TowerBrook Capital Partners L.P. (“TowerBrook”) announced today that it has become a Certified B Corporation (“B Corp”), becoming the first mainstream private equity firm in the world to receive this recognition.

B Corp certification is awarded to companies that are leaders in their commitment to ESG and responsible business practices. Certification is administered by the non-profit B Lab movement and follows a rigorous assessment and verification process that ensures B Corps meet the highest standards of social and environmental performance, transparency and legal accountability.

TowerBrook invests in companies that can deliver profitable growth and make a positive contribution to society. The firm partners with the management teams and employees of its portfolio companies to make operational improvements, embed responsible risk management processes, implement comprehensive ESG policies and set appropriate metrics to measure progress. TowerBrook is a signatory to the United Nations Principles for Responsible Investment.

“We have always believed that business has an important role to play in helping to address the many complex challenges faced by society”, said Ramez Sousou, Co-CEO of TowerBrook. “The certification of TowerBrook as a B Corp recognises the firm’s longstanding commitment to social and environmental stewardship and formalises our efforts to continue this work.”

“TowerBrook is committed to creating value for investors by building better businesses”, said Neal Moszkowski, Co-CEO of TowerBrook. “Responsible ownership is an integral part of the way we work, and we are proud that our approach and our practices have resulted in certification as a B Corp.”

Andy Fyfe, Senior B Corp Growth at B Lab said: “TowerBrook is the first mainstream private equity firm to become a Certified B Corp, and we trust it will not be the last. With some $3 trillion under management, private equity is a significant owner of business globally that can act as a powerful force for good. B Corps set the gold standard for good business and we at B Lab have created the performance standards and legal structures that are used by thousands of businesses around the world. We welcome TowerBrook to our community of demonstrated leaders and are delighted that they share our vision of an inclusive and sustainable economy that creates a shared prosperity for all.”

Tim Hames, Director General at the British Private Equity and Venture Capital Association (BVCA), said: “This is a significant development. It is the most ambitious and public move by one of the larger mainstream private equity funds in this area since the UNPRI was adopted by many in the sector around a decade ago. It takes a commitment to ESG to a new and more demanding level.”

Anders Stromblad, Head of External Management at AP2, an investor in TowerBrook’s funds, said: “AP2 is tasked with maximising long-term return at low risk to disbursements within the Swedish pension system. Our sustainability programme is designed to create and protect values, and one of the reasons we like TowerBrook’s approach to investment is that we share the idea that values can drive value. Both our organisations support and promote the UN’s Principles for Responsible Investment, and we both pursue a responsible and consistent approach to long-term value creation. I applaud the fact that TowerBrook is prepared to stand up and be counted in its efforts to build better businesses, and am delighted it has been awarded certification as a B Corp.”

Jörg Harbring, CEO of TowerBrook portfolio company AustroCel Hallein said: “Having received the award for being the most sustainable company in Austria in 2017 and being the largest green energy producer there, we could not be more pleased to be partnered with TowerBrook, whose commitment to values and purpose have been clear from our first meeting.

Alessandro Carlucci, Chair of BSR and a member of TowerBrook’s Senior Advisory Board said: “Having witnessed the commitment of TowerBrook to Responsible Ownership, I was honoured and enthusiastic to join the firm’s Senior Advisory Board. As a former CEO of a company deeply committed to sustainability and now Chair of BSR, I am inspired by the journey of an international private equity firm with such clear values and unambiguous purpose. I am delighted that this journey has now led TowerBrook to be certified as a B Corp.”

We are pleased to announce that TowerBrook Capital Partners L.P. (“TowerBrook”), with a group of investors composed of Sagard SAS and Bpifrance Investissement SAS (together the “Consortium”), has entered into definitive agreements to purchase a majority stake in Sabena technics, a provider of maintenance, repair and overhaul (“MRO”) services for both the military and civil aerospace sector, headquartered in France. The Marchais family (the seller), through its holding company TAT, will remain a minority shareholder in the Company.

Sabena technics is a provider of MRO services operating through two divisions, Military & Government and Civil/Commercial aerospace sector. The Company has positioned itself as a leader in specific niche markets, focusing on widebody, complex and non-standard format repairs, airframe and heavy modifications on all fleet encompassing a valuable and strategic part of the MRO value chain.  It has balanced revenues between its military and civil divisions, allowing it to diversify revenue streams and clients. It is also the sole European member of the Airbus MRO alliance.

