TowerBrook Capital Partners L.P. (“TowerBrook”), today announced a majority equity investment in JSM Group Services Ltd. (“JSM” or “the Company”), a UK-based independent connections provider (‘ICP’) focusing on high-voltage works for predominantly Data Center clients in the UK.

Founded in 1998 by current CEO Stuart Wiltshire and current COO John Scanlon, JSM has built a market leading position providing technical infrastructure services to the UK&I’s Power and Communications markets. The Power division provides high-voltage and extra high voltage grid connections to its blue-chip base across the data center, battery storage and renewables markets. The Communications division provides core fibre infrastructure network, data center and mobile network services to a number of longstanding Communications customers. JSM is recognised for its differentiated knowledge and expertise in its core markets, strong operational capability as well as its significant commitment to quality customer service and health & safety.

In recent years, JSM has delivered significant growth, driven particularly by its Power division, which has achieved organic sales growth of 50%+ p.a. over the past 3 years. The Company has successfully developed its market leading position and benefited from trends around growing data demand and connectivity requirements, electrification and decarbonisation. JSM has developed a large and growing order book and pipeline of over £1.2bn providing it with strong forward visibility, and the Company has also expanded internationally with significant opportunity for further penetration into Europe.

JSM will continue to be led by CEO Stuart Wiltshire with the majority of the senior team remaining in the business as it continues to expand its customer base and further develops into international markets. John Leahy will continue as Chair.

Stuart Wiltshire, CEO of JSM, said: “We are very excited to partner with TowerBrook on the next phase of JSM’s journey. We look forward to accelerating our growth further in the UK and internationally alongside TowerBrook, and continuing to grow and develop JSM as one of the leading and trusted infraservices providers in the sector.”

Joseph Knoll and Sumit Dheir of TowerBrook said: “We are excited to be working with the founders and management team at JSM. We have spent several years following the infrastructure services sector and JSM stood out as an exceptionally high-quality asset with an impressive development in the past few years. We are convinced that with our extensive industrial services experience we are the right partners to support the founders and management team in the next phase of growth, both in the UK and internationally.”

TowerBrook was advised by Canaccord (M&A), Fried Frank (Legal), Roland Berger (Commercial), EY (Finance), Eight Advisory (Operational), PwC (Tax and Legal), Baringa (ESG) and Vista (Insurance).

The IDAK Food Group, which specializes in premium frozen food, is undergoing a change of ownership. The London and New York-based investment company TowerBrook Capital Partners replaces the previous financial companies Invision and Nord Holding as the new majority shareholder (subject to regulatory approval). The investment aims to strengthen IDAK’s rapidly growing capital base for the growth of its companies and further acquisitions in Europe. The well-established management team around IDAK Food Group CEO Christof Lehmann will retain a broad-based minority stake in the company.

The IDAK Food Group, previously owned by the financial companies Invision in Zug, Nord Holding in Hanover, LGT and the management, is a strongly networked group of specialized companies and manufacturers in the premium frozen food sector. It is growing rapidly, both organically and through strategic acquisitions in Switzerland and abroad, even in a challenging economic environment, and is extremely successful in the market. The company sees further potential for selective acquisitions in Europe in order to expand existing business areas or develop additional ones.

Following a carefully managed selection process, IDAK is therefore strengthening its capital base (subject to regulatory approval) with the new anchor shareholder TowerBrook Capital Partners, an established transatlantic investment company. “Our goal is to establish ourselves as the leading pan-European premium frozen food group,” said Christof Lehmann, CEO of IDAK Food Group.

“We are delighted and proud to have gained such a renowned investment company as a new majority shareholder in TowerBrook. This step confirms and continues our successful strategy. With its extensive expertise and international business excellence, TowerBrook is the ideal partner to support us in our next development steps and growth targets,” added Lehmann.

José Arellano and Paolo De Bona of TowerBrook said: “We are delighted to be working with the leadership team at IDAK. We have been following the impressive development of this company for several years and are convinced that with our broad experience we are the right partners to support the well-established management team in IDAK’s next phase of growth, organically and via new acquisitions.”

Continuity in management is maintained

All companies belonging to the IDAK Food Group are independent, established and successful in their markets. These corporate principles and the associated continuity will be maintained. “Our new investors share our vision and our commitment to long-term stability,” confirmed Lehmann.

