February 25, 2019
October 27, 2015
BUILDING AN INDUSTRY LEADER
Compassion-First Pet Hospitals (“CF”) was the largest independent, specialty-focused network of pet hospitals in the United States, with 41 locations across the country. Through its locally-branded hospitals and shared services organization, CF employed over 2,200 staff members, including more than 500 veterinarians, who focused on providing highly advanced specialty veterinary medicine to companion animals.
Quad-C partnered with industry executive John Payne in 2014 to form CF, which began operations with the simultaneous affiliation of four practice groups in the mid-Atlantic / northeast region. We had been proactively pursuing an investment in the animal health sector for over a year, and we were enthusiastic about John’s thesis to develop the industry’s most collaborative and clinically-focused specialty veterinary network.
Through a series of affiliations with new practices as well as organic growth, CF expanded from being a regional leader to a national organization of high-quality hospitals with excellent local reputations.
EXECUTING THE STRATEGY
With the support of Quad-C, management executed on a well-defined value creation plan.
OVERCOMING ADVERSITY
One of the proudest moments of our investment in CF was the company’s response to Hurricane Harvey in 2017:
EXIT
After exceeding our growth plans and establishing the framework for continued future success, Quad-C exited CF in 2019 at a valuation of $1.2 billion.
EDUCATION
Indiana University, B.A. in Finance
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Colibri
EFC International
EDUCATION
University of Virginia, B.S. in Commerce
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Galleher
S.i. Systems
Stanton Carpet
EDUCATION
Boston College, B.A. in Economics
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Krayden
VMG Health
EDUCATION
University of Virginia, B.S. in Commerce
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Joerns Healthcare
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Rainbow Early Education
TAKING THE BUSINESS TO THE “NEXT LEVEL”
InterWrap, Inc. (“InterWrap” or the “Company”) was a manufacturer of highly-engineered coated woven materials for a broad range of applications including synthetic roofing underlayment, protective packaging and geomembranes. Based in Vancouver, BC, Canada, the Company had grown since 1983 from what started out as a woven sandbag business, to an innovative, market-leading, branded specialty materials business operating on a global scale. Global sales were supported by flexible manufacturing and distribution capabilities in China, India, Canada and the United States.
Over its history, InterWrap had been a very successful entrepreneurially run business with impressive top-line growth, leading market positions and quality products, but similar to many entrepreneurial businesses, had underinvested in systems and infrastructure relative to the growth of the business and, as a result, its performance was not being fully optimized.
Recognizing the potential to take the Company to the “next level”, the founders sought a private equity partner and decided to partner with Quad-C in a 50/50 transaction in 2013.
EXECUTING THE STRATEGY
With the support of Quad-C and the founders, management executed on the value creation plan which included:
As a result, InterWrap achieved record sales performance while enhancing EBITDA margins by over 500 bps and growing EBITDA by over 70% during Quad-C’s investment period.
EXIT
Given the Company’s strong organic growth, dramatic margin improvement and operational transformation, Quad-C sold the business to a strategic acquirer in April 2016.
PARTNERING WITH GROWTH ORIENTED FOUNDERS
Vaco (“Vaco” or the “Company”) was a leading IT, finance & accounting (“F&A”) and healthcare consulting, staffing and placement firm operating in 36 markets across the U.S. Vaco had a differentiated ownership model with the local management team owning a portion of the equity in each local market. Based in Nashville, Vaco had grown rapidly since its founding in 2002. Quad-C partnered with the three founders and completed a recapitalization in September 2014. The founders and local owners were looking for partial liquidity but wanted to remain with the business and were looking for a partner who could help them grow both organically and through acquisitions.
Quad-C had been seeking an investment in the professional staffing market for several years prior to partnering with Vaco. The market was large and highly fragmented, with growth being driven by both cyclical and secular tailwinds. We were attracted to Vaco specifically because the Company had a demonstrated track record of profitable growth with a strong culture, a unique ownership model and a team capable of taking market share in a fragmented industry.
EXECUTING THE STRATEGY
With the support of Quad-C, management executed on the value creation plan which included:
As a result, Vaco’s sales and EBITDA more than doubled in three years.
EXIT
Given the Company’s strong growth, Quad-C sold its stake to a private equity group in November 2017.
