News from Three Twenty-One Capital Partners

Milestone Sports, LTD. (Milestone) has joined Zwift, LLC, after Zwift purchased the company and assumed the Milestone Sports Development team.  3-21 Capital acted as exclusive financial advisor to Milestone in this transaction.   Zwift, who previously expanded their platform into running, will now incorporate the MilestonePod technology into its existing online fitness entertainment gaming platform.

“As Zwift continues to expand its running platform they saw great value in the MilestonePod and our team.” says Jason Kaplan, Co-Founder and CEO of Milestone Sports and now acting Director of Enabling Products & Business Development at Zwift. “Not only do the MilestonePods provide connectivity to Zwift on any treadmill, but they also provide the outdoor runner with important metrics such as foot strike and rate of impact along with run distance and duration. These are not only great tools that help to refine running technique, but also help provide runners with important information that can improve performance, reduce injury risk, and make sure they are in the proper shoe.”

“This is an important step for us as we move into the running space.” says Eric Min, Zwift Co-Founder and CEO. “We at Zwift aim to help more people to exercise more often than they may have done before, by bringing more entertainment and social connectivity to the convenience of indoor training. We are determined, as much as ever before, to continue work with existing footpod and treadmill manufacturers to help us achieve this goal by providing customers the best possible experiences to suit their individual training needs.”

Partner of Three Twenty-One Capital Partners, Tim Zahrobsky stated, “Zwift’s purchase of Milestone Sports was a logical step to expand their existing community of runners.  Milestone’s runners are now able to enjoy the Zwift platform of exercise gamification. The addition of Milestone Sports development team to Zwift will allow for advancements to the Zwift technology platform and further product enhancements and extensions.”

Milestone Sports, LTD., based in Israel, with U.S. operations headquartered in Columbia, MD, designs, develops, and manufactures wearable fitness devices under the product name Milestone Pod.  Milestone’s devices feature an integrated marketing and communications platform focused on runners and walkers.  The device is worn on the shoelaces and synchs to a smart phone or smartwatch app providing important data that helps runners and walkers improve performance and reduce their risk of injury.

Zwift is a private company based in Long Beach, CA that offers an online fitness entertainment gaming platform that brings the outdoor cycling experience indoors. Its platform creates a destination which places users and their bikes into 3D landscapes with other cyclists worldwide by connecting to their existing devices, such as power meters, heart rate monitors, and speed-cadence sensors, as well as enables users to choose their trainers.  

3-21 Capital looks forward to working in the wearables tech space with future engagements and offers free consultations to those parties in this industry wishing to learn more about their options.

We are proud to announce our client, Aberdeen LLC (Aberdeen) has joined Source Code, LLC (Source Code), a portfolio company of JMC Capital Partners, after Source Code purchased certain assets and assumed the sales and product development teams from Aberdeen.  3-21 Capital acted as exclusive financial advisor to Aberdeen in this transaction.

“Aberdeen has established itself in its 27-year history to be at the forefront of the server and storage market with performance, value, reliability and service. We are extremely pleased that with the expanded resources of Source Code, Aberdeen will continue to prosper and grow.” says Moshe Ovadya, President, CEO and Co-Founder of Aberdeen.

“This was a complex deal with multiple parties involved. 3-21 and Aberdeen’s experienced team of professionals acted diligently and efficiently in its successful outcome.” says Menahem Ovadya, CTO and Co-Founder of Aberdeen.

Partner of Three Twenty-One Capital Partners, Tim Zahrobsky stated, “Over its 27 years, Aberdeen has built a strong brand and presence in the server and storage industry. Aberdeen’s reputation for quality, customer service and cutting-edge technology development will continue to enhance Source Code’s server and storage offering.”

Aberdeen is a manufacturer and developer of customizable server and storage hardware and solutions for companies of all sizes. They are the only server and storage company to offer their unique 5-Year Warranties, fully customizable hardware, and their special “try for 30 days” test drive program.

Source Code is a leading manufacturer of custom built server and storage devices as well as a provider of IT services. Source Code ships thousands of server systems each month from various locations. The flagship facility in Norwood, Massachusetts, is being expanded and is ISO 9001:2008 certified. Corporate headquarters are in Waltham, MA.

JMC Capital Partners is a private equity firm that has adhered to a consistent approach and strategy focused around driving value through operational and strategic excellence in industrial products and technology focused companies. JMC’s partners come from operating backgrounds and have executed this strategy as owners and operators as well as investors. JMC is able to streamline the acquisition process, focus on the important outcomes, and provide rapid and timely transactions.

3-21 Capital has been active in the server and storage industry for the past several years and looks forward to our next opportunity in this industry in the future.

