Atlas Holdings LLC has sold the assets of Forest Resources, a maker of industrial paper and packaging productions, in two separate deals. New-Indy Containerboard has acquired Forest’s U.S. based businesses, which include Hartford City Paper while PaperWorks Industries Inc has acquired Forest Resources’ Canadian subsidiary CanAmPac ULC. No financial terms were disclosed. Houlihan Lokey provided financial advice to Forest Resources LLC on the transactions. PRESS RELEASE HARTFORD CITY, Ind.–(BUSINESS WIRE)–Atlas Holdings LLC announced today that the assets of its portfolio company Forest Resources, a leading North American manufacturer of industrial paper and packaging products, have been sold to PaperWorks Industries, Inc. and New-Indy Containerboard, LLC in two separate transactions. PaperWorks has acquired CanAmPac, ULC, including coated recycled board (CRB) producer Strathcona Paper and folding carton manufacturer Boehmer Box. New-Indy has acquired Forest’s U.S.-based business, comprised of Hartford City Paper, Shillington Box and IVEX Specialty Paper. Terms of the two transactions were not disclosed. Forest Resources was formed in 1999 with the acquisition of Hartford City Paper. Today, it employees over 600 associates across six locations in the United States and Canada. “Forest is a good example of an Atlas-style investment; development and execution of a long-term plan to improve the performance of under-appreciated or underperforming assets, accretive add-on acquisitions and strong partnership and collaboration among management, Operating Partners and Atlas’ professionals,” said Andrew Bursky, Atlas Managing Partner. “We often read about the ills of private equity investing – quick profits, complex structuring and financial engineering without improving the business. The success of the Forest Resources engagement over 16 years shows that a long-term approach focused on business improvement can produce great outcomes.” “This transaction is certainly bittersweet in that the creation of Forest – and the many strong relationships we have built with Forest’s talented management team – pre-dates the formal founding of Atlas Holdings, but we are extremely proud of what the company has accomplished,” said Timothy Fazio, Managing Partner of Atlas. “Forest has delivered on the promise we saw when we created the company 16 years ago, for the benefit of both Forest’s associates and our investing partners.” CanAmPac’s Ontario-based Boehmer Box and Strathcona Paper manufacture paperboard and folding cartons for some of the most recognizable national and private label brands in North America. Strathcona Paper is the largest producer of coated recycled board in Canada while Boehmer Box is known for its high-quality, offset-litho printed folding cartons for food packaging applications. “CanAmPac is a leading Canadian integrated paperboard and consumer packaging supplier. Its quality-oriented manufacturing and converting capabilities, coupled with a complementary customer base, make it an ideal addition to the PaperWorks portfolio,” said Kevin Kwilinski, president and chief executive officer, PaperWorks. In a separate transaction this week, New-Indy Containerboard, LLC acquired the assets of Forest’s U.S.-based companies. These include Hartford City Paper, headquartered in Hartford City, Indiana, as well as St. Louis, Missouri-based Shillington Box, and IVEX Specialty Paper, headquartered in Peoria, Illinois. Hartford City Paper manufactures 100%-recycled papers primarily used in the production of corrugated packaging. Founded over a century ago, Shillington Box manufactures corrugated packaging materials for businesses across a range of industries, including the food, chemical, automotive, plastics and paper sectors. IVEX Specialty Paper offers a variety of 100%-recycled products, with a focus on kraft paper, crepe paper and corrugating medium. Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. Houlihan Lokey served as the exclusive financial advisor to Forest Resources LLC and assisted in initiating, structuring and negotiating the transaction on its behalf. About Atlas Holdings LLC Founded in 2002, Atlas Holdings LLC is headquartered in Greenwich, Connecticut. Atlas and its affiliates own 16 companies that employ approximately 15,000 associates and operate from more than 100 facilities across the globe — generating more than $4 billion in revenue annually. Atlas companies are engaged in a variety of industries, including aluminum processing, automotive, building materials, capital equipment, construction, energy, industrial services, packaging, paper, power generation, steel, and supply chain management. Visit www.atlasholdingsllc.com for more information. About PaperWorks Industries, Inc. Founded in 2008, PaperWorks Industries, Inc. (PWI) is a leading, integrated North American full-service packaging provider committed to the highest standards in sustainable forestry and procurement. The company’s product certifications include the Forest Stewardship Council, Sustainable Forestry Initiative and the Programme for the Endorsement of Forestry Certification. PWI is considered a leading innovator in specialized folding cartons, manufacturing approximately 300,000 tons of 100%-recycled paperboard annually for a variety of end uses. Its 17 North American locations employ 1,450 workers. Learn more at www.paperwrks.com. About New-Indy Containerboard, LLC New-Indy Containerboard, LLC was formed in 2012 as a joint venture by the Kraft Group, LLC and the Schwarz Partners, LP. It is an independent manufacturer and supplier of recycled containerboard to the corrugated box industry. Visit www.new-indy.com to learn more.