Continuity is also a priority for the management. This is underpinned by the minority shareholding, with which the Group management around long-standing CEO Christof Lehmann and the management teams of the companies continue to hold a substantial and broadly supported minority stake in the company.

LONDON –  July 3, 2024 – TowerBrook Capital Partners L.P. (“TowerBrook”), the London and New York-based international investment firm, today announced a majority equity investment in AQUAchiara (“the Company”), a French provider of micro-filtered water dispenser solutions for hotels, restaurants, and corporate clients.

Founded in 2007 and headquartered in Paris, France, AQUAchiara provides micro-filtered water dispenser solutions for its clients. The company installs, rents, and maintains a diverse range of water dispensers, complemented by services such as CO₂ recharge and co-branded bottles, offering fresh sparkling water. AQUAchiara’s mission is to refine locally sourced tap water into fresh, sparkling, high-quality water through advanced microfiltration technology. Committed to environmental sustainability, the company aims to eliminate plastic waste and reduce carbon footprint with a zero kilometre, zero plastic, and zero waste solution. AQUAchiara aims to offer an eco-friendly alternative, reducing reliance on bottled water and avoiding considerable CO₂ emissions from production and transportation, thereby promoting responsible consumption and preserving natural resources.

AQUAchiara is the fourth investment, and the first in Continental Europe, for TowerBrook Delta, the firm’s dedicated impact strategy launched in 2023. In line with the firm’s longstanding TowerBrook Responsible Ownership^TM principles, TowerBrook Delta invests in businesses designed to generate a specific and measurable social or environmental impact, and to directly contribute to advancing the UN Sustainable Development Goals, while seeking to deliver market returns.

Nicolas Weyl, Founder of AQUAchiara -VH20 sas -, said “I am extremely proud of everything AQUAchiara has achieved over the past seventeen years and am looking forward to working alongside TowerBrook as we enter this next stage of growth. We are thrilled to be working with a partner that shares our passion for responsible business practices and supports our commitment to delivering quality products and services without compromising our sustainability goals”.

“We are delighted to partner with AQUAchiara’s founder, Nicolas Weyl, and its management team as they continue their efforts to build AQUAchiara into a sustainable water solutions provider, both organically and through strategic acquisitions” said Tom Redpath, Delta Europe lead at TowerBrook. “We look forward to supporting the company’s ambitious growth journey and the continued development of its business model, and are thrilled to be partnering with TowerBrook Senior Advisor, Laurence Paganini, joining as Chair, and Nicolas Potier, CEO of Bruneau, joining as a NED.”

TowerBrook Capital Partners L.P. (“TowerBrook”), today announced a majority equity investment in LiftWerx Holdings Inc. (“LiftWerx” or “the Company”), a Canada-based operations and maintenance services provider to the onshore wind industry.

Founded in 2016, LiftWerx is a founder- and management-owned independent service provider of turnkey, mission-critical operations and maintenance (O&M) services to the onshore wind industry in North America. The Company specialises in the replacement of major components of wind turbines, such as gearboxes, main bearings and generators. LiftWerx has developed proprietary uptower crane technology used for servicing turbines, which sits on the top of the turbine itself, is safer and more economical to operate, and has significantly less negative impact on the environment compared to traditional ground-based cranes.

LiftWerx is the third investment for TowerBrook Delta, the firm’s dedicated impact strategy launched in 2023. In line with the firm’s longstanding TowerBrook Responsible Ownership™ principles, TowerBrook Delta invests in businesses designed to generate a specific and measurable social or environmental impact, and to directly contribute to advancing the UN Sustainable Development Goals, while seeking to deliver market returns.

“We are thrilled to partner with the founders and leadership team of LiftWerx to support the company through its next phase of growth,” said Alex Nisichenko, Managing Director of TowerBrook. “Thanks to its innovative and proprietary uptower crane technology and industry-leading service teams, LiftWerx has become a dominant force among wind O&M independent service providers in less than a decade, working with a loyal and growing customer base that includes some of the largest blue-chip original equipment manufacturers and owner operators. LiftWerx provides a solution that is not only faster and cheaper than the existing alternatives but is also safer and more environmentally friendly, helping to drive the energy transition.”

Glen Aitken, President and Founder of LiftWerx stated, “I am incredibly proud of what we have accomplished in the past eight years. We welcome the partnership with TowerBrook which will allow us to accelerate our growth, expand our crane fleet and teams, and enhance our service operations. As a first step in this new partnership, we have already placed an order to expand our crane fleet by 50%.”

