Blue Wolf Capital Announces Sale of StateServ to WindRose
November 22, 2021 – NEW YORK – Blue Wolf Capital Partners LLC (“Blue Wolf”), a New York-based private equity firm, today announced the sale of StateServ Medical (“StateServ”) to WindRose Health Investors, LLC (“WindRose”). Terms of the transaction were not disclosed.
Based in Mesa, Arizona, StateServ is the leading durable medical equipment benefit management company supporting hospices and other post-acute care providers in the United States. Since Blue Wolf’s investment in the company in August 2017, StateServ has undergone a significant transformation, growing through its merger with Hospicelink in early 2018 and organically through operational efficiencies and expansion of the company’s customer base.
Jeremy Kogler, Partner at Blue Wolf, said, “When we first invested in StateServ, we believed there was a tremendous opportunity to grow the company given its value proposition for hospices and the low adoption of benefit management for durable medical equipment in the sector. In just four years, we successfully positioned StateServ to benefit from an ongoing industry shift toward capitated models of payment. Today’s announcement represents a great outcome for Blue Wolf LPs, as well as StateServ and its stakeholders and we believe the company is well positioned for future success under WindRose’s ownership.”
“Blue Wolf has been a great partner to StateServ and has provided us with invaluable industry and operating knowledge, as well as the resources needed to enhance our market leadership for the benefit of all our stakeholders,” commented Paul DiCosmo, Chief Executive Officer and co-founder at StateServ. “We thank the entire Blue Wolf team for their guidance and support, and we look forward to our next chapter as we join forces with WindRose and build upon our strong foundation.”
TripleTree served as financial advisor and Greenberg Traurig served as legal advisor to Blue Wolf in connection with this transaction.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
About StateServ Medical Founded in 2004 and based in Mesa, AZ, StateServ is the leading provider of durable medical equipment (DME) benefit management solutions to the post-acute care market. StateServ’s technology-enabled platform provides DME cost containment solutions to hospices and other post-acute providers, delivering high quality patient care, tangible cost savings, and operational efficiencies. StateServ’s mission is to use technology and optimized processes to help its customers provide the best possible care for patients while giving them the tools they need to drive efficiency. For more information, please visit www.stateserv.com.
Blue Wolf Capital to Acquire CIVCO Radiotherapy from Roper Technologies
October 22, 2021 – NEW YORK – Blue Wolf Capital Partners LLC (“Blue Wolf”), a New York-based private equity firm, today announced it has entered into an agreement to acquire CIVCO Radiotherapy, a global leader of radiotherapy patient positioning and immobilization equipment, from Roper Technologies, Inc. (NYSE: ROP).
With a nearly 40-year operating history and a track record of quality and reliability, CIVCO Radiotherapy serves a blue-chip customer base of academic and community hospitals, cancer centers and OEM manufacturers. CIVCO Radiotherapy is headquartered in Iowa and operates globally in 90+ countries.
Jeremy Kogler, Partner at Blue Wolf Capital, said, “We are incredibly pleased to partner with CIVCO Radiotherapy’s leadership team to further strengthen the company’s longstanding leading position in mission-critical radiotherapy products. We look forward to many years of continued growth at CIVCO Radiotherapy.”
“We are pleased to have found a trusted partner in Blue Wolf with the skills, expertise and capital to support our significant growth goals and mission of improving outcomes for patients and healthcare providers worldwide,” said Nat Geissel, current President of CIVCO Radiotherapy, who will be named CEO of the company at transaction close. “Blue Wolf has a track record of successfully managing businesses. I’m confident their team will help to enhance our production capabilities and distribution efficiencies to meet the needs of patients and healthcare providers globally.”
“CIVCO Radiotherapy is a leader in the provision of radiotherapy positioning equipment,” said Shashank Patel, Principal at Blue Wolf Capital. “The company has a rich history of improving the patient experience and clinical outcomes for cancer patients globally. We believe CIVCO Radiotherapy is well positioned to further help clinicians offer more targeted and accurate treatment to patients as innovations in the radiotherapy space continue. We look forward to working with Nat and his team to build on its mission of improving outcomes and quality care for patients.”
The transaction is expected to close by the end of the year. Terms of the transaction were not disclosed.