Cambridge, Massachusetts-based Zagster, a provider of private and public-private bike sharing systems, has secured $3.5 million in Series A funding. The investors included LaunchCapital, Fontinalis Partners, Clean Energy Venture Group, LaunchPad Venture Group and Otter Consulting. PRESS RELEASE CAMBRIDGE, MA–(Marketwired – Jul 2, 2015) – Zagster, the leading provider of private and public-private bike sharing systems, today announced it has raised $3.5 million in a Series A round of funding to support its rapidly expanding national footprint of bike sharing programs. The company received funding from existing investors, including LaunchCapital; Fontinalis Partners (a strategic investment firm co-founded by Bill Ford); Clean Energy Venture Group; LaunchPad Venture Group; and several leading Boston-area angel investors, as well as a new investor, Otter Consulting. “With more than 75 programs in 50 cities in 28 states, Zagster is the fastest growing bike sharing company in the country,” said Timothy Ericson, co-founder and CEO of Zagster. “There’s incredible demand for bike sharing in places that simply can’t be served by the large, city-wide programs, and we’re the only company capable of meeting that demand with our low-cost, scalable, turnkey model.” In the past year alone, Zagster has increased the number of bikes in its program by more than 300 percent, and projects to increase it by another 300 percent in 2015. In addition, the total number of members is up nearly 250 percent. In expanding from eight states to 28 states, it has doubled the number of employees and recently doubled its office space. The company counts among its customers leading employers (including General Motors, Samsung, Workday, Quicken Loans and others); several of the top 10 national real estate developers (including Kayne Anderson, Related Management and Irvine Company); several top universities (including The Ohio State University, Duke University, Yale University and Princeton University); and leading hotel brands like Hyatt and The Four Seasons. Increasingly, Zagster’s model of public-private sponsorship is enabling expansion into cities, like Cleveland and Canton (Ohio), Albuquerque (New Mexico), Carmel (Indiana) and Montgomery County (Pennsylvania), that would otherwise not have bike sharing programs. “Zagster has shown that it can apply the elements of a high growth, tech-enabled business into what has been a capital intensive industry,” said Bill McCullen, Chief Investment Officer of LaunchCapital. “As a result, they are growing faster and serving more customers and partners — the type of trajectory that we like to see in our investments.” Unlike large, city-wide programs that are costly, lock sponsors into long-term contracts and require expensive and complex infrastructure that is hard to upgrade, Zagster’s agile, flexible and easy-to-upgrade technology make it possible to be deployed nearly anywhere. “We see a lot of opportunities in the next-generation mobility space, including bike sharing, and we were attracted to Zagster’s long-term, financially viable business model that helps open up bike sharing to previously underserved segments of the market,” said Chris Cheever, Founder & Partner at Fontinalis Partners. “Zagster has been able to do what no one else in the bike sharing space has done — be able to show a return on investment and a pathway to long-term sustainability of bike share programs. It’s a major step forward for the industry.” Zagster members use their mobile phone to receive a code to unlock the bike at the time of the trip. The same lock that locks the bike to the host location can be used to lock the bike during the trip, something that most city-wide programs do not allow because their bikes must be locked at official docking stations. At the end of the trip, the member returns the bike to a Zagster location, locks it and ends the reservation via the Zagster mobile app or via a simple text message to Zagster. About Zagster Founded in Philadelphia in 2007 as CityRyde and now headquartered in Cambridge, Mass., Zagster is the leading provider of private and public-private bike sharing systems. Zagster is uniquely focused on contracting with property managers, hotels, businesses, universities and smaller cities across North America to make bike sharing programs available to tenants, employees, guests, students and residents. This highly efficient and unique model allows Zagster to offer services in areas that traditional city-wide bike sharing systems can’t reach. More information about Zagster is available at www.Zagster.com. About LaunchCapital LaunchCapital