We are proud to announce the acquisition of our client, Scandia Packaging Machinery Company (Scandia), to KHS USA, Inc (KHS). The acquisition of Scandia will allow KHS to expand its portfolio to include compact cartoners and secondary packaging machines. KHS will integrate Scandia with their existing Sarasota, Florida-based manufacturing operations.

Former Scandia President, Wilhelm (“Bill”) Bronander III, will stay-on and assume a business development and sales role with KHS. Three Twenty-One Capital (3-21 Capital) acted as exclusive financial advisor to Scandia in this transaction.

“There’s a trend towards smaller, single-serve products,” Donald Deubel, Vice-President and business unit leader at KHS USA, said in a statement. “In taking over Scandia, an expert in compact packaging machines, we’re developing attractive growth areas in this very segment.”

“We are very pleased to find an acquiring company with the reputation and expertise of KHS. We believe that the Scandia product line is a natural fit,” Ervin Terwilliger, Managing Partner of Three Twenty-One Capital Partners.

Scandia Packaging Machinery Co., based in Fairfield, NJ, is a multi-generation, family-owned designer and manufacturer of high-speed overwrapping, bundling, cartoning and case packing machinery founded in 1918. Scandia’s packaging equipment has been serving the candy, tobacco, pharmaceutical, cosmetic and media entertainment industries for 100 years. The Scandia brand is well respected in the packaging industry and is known for long-lasting, high-speed packaging equipment.

KHS USA Inc. is the North American subsidiary of Dortmund, Germany-based KHS GmbH. KHS has over 150 years of experience producing full-service filling and packaging lines for the beverage, food and non-food industries. U.S. manufacturing operations are located in Waukesha, Wisconsin and Sarasota, Florida.

Three Twenty-One Capital Partners wishes the team of KHS continued success as a result of the acquisition of such a strong brand like Scandia. The entire team at 3-21 Capital enjoyed successfully guiding Scandia through the deal process and look forward to future opportunities in this industry space.

Three Twenty-One Capital Partners, LLC (3-21 Capital) announced its client, Medcision, Inc. has been acquired by BroadOak Fund II and BroadOak Fund III (collectively BroadOak) via §363 sale.  BroadOak is partnering with Astero Bio Corporation (Astero) to manage the assets moving forward.

BroadOak emerged from 3-21’s international marketing process as the Stalking Horse bidder and the ultimate highest bidder for Medcision.  Medcision was managed through the process by Chief Restructuring Office Kyle Everett, of DSI, and represented by bankruptcy counsel Barrett Marum and Matthew Klinger of Sheppard Mullin.

Founder and Managing Partner of Three Twenty-One Capital Partners, Erv Terwilliger stated, “BroadOak’s understanding of Medcision’s market and technology make them the logical choice to take Medcision forward with Astero Bio”

BroadOak partner, Bill Snider said “The process run by 3-21 Capital was robust and led to a smooth closing of the transaction.  The customers of MedCision are now receiving support for their ThawStar products and other cryopreservation tools from Astero Bio.”

Medcision, headquartered in San Rafael, California, is a clinical automation technologies company with temperature-sensitive cell-thawing technologies in the biotech sector.  The Company’s Thawstar suite of products eliminates process variability and human error in cell therapy handling and administration.

BroadOak Capital Partners, LLC, headquartered in Bethesda, MD with offices in San Francisco, CA, actively seeks opportunities to invest growth capital into companies within the life sciences industry.

 Astero Bio Corporation is a newly emerged, fast-growing corporation that specializes in novel tools and technologies for life science research, pharmaceutical manufacturing and clinical applications.  With a focus on cryopreservation and cold chain, Astero’s innovative product portfolio and product development pipeline provides expert solutions for cellular and immunotherapy, cell culture, biobanking, and biologics. The company is committed to providing those that strive to improve patient health and wellness, the innovative tools and technologies to advance their success.

Three Twenty-One Capital Partners, headquartered in the Baltimore-Washington Metro area, is the premier Private Investment Bank servicing the lower middle-market.  Three Twenty-One Capital Partners’ team has completed engagements with over $15 billion in transaction value.  Three Twenty-One Capital Partners specializes in founder-run businesses and “storied” situations.   Further information is available at www.321capital.com.

Three Twenty-One Capital Partners, LLC is pleased to announce its client, Troverco, Inc. has successfully exited bankruptcy with a Confirmed Plan of Reorganization.

Troverco filed for bankruptcy June 29th, 2017, as part of a coordinated, multi-pronged initiative to reorganize the business.  Advised by Three Twenty-One Capital Partners and represented by Eric Peterson of Spencer Fane, LLP, Troverco emerges from bankruptcy as a trimmer, more focused company.  The reorganized Troverco will benefit from owner Joseph Trover’s recent re-entrance to the food manufacturing market with Triple Sticks Foods; a sandwich manufacturing operation based in Belleville, IL (www.triplesticks.com).

