Mangrove Equity

1.12.11

Mangrove recently acquired Aircraft on Ground, Inc. (AOG) headquartered in Dallas, Texas from its diversified corporate parent company. This divisional acquisition was made in support of Mangrove portfolio company, North American Aircraft Services. Inc. (NAAS). The combination of these two leading providers of mission- critical specialized aerospace fuel system maintenance and repair services is a classic example of the whole being far more than the sum of its parts.

Merits of the combination of these two companies include:

The companies have minimal customer or location overlap, and bring to each other several large customers
Through AOG, NAAS gains an even deeper pool of management and labor talent and capacity, affording the company greater geographic range, faster response times and service, and greater scheduling flexibility
AOG brings to NAAS greater penetration into overseas military work, as well as greater traction in additional service offerings such as Non-Destructive Testing work
The combination increases the size of NAAS significantly, generating meaningful equity value just four months after NAAS partnered with Mangrove
The Mangrove operating team will be using their considerable experience and tool set in working with management of the combined companies to realize efficiencies and to ensure that the combination goes smoothly

Thank you for your continued interest and support. Please continue to think of us for majority recapitalizations, management buy-outs, management buy-ins, divisional acquisitions, and recap/ industry consolidations with private companies earning $2mm to $10mm of EBITDA throughout the U.S. and Canada. Please visit Mangrove’s website at www.MangroveEquity.com for more detailed criteria and a sampling of the 52 industry/128 deal history of the Mangrove team.

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8.16.11

The team at Mangrove Equity Partners is pleased to announce that we have completed a Majority Recapitalization of North American Aviation Services. Inc. (NAAS), a Texas-based provider of specialized aerospace fuel system maintenance and repair services.

Mangrove recently partnered with the owner/operators of San Antonio, Texas based North American Aviation Services. Inc. (NAAS) to affect a majority recapitalization of this leading provider of specialized aerospace fuel system maintenance and repair services. NAAS is one of only a few service providers authorized to perform this mission-critical work on a broad array of military and commercial aircraft.

Mangrove brought more than just the commodity of cash to the transaction
and to NAAS:

Mangrove partners possess aerospace sector backgrounds and experience that
helped us to understand this niche and relate to the owner/operators. Additionally,
Mangrove’s experience with esoteric small business issues when selling to
military customers was instrumental.
The Mangrove operating team will be working with management to implement
more robust financial information systems and metrics to maximize quality
growth for the company.
Mangrove has and will continue to support management’s initiatives to grow
NAAS through the addition of new products/service lines as well as the addition
of new locations, both domestic and international.
Mangrove has helped multiple portfolio companies build sales and marketing
organizations.

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4.19.11

The team at Mangrove Equity Partners is pleased to announce that we have completed the Majority Recapitalizaton of Westland Technologies, Inc., a California-based provider of Mission-Critical Molded Products for the Military (Navy)

Mangrove recently partnered with the owner/operator of California-based Westland Technologies, Inc. ("Westland") to affect a majority recapitalization of this leading manufacturer of mission-critical signature management technologies for surface ships and submarines. Westland's rubber and other elastomeric products, sold directly to the Navy and to large prime contractors, increase the survivability and mission effectiveness of the U. S. Navy's most critical assets. There is a significant ongoing after-market component to the business. The company also manufactures highly-specialized molded and fabricated rubber and elastomeric products for commercial customers.

Mangrove brought more than just the commodity of cash to the transaction and to WTI:

Several Mangrove partners possess engineering and defense sector backgrounds that help us understand the technical aspects of this niche - we speak the same language, operator-to-operator and engineer-to-engineer. Given current budget uncertainty, this opportunity required a defense experienced partner willing to make researched, data-driven decisions. Mangrove drilled down to understand the stability of the mission and the relevant military platforms.
Mangrove conducted an in-depth study of military contracting data to determine how to best position the company to meet demand and optimize growth.We demonstrated our ability to meet the complex and varied interests of various shareholders, managers, and lenders in a non-vanilla process. Flexibility and perseverance count.
The Mangrove operating team will be working with management to implement more robust financial information systems and metrics to maximize quality growth for the company

Thank you for your continued interest and support. Please continue to think of us vfor majority recapitalizations, management buy-outs, management buy-ins, divisional acquisitions, and recap/ industry consolidations with private companies earning $2mm to $10mm of EBITDA throughout the U.S. and Canada. Please visit Mangrove's website at www.MangroveEquity.com for more detailed criteria and a sampling of the 51 industry/126 deal history of the Mangrove team.

