Castle Harlan Explained

Castle Harlan
Type:Private
Location:New York, New York, U.S.
Industry:Private equity
Products:Leveraged buyout, Growth capital
Num Employees:25+

Castle Harlan is a private equity firm based in New York City. The company focuses on buyouts and growth capital investments in middle-market companies across a range of industries. Founded in 1987, Castle Harlan invests in controlling interests in middle-market companies in North America and Europe, Australia and Southeast Asia through Castle Harlan Australian Mezzanine Partners.

Castle Harlan's team of 18 investment managers has completed over 50 acquisitions since its inception with a total value of approximately $10 billion. The firm currently manages investment funds with equity commitments of approximately $3.5 billion.[1]

Castle Harlan has invested, through its five domestic funds, in more than 55 platform businesses that totaled over $11 billion of enterprise value.[2]

History

Castle Harlan was founded in 1987 by John K. Castle and Leonard M. Harlan,[3] but its history goes back to the 1960s. During the 60s John Castle headed all of the private equity activities, including the Sprout Capital Group, at Donaldson Lufkin & Jenrette (DLJ). At that time DLJ used some of the first limited partnerships to bring institutional investors into private equity investing. From the period between 1979 and 1986, Castle rose to become the president and chief executive officer at DLJ.[4] [5] Leonard Harlan joined DLJ in 1965. Harlan left DLJ in 1969, and formed a real estate investment group, The Harlan Company. In 1987,[6] Castle and Harlan, with a few others raised $125 million for its new limited partnership, Legend Capital Group, L.P., to invest in leveraged buyout transactions.[7]

In 1999, Castle Harlan teamed with Bill Ferris and Joseph Skrzynski of Australian Mezzanine Investments to create Castle Harlan Australian Mezzanine Partners, also known as CHAMP. CHAMP focuses on control investments in middle-market businesses in Australia and Southeast Asia with similar criteria to Castle Harlan. CHAMP also has an affiliate, CHAMP Ventures, that invests in small buyouts, non-control growth capital and venture capital. CHAMP raised its second fund with A$950 million of investor commitments in 2005 and its third fund with A$1.5 billion in 2010.[8]

On April 17, 2018, Castle Harlan announced its agreement to purchase the oil and gas production equipment assets of Exterran Corporation.[9] [10] The deal resulted in the creation of a new company, Titan Production Equipment. The sale was closed in summer 2018, and Titan Production Equipment launched in July 2018.[11] [12]

In August 2019, Castle Harlan, together with Branford Castle Partners, purchased Sunless Inc., a spray tanning equipment manufacturer, from The Riverside Company.[13] [14]

In October 2019, the company sold one of its portfolio companies, Gold Star Foods, to Highview Capital. Castle Harlan purchased Gold Star in April 2014.[15] [16]

By November 2019, the firm had the following five investments: Sunless, Shelf Drilling, Caribbean Restaurants LLC,[17] Titan Production Equipment and Tensar Corp.[18]

Investments vehicles

Private equity funds

Since its launch, Castle Harlan has participated in the following eight private equity funds. Five located in the United States, and three in Australia: The following are the U.S. based funds:

Fund Vintage Year Committed Capital
Castle Harlan Partners V 2010 Approx. $1.0 billion[19]
Castle Harlan Partners IV 2003 $1.2 billion
Castle Harlan Partners III 1997 $630 million[20]
Castle Harlan Partners II 1992 $275 million[21]
Legend Capital Group 1987 $125 million[22]

Portfolio companies

Castle Harlan co-owns Bravo Brio Restaurant Group,[23] Tensar,[24] Polypipe Group,[25] Horizon Lines,[26] [27] Ames True Temper,[28] Austar United Communications,[29] [30] McCormick & Schmick's,[31] [32] [33] RathGibson,[34] [35] United Malt Holdings,[36] [37] and AmeriCast Technologies.[38]

!Company!Acquisition Year!Purchase Price!Year sold!Price sold
Tensar Corporation2014
Bravo Brio Restaurant Group2006
Polypipe2005$527 million
Horizon Lines2004$650 million
Ames True Temper2004$380 million
Austar United Communications2003$34.5 million
McCormick & Schmick's1994 and 20011997 and 2004
RathGibson2006$260 million2007$440 million
United Malt Holdings20062009
AmeriCast Technologies20062008$288 million