Founder and Managing Partner of Three Twenty-One Capital Partners, Ervin Terwilliger stated, “We wish Joseph Trover and the rest of the Troverco team the best of luck as they enter this exciting chapter.”

Click here for the full Press Release.

Three Twenty-One Capital Partners, LLC (321 Capital) announced its client, Tec Air, Inc., has been successfully acquired by Angstrom USA, via §363 Sale of substantially all the assets, as part of it’s plan to exit Chapter 11 Bankruptcy.

Managing Partner of Three Twenty-One Capital Partners, Ervin M. Terwilliger stated, “The Tec Air sale is a textbook example of the value that can be created when management, ownership, creditors and deal professionals work together to maximize value for all stakeholders in a Chapter 11 proceeding. Tec Air has a bright future as part of the Angstrom family of companies.”

For more information about this news please view our Press Release here.

If you would like to see how Three Twenty-One Capital Partners can assist you in navigating through a Bankruptcy Sale process please email colleen@321capital.com or fill out a request for a free confidential consultation via our website www.321capital.com

Three Twenty-One Capital Partners, LLC is proud to announce its client, Parks Manufacturing, Inc., manufacturer of Blue Wave Boats and Silver Wave Pontoons has successfully secured a partnership with Horizon Holdings, LLC.  Founders Pam and Roger Parks are retiring from the business and sons Steven and Richard Parks will continue to run Parks Manufacturing in Seminole, OK.  Long time regional sales manager, Tim Long, has joined Horizon Holdings with Steven and Richard Parks on the ownership team 321 Capital acted as the exclusive advisor to Parks Manufacturing, Inc.

Founder and Managing Partner of Three Twenty-One Capital Partners, Erv Terwilliger stated, “Pairing wonderful companies and families with outstanding new partners, such as Horizon Holdings, is the best part of our profession. We wish Pam and Roger a happy and healthy retirement and cannot wait to see where Richard, Steven, Tim and the Horizon team take this amazing American success story in the future.”

“We are very excited to see our parents rewarded for all their hard work and success over the years.  We couldn’t have hoped for better partners than Phil and Jim (of Horizon Holdings) to continue forward with the legacy of high quality and great designs for which we have always been known. We have huge plans and a great team and now it’s time to get to work and make things happen.” commented
Steven Parks.

Phil Estes, Managing Member of Horizon stated “We are thrilled to have the opportunity to partner with Richard and Steven Parks to steward the successful family business they built with their parents and co-founders, Pam and Roger. Both Blue Wave and Silver Wave boat brands have loyal and passionate consumer followings, and we look forward to Parks Manufacturing continuing to be a customer focused, dealer friendly, and innovative company. Given our long history in the boat business, focus on working with outstanding leaders and our special connection to the State of Oklahoma it is a real honor to have this chance to work with this family.”

PARKS MANUFACTURING

Parks Manufacturing, headquartered in Seminole, OK and founded in 1992 by Roger and Pam Parks, is the premier manufacturer of Blue Wave bay boats and Silver Wave pontoon boats. Parks Manufacturing produces both boat lines from their state of the art 165,000 sq. ft. facility in Seminole, OK. Sons Richard and Steven Parks have worked in the business since 1992, have run the day to day operations of Parks Manufacturing since 2013.

HORIZON HOLDINGS

Horizon Holdings, LLC, founded in 1989, is a private investment firm with a nearly 30-year track record of making long-term investments into companies in the recreational product, food & beverage, and consumer product categories. In its history, the firm has only partially or fully exited 2 of its 19 investments. Horizon plans to hold Parks Manufacturing for the long-term and has the resources to help grow and support the company post-transaction. Details of the transaction are undisclosed.

321 Capital would like to congratulate Parks Manufacturing Inc. and Horizon Holdings on this partnership.

Three Twenty-One Capital Partners, LLC proudly welcomes new Partner, Timothy Zahrobsky, formerly a Vice President of Baltimore-based ABS Capital Partners.  Timothy Zahrobsky (Tim) joins 321 Capital after serving as a Vice President at ABS Capital Partners, a leading growth equity firm with over $2 billion in invested capital located in Baltimore, MD.

As a Partner at Three Twenty-One Capital Partners, Tim will be responsible for sourcing and executing M&A transactions for the firm.

Founder and Managing Partner of 321 Capital, Erv Terwilliger stated, “Tim’s wealth of knowledge and valuable experience bring immediate benefits to our clients. His unique experience on both the buy-side and sell-side make him an invaluable resource. We are honored that Tim is partnering with our team.”