INVESTING WITH A LEADING HEALTHCARE ORGANIZATION
Dental Care Alliance (“DCA” or the “Company”) was a leading multi-branded dental services organization (DSO), occupying the top position in the Mid-Atlantic region, based on geographic density, as well as a top three position in both Florida and Georgia. The dental industry was large, fragmented and in the early stages of consolidation. We viewed DCA as a strong platform to consolidate the industry due to its (i) experienced management team, (ii) regional density in the mid-Atlantic, FL and GA, (iii) proven record of above average same store revenue growth and cash flow generation and (iv) significant investment in infrastructure and scalable business model. At the time of our investment, the Founder was transitioning out of the Company, and management was looking for a financial partner to both facilitate an ownership recapitalization and provide corporate development expertise and capital for acquisitions. Management maintained significant ownership in the business alongside Quad-C.
EXECUTING THE STRATEGY
With the support of Quad-C, management executed on the value creation plan, which included:
As a result, DCA significantly expanded its footprint as the business doubled in size under Quad-C’s ownership.
EXIT
Given the strong organic growth and accretive acquisitions, management exceeded its growth plan and in July 2015 Quad-C sold DCA to a private equity group.
BACKING AN INNOVATIVE MANUFACTURER
NuSil Technology (“NuSil”) was a leading global formulator, manufacturer, and supplier of silicone compounds for healthcare, aerospace, defense, and other markets. Quad-C partnered with the management team and founder of the Company in a proprietary transaction in 2005 that was identified through our proactive approach to the specialty chemicals industry. Quad-C believed NuSil had the following attractive investment aspects:
EXECUTING THE STRATEGY
With the support of Quad-C, management executed on the value creation plan, which included:
EXIT
NuSil was able to achieve double digit sales and EBITDA growth during our ownership and improve its strong operating profit margins, while investing in capacity and operating efficiencies. Quad-C sold its ownership in NuSil in 2011 to another financial buyer.
INVESTING WITH A GROWTH ORIENTED MANAGEMENT TEAM
Founded in 1998, Document Technologies (“DTI” or the “Company”) had become one of the largest independent providers of outsourced litigation support services, including facilities management (“FM”) services and electronic and paper discovery solutions. The Company, under the leadership of John Davenport, Jr., had grown its offering from traditional copy services to become a leading end-to-end provider of litigation support services serving 95% of the AMLAW 100 firms as well as general counsels of numerous Fortune 500 corporations. DTI had more than 100 FM customers in 35 major markets in the U.S., two dozen off-site legal production locations, and had recently begun offering electronic discovery services at the time of Quad-C’s investment in 2008. The Company had grown from a start-up to $100 million in revenue over a decade and Quad-C believed there was a significant opportunity to continue growing the business by expanding the electronic services component of the offering, introducing new products and services, and expanding geographically. The Company founders and the other managers remained significant owners alongside Quad-C.
ABILITY TO CLOSE IN A TOUGH ENVIRONMENT
Quad-C invested in DTI in December 2008, completing the transaction despite the very difficult external environment. We were willing to close the transaction with 75% equity capitalization, as we believed the opportunity to grow the business substantially, not leverage, would create excess returns going forward. With the support of Quad-C, management executed on the value creation plan, which included:
As a result, the Company grew sales significantly and expanded margins.
EXIT
Given the strong organic growth, accretive acquisitions, favorable shift in mix and resulting margin improvement, management exceeded its five-year forecast in less than three years. In November, 2011 Quad-C sold the Company to a private equity group.
UNITING WITH A NOTABLE FRONTRUNNER
Augusta Sportswear Group (“ASG” or the “Company”) had become one of the leading providers of team uniforms, athletic apparel, outerwear, fanwear and school-inspired products in the United States. ASG sold through specialty distribution channels including team uniform suppliers, custom decorators and promotional products distributors. ASG had become the supplier of choice due to its comprehensive product selection at attractive price points, exceptional order execution and unmatched customer service and sales support. In the transaction, the Company founder and the entire senior management team remained significant owners alongside Quad-C.
EXECUTING THE STRATEGY
With the support of Quad-C, management executed on the value creation plan which included:
Investing in E-commerce and business intelligence technologies to enhance customer relationships further differentiated the Company from the competition and drove additional sales potential.