Joshua Rauchwerger, Vice President and Founder of LiftWerx added, “TowerBrook is an ideal partner to facilitate our continued expansion with its global reach, deep resources and operational expertise. We look forward to working closely with TowerBrook to realise our shared ambitions for LiftWerx.”

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altafiber, provider of integrated communications solutions over its fiber‐optic network to residential and business customers in Ohio, Kentucky, and Indiana, and TowerBrook Capital Partners (“TowerBrook”), the New York and London‐based international investment firm, today announced that TowerBrook has agreed to acquire CBTS, a leading North American provider of IT solutions and services, from altafiber.

Founded in 1994 and based in Cincinnati, Ohio, CBTS is a provider of IT services and solutions focused on enterprise and upper middle market customers. Combining deep technical expertise with a full suite of flexible technology solutions, CBTS serves over 3,000 customers in all industries across the United States and Canada. The company has over 2,200 employees and 2,000 contractors on active engagements(from a network of over 40,000 contractors globally). The transaction with TowerBrook is expected to provide access to new markets and expand the company’s portfolio of products and services.

“This marks a historic day for CBTS, which has transformed from a regional IT provider into an international company. TowerBrook Capital Partners will provide the necessary investment capital to accelerate CBTS’ growth objectives,” said Leigh Fox, President and CEO of altafiber. “This transaction positions altafiber as a pure‐play fiber infrastructure platform and will also help altafiber secure new funding opportunities to build fiber in the Midwest and Hawaii and increase digital equity in our existing footprint, as well as expand into new geographies with a need for gigabit connectivity to drive economic development and increase access to education, employment, and healthcare opportunities.”

Jeff Lackey, President and CEO of CBTS, said, “TowerBrook Capital Partners has an impressive history of enabling transformational growth for its portfolio of companies. As a leading provider of mission‐critical IT solutions for enterprise organizations in North America, we are enthusiastic about the investment opportunities that TowerBrook Capital Partners brings to the table. Today’s announcement is tremendous news for our clients and our employees, and we are excited about this next chapter in the evolution of our company.”

“CBTS has built a longstanding brand as a trusted technology advisor and service provider to its customers over many years,” said Walter Weil, Managing Director of TowerBrook. “We look forward to partnering with CBTS’s experienced management team and employee base to further broaden the company’s service offerings and market coverage while continuing to be laser focused on providing the best customer experience possible.”

The agreement marks the realization of altafiber’s strategic plan – launched in 2017 – to organize into distinct operating segments with the ultimate goal of creating two standalone companies:

A Fiber Network Infrastructure Company focused on building fiber to support gigabit Internet in its traditional operating territories and new geographies.

An IT Services Company focused on supporting enterprise business customers with solutions and services including Application Modernization, Cybersecurity, IT Consulting, Cloud, Unified Communications, and Infrastructure Solutions.

To support the IT Services growth strategy, altafiber in 2017 acquired OnX Enterprise Solutions, adding meaningful scale and expanded service offerings across North America. The combination of CBTS and OnX created a North American technology company that today employs over 2,200 individuals with offices across the United States, Canada, and India.

In 2021, altafiber completed a take‐private acquisition with funds managed by Macquarie Asset Management and supporting co‐investors, to accelerate the fiber build across its operating footprint, and subsequently has passed over 1 million consumer and business addresses.

The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart‐Scott‐Rodino Antitrust Improvements Act of 1976 and certain regulatory approvals, and is expected to close in the second half of 2024.

The AA today announces that Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, has entered into an agreement with the AA, and its majority shareholders TowerBrook Capital Partners and Warburg Pincus, to invest into the company and become a minority shareholder.

This transaction is expected to close in the first half of 2024, subject to customary closing conditions including the receipt of regulatory approvals.

If the transaction closes, it is expected that, as part of Stonepeak’s investment, £180m would be provided to the AA group to redeem £180m of the AA’s £280m Class B3 Notes on or before the interest payment date in July 2025, a substantial proportion of which would be redeemed shortly after the closing of the transaction.

Precede Capital Partners (“Precede Capital”), the real estate development lending platform, today announces that it has received B Corp certification, signifying the firm’s commitment to ESG and responsible business practices. This designation follows a rigorous assessment and verification process.

