Well, the Denver office has managed to tunnel its way out of the snow just in time for a New Year’s update.
In the last year we hired two new associates, Susan Wolff (Denver) and Jim Shilkett (Atlanta), to fill the big shoes of Amy McGowan and Frederick Antwi, who left us for the lighter work load of Harvard and Stanford Business Schools, respectively. Both Susan and Jim joined us from McKinsey & Company.
We had a final close of $75 million, in aggregate, on CHB Capital Partners III in early 2006. We are currently working on two investment opportunities under letter of intent, with a total equity commitment of $20 million — the first, a recapitalization of a Northeast based manufacturer of prefabricated building components, the second, a growth equity investment in a branded snowboard apparel designer and marketer. We expect both deals to close this quarter.
The end of 2006 marked the successful sale of Alternative Technology, a Denver based distributor of products and services focused on wide area network communications, to Arrow Electronics (NYSE:ARW). From the time of our original investment at the end of 2000, the company organically grew sales and EBITDA more than three times and nearly five times, respectively.
HiRel Systems, a Minnesota based manufacturer of custom magnetics and power supplies, is on track to end the year up 15% over last year. HiRel continues to invest in its infrastructure and now operates eight facilities in three countries and has more than 900 employees.
CT Systems spent the last year growing its capabilities in the aerospace market (including gaining AS9100 status) and continuing to evaluate a number of prospective contract manufacturer acquisitions. The Company continues to seek acquisitions of Midwestern contract manufacturers of wire and cable harnesses or electromechanical assemblies with revenue of $3 to $15 million.
Micro Dynamics and Logic PD (product design and electronic manufacturing services) continue to win new customers and grow with the success of their existing customers — aerospace, medical and industrial OEMs with lower-volume, complex, electrical products. The company is always looking for opportunities to expand and add more capacity and/or new capabilities and services.
CanGen Holdings, a manufacturer of highly engineered wear parts used by plastic and rubber processors, had a record year in 2006, despite flat overall market demand. The Company continues to search for add-on acquisitions with revenue of $1 to $15 million.
We encourage you to call us with interesting investment opportunities. We look for transactions where we can invest equity capital in established companies with $10 million or more in revenue. Should you call, we guarantee you a thoughtful and timely response.
Tad Kelly, John Flanigan, Blake Morris, Grant Clayton, Sean McClenaghan, Steve Greene, Susan Wolff, Jim Shilkett, David Anderson & Samantha Sigler
511 Sixteenth Street, Suite 600, Denver, CO 80202
P: (303) 571-0100 F: (303) 571-0114
75 Fifth Street NW, Suite 1025, Atlanta, GA 30308
P: (404) 806-7520 F: (404) 806-7530