was founded in January 2008 with a mission to help entrepreneurs gain quick access to seed capital and mentorship. With investments in over 100 companies, LaunchCapital has a core focus in technology, consumer and medical businesses. The nine-person team has syndicated investments with over 50 venture firms and 1000 angel investors. They currently have offices in Cambridge, MA, New Haven, New York City and Palo Alto. More information about LaunchCapital is available at www.launch-capital.com. About Otter Consulting Otter represents the interest of a single-family office in South Florida. Otter’s Investment Manager, Mike Wohl, has led Otter’s private investment effort since mid-2013, participating in 18 venture deals that span seven major US cities. Working on behalf of a single limited partner, Otter possesses the flexibility to be sector and stage agnostic. About Fontinalis Partners Fontinalis Partners, with offices in Detroit and Boston, is a venture capital firm strategically focused on next-generation mobility. The firm was founded by Bill Ford, Ralph Booth, Chris Cheever, Chris Thomas, and Mark Schulz. Fontinalis’ mission is to leverage the firm’s considerable management experience, market access, strategic relationships, international expertise, and background in transportation innovation to scale companies providing next-generation mobility solutions. Fontinalis invests across all facets of the world’s transportation infrastructure on a stage-, structure- and size-agnostic basis. Fontinalis is not affiliated with Ford Motor Company. More information about Fontinalis is available at www.fontinalis.com. About Clean Energy Venture Group Clean Energy Venture Group is an investment group that provides seed capital and management expertise to early stage clean energy companies. Its mission is to invest in and support early stage clean energy companies that have the potential to mitigate climate change and achieve attractive financial returns. The group is comprised of seasoned operating executives with strong capabilities in the energy and environmental sectors. With each investment, it brings not only capital, but also the value of its team’s experience and network to help companies achieve their goals. More information is available at www.cevg.com.
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Zagster nets $3.5 mln Series A
UK digital health startup Your.MD has raised $5 million in seed funding. Smedvig Capital led the round. Also,Your.MD has named Alessandro Traverso as chief operating officer. PRESS RELEASE London, 2 July 2015: London-based digital health startup Your.MD (http://www.your.md), developer of a personalised health assistant for smartphones, has closed a $5m seed funding round led by Smedvig Capital (http://www.smedvig.no) with participation from existing angel investors. Your.MD plans to use the funds to develop the next-generation version of its app which will combine artificial intelligence (A.I.) with machine-learning technology, using data collected from users to continually improve the personalised healthcare feedback it provides. Using clinically assured information provided by the NHS, Your.MD relies on proprietary algorithms to provide users with high-quality, comprehensive information about their conditions, possible causes and what steps they could take to remedy their illness, including when to see a doctor. Your.MD’s Symptom Checker has already helped with 1.5 million queries for advice on symptoms and has been downloaded more than 500,000 times since launching in April 2014. In addition to helping users in developed countries, the service can empower 5.4 billion people in countries with poor or no access to basic health services get the essential medical information they need to improve their health. Your.MD has signed a partnership agreement to use NHS clinically approved condition and treatment information and is exploring the potential use of other NHS data sources. In addition, the app is available on over 400 million devices after partnering with Samsung for the launch of their S-Health platform in November 2014. As Eric Topol, a leading American physician and author, outlines in his latest bestseller The Patient Will See You Now: “Digitally empowered patients will truly take charge of their own health care” – yet people still have to wait a long time to get access to the service they need (18.5 days in major U.S. cities). For national health services globally, there is a growing bottleneck due to limited finances, growing and aging populations and the limited number of doctors. “We are confident that our