Administered by the global non-profit organisation B Lab, B Corp certification is granted to companies which are part of a global community of businesses that meet high standards of social and environmental performance, transparency and legal accountability. While over 1,100 UK-headquartered businesses have now achieved B Corp status, as of February 2023, fewer than 40 of these firms were in the real estate sector, with an even smaller number of real estate investment managers.

Since launching in March 2021 with the backing of TowerBrook Capital Partners – the first mainstream private equity firm globally to receive B Corp recognition – Precede Capital has developed a proprietary Green Loan product to offer financial incentives to developers that mitigate the increased costs associated with building low-carbon, environmentally sustainable homes. The firm’s broader ESG framework is focused on instilling sustainability values into lending products and asset management services and also creating a values-led culture, with strong business ethics, which invests in human capital both inside and outside of the business.

These commitments are reflected in Precede Capital’s recent deals. This year, the firm provided a £227 million whole-loan facility to Downing Living for First Street, a development in the heart of Manchester with heating provided by air source heat pumps, EV charging points and rooftop solar PV provision. In addition, Precede Capital is facilitating one of Birmingham’s largest regeneration projects with its £188 million whole-loan facility to finance the Great Charles Street development, which is targeting BREEAM ‘Excellent’ for its commercial areas and expected to achieve strong energy performance and a low Scope 1 and 2 emissions profile.

Karen Dunstan, General Counsel and co-founder of Precede Capital, said: “We are acutely aware that the built environment has a unique role to play in tackling climate change, and have therefore built a platform with deeply embedded social and environmental values which guide our business strategy. Receiving B Corp certification was a milestone we were naturally determined to achieve. By continuing to provide developers with a financial incentive to meet pre-agreed sustainability targets, we can help support the creation of a truly sustainable UK residential sector.”

Randeesh Sandhu, CEO and co-founder of Precede Capital, said: “We founded Precede with the backing of TowerBrook Capital Partners, the first mainstream private equity firm in the world to receive B Corp recognition, and from the outset we have put ESG at the heart of our approach. Almost three years on, the business case for providing sustainable finance and lending opportunities is stronger than ever. With important regulation such as the Future Homes Standard on the horizon, it is critical that we continue to empower our partners and future-proof their projects, as part of the wider effort to deliver the new homes the UK urgently needs.”

TowerBrook Capital Partners L.P. (“TowerBrook”), the New York and London-based international investment firm, today announced a majority equity investment in Demakes Enterprises, LLC (“Demakes”, or the “Company”), a manufacturer of value-added protein products. The partnership between TowerBrook and Demakes positions the Company to continue building on a 100+ year legacy of delivering healthy and convenient specialty protein products to a growing base of retailers and consumers.

Founded in 1914 in Lynn, Massachusetts, Demakes is a fourth-generation family business that develops and manufactures a broad assortment of over 250 specialty protein products across three brands (Old Neighborhood, Waterhill Organics, and Thin N’ Trim) and private label. The Company’s products are oriented toward consumers’ growing demand for “better-for you” products (e.g., organic, antibiotic-free) and convenience (e.g., ready-to-eat, ready-to-cook). Demakes’ manufacturing process includes high-pressure processing technology, which delivers superior shelf life and food safety. The Company has been a critical supplier to grocery retailers and foodservice distributors and plans to leverage the TowerBrook partnership to continue delivering high quality service and innovative products to its customers.

“We are thrilled to partner with the Demakes family to continue to build on the company’s legacy. Over the last century, Demakes has consistently delivered an innovative portfolio of products that resonate with U.S. consumers’ increasing demand for convenient, health-conscious choices,” said Michael Recht, Managing Director of TowerBrook. “We believe that combining the company’s core strengths with our experience scaling and growing consumer brands will foster an exciting phase of expansion both organically and through targeted acquisitions in coming years.”

Andrew Demakes, Chief Executive Officer, Elias Demakes, Vice President of Sales, and Timothy Demakes, Vice President of Plant Operations, will continue managing the Company in their current leadership roles while maintaining a significant minority stake in the Company.

“We believe TowerBrook is an ideal partner for Demakes given the firm’s track record of scaling family-owned businesses and significant knowledge of the food space,” stated Andrew Demakes. “My brothers and I look forward to partnering with TowerBrook to build upon the legacy of the company by expanding the reach of our distribution channels and bringing our high-quality, innovative protein products to more customers across the U.S.”