About CIVCO Radiotherapy Founded in 1982, CIVCO Radiotherapy has a nearly 40-year track record of designing and manufacturing radiotherapy patient positioning and immobilization devices that are critical to the provision of safe, quality cancer treatment to patients. The company has approximately 115 employees, serving customers across 90+ countries. CIVCO Radiotherapy corporate headquarters and production facilities are located in Iowa. For more information, please visit www.civcort.com.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
Blue Wolf Capital Named in Inc.’s 2021 List of Founder-Friendly Investors
NEW YORK, October 5, 2021 – Blue Wolf Capital Partners LLC (“Blue Wolf”), a New York-based private equity firm, today announced it was named to Inc.’s third annual Founder-Friendly Investors list, honoring the private equity and venture capital firms with the best track record of success backing entrepreneurs.
“Entrepreneurship is at the heart of Blue Wolf and we are proud to partner with innovative leaders to transform their businesses, bring key stakeholders together and generate value,” Adam Blumenthal, Managing Partner of Blue Wolf. “We are honored to be recognized and believe it is a reflection of our outstanding team and their ability to work collaboratively with founders and management teams across our portfolio companies.”
“Supporting an entrepreneur’s vision and driving growth is more than just a financial investment. It’s about building a relationship and supporting the founders beyond that initial year. These private equity firms treat the founders like partners,” says Scott Omelianuk, editor-in-chief of Inc. media. Since Blue Wolf’s founding 15 years ago, it has established a distinctive catalyst-driven approach to building stronger businesses, focused on combining financial and operational discipline with environmental, social, and governance principles. Working hand-in-hand with management teams, Blue Wolf takes a collaborative investment approach that is both value-generating and values-driven, which has translated to its proven track record of transforming businesses to create sustainable value for stakeholders and investors.
Blue Wolf demonstrated its ability to drive value for founder-owned businesses with the formation and ultimate successful sale of the Mulch and Soil Company earlier this year. Blue Wolf formed the Mulch and Soil Company in 2018 through a merger of Forestry Resources and later K&B Landscapes – two founder-owned businesses based on Florida – with the mulch division from Suwannee Lumber Company. Under Blue Wolf’s leadership prior to the sale, the Mulch and Soil Company became one of the Southeast region’s leading manufacturers of premium mulch and soil products.
According to Inc., the final Founder-Friendly Investors list recognizes firms that entrepreneurs can trust and collaborate with while receiving the financial support they need to help accelerate growth. The firms selected have a successful track record of remaining actively involved in the businesses after their investment.
To compile the list, Inc. went straight to the source: entrepreneurs who have sold to private equity. Founders filled out a questionnaire about their experiences partnering with private equity firms and shared data on how their portfolio companies have grown during these partnerships.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
About Inc. The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community they need to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.
The Founder-Friendly Investors list of 2021 recognition presented herein is awarded by Inc., a thirdparty that is not affiliated with Blue Wolf, requested nominees provide them with a certain number of entrepreneur references, and Inc. independently assessed the nominees based on responses to a questionnaire by such entrepreneur references. The number of nominees reviewed for this recognition was not disclosed to Blue Wolf, and therefore, it and the percentage of nominees receiving the recognition, cannot be disclosed herein. Inc.’s recognition is not indicative of Blue Wolf’s future performance and does not reflect the experience of, or any rating by, Blue Wolf’s investors. Blue Wolf paid an application fee to participate in this process. For more information regarding this recognition, please see the linked publication.
Blue Wolf Capital Names Mike Sutter as Operating Partner
AUGUST 23, 2021, NEW YORK – Blue Wolf Capital Partners LLC (“Blue Wolf”), a New York-based private equity firm, today announced that Mike Sutter will be joining the firm as an Operating Partner focused on Blue Wolf’s investments in the industrials sector. Mr. Sutter most recently served as Chief Executive Officer of Airtech Vacuum Inc., a leading global designer and manufacturer of vacuum pumps, blowers and vacuum and compressor systems.
“One of Blue Wolf’s key differentiators is our team’s industry and operating expertise, and I am pleased to build on this talent with the addition of an industrial manufacturing veteran like Mike,” said Adam Blumenthal, Managing Partner of Blue Wolf. “Mike has a track record of success in improving operating performance and driving organic and inorganic growth, having led a variety of businesses throughout his career in the sectors in which we operate. He also brings a background in talent development and union environments, both of which are important to Blue Wolf’s ESG principles. I’m confident Mike will draw on his years of relevant experience as he works to support our industrial portfolio companies.”