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8.26.10

The team at Mangrove Equity Partners is pleased to announce that we have completed the Management Buy-out of Integrated Global Services, Inc., a Virginia-based provider of customized surface protection solutions for power generation and industrial process facilities.

Mangrove recently partnered with the incumbent management team of Integrated Global Services (IGS) to affect a management buy-out of this leading provider of customized surface protection solutions for power generation and industrial process facilities. IGS’ custom-engineered thermal spray and weld overlay solutions offer sacrificial linings that protect process equipment from erosion and/or corrosion. IGS helps its customers address mission-critical objectives of lengthening equipment life, minimizing equipment downtime, increasing plant throughput, and complying with increasingly stringent environmental mandates. IGS has facilities in the U.S., South Africa and Japan and operates worldwide. Mangrove was attracted to the non-discretionary and recurring-revenue aspects of the business, as well as to IGS’ strong management team and outstanding worldwide reputation.

Mangrove brought more than just the commodity of cash to the transaction and to IGS:

Several Mangrove partners possess engineering backgrounds that help us understand the technical aspects of this industrial niche - we speak the same language, operator to operator and engineer to engineer.
We have succeeded in assisting several mission-critical industrial services companies manage the challenge of performing exacting on-site work across a broad geographic footprint.
We demonstrated our ability to meet the complex and varied interests of various shareholders, managers, and lenders in a non-vanilla process. Flexibility and perseverance count.
Mangrove has helped multiple portfolio companies build sales and marketing organizations, design business processes and increase capacity to fully capitalize on untapped opportunities. IGS’ products and services have applications in a variety of other industries that have thus far been overlooked due to the lack of a sales and marketing culture. With Mangrove’s operational assistance and financial backing, IGS will be able to compete effectively in this more broadly defined market.

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1.12.10

Mangrove’s latest recapitalization is a Canadian manufacturer of branded-consumer leisure goods.

This family-recap marks the Mangrove team’s second platform in Canada and its fourth new platform investment in sixteen months. Mangrove and our operating team contributed to strategic initiatives even before the deal closed, including:

Building a U.S. sales team and rep organization
Addressing the management of tax issues that stymied growth in the much larger U.S. market
The creation of a new, lower-price-point product, opening up to the company the largest portion of the market

The Mangrove team rolled up their sleeves to understand complex industry dynamics associated with a product whose use is regulated differently in every state. Mangrove worked extensively with management to improve financial reporting in an effort to prepare the company for a transaction. Going forward, Mangrove will be assisting with the implementation of a sophisticated IT system that will integrate sales and manufacturing in order to better manage the company.

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12.1.09

The team at Mangrove Equity Partners is pleased to announce that we have completed the majority recapitalization of Gayesco, LLC, Mangrove’s third new platform investment in the latest fourteen months.

Gayesco

Gayesco, LLC is a Houston, TX based manufacturer of high-quality, custom–engineered, precise temperature sensor systems for process plants where accuracy in temperature measurement is critical to ensure process efficiency, quality of product output, and safety. Gayesco’s proprietary, innovative systems enjoy material competitive advantages relative to competitors’ systems. Mangrove looks forward to working with the incumbent management team to further penetrate additional process industries and international markets.

Just as Gayesco provides systems that perform for customers as few others can, Mangrove performed for the buy-side intermediary, Gayesco’s owners and managers as few funds in the lower middle market can today by:

Bridging the financing of the transaction to ensure a timely closing, even in a difficult financing environment
Having operating partners with engineering backgrounds to understand the technical aspects of this industrial niche (we speak the same language)
Performing primary research to understand complex industry dynamics that would derail suitors who lacked the willingness and capacity to dig in, do the work and understand Gayesco’s opportunities

Allowing the primary owner to transition from his day to day operating role into the product development work that is his passion

Structuring a partnership that provides equity to key managers with whom Mangrove will pursue Gayesco’s considerable growth opportunities

Mangrove Equity Partners: More Than the Commodity of Cash

The Mangrove team works hard to be your go-to private equity fund in the lower middle market by offering the following differentiating advantages:

Experience, references, flexibility creativity, and a can-do attitude to get deals closed (122 deals to date), even in challenging environments

Industry knowledge and industry-specific strategic relationships born of closing deals in 48 industries (creates a very different dialogue with company owners and managers)

Experience and references in a variety of deal situations to build commonality, gain trust of company owners and managers (e.g. recap/consolidations, management buy-out and buy-ins, divisional acquisitions, family business dynamics, management gaps, etc.)