DELIVERING RESULTS
Quad-C invested in ASG in January 2008 and ASG increased its EBITDA by approximately 50% during our ownership period despite the severe economic recession. One of the reasons Quad-C was attracted to ASG was our belief that ASG would be recession resistant based on its value-oriented pricing, diverse customer base, small average order size and market leadership position. This resilience proved to be the case and as a result of the value creation strategy noted above, ASG was able to drive double digit annual growth rates in profitability through the recession.
EXIT
Given the strong organic growth, Quad-C sold the Company to a private equity group in April 2012.
COLLABORATING WITH GROWTH ORIENTED FOUNDERS
Cloverhill Bakery (“Cloverhill” or the “Company”) was a leading manufacturer and supplier of individually-wrapped, shelf stable sweet baked goods. Based in Chicago, Illinois, the Company had grown since 1961 from a local vending business, to a nationally recognized producer of branded and co-manufactured baked goods. Cloverhill’s product portfolio included fold-over and round danish, cinnamon rolls, honey buns, donuts, muffins, crumb cakes and cream-filled cakes. Cloverhill operated a modern, high volume manufacturing platform consisting of two world-class bakeries in the Chicago metropolitan area and sold its products through multiple channels including co-pack, grocery, vending, club, QSR and other retail outlets. Quad-C partnered with the owners in October 2009, two brothers who were third generation of the founding family, in a recapitalization transaction. The brothers were looking for partial liquidity but wanted to remain with the business as executives and substantial owners and therefore a growth oriented partner was important to them. Quad-C was attracted to the business as the founding family members had a tremendous track record and had proven their ability to add customers, improve the Company’s scale and profitability and penetrate new distribution channels.
EXECUTING THE STRATEGY
With the support of Quad-C, management executed the value creation plan which included:
As a result, Cloverhill grew sales by more than 80% during Quad-C’s investment period.
EXIT
Given the company’s strong organic growth and product diversification, Quad-C sold the business to a strategic acquiror in March 2014.
BACKING AN “UNDISCOVERED” INDUSTRY PIONEER
Technimark (or the “Company”) was a leading global manufacturer of plastic injection molded products for consumer packaging and specialty technical applications. Based in Asheboro, NC, at the time of our investment, the Company operated five injection molding facilities globally, including one in North Carolina, two in Mexico, one in China and one in Germany. The Company also operated a recycled resin processing facility in North Carolina, providing processed post-consumer and post-industrial resin for use in Technimark’s and other companies’ finished products. Technimark served a broad and distinguished customer base that included some of the world’s best-known brands. Prior to our investment, Technimark was owned by a foreign furniture manufacturer. Quad-C was attracted to the business as a technology leader with superb customer relationships that was relatively unknown outside its existing customer base. We partnered with the original founders to acquire the business from its corporate parent and invest in growth.
EXECUTING THE STRATEGY
With the support of Quad-C, management executed the value creation plan which included:
During Quad-C’s investment period, Technimark made approximately $100 million in capital investments and grew sales by more than 120%.
EXIT
After almost seven years of strong organic growth, customer diversification and a transition of the business to consumer packaging, Quad-C sold Technimark in April 2014.
Natalie joined Quad-C in 2017 and is responsible for compliance matters and firm operations. Prior to joining Quad-C, Natalie had 15 years of experience in operations and compliance roles in the investment industry, most recently as a senior consultant with Oyster Consulting, LLC. Prior to that, she served as the Chief Operating Officer and Chief Compliance Officer for Mangham Associates, an outsourced investment office for endowments, foundations and high net worth families. Natalie also previously headed Private Investment Operations for The Investment Fund for Foundations (TIFF). She is a CFA charterholder.
EDUCATION
University of Mary Washington, B.S.
James Madison University, M.B.A.
Angie joined Quad-C in 2013 and provides executive administrative support to the partners and investment professionals. Prior to joining Quad-C, Angie was an office manager at Real Estate III in Charlottesville, VA.
EDUCATION
Piedmont Virginia Community College, Charlottesville, VA
Donna joined Quad-C in 2007 and provides executive administrative support to the partners and investment professionals. Prior to joining Quad-C, Donna worked for Exxon Chemical Company and AMVEST Corporation, both energy companies, in an administrative support role as well.