Prior to his most recent role, Mr. Sutter served as President, Chief Executive Officer and as a Director of Chromalox, during which time Chromalox, then private, was successfully sold by a private equity firm to a publicly traded company. Before then, Mr. Sutter held leadership roles at ITT in the Industrial Process Division. Earlier in his career, Mr. Sutter was an executive at Flowserve, among other industrial companies. In these positions, he has focused on areas such as strategic planning, sales and operations management, global supply chain management, lean management and talent development.
Mr. Sutter stated, “Blue Wolf has a stellar track record and a reputation for removing complex operational barriers and driving significant value across its investments. I’m truly excited to be joining Blue Wolf as an Operating Partner and am eager to collaborate with Blue Wolf’s investment team and portfolio company management as the firm continues to grow its presence in the industrials sector.”
Aakash Patel, a Principal at Blue Wolf who concentrates on the firm’s investments in the industrials sector, added, “It’s an exciting time to be investing in and partnering with industrial manufacturing and distribution businesses. Mike is known for his ability to foster operational and organizational excellence, and his skillset is well-aligned with our investment approach. I look forward to working alongside him in his new role.”
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between businesses, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com
Blue Wolf Capital Announces Sale of Novo Building Products
June 23, 2021, NEW YORK – Blue Wolf Capital Partners (“Blue Wolf”), a New York-based private equity firm, today announced that it has entered into a definitive agreement to sell Novo Building Products LLC (“Novo”) to Hardwoods Distribution Inc. (TSX:HDI) (“HDI”), one of North America’s largest distributors of architectural grade building products to the residential, repair and remodel, and commercial construction industries.
Headquartered in Zeeland, MI, Novo is an industry leading manufacturer and value-added distributor of mouldings, millwork, stair parts and other specialty building products to national home retail centers and building material dealers throughout the United States and parts of Canada and Mexico.
Blue Wolf acquired Novo in 2016 from Tenon Limited, a New Zealand-based public company, and has since worked with the Novo team to execute on a value creation plan focused on achieving operational efficiencies and diversifying the company’s customer base and product portfolio through organic growth and M&A. In 2019, George Judd, a Strategic Advisor to Blue Wolf with a successful track record as a building products industry executive, was appointed CEO of Novo. His leadership greatly accelerated the value creation plan and has positioned Novo for long-term growth.
“This transaction represents an outstanding outcome for Blue Wolf and our LPs, as well as for Novo and its stakeholders, including its employees,” said Adam Blumenthal, Managing Partner of Blue Wolf. “Our experience with Novo demonstrates the value that Blue Wolf brings in transaction execution and as an owner. Our investment involved a highly complex carve-out from a publicly traded, international corporation. Over the course of the last five years, we leveraged our experience in the building products sector and effectively utilized our operating resources to advance the company’s position as an industry leader. I want to thank the entire Novo management team and the company’s more than 1,400 employees for their immense contributions in these efforts. We look forward to following Novo in its next phase of growth as it joins forces with HDI.”
“Under George’s leadership, the Novo management team executed a set of strategic initiatives that expanded the company’s footprint, diversified its product offering and improved its operational performance, creating a substantially larger, more diversified and more efficient enterprise,” added James Shovlin, Vice President of Blue Wolf.
Mr. Judd said, “Today marks an exciting day for Novo, and underscores the great progress we have made in partnership with Blue Wolf to significantly improve the company’s operational and financial performance and build upon its leadership position in the specialty building products sector. I am confident that HDI is the ideal long-term owner for Novo and expect that our employees will benefit from new opportunities as part of HDI’s larger platform. In addition, I am optimistic about the growth opportunities that lie ahead for Novo and HDI. Our complementary portfolio of product offerings will deliver significant value to our customers and other stakeholders.”
Transaction Details The transaction is expected to close in late July or early August 2021, subject to completion of all necessary regulatory approvals and satisfaction of all closing conditions under the definitive agreement.