Funds managed by the Credit Group of Ares Management acted as administrative agent and provided the term loan financing for the transaction together with funds affiliated with Benefit Street Partners, Willow Tree Credit Partners, and Monroe Capital, LLC. Wells Fargo Bank National Association, as administrative agent, will provide a go-forward asset-backed revolving line of credit for the Company.

Stifel served as financial advisor and Sidley Austin acted as legal counsel to TowerBrook. Estabrook Advisors served as financial advisor and ArentFox Schiff acted as legal counsel to Demakes.

Eurazeo Small-mid buyout strategy, together with the Partners of EFESO announce today they have signed an agreement with TowerBrook Capital Partners to become a reference shareholder in EFESO Management Consultants, a leading international consulting pure player in operations strategy and performance improvement. Eurazeo has been supporting the company as a majority shareholder since 2019 and will be reinvesting through its successor fund, as part of a co-control framework with TowerBrook Capital Partners. The EFESO Partners will consolidate their shareholding in the company, with over 65 Partners substantially reinvesting their proceeds. Additionally, there are plans to open the capital pool to more than 100 Principals and Managers. The transaction remains notably subject to applicable regulatory approvals.

Under the terms of this agreement, EFESO Management Consultants would be valued at approximately €450 million. Eurazeo’s invested capital would yield a cash-on-cash multiple of approximately three times and an internal rate of return (IRR) of 24%. Upon closing of this transaction, approximately €90m would be returned to Eurazeo balance sheet net of reinvestment.

Active in 70 countries, EFESO works side-by-side with its clients – from global premier brands to mid-sized organizations, privately-owned growing businesses, and Private Equity – to accelerate their transformation and future-proof their operations, relying both on its consulting services and the group’s one-stop-shop operational excellence SaaS platform, Solvace.

Over the last five years, EFESO has tripled in size, generating over €200m in revenue in 2023. The group has reinforced its leading position across operations strategy and performance improvement, while simultaneously pursuing its international expansion, achieving strong organic growth accelerated by a proven buy & build strategy. These have allowed EFESO to reach critical mass in the DACH and US markets, while reinforcing its positions in key industries as well as Private Equity. EFESO has also significantly strengthened its capabilities in product costing, innovation to industrialization, value engineering and decarbonation.

EFESO Management Consultants’ teams, Eurazeo and TowerBrook share the ambition of further amplifying the group’s international growth, capitalizing on its pure player positioning and its growing blue chip client base. Its position as a leading international pure player aims to continue to attract the best talents in the industrial operations world.

This new chapter will aim to further boost the growth of Solvace, EFESO’s fast expanding SAAS scale-up that brings digital power to Operational Excellence.

EFESO will be able to leverage TowerBrook and Eurazeo’s extensive global networks, as well as TowerBrook’s deep sectoral expertise in capital light service providers such as management consultants, technology, network operators, distribution, and outsourcing companies. Eurazeo will be investing approximately €115 million in equity in this new transaction, and more than €290m together with TowerBrook and EFESO Partners.

Bruno Machiels, co-CEO of EFESO Management Consultants, declared:

“EFESO grew substantially thanks to the quality of our talents reinforced by new outstanding teams. Our current performance shows that clients value more and more the tangible results we realise and anchor together with them, exploiting our deep expertise. We welcome TowerBrook and Eurazeo as strong partners to continue our growth journey.”

Luca Lecchi, co-CEO of EFESO Management Consultants, declared:

“During the last years our passionate consultants (including many new talents and teams) have significantly increased the breadth and the depth of our capabilities to better serve our customers. Together with our current and new financial partners we are excited to further strengthen our position of leading international pure player in operations strategy and performance improvement covering major industrial sectors.”

Jean Rollier and Fahd Elkadiri, Managing Directors, TowerBrook Capital Partners, declared:

“We are proud to be investing in EFESO and partnering with Eurazeo and the management team. EFESO’s expertise, its strong positioning in its core markets and the quality of its people and management team were the main factors influencing our investment decision. We are confident there continue to be important growth opportunities for the company, and we very much look forward to supporting the business in its next phase of growth with the full contribution of our global TowerBrook eco-system.”

Pierre Meignen, Managing Director – Small-mid buyout, at Eurazeo said:

“We are proud of the strong partnership we have created with EFESO’s management team over the last four years, and we are thrilled to renew this collaboration while welcoming TowerBrook onboard. We see significant opportunities for the group in the coming years, in Europe, the US and Asia-Pacific. We believe EFESO perfectly fits the strategy of Eurazeo PME-IV.”