Three full-time operating partners with meaningful ownership in Mangrove with the skill sets, experience, and peer-to-peer credibility to win over company owners and managers. Mangrove’s operating partners work through complex issues, help with important portfolio company initiatives and build real value at portfolio companies. Since most of Mangrove’s deals are recaps, owner/operators seek the ideal partner to maximize profitable growth

The ability to bridge financing to ensure timely closing of transactions

An attitude and practice of partnership with our deal sources over the past 20 years. We roll up our sleeves and work with intermediaries to do what is necessary to move deals forward. If a deal is not a fit for Mangrove’s criteria, we endeavor to provide accurate and helpful suggestions as to who may have a pointed interest. Our goal is to help our deal sources get their deals done and accordingly, become their go-to fund in the lower middle market

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11.14.08

Mangrove Equity Partners is pleased to announce the recapitalization of R&H Supply, Inc., a Louisiana based drilling supply company.

Mangrove recently partnered with the husband/wife founders of R&H Supply, Inc. to effect a majority recapitalization of this family owned business. R&H is a multi-location, value added distributor of expendables, consumables, lubricants, tools, and general supplies to remote gas and oil rigs in major U.S. drilling regions. Many of these products are critical to a rig’s profitable 24/7 operation. R&H has 10 locations and has developed national supply relationships with most of the major contract drillers, acting as a valuable logistics partner to its customers. The transaction provided liquidity for the founders, while allowing them to retain meaningful ownership and continue as the leaders of the company.

Like many company owners and intermediaries, the family and their sell side agent chose us to be their partner because, once again, Mangrove brought more than just money to the table. Mangrove’s three full-time operating partners began working with management pre-close to maximize growth opportunities and to optimize business infrastructure and processes. The family business owners positioned the company for outstanding growth, but needed a partner to help them fully capitalize on their opportunities. Our significant experience and track record with multi-location service and distribution companies made Mangrove the ideal partner to support their plans.

Unlike many other private equity firms, Mangrove also stuck to its word and closed the deal at the original terms, even in the face of a downward trending market and a difficult credit environment. The recent financial turmoil has drastically changed the near-term prospects for drilling activity in the United States, potentially impacting R&H’s near-term prospects. Mangrove’s willingness to study the market and make an objective assessment of the mid and long-term dynamics led us to stick with the deal. Our lending partners also came to the table with a solid, appropriate capital structure when other lenders had shut their doors.

The R&H deal represents Mangrove’s second new platform in the last four months. We have another interesting platform company under LOI and will share the details of the transaction should it close.

Thank you for your continued interest and support. Please continue to think of us for majority recapitalizations, management buy-outs, management buy-ins and recap/consolidations of private companies earning $2mm to $8mm of EBITDA throughout the U.S. and Canada.

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8.20.08

Mangrove Equity Partners is pleased to announce the recapitalization of Everett Laboratories, Inc., a New Jersey based developer and marketer of specialty, prescription nutraceuticals.

Mangrove recently partnered with the daughter and son-in law of the founder of Everett Laboratories, Inc. to affect a majority family recapitalization of this leading developer and marketer of patented, prescription nutraceutical products. Everett’s innovative products include more palatable and tolerable prenatal vitamins and other nutritional support products for patients in various health states. The transaction provided liquidity for the retiring founder, while affording his family members meaningful retained ownership, continued roles as the leaders of the company, and an ideal partner to support future growth.

Like many company owners and intermediaries, the family and their broker chose us as their partner because Mangrove provided more than just money by:

Capitalizing on an existing strategic relationship with a thought leader in the industry who now sits on Everett’s board, and serves as a corporate development officer of the company. This was highly valued by the company owners and operators.
Bringing to bear the captive resource of Mangrove’s three full time operating partners who will work with management to maximize growth opportunities and optimize business infrastructure and processes.
Supporting the next generation of management in their plans to invest in the expansion of Everett’s geographic footprint and direct sales force. Everett’s growth thesis also includes product line expansion, and select add-on acquisitions.

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