Rothschild & Co is serving as financial advisor and Holland & Knight is serving as legal advisor to Blue Wolf in connection with this transaction.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
About Novo Building Products Novo Building Products is a value-added distributor and manufacturer of specialty building products. Novo supplies mouldings, stair parts, doors, and other specialty millwork products to customers throughout the United States and in parts of Canada and Mexico. Novo operates out of 14 facilities, primarily in the Eastern and Midwestern U.S., Florida and Texas. The company’s divisions include Empire Moulding & Millwork, Southwest Moulding & Millwork, Ornamental Decorative Millwork, LJ Smith Stair Systems and Novo Direct.
Blue Wolf Capital Announces Sale of The Mulch and Soil Company
May 4, 2021, NEW YORK – Blue Wolf Capital Partners (“Blue Wolf”), a New York-based private equity firm, today announced that it has sold The Mulch and Soil Company, LLC (“the Company”), a leading manufacturer and distributor of mulch and soil products across the Southeast region of the United States. Terms of the transaction were not disclosed.
Blue Wolf formed The Mulch and Soil Company in 2018 by carving out the mulch division from Suwannee Lumber Company, a former Blue Wolf portfolio company, and merging it with Forestry Resources, Inc. and later K&B Landscapes, two founder-owned businesses in Florida. Under Blue Wolf’s leadership, the Company became one of the Southeast region’s leading manufacturers of premium mulch and soil products with a network that now spans four manufacturing facilities and 165 employees across Florida.
“The Mulch and Soil Company is a quintessential Blue Wolf investment, which involved a complex carveout and integration of three companies and demonstrates the value of our niche sub-sector specializations,” said Adam Blumenthal, Managing Partner of Blue Wolf. “By carving out Suwannee’s mulch division; integrating two founder-run businesses; and recruiting a best-in-class management team comprised of industry veterans, we built a strong platform of scale that is now well-positioned for longterm growth in one of the most attractive U.S. markets for landscape products.”
“Our experience investing in the forest products sector in the U.S. South combined with our expertise in organizational transformations and human capital management enabled us to support The Mulch and Soil Company from its inception through its evolution into the robust platform it is today,” added James Shovlin, Vice President at Blue Wolf. “We are proud to have partnered with Mark West and the entire management team, and we look forward to following the company’s continued evolution in this next phase of its growth.”
“In 2018, Blue Wolf recognized the incredible potential to create and scale a regional leader in landscape products – and with their support, The Mulch and Soil Company has grown into one of Florida’s leading manufacturers and distributors of mulch and soil products. Over the years, Blue Wolf has served as a true partner and their operational expertise has played a critical role in enabling us to successfully integrate three distinct companies and cultures into one cohesive workforce and network of plants across the state,” said Mark West, CEO of The Mulch and Soil Company. “We are excited about the growth opportunities that lie ahead as we continue to expand our platform and meet the growing demand for our products.”
Brown Gibbons Lang & Company LLC served as financial advisor and Robinson Bradshaw served as legal advisor to Blue Wolf in connection with the transaction.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
About The Mulch and Soil Company The Mulch and Soil Company is a manufacturer and distributor of mulches, premium soils, decorative bark, and other ground cover products to lawn and garden retailers and commercial landscapers. Headquartered in Fort Myers, Florida, the company operates a network of manufacturing and distribution locations from which it serves customers throughout the southeastern United States. For additional information, please visit www.themulchsoilco.com.
Media Contacts Jenny Zhu jenny@bluewolfcapital.com 212.488.3686
Kate Sylvester ksylvester@sloanepr.com 212.446.1860
March 1, 2021 – NEW YORK – Today, Blue Wolf Capital Partners LLC (“Blue Wolf”), a New York-based private equity firm, announced its acquisition of Colson Group (“Colson” or “the Company”), a global leader in caster and wheel product solutions. Terms of the transaction were not disclosed.
Colson is one of the largest manufacturers and distributors of casters and wheels in the world, with over 1,600 employees across 30 global facilities in 14 countries. With a large and diverse customer base that includes several Fortune 500 corporations, Colson offers the most comprehensive suite of caster and wheel solutions in the industry. The Company’s products are used in a wide variety of applications across end-markets such as medical, industrial, logistics, retail and e-commerce.