TowerBrook first identified the opportunity to invest in Sabena technics in July 2018 through its combined sourcing effort in France and in the aerospace sector. We are delighted to partner with Sabena technics’ management team and our Consortium partners as the Company enters its next phase of development with multiple avenues of growth. TowerBrook, the other buying investors, the Marchais family and the management team share a joint vision and ambition to pursue the Company’s successful strategy of developing both military and civil activities organically, complemented with a focus on strategic acquisition opportunities that will help cement the Company’s strong positioning in Europe. The Consortium will reserve significant financial resources to support the Company’s ambitions of consolidating the fragmented MRO market.

TowerBrook has longstanding relationships in the aviation industry, most recently through its investment in Aernnova in 2018. Our investment in Sabena technics continues to strengthen our network, industry connections and understanding of the whole aviation value chain in a landmark primary transaction. The transaction is subject to customary competition filings and regulatory approval and is expected to close in Q2 2019.

TowerBrook Capital Partners L.P. (“TowerBrook”), an international investment management firm, announced today that it has acquired Orchid Underwriters Agency, LLC (“Orchid”), a specialty underwriter of catastrophe exposed property insurance, from private equity firm Gryphon Investors. Financial terms were not disclosed.

Orchid President and CEO Brad Emmons will continue to lead Orchid, working alongside TowerBrook to continue the company’s growth. Gryphon will maintain a significant equity position in the company going forward.

Founded in 1998 and based in Vero Beach, FL, Orchid is a Managing General Agency (MGA)/Managing General Underwriter (MGU) providing specialty P&C insurance products to homeowners, high net worth individuals, and small businesses throughout the United States and the Caribbean. Orchid provides proprietary insurance solutions for “hard-to-place” risks to a growing, national network of retail agents and other strategic distribution partners. The company maintains several long-standing partnerships with high-quality insurance and reinsurance carriers that provide consistent and, in many cases, exclusive risk capacity to Orchid.

“We are thrilled to partner with TowerBrook and look forward to benefiting from its deep operational experience and strong network in the insurance industry,” said Brad Emmons, President and CEO of Orchid. “We have made significant strategic advancements under Gryphon’s ownership, and we now expect TowerBrook’s investment and guidance to further support future development as we continue to grow the platform organically through geographic and product expansion and pursue potential acquisitions. We look forward to the opportunities ahead as we work together to deliver greater value for our partner agents, carriers, and talented employees.”

TowerBrook’s investment in Orchid is the result of a targeted approach to the insurance services market focused on identifying attractive, resilient business models with consistent growth profiles. This acquisition aligns with TowerBrook’s investment strategy to back strong management teams operating in growth markets. TowerBrook will work with Orchid’s management team to develop organic and inorganic initiatives which further scale Orchid’s platform.

TowerBrook has a long history of investments in the insurance and financial services industry and a strong network in the sector, having partnered with companies such as Ironshore, Rewards Network, CapQuest, Hayfin, Fortiva, Validity Finance, and Ladder Capital.

TowerBrook Capital Partners L.P. (“TowerBrook”), an international investment management firm, today announced the sale of Wilton Brands, a baking, cake decorating and candy making brand, to Dr. August Oetker KG (“Dr. Oetker”). Financial terms were not disclosed, and the transaction is expected to close by the end of the year.

Dr. Oetker is a Germany based, privately held, global food and beverage company, which includes baking products and baked goods. Both companies were family-founded and share a long and rich heritage in baking.

The sale to Dr. Oetker positions Wilton Brands to draw on both companies’ strengths and combined knowledge as the business continues to grow and innovate for the benefit of customers, retail partners and employees. Wilton’s product portfolio and strong brand makes it a compelling fit for Dr. Oetker as the company accelerates its expansion in the U.S.

Since TowerBrook acquired Wilton Brands in 2009, the company re-focused on its baking and food core while successfully divesting non-core businesses. Wilton products can be found on shelves at Walmart, Target, Michael’s, Kroger and grocers across the U.S., as well as on Amazon, and are distributed through partners on every continent.

Wilton Brands will remain headquartered in Naperville, Illinois and will be run as a division within the broad portfolio of companies owned by Dr. Oetker. Sue Buchta will remain in her role as CEO of Wilton Brands.

TowerBrook Capital Partners L.P. (“TowerBrook”), the international investment management firm, today announced the first and final close of its private equity fund, TowerBrook V, and of its structured investment platform, TowerBrook Structured Opportunities II (“TSO II”), raising an aggregate total of $5.3 billion.  Both funds closed at the hard cap, exceeding their initial targets, with $4.25 billion raised for TowerBrook V and $1.05 billion for TSO II.  The successful final close comes less than 5 months after both fundraisings were launched in January 2018.

