In May and July of 2009, through a two-step transaction, a company formed by Auriga acquired the assets of Central Fiber, Inc., a manufacturer of cellulose fiber for sale into environmental and specialty technical applications. Central Fiber operates from three manufacturing facilities, Wellsville, Kansas, Canton, Ohio, and Tyler, Texas where it takes primarily recycled source materials as its manufacturing inputs. In 2015 and 2016, the businesses and assets of the Company were sold to buyers who competed in each of the Company’s 3 end market segments.
In June 2011, Ivy Sports Medicine acquired the assets, while maintaining the existing employee base, of the Collagen Meniscus Implant (CMI®) product line from ReGen Biologics through Chapter 11 bankruptcy process. In addition to CMI®, Ivy developed a comprehensive suite of meniscus products and services including the SharpShooter®Tissue Repair System as well as chondrotissue® and BioSeed®-C for articular cartilage regeneration. Ivy continues to stay on the forefront of sports medicine, developing simple, comprehensive and data-driven therapies, which enable sports medicine surgeons to restore patient mobility. In September 2016, Ivy was sold to Styker’s Endoscopy division.
In September 2005, Evans Analytical Group (EAG), a company formed by Auriga Partners, American Capital Strategies Limited (ACAS) and members of management, acquired the assets of the Charles Evans & Associates division of HVE Incorporated (HVE) from the bankruptcy trustee responsible for managing and liquidating the assets of HVE. The acquisition was accomplished through a US bankruptcy code “363 sale” process in which the EAG bid was the “stalking horse” bid against which others were measured. EAG, operating from 20 labs located in 7 countries, provides molecular and ultra-high precision materials analytical services for the electronics, health care, aerospace, and other industries. During our investment tenure, Auriga significantly expanded revenue and EBITDA through the completion of 15 small acquisitions and investing in internal growth initiatives. EAG went public on the AIM market of the London Stock Exchange in June 2007. In October 2008, EAG was sold to Odyssey Partners.
In September 2004, Clinical House Medtech GmbH (CHM), a company formed by Auriga Partners, and members of the management of Mathys Osteosynthese GmbH (MOS) acquired 100% of the capital stock of MOS from Mathys Medizinaltechnik AG (Mathys). MOS was the sales, marketing and distribution company responsible for all of Mathys’ sales of osteosynthesis products in the German market. MOS’s parent was being acquired by Synthes AG, the leading medical device manufacturer specializing in the development, manufacturing, and marketing of implants and instruments for surgical repair of traumatic injuries and degenerative conditions, including long bone, spine and cranio maxillofacial applications. The German Federal Cartel Office (BundesKartelampt) refused to approve the Synthes- Mathys merger until the sale of MOS was assured, which led to a complex 3 handed negotiation to complete the acquisition. The assets of CHM were sold in December 2008.
BE Aerospace (BE) is the world’s largest manufacturer of commercial aircraft cabin interior products, serving virtually all major airlines with a broad range of products including aircraft seats, galley structures as well as a full range of food & beverage preparation and storage equipment, and individual passenger inflight entertainment systems. In addition, BE provides a comprehensive range of upgrade, maintenance, and repair services for the passenger cabins of essentially every commercial aircraft type for airlines throughout the world. Incorporated in 1987, BE has acquired more than 35 businesses since that time, and has raised more than $2 billion in the equity and debt markets. BE is publicly traded on the NASDAQ under the symbol “BEAV.” From 1987 to 2002, Auriga and/or its principals served as BE’s financial advisors in developing its early acquisition strategy and completing many of its acquisitions. Auriga founder, Jim Cowart, served on BE’s Board of Directors for 22 years.
In 1999, Auriga acquired a supplier of aerospace and defense components as the first in a series of acquisitions calling for a consolidation of the aerospace components precision machining business. Subsequently, Qualpro completed two additional acquisitions, before being sold, in 2001, to Precision Components Group, a leading supplier of precision machining services in the semiconductor capital equipment industry.
In 1998, Auriga completed a recapitalization pursuant to which Auriga and a group of investors, including MassMutual, LaSalle National Bank, American Bankers Insurance Group, and Regent Capital, acquired a significant ownership interest in GoodSource Solutions (GSS). GSS is a leading re-marketer and distributor of secondary food products to niche and special application markets, such as the corrections industry, schools, relief organizations, and non-profit food banks. Secondary products consist primarily of merchandise available at discounted prices due to their status as excess, close-outs (product which is being discontinued), or seconds (product which is inferior in presentation, size, or general appearance). Auriga assisted the management team in implementing an acquisition plan in order to consolidate GSS’ market. GSS was sold to a new investor group in 2006.
In 1998, Auriga completed an acquisition and reorganization pursuant to which Accom (OTC: ACMM), in conjunction with Auriga, a private investor, and LaSalle Business Credit, acquired the assets of Scitex Digital Video, a business which was three times larger than Accom. Accom designs, manufactures, sells, and supports a complete line of digital video signal processing, editing, and disk recording tools, primarily for the professional worldwide video production, post production, and live broadcasting and computer video production and post-production marketplaces. Accom’s systems are designed to be used by video professionals to create, edit, and broadcast high quality video content such as television shows, commercials, news, music videos, and video games. Scitex Digital Video, the acquired entity is a leading supplier of digital video manipulation equipment and non-linear (i.e., non-sequential / random frame) video workstations used throughout the professional video and multimedia industry.
In 1997, Auriga and co-investors acquired Nitro Golf, a supplier of golf products. Nitro Golf is the world’s largest supplier of recycled golf balls. In addition, Nitro Golf manufactures and distributes new golf balls under the Nitro® brand name, which are targeted at the low- to mid-priced segment of the market. The Company receives, sorts, grades, refurbishes and sells approximately 40 million used golf balls annually. At the time, the used golf ball market was a $100 million per year domestic market compared to the $600 million per year new ball domestic market. The majority of the company’s employees work at one of Nitro Golf’s Florida-based facilities. Nitro was sold to Acushnet, the largest participant in the new ball market, in 2005.
In 1992, Auriga acquired control of Micro-C Corporation, the world’s largest recycler of integrated circuits as a platform to develop the largest secondary products company in the electronic components and subsystems business. From 1992 to 1996, through both internal growth and two subsequent acquisitions, Aurora Electronics emerged as a leading provider of spare parts distribution services and electronics recycling and recovery services to computer manufacturers and field service providers. In 1996, the Company was acquired by Welsh, Carson, Anderson & Stowe, and, in 1998, Aurora was merged with another Welsh Carson company, Cerplex Group.