The filters that separate precious metals from wastewater at a mine or pull impurities out of milk at a dairy aren’t expensive, but they’re vital pieces of equipment that companies will continue to buy if they’re reliable.
That’s the idea behind Westwood private-equity firm Vance Street Capital LLC’s recent acquisition of filter manufacturer Micronics Inc. of Portsmouth, N.H.
In a deal that closed last month, Vance Street bought a controlling stake in Micronics with plans to grow the business by expanding its sales force and increasing its manufacturing capacity. Financial terms of the deal were not disclosed.
Micronics’ filters and filter presses, which separate solids and liquids, are already widely used in the mining and chemical industries. Jake Blumenthal, a principal at Vance Street, said he wants to sell more filters in Europe and Asia.
“There are other markets we haven’t aggressively pursued to date,” he said. “We’re working with the CEO to expand the reach of the company.”
Vance Street plans to open an additional manufacturing plant. Micronics already makes products in Portsmouth and in Stoke-on-Trent, England.
Micronics is the seventh major acquisition Vance Street has made since raising a $320 million fund in 2008. The firm invests mostly in aerospace, industrial and medical device companies, focusing on engineered goods or services.
“We’re trying to invest in companies that become an indispensable supplier,” Blumenthal said. “We’re providing a good solution so we can maintain a relationship with a customer over time. We’re not investing in commodity products where the cheapest price wins the day.”
Moving In
A handful of financial firms have opened L.A. offices over the past month, some of them poaching talent from local firms as they arrive.
Nashville, Tenn., alternative investor Courage Capital Management LLC last month hired two veterans from Beverly Hills’ Levine Leichtman Capital Partners and plans to open an L.A. office.
John Klinge, formerly Levine’s chief credit officer, and Scott Imbach, a former Levine managing director, joined Courage Capital as senior managing directors. The firm has yet to lease office space but a spokesman said he expects to find an office in West Los Angeles.
Irvine wealth management firm and private bank First Foundation Inc. opened a Westwood office last month led by Managing Director Paul Miller.
The firm, which also has offices in Pasadena and Palm Springs, advises wealthy clients about philanthropy and trusts. It started hiring for the L.A. office last year but only recently moved into its Wilshire Boulevard offices.
Next Street, a Boston-area merchant bank, has opened an L.A. office where it hopes to work with international investors participating in the EB-5 visa program. That program allows foreigners to immigrate to the United States if they invest at least $500,000 in a new business and create at least 10 jobs.
To run the L.A. office, Next Street hired Young Kim, Nan Song and Alex Young. All three previously worked for M&D Regional Center, a Lynwood development agency that works with EB-5 investors.
EB-5 regional centers pool money from foreign investors, often to develop large real estate projects, giving them the right to immigrate under the program.
Merger Approved
Shareholders of Century City’s PacWest Bancorp and Westlake Village’s First California Financial Group Inc. recently approved a planned merger of the two bank holding companies.
The deal, first announced in November and approved last month, calls for PacWest to buy First California for $231 million. PacWest’s Pacific Western Bank will have $7.3 billion in assets after the deal closes, making it the fifth-largest bank headquartered in Los Angeles County.
Shareholders voted just days after a judge approved a settlement in a shareholder suit brought against the two banks. Investor Paul Githens alleged a confidentiality agreement between First California and several corporate suitors prevented First California from getting a better sale price.
The agreement, known as a “don’t ask, don’t waive” provision, prevents potential acquirers from raising their bid if they don’t offer the best price.
Under the terms of the settlement, First California and PacWest explained the provision in a public filing before last month’s shareholder vote.
C-Suite News
George Stanfield has been named division executive for Southern California by Bank of the West. Stanfield, who works in downtown Los Angeles, was previously division executive for the Southwest. The title bump adds the L.A. and Las Vegas regions to his portfolio. … Brian Batson has joined Beverly Hills life insurance and wealth management firm Krupin Partners LLC as chief operating officer. He was previously with Toledo, Ohio, firm Delp Co.
Staff reporter James Rufus Koren can be reached at [email protected] or (323) 549-5225, ext. 225.