free symptom checker contains the most comprehensive health information available, offering users the best solution for getting quick, accurate and actionable help on all the most common medical conditions. Now is the right time to scale up our team and operation in order to cement our position as market leaders.” said Matteo Berlucchi, CEO, Your.MD. “Your.MD’s platform can reach and help millions of people who are unwell, addressing a huge and under served market opportunity. We believe Your.MD is well placed to expand rapidly to the significant benefit of mobile users globally.” said Marit Salte Hovstad, CFO of the Smedvig Family Office. Following the closing of the seed round, Your.MD is also announcing that Alessandro Traverso is joining as Chief Operating Officer and will be responsible for operations, marketing and business development. Traverso brings a wealth of experience to the role, having most recently served as Chief Operating Officer for the company behind the Talking Tom and Friends franchise where he helped the company grow to 230 million monthly active users. About Your.MD Founded in Oslo, Norway and now headquartered in London, UK, Your.MD is developing a smart and personalised Health Assistant app that digitally empowers smartphone users worldwide to take charge of their own health care using artificial intelligence, clinically assured medical information provided by the NHS, patented search technology and Big Data. For more information, visit http://www.your.md About Smedvig The Smedvig family invests across a wide range of asset classes. The history of the Smedvig family’s operations demonstrates an excellent track record in managing businesses. The Smedvig Family Office, which has its 100-year anniversary this year, makes direct investments within property, private equity and thematically related investments, as well as investing with third party private equity funds. Current thematically related investments include Green Mountain AS (Data Centers), Navtor AS (E-navigation) and Sedibelo (Platinum Group Metals). Smedvig Capital is responsible for the private equity investments within the group. They invest in fast-growing innovative businesses, backing ambitious teams with the potential to become market leaders. The team at Smedvig have a shared passion for working with entrepreneurs, and a common belief that deeper involvement leads to greater success. Their model is to invest in a small number of businesses, and then commit time to working closely with management, providing advice and hands-on support. www.smedvig.no www.smedvigcapital.com
Smedvig Capital leads $5 mln round for Your.MD
(Reuters) — PayPal Inc said it would buy digital money transfer provider Xoom Corp (XOOM.O) for $890 million as it muscles into a growing international remittance market and expand in countries like Mexico, India and China ahead of a spinoff from eBay Inc (EBAY.O). The offer price of $25 per share in cash represents a premium of about 21 percent to Xoom’s Wednesday closing price of $20.70. Xoom shares surged on the announcement and were trading around the offer price in extended trading. “Our aim is to bring the companies together to make it a true consumer champion in remittances,” PayPal President Dan Schulman said in an interview with Reuters. Xoom, which has 1.3 million customers and a presence in 37 countries, allows users to transfer money via desktop, mobile phones and tablets. The acquisition would allow Xoom to expand into new markets with less execution risk, Xoom CEO John Kunze said on Wednesday. Xoom will operate as a separate service within PayPal after the completion of the deal. PayPal faces increasing competition from rivals like Stripe and Square, which is popular with smaller businesses, and Apple Inc’s (AAPL.O) Apple Pay. Online commerce foeAmazon.com Inc (AMZN.O) is also beginning to explore in-store payments. The San Jose, California-based company said holders of about 18 percent of Xoom’s outstanding shares, including all executive officers and directors of Xoom and certain entities affiliated with Sequoia Capital, have agreed to vote for the deal. It intends to fund the transaction with cash on its balance sheet. PayPal said the deal, expected to close in the fourth quarter of 2015, will slightly hurt its adjusted earnings per share for 2016. The company is slated to separate from eBay this month and list as an independent company. J.P. Morgan Securities LLC is financial adviser to PayPal, while Sidley Austin LLP is its legal adviser. Qatalyst Partners is financial adviser to Xoom and Goodwin Procter LLP is its legal adviser.