EDUCATION
Miller Motte Business College, Wilmington, NC
Virginia joined Quad-C in 2009 and provides executive administrative support to the accounting department, as well as the partners and investment professionals. Prior to joining Quad-C, Virginia sold residential real estate in Charlottesville. She began her career as a paralegal, working for Exxon Corporation.
EDUCATION
Sacred Heart University, A.S.
Sara joined Quad-C in 2004 and assists the CFO in the management of financial operations. Prior to joining Quad-C, Sara worked for Albemarle First Bank. Sara began her career as an accountant with Jacobson Brotman PC.
EDUCATION
College of Business and Public Administration, Old Dominion University, B.S. B.A.
Russ joined Quad-C in 2013 and is responsible for accounting and administration of the investor funds. Prior to joining Quad-C, Russ headed the fund accounting and administration operations of Silvercrest Asset Management Group as well as serving as a partner at Heritage Financial Management based in Charlottesville. Russ began his career at PricewaterhouseCoopers in their audit practice in the Perth Western Australian office.
EDUCATION
Edith Cowen University, B.Bus,
Nina joined Quad-C in 1998 and is responsible for all financial operations. Prior to joining Quad-C, Nina was a Senior Manager with PricewaterhouseCoopers where she oversaw the audits of Quad-C funds and various other financial services clients.
EDUCATION
Virginia Commonwealth University, B.S.
Matt joined Quad-C in 2017. Prior to joining Quad-C, Matt was an analyst in the Transportation & Logistics Group at Harris Williams, where he focused on sell-side M&A assignments for private equity-backed and founder-owned businesses.
EDUCATION
University of Richmond, B.S.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
@properties
Wolf
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Compassion First
EDUCATION
University of Virginia, B.S. in Commerce
CURRENT PORTFOLIO COMPANY INVOLVEMENT
AIT Worldwide Logistics
Inmark
NJ Eye
Pharm-Olam
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Network Global Logistics
Chris joined Quad-C in 2015. Prior to joining Quad-C, Chris was an Associate at CIVC Partners, where he was responsible for evaluating new investment opportunities and working with portfolio companies in the business services and financial services sectors. Chris was also previously an Analyst with BMO Capital Markets in the Food, Consumer & Retail Group.
EDUCATION
Vanderbilt University, B.A.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
@properties
Colibri
S.i. Systems
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Rainbow Early Education
Vaco
Spencer joined Quad-C in 2014. Prior to joining Quad-C, Spencer was an Analyst in the Global Industrials Group at Jefferies, where he focused on mergers and acquisitions, debt financings and equity raises for public and private companies across multiple industries including chemicals, building products, energy and aerospace.
EDUCATION
University of Virginia, B. S. in Commerce
CURRENT PORTFOLIO COMPANY INVOLVEMENT
AIT Worldwide Logistics
Joerns Healthcare
NJ Eye
Pharm-Olam
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Network Global Logistics
Worldwide Express
Matt joined Quad-C in 2013. Prior to joining Quad-C, Matt was an Analyst in the Leveraged Finance Group at Wells Fargo, where he focused on raising debt capital for leveraged buyouts, acquisitions and recapitalizations of public and private companies across multiple industries.
EDUCATION
University of Virginia, B. S. in Commerce
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Galleher
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Compassion First
Generation Brands
Network Global Logistics
Technimark
EDUCATION
University of Virginia, B.A.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
@properties
Colibri
Gallaher
Inmark
S.i. Systems
Stanton Carpet
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Augusta Sportswear Group
Balboa Water Group
Curvature
Durcon
InterWrap
Rainbow Early Education
Technimark
Vaco
Michael joined Quad-C in 2007. Prior to joining Quad-C, Michael was in the Leveraged Finance Group at Bear, Stearns & Co. Inc. where he focused on debt financing transactions and financial sponsor acquisitions in a variety of industries.
EDUCATION
Bucknell University, B.A.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
AIT Worldwide Logistics
EFC International
Krayden
WOLF
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
A. Stucki Company
Behaviorial Interventions
Cloverhill
Network Global Logistics
TLC
Worldwide Express
Rob joined Quad-C in 2007. Rob’s responsibilities range from deal origination and structuring to due diligence, execution and monitoring. Prior to joining Quad-C, he worked at JLL Partners and J.P. Morgan Chase in the Leveraged Finance Group.