TowerBrook received strong backing from both existing and new investors, including public pension funds, sovereign wealth funds, financial institutions, endowments and family offices across the US, Europe and Asia.

Like its predecessor funds, TowerBrook V will focus on proprietary, control-oriented investments, partnering with outstanding management teams to create value for stakeholders. TSO II is the successor to TSO I, established in October 2015 to invest in the many attractive not-for-control opportunities generated by TowerBrook’s activity.

Commenting on the fundraise, Ramez Sousou, Co-CEO of TowerBrook, said: “We are delighted to have received such strong investor support and are proud of what it signals about our firm. The success of the fundraise is a direct reflection of our investors’ confidence in TowerBrook’s distinctive investment strategy and its disciplined deployment over the past 18 years.”

Neal Moszkowski, Co-CEO of TowerBrook, said “The closing of our two new funds is a major milestone for TowerBrook.  We look forward to bringing the diverse capabilities, the energy and the commitment of our growing team to TowerBrook V, TSO II and the many opportunities ahead of us.”

An article about TowerBrook and the fundraise appeared in PEI magazine, which is viewable here.

JJA, a leading French B2B product and service provider of home furnishing & goods, today completed a partnership with TowerBrook to support the business in its international expansion strategy. TowerBrook has acquired a minority stake in JJA, via its Structured Opportunities fund (“TSO”). Jacques-Olivier Abiteboul, JJA’s CEO since 1999, retains the majority stake in the company and will continue, together with JJA’s management team, to lead the company, its strategy and operations.

Founded in 1976, JJA has grown steadily over the past 3 decades and, in recent years, has accelerated its development with double-digit annual sales growth. Headquartered in Blanc-Mesnil, JJA currently employs around 520 people and is highly regarded for the quality of its products and brands as well as for its operational, logistical and digital excellence. The Company has become a key partner to the main retail distribution channels in France in multiple product categories, ranging from home decoration to outdoor furniture, to kitchenware. In each category, JJA has developed its own well-recognized brands such as “Hespéride”, “Atmosphera” or “Secret de Gourmet” and offers to its retail clients a wide range of digital services to support their omni-channel capabilities.

Jacques-Olivier Abiteboul, JJA’s CEO and majority shareholder, seeks to continue JJA’s strong growth in France and at the same time accelerate its international expansion. The Company has partnered with TowerBrook because of TowerBrook’s deep expertise in the sector, its strong experience of supporting fast-growing companies and its ability to structure tailor-made solutions.

This investment follows a number of recent similar partnership transactions that TowerBrook has pursued with founder-led businesses such as OVH, La Maison Bleue and Gravity.

TowerBrook Capital Partners announces today that it has entered into a definitive agreement to acquire Bosal ACPS (the “Company”), a German manufacturer of tow bars with operations in Europe and the Americas, from Bosal Group. Financial terms of the transaction were not disclosed.

Bosal ACPS is a leading manufacturer of tow bars for original equipment manufacturers and suppliers (OEM/OES) and for the aftermarket in Europe, generating sales in 2017 of approximately €250m with  around 2000 employees. The Company has manufacturing facilities in Germany (where it is headquartered), Hungary, Mexico, Russia and France. The Company has a history of innovation, having invented and introduced retractable tow bars in the early 2000s and the first fully electric retractable tow bar in 2010.

TowerBrook is also pleased to announce that Gerhard Boehm, Vice Chairman of Reydel Automotive, has agreed to serve on the Board as Chairman and as CEO.  Mr Boehm has extensive experience of the automotive industry: his former roles include head of FM Powertrain, CEO of Peguform and head of Continental Engine Systems.   Supporting Gerhard, Bosal ACPS has a highly-experienced management team with a collective 100 years of expertise in the automotive industry. The team sees significant potential for international growth, as well as opportunities for operational improvement.  They also have ambitious plans to accelerate technological innovation, partnerships and acquisitions.

Ramez Sousou, co-CEO and co-founder of TowerBrook said “Bosal ACPS enjoys a leading market position underpinned by its international footprint, product quality and innovation.   The business has a number of potential opportunities to drive growth and operational improvements. TowerBrook’s expertise, together with our transatlantic networks and longstanding relationships in the automotive industry, complement and support management’s ambitious plans.”

Gerhard Boehm added “I am very excited to be joining such a dynamic business and management team.  Bosal ACPS enjoys favourable mega trends in the take up of tow bars, along with a focus on more comfort, energy efficiency and leisure activity, which are driving product development in both the OEM and aftermarket segments of our business.  The business has a strong product pipeline and with TowerBrook’s help it will be able to ramp up in those markets in which it is currently under-represented, such as the NAFTA region, as well as pursue an international growth strategy, including potential acquisitions”.