“With its global scale and long-standing roster of blue-chip customers, Colson is the global leader in the highly stable and growing casters and wheels market. In addition, Colson’s large domestic manufacturing footprint combined with its impressive product portfolio uniquely position the company to serve the U.S. market. Over the next few years, we intend to invest significant capital to further enhance Colson’s domestic capabilities,” said Aakash Patel, Principal at Blue Wolf. “We are excited to partner with Tom Blashill and his management team to accelerate long-term growth at Colson.”
“Our track record of transforming industrial manufacturing companies into best-in-class businesses combined with our experience optimizing and strengthening global supply chains position us perfectly to support Colson in the next phase of its evolution. We will seek to unlock value at Colson by both leveraging their strong existing foundation and by utilizing Blue Wolf’s unique skillset,” added Adam Blumenthal, Managing Partner of Blue Wolf Capital. “By implementing our ESG investment framework, we will focus on driving growth at Colson through operational, commercial and organizational enhancements. We look forward to working with the Company on this exciting journey.”
“We are pleased to be partnering with Blue Wolf to build upon the market-leading reputation Colson has developed over its 100+ year history. Not only does Blue Wolf have a successful track record investing in industrial manufacturing businesses, but they also have a team of highly experienced operating professionals who will work alongside us and add value to our management team as we drive further efficiencies in the Company,” said Tom Blashill, CEO of Colson Group. “As we enter this new chapter, Blue Wolf’s support will best position Colson to continue to deliver the innovative products, unmatched customer service and supply chain excellence necessary to support our growing global customer base.”
As a result of the acquisition, Blue Wolf Operating Partner Rich Kobor will join Colson’s Board of Directors alongside Adam Blumenthal and Aakash Patel of Blue Wolf as well as Colson’s CEO Tom Blashill. In addition, Ray Poole, who retired after more than a 25-year career at United Technologies during which he served as CFO of the Carrier Residential and Fire & Security Global Fire Product divisions and most recently, was the Senior Vice President of Operations and CFO for Emcor Facilities Services, will also join the Board.
About Colson Group Colson Group, a global leader in caster and wheel products, creates and drives solutions that move lives forward. World renowned brands provide specialized mobility for every industry and market. A leading product portfolio and proprietary global value chain deliver unparalleled efficiencies and support. With over 1,600 employees across 30 global facilities, Colson Group is committed to its customers’ success, ensuring proper products are selected or designed from the start, and always keeping the end-users’ safety, efficiency, and happiness in mind. For more information, visit www.ColsonGroup.com.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
Media Contact Kate Sylvester, ksylvester@sloanepr.com; 203-736-7821
Blue Wolf Capital Announces Investment in Vicksburg Forest Products
February 8, 2021 – NEW YORK – Today, Blue Wolf Capital Partners LLC (“Blue Wolf”), a New York-based private equity firm, announced its investment in Vicksburg Forest Products, LLC (“VFP” or “the Company”), a manufacturer of Southern Yellow Pine lumber products that operates a sawmill facility in Vicksburg, Mississippi. Terms of the transaction were not disclosed.
VFP’s sawmill produces a diverse mix of dimensional and specialty lumber products. In 2018, the family-owned and operated company underwent a large-scale transformation to convert from a hardwood mill to a softwood mill.
Building upon this transition, VFP recently announced the planned expansion of its operations, which includes a new high-speed chip-n-saw line, two new continuous dry kilns and a variety of other infrastructure projects. Blue Wolf’s investment will support the Company in this expansion that aims to more than double lumber production capacity to approximately 180 million board feet annually and add approximately 60 new jobs. In addition to Blue Wolf’s investment, the Company has received federal, state and local grants and incentives to support this expansion. The project is under construction with completion anticipated in the summer of 2021.
VFP’s Owner and Manager Billy Van Devender and the current management team will continue to lead the business going forward. As a result of the investment, Charlie Miller and James Shovlin of Blue Wolf will join the Company’s Board of Directors.
“As active investors in the U.S. South forest products sector for over a decade, we recognized VFP as a best-in-class facility with high-quality equipment and infrastructure already in place, making it an ideal candidate for expansion. Located in one of the most robust wood baskets in the U.S. South, the mill is well-positioned for growth with convenient access to both an abundant supply of raw materials and major throughfares to access its customers,” said Charlie Miller, Partner at Blue Wolf Capital. “We are excited to support Billy and VFP’s highly-regarded management team in expanding operations and driving long-term growth for the business.”