Branford Castle, Inc

New York based private equity firm Branford Castle was founded in 1986 as a private market investor in companies with less than $100 million annual sales.[39] It is run by brothers John S. Castle and David A. Castle. In November 2019 Branford Castle sold Surface Preparation Technologies to Dominus Capital and Drew Foam Companies, one of Branford's portfolio companies, purchased Davis Core & Pad from owner Joel Davis.[40] In September 2019 it bought Pulse Veterinary Technologies and in August, 2019 it acquired ABC Industries.

Awards and recognition

In 2019, the Association for Corporate Growth awarded Titan Production Equipment, an affiliate of Castle Harlan, the Houston Deal of the Year Award in the category of Restructuring and Turnaround Transactions.[41] [42]

Additional references

External links

Notes and References

  1. Web site: Castle Harlan - Castle Harlan Acquires Securus Technologies . 2022-11-27 . castleharlan.com . en-gb.
  2. Web site: Castle Harlan. Titan. en-US. 2020-04-03.
  3. Web site: Wayne. Leslie. www.nytimes.com/1988/08/14/business/the-rise-and-fall-of-the-big-breakup-deals.html. The New York Times. 12 April 2016.
  4. Web site: Scannell. Kara. Icahn Offers to Buy XO's Loans To Bolster Position in Bankruptcy. Wall Street Journal. 5 April 2016. 11 July 2002.
  5. Web site: Perry. Nancy J.. The firm is his castle. Fortune. 30 November 2015. 1 February 1988.
  6. Web site: Legend Capital Group, L.P.. New York Company Search. 12 April 2016. https://web.archive.org/web/20160924043750/http://newyorkcompanysearch.com/legend-capital-group-l-p. 24 September 2016. dead.
  7. Web site: Wayne. Leslie. www.nytimes.com/1988/08/14/business/the-rise-and-fall-of-the-big-breakup-deals.html. The New York Times. 12 April 2016.
  8. https://archive.today/20120717032113/http://www.altassets.info/?p=7295 CHAMP II Australian buy-out fund closes on A$950m
  9. Web site: Blum . Jordan . Titan Production Equipment launches as new Houston energy firm . Chron . 16 July 2018.
  10. Web site: Pulsinelli . Olivia . Exterran sells production equipment business, creating new local company . Bizjournals . 16 July 2018.
  11. Web site: Titan Production Equipment launches as new Houston energy firm. Blum. Jordan. 2018-07-11. Houston Chronicle. 2019-09-24.
  12. Web site: Exterran sells production equipment business, creating new local company. www.bizjournals.com. live. https://web.archive.org/web/20200928020753/https://www.bizjournals.com/houston/news/2018/07/12/exterran-sells-production-equipment-business.html . 2020-09-28 . 2019-09-24.
  13. Web site: Riverside sells long-held Sunless to Castle Harlan and Branford Castle Partners AltAssets Private Equity News. Williams. Jordan. en-US. 2019-08-15.
  14. Web site: What WeWork's IPO Prospectus Tells Us About Its Business. Fortune. en. 2019-08-15.
  15. Web site: Castle Harlan profits from strong Gold Star Foods growth with sale to Highview Capital AltAssets Private Equity News. Didymus. Mike. en-US. 2019-10-06.
  16. Web site: Castle Harlan Sells Gold Star Foods to Highview Capital. Harlan. Castle. 2019-10-04. Perishable News. en-US. 2019-10-06.
  17. Web site: John K. Castle Defies Predictions, Thrives in Middle Market. McNulty. John. 2020-04-10. Private Equity Professional. en-US. 2020-04-13.
  18. Web site: Castle Harlan still active as Branford Castle markets for second fund. Beltran. Luisa. 2019-11-21. PE Hub. live. https://web.archive.org/web/20191122053944/https://www.pehub.com/2019/11/castle-harlan-still-active-as-branford-castle-markets-for-second-fund/ . 2019-11-22 . 2019-11-26.