EDUCATION
Ithaca College, B.S.
Harvard Business School, M.B.A.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Joerns Healthcare
NJ Eye
Pharm-Olam
VMG Health
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Augusta Sportswear Group
Dental Care Alliance
Generation Brands
NuSil Technology
Royal Adhesives & Sealants
Frank Winslow joined Quad-C in 1998 and leads investment activity in the healthcare, packaging and food sectors. Prior to joining Quad-C, Frank was a Consultant in the Quantitative Strategies Group at Public Financial Management where he advised on the issuance of municipal bonds and the use of various derivative strategies.
EDUCATION
Princeton University, A.B.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Inmark
Joerns Healthcare
NJ Eye
Pharm-Olam
VMG Health
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Behavioral Interventions
Cloverhill
Curvature
Dental Care Alliance
NuSil Technology
Royal Adhesives & Sealants
Technimark
Thad joined Quad-C in 1998 and leads investment activity in general industrial and specialty distribution. Prior to joining Quad-C, Thad worked in corporate finance with both Robinson-Humphrey and Croft & Bender where he executed public offerings and private placements of debt and equity, as well as acquisitions and divestitures of public and private companies.
EDUCATION
McIntire School of Commerce, University of Virginia, B.S.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
EFC International
Galleher
Krayden
Stanton Carpet
WOLF
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Acoustical Material Services
Augusta Sportswear Group
Asset Acceptance Capital Corp.
Balboa Water Group
Collins & Aikman Floorcoverings
Huddle House
InterWrap
EDUCATION
University of Virginia, B.A.
Harvard Business School, M.B.A.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
AIT Worldwide Logistics
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
A. Stucki Company
Durcon
Network Global Logistics
TLC
Worldwide Express
EDUCATION
Georgetown University, B.S.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
@properties
Colibri
S.i. Systems
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Compassion First
Document Technologies
Generation Brands
Rainbow Early Education
Vaco
Since joining Quad-C in 1994, Steve has invested in the building products, business services, specialty chemicals, packaging, transportation/logistics and food sectors. Prior to joining Quad-C, Steve worked in the Risk Arbitrage Group and Leveraged Capital Group at Paribas and the corporate development group at W.R. Grace.
EDUCATION
Boston College, B.S.
The Wharton School, University of Pennsylvania, M.B.A.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
Galleher
Inmark
Krayden
NJ Eye
Pharm-Olam
S.i. Systems
Stanton Carpet
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
Balboa Water Group
Cloverhill
Collins & Aikman Floorcoverings
Compassion First
Curvature
Document Technologies
InterWrap
Network Global Logistics
NuSil Technology
Royal Adhesives & Sealants
Technimark
Universal Fiber Systems
Vaco
Since joining Quad-C in 1992, Tony has led investments in a variety of industries including building products, business services, healthcare and transportation / logistics. Prior to joining Quad-C, Tony worked in the Merchant Banking Group at Merrill Lynch, the Mergers and Acquisitions Group at Drexel Burnham Lambert and the Office of the Chairman at W.R. Grace.
EDUCATION
The Wharton School, University of Pennsylvania, B.S.
Harvard Business School, M.B.A.
CURRENT PORTFOLIO COMPANY INVOLVEMENT
@properties
AIT Worldwide Logistics
Colibri
EFC International
Joerns Healthcare
VMG Health
WOLF
REPRESENTATIVE PRIOR PORTFOLIO COMPANY EXPERIENCE
A. Stucki Company
Acoustical Material Services
Asset Acceptance
Augusta Sportswear Group
Dental Care Alliance
Generation Brands
Rainbow Early Education
Service Partners
TDS Logistics
Worldwide Express
Prior to founding Quad-C in 1989, Terry served as a Vice Chairman and Director of W.R. Grace & Co. He led the restructuring of W.R. Grace in the mid-1980s, negotiating over $4 billion of acquisitions and divestitures, and had operating responsibility for Grace’s Specialty Chemical, Health Care, Retail and Restaurant, Natural Resource and Corporate Technical Groups. He also served as Chairman, President, and Chief Executive Officer of Western Publishing and as Senior Vice President for corporate development of Mattel.
EDUCATION
University of Virginia, B.A.
Colgate Darden School, University of Virginia, M.B.A