“Given our track record investing in sawmills in rural communities across the U.S. South and our recent experience restarting a mill in the region, the opportunity to partner with Billy and his team on this expansion made VFP an ideal investment for Blue Wolf,” added Adam Blumenthal, Managing Partner of Blue Wolf Capital. “We look forward to partnering with the VFP team in enhancing operations and governance to best meet the needs of their growing customer base in this robust market.”
“As we embark on this next phase of growth, we are thrilled to partner with Blue Wolf, a firm that has a deep track record and network across the forest products industry. Blue Wolf’s experience working hand-in-hand with local governments and communities like ours combined with their understanding of our customers and long-term vision make them a great partner for us,” said Billy Van Devender, Owner and Manager of VFP. “With this partnership in place, we remain focused on expanding our business to become one of the most diverse mills in the Southeast to best support our customers.”
Raymond James Ltd. acted as financial advisor to VFP in connection with the transaction.
About Vicksburg Forest Products, LLC Vicksburg Forest Products, LLC is headquartered in Jackson, Mississippi and offers customers a wide variety of dimensional and specialty lumber products through its sawmill operations located in Vicksburg, Mississippi. The Company’s facility underwent a large-scale transformation in 2018 and VFP is now embarking on its next phase of growth, with significant upgrades throughout the mill that will expand production capacity to 180 million board feet by the summer of 2021. Family-owned and operated, VFP is Page 2 of 2 dedicated to its employees who are passionate about delivering unmatched, high-quality lumber from a world-class manufacturing facility.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
Media Contact Kate Sylvester, ksylvester@sloanepr.com; 203-736-7821
Finding Value Through an ESG Lens: PEI Keynote Interview with Blue Wolf Capital
Being systematic on the ‘S’ in ESG will help firms identify opportunities and build resilience, says Blue Wolf Capital’s Adam Blumenthal
New York-based Blue Wolf Capital, which has a portfolio made up largely of healthcare services and industrial companies, found itself on the frontline of the covid-19 pandemic in the early months of 2020. Adam Blumenthal, founder and managing partner, tells Private Equity International that the firm’s long-term focus on environmental, social and governance factors was fundamental to its ability to cope with the pressures brought by covid-19. Meanwhile, Blue Wolf’s attention to the ‘S’ in ESG is at the heart of its strategy to unlock value as it prepares for life after the pandemic.
Question: How has Blue Wolf been affected by covid-19 and how has it responded to the pandemic?
Due to the healthcare services aspect of our investment portfolio, we were aware of the likely impact of covid-19 very early. That insight meant we were able to educate our employees and put in place support across the portfolio to maintain safe workplaces and behaviours at our companies.
Through our longstanding Safety, Health and Environmental programme, we already had infrastructure in place that allowed us to not only roll out best practices but also to encourage broad cross-portfolio engagement of resources – which was necessary, because all our portfolio companies continued operating throughout the pandemic. All of them were deemed essential. We had to keep going and remain safely operational, despite the disruption.
Whether it was on the healthcare or the industrials side of the portfolio, we witnessed the heroism of frontline workers as they met the needs of society in the pandemic. We have a group of outpatient healthcare facilities that operate in areas of New York that were at the centre of the pandemic. Everyone around the world saw what was happening in Brooklyn. We had urgent care centres there, and people kept coming into work every day in the midst of covid-19, and had their workload increase.
The only good news is that now we have a year of experience on how you manage in a pandemic at a high-performance level, while keeping people safe and meeting society’s needs. We are far better prepared to do that today than we were a year ago.
Question: Blue Wolf has been focusing on ESG for many years; how did that contribute to the resiliency of its portfolio when covid-19 arrived?
We have always had a focus, portfolio-wide, on managing human capital and on employee health and safety. We think that engagement with our employees is an important driver of business success, and we have formal governance systems to ensure our portfolio companies are doing that – that is getting onto the ‘G’ in ESG. You need a governance process. Without the ‘G’, it just does not happen. You need to know what you are doing and measure it through board committees.