Tim’s corporate finance experience includes M&A transactions, capital raising transactions, and public securities offerings, having executed several transactions in the business services, consumer products, and retail industries. Tim has completed over 30 deals representing over $8 billion in transaction value having worked with clients who include Adler Tank Rentals, Directed Electronics, Liquidity Services, Lululemon Athletica, Mobile Mini, Neff Rental, Royal Wolf, Savers, and Williams Scotsman.

Tim’s primary focus at ABS Capital was growth equity investment opportunities in technology-enabled business services, financial services, education services and healthcare companies. Tim worked closely with growth companies to enhance their businesses through growth, strategy-refinement, governance, operational and compensation structure optimization, expansion, and ultimately exit. Tim was involved with the Boards of Directors of several portfolio companies including The Accurate Group, ConnectYourCare, FactorTrust, FolioDynamix, Ilumno, ISO, PaySpan, and Viventium Software.

Before joining ABS Capital in 2009, Tim was an Associate in the Consumer and Business Services Investment Banking Division of Oppenheimer & Co. Tim also has previous Analyst experience from his time at CIBC World Markets working in their Consumer and Business Services Investment Banking Division. Prior to joining CIBC World Markets in 2005, Tim worked as an Associate in the Assurance and Risk Advisory Group at KPMG.

Tim is a Certified Public Accountant and graduated with honors from the Loyola University with a BBA in Accounting ans will be a valuable component to 321 Capital’s long-term growth strategy.  Welcome to the team Tim!

The M&A Advisor announced the winners of the Emerging Leaders Awards within the M&A industry last week. Ervin Terwilliger and Erik Endler, Managing Partners of Three Twenty-One Capital Partners, have been chosen by M& A Advisors as Emerging Leaders in the M&A Category for their accomplishments and expertise.

The M&A Advisor, renowned globally for its recognition of leading M&A, financing and turnaround professionals, created this event to promote mentorship and professional development amongst the emerging business leaders.

“The Annual M&A Advisor Emerging Leaders Awards was born as the “40 Under 40” Awards in the United States in 2010 to recognize and celebrate the achievements of young M&A, Financing and Turnaround professionals who had reached a significant level of success and made a notable contribution to their industry and community. With the expansion of the Emerging Leaders program to the United Kingdom, and Europe in 2016, the 2017 US award winners join a truly global network of outstanding young professionals,” said David Fergusson, President and Co-CEO of The M&A Advisor.

On Tuesday, September 19th, The M&A Advisor will host a black-tie Awards Gala at the New York Athletic Club in Manhattan to announce the Emerging Leaders Award Winners to the business community and celebrate their achievements.

ERVIN TERWILLIGER

Ervin Terwilliger, is the Founder and Managing Partner of Three Twenty-One Capital Partners, a boutique investment banking firm that specializes in Mergers and Acquisitions for privately held companies with a specific concentration in family-owned businesses and “storied” situations.

Ervin has completed over 120 transactions and consulting engagements in the last 10 years, with a concentration on family and founder-run businesses. Ervin sits on the board of directors for The Maryland Proton Therapy Center and has held director positions for international manufacturing concerns, as well as interim C-level positions.  Ervin is a relied upon valuation, process and sales expert in U.S. Bankruptcy Courts.  Ervin graduated from the University of Delaware with a Bachelor’s of Science in Business Administration in Management and Marketing and is an active member of the ABI and TMA.

ERIK ENDLER

Erik Endler, Erik is a Managing Partner at Three Twenty-One Capital Partners. Erik is a former Executive Director in Oppenheimer’s Consumer and Business Services Investment Banking group, former Director at CIBC World Markets and Analyst with Deutsche Banc Alex Brown. Erik’s transactional experience spans the consumer products, retail, technology, e-commerce, direct marketing, manufacturing, rental services, professional services, and restaurant sub-sectors.

Erik manages Three Twenty-One Capital Partners’ deal teams, overseeing all aspects of the firm’s engagements including, but not limited to due diligence, financial analysis, memorandum creation and deal structuring. Erik has completed over 40 deals representing in excess of $7 billion in transaction value. Clients have included companies such as Bare Escentuals, the Brickman Group, Carbonite, Connolly Consulting, Constant Contact, Contigo, Design Within Reach, Jarden and Vitacost to name a few.  Erik graduated with highest honors from the University of Notre Dame with a BBA in Finance and Computer Applications.

THE M&A ADVISOR

Founded in 1998, The M&A Advisor was the first dedicated media company to offer insights and intelligence on mergers and acquisitions. As the world’s premier think tank and leadership organization for M&A, restructuring and corporate finance professionals, the firm provides a range of integrated services including: The M&A Advisor Forums and Summits; The M&A Advisor Market Intelligence; M&A.TV.; The M&A Advisor Live; The M&A Advisor Awards; and The M&A Advisor Connects. To learn more about the company’s Leadership Services visit www.maadvisor.com