It is anticipated that the transaction will close at the end of Q1 2018.

Rewards Network, a provider of marketing, loyalty services, dining rewards programs and financing to the restaurant industry, and TowerBrook Capital Partners L.P., the New York and London-based investment management firm, announced today that TowerBrook has acquired Rewards Network, in its entirety, from Equity Group Investments (“EGI”). The transaction is complete and financial terms were not disclosed.

TowerBrook’s investment in Rewards Network is the result of a thesis-driven sourcing effort focused on identifying differentiated tech-enabled service providers to the rewards and loyalty sector. Merchant-funded rewards programs such as Rewards Network offer a strong value proposition for restaurants, consumers, and loyalty partners. TowerBrook will continue to explore ways to grow and scale Rewards Network for the benefit of these constituents.

In addition, Rewards Network announced that Edmond (“Ed”) Eger has been appointed CEO, Steven Freiberg has been named Chairman, and Dan Kazan will move into the role of President. Mr. Eger and Mr. Freiberg bring deep experience in the payments industry and will work alongside TowerBrook and the Rewards Network team in their efforts to drive growth, expand existing business opportunities, improve data analytics, and scale the platform through new partnerships and initiatives.

Mr. Eger was most recently the President, CEO, and member of the Board of Directors of OANDA Corporation, an online technology platform for trading, payments, and data services for individuals and businesses around the world. He previously served as PayPal’s SVP and General Manager of the Americas and before that was Chief Executive Officer of Citigroup’s International Cards business. Mr. Eger’s prior experiences also include business management roles at Standard Chartered Bank, Wells Fargo, and McKinsey & Company.

Mr. Freiberg is a global payments industry veteran, who previously served as Co-Chairman and CEO of Citigroup’s Global Consumer Group and most recently as the CEO of Etrade Financial Corporation. He currently serves as a Board Member of MasterCard, SoFi, Regional Mgmt, Fair Square (Ollo), Purchasing Power & OANDA, as well as a Senior Advisor to BCG, Verisk, and [24]7.

“I am honored by this appointment and look forward to working alongside Steve and TowerBrook to build Rewards Network’s business. I also want to thank Dan for driving significant progress during his tenure as CEO – under his leadership, Rewards Network has built an impressive network of premier loyalty brands, affluent rewards-seeking members, and local independent restaurants,” Mr. Eger commented. “Looking ahead, we will strive to scale the business, accelerate growth, and develop new strategic partnerships and initiatives for the benefit of our network of restaurants, brands, members, and employees.”

Mr. Freiberg stated, “There is tremendous demand for loyalty and merchant-funded rewards programs right now, and Rewards Network is a pioneer in the space with a strong platform, ample opportunities for continued growth and potential to scale the business. TowerBrook’ s investment reflects Rewards Network’s success, and Ed and I are excited to partner with TowerBrook to find opportunities to build on this growth.”

Mr. Kazan commented, “Ed and Steve bring a wealth of industry experience and I am thrilled to have them on board. I also want to thank EGI for their support throughout the years. I look forward to working with TowerBrook, Ed and Steve to build on our strong foundation.”

Stifel served as financial advisor and Sidley Austin LLP served as legal advisor to the company.

TowerBrook was advised by Broadhaven Capital Partners and Kirkland & Ellis LLP served as legal advisor.

TowerBrook Capital Partners L.P. (“TowerBrook”) announces today that it has acquired Schweighofer Fiber GmbH (the “Company”), an Austrian company which produces high-quality viscose pulp and bio energy, from family-owned Schweighofer Group. Closing took place on September 12^th. Financial terms of the transaction were not disclosed.

Schweighofer Fiber, based in Hallein, is one of the largest manufacturing companies in Austria. The Company employs 240 people at its site in Hallein near Salzburg and produces pulp and bio-energy from renewable energy sources. Schweighofer Fiber had a turnover of about 143 million Euros in 2016 and is one of the most profitable of the top 250 industrial companies in Austria. Jörg Harbring, who has been the Managing Director of the Company for 13 years, will become the CEO of the business, working alongside TowerBrook to build on the company’s success.

Ramez Sousou, co-founder and co-CEO of TowerBrook said: “We are delighted to have had the opportunity to acquire Schweighofer Fiber. This acquisition fits perfectly with our acquisition criteria and our overall investment strategy to back strong management teams operating in growth markets. We are keen to capitalise on the existing strength of the business by supporting the Company in a market that presents considerable growth opportunities.”

