to Jet Edge.
Appvion
Current Capital provided strategic advisory services, including on acquisitions, to Appvion, formerly known as Appleton Papers, which is a leading provider of coating paper substrates. Appvion was sold to Wynnchurch, a private equity firm, in December 2021.
Klöckner Pentaplast
Current Capital is advising Klöckner Pentaplast, a global manufacturer of sustainable and recyclable plastic films and high-barrier protective packaging for Food, Pharmaceutical, Health and Durable products, on potential strategic acquisitions in North America.
Oak Hill Advisors
Current Capital is providing independent valuation services for Oak Hill regarding the transfers of various loans and other financial instruments.
Restructuring Advisory
Garrett Motion Chapter 11 Restructuring
Current Capital was Co-Financial Advisor to Centerbridge Partners, which became a significant investor in Garrett Motion, a global manufacturer of turbocharger and electro-boosting technologies for vehicle manufacturers, when the company completed an out-of-court restructuring. The transaction eliminated a 30-year indemnity and all related liabilities to Honeywell incurred during its 2018 spin-off and substantially reduced Garrett’s long-term debt.
2021 Corporate Management Services Highlights:
In our management services effort, we manage investments, sit on Boards of Directors and provide related consulting services for other investors and financial institutions; and offer advice and expert witness services in complex corporate litigation.
Selected Board Seats in 2021
Selected 2021 Expert Witness Services Cases
AMC Entertainment
A group of investors brought a suit against the outside directors of AMC Entertainment alleging inadequate disclosures about certain acquisitions in a registration statement for a secondary equity offering. Jonathan Foster was retained by the outside directors and provided two expert reports and deposition testimony. Jon established a framework for the oversight of due diligence and the review of SEC filings by outside directors consistent with custom and practice and evaluated whether the outside directors met this standard.
ITT Educational Services
The bankruptcy trustee for ITT Educational Services brought a suit against Kevin Modany (former CEO) and the directors, alleging breach of fiduciary duty leading to bankruptcy. Jonathan Foster was retained by Mr. Modany. He provided an expert report and deposition testimony on whether Mr. Modany and the Board followed custom and practice in the pursuit of strategic transactions and use of regulatory counsel as well as if the Board followed custom and practice in determining Mr. Modany’s compensation.
Kohlberg & Company
A private equity firm brought an action against Kohlberg to attempt to force it close a financing for DecoPac where a purchase agreement had been executed right before the onset of Covid-19. Jonathan Foster was retained by Kohlberg and provided an expert report, deposition testimony, and trial testimony where he evaluated the debt financing terms and Kohlberg’s related actions.
Oracle Corporation
A group of investors brought a suit against Larry Ellison and the Oracle directors regarding the acquisition of NetSuite and the role of Oracle’s Special Committee in the acquisition. Jonathan Foster was retained by Larry Ellison and two other directors of Oracle. He provided two expert reports and deposition testimony where he determined frameworks consistent with custom and practice for establishing a Special Committee and a Special Committee evaluating a major acquisition and opined on whether those standards were met.
Tesla, Inc.
The Board of Tesla, Inc. retained Jonathan foster as an expert witness in a stockholder litigation claim concerning a significant acquisition where there were alleged conflicts of interest. Jon opined, was deposed, and testified at trial in Delaware Chancery Court on custom and practice and the process the Board undertook in the consideration, evaluation, and ultimate approval of the acquisition.
Strategic and Operations Consulting
We provide our clients with a deeply experienced group of former operating executives that can provide valuable perspectives and insights on target companies as well as evaluate, and, in some cases, develop plans for target companies. In addition, these team members can become directors and / or executives post-closing. Such efforts were provided to many clients throughout the year, including American Securities, Ares, Blackstone, Carlyle, and Charlesbank.
Private Equity Investing
L&S Mechanical
Current Capital made a co-investment alongside The Sterling Group, which acquired L&S in September 2021. Headquartered in Richardson, Texas, L&S is a leading tri-trade provider of turnkey plumbing, HVAC, and electrical installation services in the Texas residential market. L&S serves large production homebuilders in Dallas / Fort Worth, Houston, San Antonio, and Austin through its five production warehouses.
SlipNOT
Current Capital made a co-investment alongside Victor Capital, which acquired SlipNOT in December 2020. Headquartered in Detroit, MI, SlipNOT is a leading manufacturer of slip-resistant metal flooring products that are designed to increase safety and decrease risk. SlipNOT’s product line, which consists of floor plate, grating, and stair treads, among others, are utilized in food and beverage, industrial, commercial, municipal, and military end markets.
BradyIFS
Current Capital made a co-investment alongside Kelso, which acquired IFS from Sole Source Capital in 2019. With headquarters in Bell, CA and Las Vegas NV, BradyIFS is one of the largest Foodservice and JanSan platforms in North America. The company sources, manages and distributes a broad range of products, including paper, equipment, cleaning chemicals, foodservice disposables, and packaging and dry goods to over 30,000 customers.
Rimstock PLC
Current Capital acquired Rimstock, the leading U.K. manufacturer of premium aluminum wheels for the automotive industry, together with Safanad, in 2016. The company, while facing operating and liquidity challenges, remains the only premium automotive wheel manufacturer in the U.K. with an enviable customer base that includes BMW, Ferrari, Aston Martin, and McLaren.
About Current Capital Partners
Current Capital Partners LLC is an independent advisory and merchant banking firm focused primarily on the industrial and services sectors. We provide mergers and acquisitions and restructuring advisory services, corporate management services and private equity investing. The mergers and acquisitions advisory effort offers high quality financial advisory services – including ideas, buy-side and sell-side execution, strategic and capital structure reviews, capital raising, restructuring advisory and related services – for corporate and investment firm clients seeking senior attention, an independent perspective and industry knowledge. In our management services effort, we manage investments, sit on Boards of Directors and provide related consulting services for other investors and financial institutions; and offer advice and expert witness services in complex corporate litigation. Our private equity investing business helps create value, primarily in lower middle market and smaller companies, with an integrated operating, finance and investment approach. Our Advisory Board and Executive Network are important advantages for our clients. Learn more at www.currentcap.com.
Contact
Jonathan F. Foster
Managing Director
Telephone: +1 212 223 0618
Email: jfoster@currentcap.com
Kevin J. Smith
Managing Director
Telephone: +1 212 223 0637
Email: ksmith@currentcap.com