We have used the ‘G’ features of ESG to put in place supports for the ‘S’. Having emphasised employee health and safety at the board and C-suite level for many years, when the crisis hit we did not have any questions about what our priorities would be or need to invent any new tools. If there are no questions about priorities and if you have the tools, it is easy for people to do the right thing.
We were able to track covid-19 infection rates across the portfolio and we found that less than 5 percent of our employees who contracted covid-19 were infected at work. We were able to demonstrate that if you are focused on providing people with a safe place to work and with the tools and the education to work safely, then it can be done. We are extremely proud of our work to make that happen.
Question: The pandemic has highlighted inequalities in the US healthcare system. What is Blue Wolf doing to address these?
The American healthcare system is well known for its inefficiency. Although the US has some of the best healthcare in the world at the highest level, on average it provides lower-quality outcomes at a higher cost than in many other developed nations. Closing that gap is a driver of value.
Blue Wolf’s approach to healthcare can be summarised by something called the Triple Aim – having better health, at a lower cost, with a higher level of patient satisfaction. We believe that the way to tell if you are creating value in American healthcare is whether your strategy is delivering on the Triple Aim. That has led us to embrace distributed home and community-based services that improve population health.
An example of this is portfolio company FOX Rehabilitation, which provides home-based physical therapies to a geriatric population. We have been putting physical therapists – with adequate PPE and testing – into the homes of 80 or 90-year-olds during lockdown. We help keep these people healthy, even though their mobility is restrained. We have great partnerships with assisted living facilities and senior citizen advocacy groups, because we can deliver the care where it is not happening otherwise.
We think that the way to lose money in healthcare over the next decade is to provide high-cost luxury services. The way to generate value for society and for investors is to use the Triple Aim to provide quality outcomes at a lower cost, in the way that the rest of the world has proved it is possible to do. Since the pandemic, valuation multiples on homebased and community-based care have increased dramatically. Covid-19 has made it clear that they are a critical piece of creating value in the system.
Question: 2020 exposed various social problems in the US. Can private equity investment help neglected communities while delivering returns?
With some of our industrial investments, we are the largest employer in small towns in America. We have operated sawmills in Dixie County, Florida, and Glenwood, Arkansas; paper mills in Madawaska, Maine. When we make an investment in a place like that, the advantage we have is that we are the only private equity company around. Because we are off the beaten path, typically, we can invest at valuations that are quite compelling.
We use ESG as a lens to find value creation opportunities. The fact that there is a lack of investment capital in these areas creates the opportunity to acquire attractive assets at low values. You get talented people, low-cost inputs and do not have a lot of competition.
However, it is not an anonymous world in Glenwood, Arkansas – your plant manager is going to have breakfast at the same café as the janitor. When you are operating in that environment, you need to be a community partner if you are going to be an employer of choice for the most talented people in the community. We view that as a business strategy as well as the way businesses need to behave.
Question: Does this approach extend to partnering with your workforces?
We have successfully invested in unionised companies since our inception as a firm. In a regulated environment, like healthcare, working collaboratively with unions is important. We approach our relationship with unions the same way we do with sources of financing or customers, and over 15 years, we have conducted ourselves so that we have a relationship of trust with unions. We negotiate hard for business success, but we tell people the truth and we recognise that unions and their workforces have a vested interest in the success of the company.
The result has been that we see investment opportunities that other people do not, because unions will call us and say: “Hey, we’ve got a problem at this company, is there a way you can buy this and fix it?” Usually we can’t – but when we can, that is a really remarkable piece of off-market dealflow.
Question: Will disruption to supply chains during covid-19 encourage investment in US manufacturing?
In our mind, it is about balance. American business followed a model of outsourcing to low-wage economies for many years that created structural risk within their supply chains. What is happening now is not a 180 degree turn from there, but companies are acknowledging the risks and investing to mitigate them. It is tragic that it took a pandemic for people to recognise that risk. We have been trying to mitigate it for many years. For example, we bought a building products company in 2016 and invested in domestic manufacturing to make sure we can always meet short-term demand. We want to have that kind of balanced, robust, resilient supply chain.
Question: What are the main lessons from the past year? Can interest in ESG be sustained?
ESG is a lens for value creation – it forces you to see things that others don’t, in ways that others don’t. I believe the private equity community is serious about embracing this approach.