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PayPal to buy digital money transfer provider Xoom: Reuters
(Reuters) — Univision Holdings Inc, the owner of Spanish language TV network Univision Network, filed for an initial public offering of Class A common stock in the United States. The company also said it had extended a broadcasting agreement with Grupo Televisa S.A.B. (TLVACPO.MX), the world’s biggest provider of Spanish-language TV content, to “at least” 2030. Univision has exclusive long-term broadcast and digital rights to most of Televisa’s programming within the United States, including telenovelas, sports, reality series and news. Televisa, among the company’s top investors, will hold about 22 percent of the voting rights of Univision’s common stock under the new agreement. Univision also counts Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners and Saban Capital Group among its investors. Morgan Stanley, Goldman Sachs and Deutsche Bank Securities are among the underwriters to the IPO, Univision said in a filing with the U.S Securities and Exchange Commission on Thursday. New York-based Univision, which serves American Hispanics, said it intends to list on theNasdaq under the symbol “UVN”. Earlier this week, U.S. presidential candidate and real estate mogul Donald Trump filed a $500 million lawsuit against the company over its decision to stop broadcasting the Miss USA pageant, which is co-owned by Trump. (reut.rs/1NxnIuo) While officially announcing his candidacy on June 16, Trump accused Mexico of sending rapists and other criminals to the United States. NBC also cut ties with the “Miss USA” and “Miss Universe” pageants following Trump’s comments. Shares of U.S. media companies have risen 6.5 percent this year, outperforming the overall market’s 2.9 percent increase, according to Thomson Reuters StarMine. Univision’s revenue rose 10.8 percent to $2.9 billion in 2014. The company did not reveal how many shares would be offered offer or their expected price, but quoted a nominal fundraising amount of $100 million. The amount of money a company says it plans to raise in its initial IPO filings is used to calculate registration fees. The final size of the IPO could be different. (Reporting By Sudarshan Varadhan and Patturaja Murugaboopathy in Bengaluru; Editing by Savio D’Souza and Saumyadeb Chakrabarty)
(Reuters) — The United States filed a lawsuit on Wednesday to stop Sweden’s Electrolux AB (ELUXb.ST), which owns the Frigidaire, Kenmore and Tappan brands, from buying General Electric Co’s (GE.N) appliance business, the Justice Department said in a statement. It said the $3.3 billion deal would hurt competition, and consumers, by combining two of the three top makers of stoves, cooktops and ovens. Whirlpool Corp (WHR.N), which bought Maytag in 2006, is the third. Electrolux shares traded in the U.S. (ELUXY.PK) on the OTC Pink market fell 9.3 percent, with more than 40,000 shares exchanged. GE’s share price was steady. GE, which also has the Hotpoint brand and sells almost exclusively in the United States, said in a statement that its goal remained to close the deal in 2015. “Electrolux and GE intend to vigorously defend the proposed acquisition,” the company said in a statement. In its complaint, the Justice Department said that Whirlpool, GE and Electrolux had 90 percent of the U.S. market for stoves and ovens. Leslie Overton, a deputy assistant attorney general at the Justice Department’s Antitrust Division, said the Electrolux deal would lead to higher prices for consumers. “This lawsuit also seeks to prevent a duopoly in the sale of these major cooking appliances to builders and other commercial purchasers,” she added. But Electrolux disagreed. Its antitrust attorney Joe Sims argued that LG, Samsung and others were moving into the market to challenge the Big Three. “There is absolutely no barrier of any kind to any other manufacturer participating,” he said. Sims said that the company and Justice Department had been in settlement talks. “We are rational and are therefore more than happy to come to a reasonable settlement if the DOJ (Justice Department) is. If not we’re just going to have to win in court,” said Sims, who said the deal could close by the end of the year. The Justice Department has settled other major deal challenges, most notably a merger of American Airlines and US Airways and Anheuser-Busch InBev and Grupo Modelo, both in 2013. But for the ones not settled, the Justice Department has been on a winning streak in court, stopping H&R Block from buying a rival company in 2011 and the Bazaarvoice deal for PowerReviews last year. The Justice Department and Federal Communications Commission teamed up this year to stop Comcast’s purchase of Time Warner Cable, while the Federal Trade Commission stopped a merger of big food distributors and challenged a second big merger this year. GE’s move to sell off its appliances business is part of a shift the U.S. conglomerate is making to sharpen its focus on manufacturing big-ticket industrial products such as jet engines and power turbines. To that end, GE in April announced it would exit $200 billion worth of finance assets, while it is seeking to acquire the power equipment unit of France’s Alstom (ALSO.PA). European regulators have expressed concerns that GE’s purchase of Alstom’s power unit would leave just two gas turbine companies in Europe, with GE only competing with Germany’s Siemens. GE has been working on concessions to save the planned 12.4 billion euro ($13.7 billion) purchase, which would be the biggest in the U.S. conglomerate’s history. GE on Tuesday warned that the appliances sale would not close in the second quarter because of an ongoing regulatory review, and expected an after-tax gain of roughly 5 cents to 7 cents per share should the deal close. GE is expected to earn $1.29 per share this year, according to Thomson Reuters I/B/E/S. The case at the U.S. District Court for the District of Columbia is United States v AB Electrolux and General Electric Co. It is No. 15-1039.
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U.S. sues to stop Electrolux acquiring GE’s appliance business: Reuters