Jörg Harbring, Managing Director of Schweighofer Fiber said: “I am pleased to have TowerBrook not only as our new owner but as a true partner who brings financial strength and operational expertise to help us grow the business further. We have worked very hard over the last few years to strengthen our position within our key markets, while also building the platform for future growth. TowerBrook has a strong history of significantly developing portfolio companies during its period of ownership and we look forward to working with them in the coming years.”

Gerald Schweighofer, Managing Director of Schweighofer Group: “The pulp dissolving mill in Hallein is a success story in every aspect. Due to substantial investment, we were able to make the mill more profitable, thus securing the site and its employees. By doing so, we have clearly demonstrated our vision of merging economic, social and ecological responsibilities. The decision to sell this site is purely strategic from our point of view: we will focus entirely on our core business of wood processing. As we considered strategic options for our fiber business we found TowerBrook to be the perfect fit because of its plan to accelerate the growth of the company, its commitment towards the location in Hallein as well as towards the employees and the management team. Schweighofer Fiber is an attractive business with major opportunities and we are confident that, with TowerBrook’s expertise, the business will be in good hands.”

TowerBrook has a strong experience in carve outs of similar sizes, a strong network in the sector and a long history of investing in German-speaking Europe. Successful investments over more than a decade include Cablecom GmbH (Switzerland), Monier Group (Germany), Odlo Sports (Switzerland), and PolymerLatex (Germany). TowerBrook opened an office in Munich in 2016.

TowerBrook will work closely with the talented team of Schweighofer Fiber and support the Company’s successful strategy of enhancing its capacity and diversifying its product portfolio.

Aernnova (the Company) is pleased to announce three new investors. TowerBrook Capital Partners LP (TowerBrook), the London and New York based investment management firm, Torreal, one of the largest private investment firms in Spain, and Península S.a.r.l., an asset management firm focused on the south of Europe, will all become part of the company’s shareholder structure.

The transaction, signed on Friday 16th June, is expected to close within approximately six months, following the necessary regulatory approvals in Spain, the USA and the European Union.

The President of Aernnova, Mr Iñaki López Gandásegui, the Company’s Deputy CEO Mr Pedro Fuente Arce, other members of the Executive Committee of Aernnova and its management team will remain significant shareholders, assuring continuity of business management and strategy.

Under the leadership of Mr López Gandásegui, the Company has consolidated its market position and is recognized as one of the world’s leading Tier 1 aerostructures suppliers, having diversified both its client portfolio and its commercial relationships. In particular, the acquisition of Brek Manufacturing Company in February 2017 has strengthened the position of Aernnova in the large aerospace market of the USA.

The new investors, led by TowerBrook, provide Aernnova with financial resources, experience and extensive industry connections, making them excellent partners for the Company and its management team.

This is TowerBrook’s first investment in a Spanish-based company. TowerBrook opened a satellite office in Madrid in 2016.

TowerBrook brings meaningful financial resources, together with a transatlantic team of professionals with solid investing experience in the sector in which Aernnova operates.

Torreal is one of the largest private investment firms in Spain, with a recognized standing in strategic industrial sectors including aerospace, and will contribute to the further enhancement of Aernnova’s position both national and internationally.

The President of Aernnova, Mr López Gandásegui, said: “The participation of TowerBrook, Torreal and Península will help us to consolidate further our leadership in the aerospace sector. We also owe our strong market position to SpringWater, our shareholder until today, who supported our aims and ambitions when we first established Aernnova in Álava as a Spanish company with an international perspective.”

Ramez Sousou, co-founder and co-CEO of TowerBrook said: “Iñaki’s strategic vision and leadership has enabled Aernnova to establish a unique position in the aerospace sector. Aernnova has numerous opportunities for further development and we will work closely with the Company and its management team to ensure they can achieve their objectives. We are very pleased to have participated in this investment alongside Torreal and Península, both highly reputable investors.”

Torreal said: “We are delighted to support Aernnova in becoming a leader in the sector. The experience, know-how and leading positioning of Aernnova will ensure that together we will achieve our objectives”.

Javier de la Rica, member of the board of directors of Península, said: “Aernnova has one of the most successful track records in the Spanish industrial sector. We are pleased to work with Iñaki and the rest of the management team and to contribute to the company’s development. It is a pleasure for us to work with both TowerBrook and Torreal”.

The sellers have been assisted by Citi as a Financial Advisor to the transaction.