As an investor, you have to see problems that become evident today as opportunities to invest for the future. Certainly, the pandemic has highlighted problems in our society and economy, ranging from the vulnerability of our supply chains, to the quality of our public health infrastructure. At the same time, operating in the pandemic has made clear there is room for innovation to address those problems. The pandemic has taught many people how to operate in a safe and systematic way – that is an innovation that has been broadly accepted throughout our economy.
Blue Wolf Capital Closes on Sale of Pharmaceutical Strategies Group’s 340B Business to Omnicell
PSG’s market-leading 340B Link business is being sold for $225 million nine years after Blue Wolf’s initial investment
PSG built an innovative program providing significant funding to safety net hospitals
Investment reflects Blue Wolf’s long-term, ESG-driven approach
October 2, 2020, NEW YORK – Today, Blue Wolf Capital Partners (“Blue Wolf”), a New York-based private equity firm, announced the completion of the sale of Pharmaceutical Strategies Group’s 340B business (“PSG”) to Omnicell, Inc. (NASDAQ:OMCL), a leading provider of medication management solutions and adherence tools for health systems and pharmacies. PSG’s 340B Link business is being acquired for $225 million, and the sale marks the exit of Blue Wolf’s last portfolio company in Blue Wolf Capital Fund II. Additional terms of the transaction were not disclosed.
Blue Wolf invested in PSG in 2011 in a rapidly changing healthcare environment. Building on vast regulatory expertise, and backed with Blue Wolf’s capital, PSG partnered with safety net hospitals to implement solutions to set up and administer a recently expanded federal program known as 340B, which today delivers a $14 billion annual lifeline from drug manufacturers to America’s rural and urban safety net hospitals. Blue Wolf’s long-term investment and focus on human capital and organizational transformation helped PSG become the industry leader in this vital part of America’s healthcare infrastructure.
“With our government and hospitals facing enormous financial pressure during the COVID-19 crisis, the value of funding from the 340B program enabled by PSG’s 340B Link solutions to hospitals that care for America’s most vulnerable population has been demonstrated more clearly than ever before. We’re incredibly proud to have partnered with David Borden and PSG to build this important business,” said Adam Blumenthal, Managing Partner at Blue Wolf. “PSG’s growth over the last nine years illustrates the benefit of being a long-term partner. It also showcases how we use our ESG lens to create value both for our investors and for society. This is an exciting time for the PSG business, and we see Omnicell as an ideal partner for its next phase of growth.”
“Blue Wolf has been a tremendous partner for PSG and has provided us with the necessary
support and resources every step of the way as we built our 340B business,” said Dave Borden,
Chief Executive Officer of PSG. “The Blue Wolf team’s knowledge of the complexities of the
pharmaceutical marketplace and the broader healthcare value chain were essential in building
this business, and we look forward to further expanding upon this growth with Omnicell.”
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
About Pharmaceutical Strategies Group (PSG) For more than 25 years, Pharmaceutical Strategies Group (PSG), based in Plano, Texas, has been relentlessly advocating for clients as they navigate the complex and ever-changing challenges of drug cost management. PSG’s innovative consulting and technology solutions, including the proprietary data and analytics platform, Artemetrx, deliver actionable insights with exceptional financial and clinical value. As the largest independent pharmacy benefit consulting firm in the U.S., PSG functions as a strategic partner to self-insured employers, health plans, brokers, coalitions, and health systems, generating more than $4.8 billion in drug cost savings each year. For more information, please visit www.psgconsults.com.
About Omnicell Since 1992, Omnicell has been committed to transforming the pharmacy care delivery model to dramatically improve outcomes and lower costs. Through the vision of the Autonomous Pharmacy, a combination of automation, intelligence, and technology-enabled services, powered by a cloud data platform, Omnicell supports more efficient ways to manage medications across all care settings. Over 6,000 facilities worldwide use Omnicell automation and analytics solutions to help increase operational efficiency, reduce medication errors, deliver actionable intelligence, and improve patient safety. More than 40,000 institutional and retail pharmacies across North America and the United Kingdom leverage Omnicell’s innovative medication adherence and population health solutions to improve patient engagement and adherence to prescriptions, helping to reduce costly hospital readmissions. To learn more, visit www.omnicell.com.