  19. Web site: Wu . Elizabeth . Castle Harlan promotes controller to CFO . Private Equity International . 27 March 2023 . 15 July 2016.
  20. Web site: PEI Staff . Castle Harlan sees green with Charlie Brown’s . Private Equity International . 27 March 2023 . 30 December 2012.
  21. Web site: Carlyle Group sells Horizon Lines to Castle Harlan . American Shipper . 1 September 2019 . 25 May 2004.
  22. Web site: Cuff . Daniel F. . BUSINESS PEOPLE; Collapse Fails to Stop An Investment Team . New York Times . 1 September 2019 . 26 November 1987.
  23. https://www.bloomberg.com/apps/news?pid=newsarchive&sid=asb.QP4lVpF0 GrainCorp Agrees to Buy United Malt for $655 Million
  24. Web site: Sormani. Angela. Tensar Corporation acquired by Castle Harlan. The PE HUB Network. 30 November 2015. 10 July 2014.
  25. Web site: Private Equity News Review August 2007. Alt Assets. 8 October 2015.
  26. Horizon: Castle to Take Horizon Public. The Deal, Mar 3, 2005
  27. Web site: Berman. Dennis K.. Carlyle: Losing One To the Underdog. Wall Street Journal. 8 October 2015.
  28. Web site: Briefing.com: Hourly In Play (R) – 16:00 ET. Insurance News Net. 8 October 2015.
    • Austar: Private Equity Funds Sell A$567 mln Stake in Austar. Reuters, Dec 14, 2005
  30. Web site: Acquisition of Controlling Interest in Austar. https://web.archive.org/web/20160304112206/http://www.wikinvest.com/stock/Liberty_Global_(LBTYA)/Acquisition_Controlling_Interest_Austar. dead. March 4, 2016. Wiki Invest. 8 October 2015.
  31. McCormick and Schmick: Avado Brands Agrees To Sell Restaurants To New York Investors. Wall Street Journal, June 11, 2001
  32. McCormick & Schmick Gets $24M Investment From Castle Harlan. Dow Jones News Service, Oct 19, 1994
  33. Web site: wo New York Buyout Firms Complete Purchase of McCormick & Schmick's Seafood Restaurants. Bruckmann, Rosser, Sherrill & Co. L.L.C.. 8 October 2015. dead. https://web.archive.org/web/20160305030402/http://www.brs.com/pr7.html. 5 March 2016.
  34. RathGibson: DLJ Beefs Up Portfolio With Manufacturing Purchase. Buyouts, May 14, 2007
  35. Web site: Private equity owner sells RathGibson for $440M. Biz Journals. 8 October 2015.
  36. https://web.archive.org/web/20091116073018/http://www.businessweek.com/investor/content/nov2009/pi20091113_685259.htm United Malt Holdings
  37. Web site: Castle Harlan Sells United Malt for $655 Million. Deal Book. 8 October 2015.
  38. AmeriCast: Bradken To Buy Rest of AmeriCast Tech for A$114M. Dow Jones, July 29, 2008
  39. Web site: Castle Harlan and Branford Castle Acquire Sunless from the Riverside Company. 2019-08-19. BeautyMatter. en-US. 2019-09-08. 2019-08-20. https://web.archive.org/web/20190820163241/https://beautymatter.com/2019/08/castle-harlan-branford-castle-acquire-sunless-from-the-riverside-company/. dead.
  40. Web site: Branford Castle Adds to EPS Platform. McNulty. John. 2019-11-21. Private Equity Professional. en-US. 2019-11-26.
  41. Web site: ACG Houston Announces Winners at Deal of the Year Awards Ceremony ACG Houston. www.acg.org. 2019-09-15.
  42. Web site: Castle Harlan Wins "Deal of the Year" Award from ACG Houston. 11 February 2019. MarketWatch. en-US. live. https://web.archive.org/web/20190212031608/https://www.marketwatch.com/press-release/castle-harlan-wins-deal-of-the-year-award-from-acg-houston-2019-02-11 . 2019-02-12 . 2019-09-15.

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