Providing long-term capital for private companies in transition
NewCastle Partners LLC is a Greenwich, Connecticut based private investment firm that invests in and acquires successful, middle market operating companies in partnership with management.
The principals of NewCastle Partners have invested in over forty corporate transactions during the past thirty years. As a result, our vast business experience over a broad array of industries allows us to provide tangible value to create a unique partnership with owners and managers in the creation of significant corporate value.
CUSTOM TAILORED TRANSACTIONS
Since 1985, the principals of NewCastle have specialized in structuring transactions that provide liquidity to business owners while enabling them to retain significant residual ownership, operating control, and corporate autonomy. Realizing that every business is unique and the objectives of its owners and managers different, we have the capability to custom tailor a transaction to satisfy those individuals' economic objectives as well as any life transitioning or other personal requirements.
We invest our own capital in conjunction with our partners and are not asset managers being paid by institutional third parties to invest capital. As such, we have a long-term investment horizon and concentrate our activities on a relatively smaller, select group of operating companies. We focus our energies on a few rather than a broad, diverse portfolio achieved through frenzied deal making. Our energies are focused as long-term investors and business builders rather than short-term traders.
OPERATIONAL & FINANCIAL SUPPORT
The NewCastle principals have gained tremendous operational experience through their involvement over the past 30 years with various companies in a broad array of industries. We provide operational, financial, administrative, strategic and legal support to each our portfolio companies on a weekly basis. We also rely on a cadre of advisors, former executive partners, industry experts and professionals to assist each of our investments on an ongoing basis.
We look for family-owned businesses headquartered in the United States. We prefer companies with attractive market positions, consistent cash flows, high quality management and favorable growth prospects.
We typically invest in companies and structure our investments within the following parameters:
• Enterprise values between $10 and $40 million.
• Annual revenue between $10 and $50 million.
• EBITDA greater than $2 million.
• Operations in the United States.
• Primarily buy-outs and recapitalizations.
We focus our investment efforts primarily on businesses that manufacture and/or distribute tangible products in the following industries:
• Niche manufacturing.
• Specialty distribution.
CHARACTERISTICS OF TARGET INVESTMENTS
We generally look for the following attributes:
• Historical profitability and growth.
• Revenue and earnings growth potential.
• Strong and defensible market share with sustainable competitive advantage (proven technology, brand name, proprietary concepts or manufacturing advantages).
• Diverse and stable customer base.
• Continuity of executive management.
• Management interest in maintaining significant equity ownership and day-to-day control of the business.
Private business owners ultimately must address the issue regarding diversification of their corporate investment, despite the excitement about the long-term prospects of the business and their desire to maintain a continuing role in its success. Through a recapitalization, we provide owners with substantial liquidity while allowing them, their family/heirs or executives to retain significant equity ownership and day-to-day operating control. Flexible transactions can be structured to satisfy both the financial and personal objectives of the shareholders. These recapitalization transactions are frequently utilized to:
• Provide shareholders with partial or full financial liquidity.
• Permit for the diversification of wealth; provides resolution to the problem of “all your eggs in one basket.”
• Protect family economic downside through economic diversification.
• Provide for the transfer of ownership from one generation to another or to a management group.
• Resolve complex estate planning issues.
• Resolve diverging objectives of shareholders, frequently the result of age differences, health considerations, and ongoing personal commitments of those shareholders to the business.
• Provide value added partners with vast business experience to the board of directors.
CORPORATE DIVESTITURES & BUY-OUTS
We will fully acquire established family-owned businesses and provide the needed experience and capital to facilitate the acquisition of smaller, non-strategic divisions or product lines from larger corporations. In most cases, these orphaned divisions have no strategic value to their parent corporation and need better stewardship. As independent operations, with senior executives as owners rather than managers, these companies have the opportunity to flourish outside of a bureaucratic environment.
GROWTH CAPITAL & CONSOLIDATIONS
We will invest in growth-oriented companies seeking additional capital for internal growth, expansion or product line acquisitions. In addition, we seek investments in corporate platforms or “build ups” with experienced executives intent on making complementary acquisitions in consolidating industries.
PRESIDENT & CHIEF INVESTMENT OFFICER 203-863-9892 email@example.com
Jack founded NewCastle Partners LLC in 2001 in order to acquire smaller middle market companies: a market largely ignored or underserved by experienced equity investors.
During his thirty years in private equity, Jack has been a principal investor and participated in the acquisitions of over forty manufacturing, retail and distribution businesses. He has served as Chairman/CEO of several private companies and his corporate directorships include/have included numerous public and private corporations. Prior to founding NewCastle, Jack had served as a Partner of The Jordan Company, the New York City-based private equity firm for seventeen years. Originally a native of Virginia, he received a B.S. in Business and an MBA at Wake Forest University in Winston-Salem, NC.
Lee is an Associate at NewCastle Partners LLC, focusing on investment due diligence and direct deal sourcing. Prior to joining the team in 2016, he was a Senior Credit Analyst at Square 1 Bank. Lee received his B.S. in Business from Wake Forest University in Winston-Salem, NC. In his free time, Lee enjoys playing golf and traveling.
We have invested in dozens of successful companies specializing in niche manufacturing and specialty distribution. Please see below for details on current and historical investments.
Amglo Kemlite laboratories is a global leader and niche manufacturer of specialty and niche lamps (light bulbs) used in the lighting industry with its core competencies in xenon lamps (flash lamps) and halogen lamps (non-flash lamps).
Amglo Kemlite Laboratories
JN Investors LLC
JN Investors LLC is a manufacturer and worldwide distributor of specialty hardware and industrial fasteners. NewCastle Partners purchased the company from its private owners.
JN Investors LLC
Firstech Lighting Corporation
Firstech Lighting Corporation
World Dryer Corp.
Manufacturer of automatic hand dryers.
Acadia Elastomers Corp.
Automotive and industrial rubber products
Allied international, Inc.
Distributor of hand tools
Burger King franchisee
American Safety Razor Company
Manufacturer of razor blades, cotton products, and soap.
Apparel Ventures Inc.
Los Angeles, CA
Manufacturer of womens swimwear
Auto Ventshade Company
Manufacturer of automotive aftermarket products
A-1 Industries Inc.
Manufacturer of components for the heating, ventilation, air conditioning and refrigeration markets.
Custom Chrome, Inc.
Morgan Hill, CA
Manufacturer of motorcycle aftermarket accessories
The Dize Company, Inc.
Manufacturer of shades, awnings and blinds
Dura-Line Mfg. Co.
Manufacturer of plastic pipe and fiber optic conduit
Eastern Home Products, Inc.
Manufacturer of home textiles
Fanny May Candy Corporation
Confectionary manufacturer and retailer
Gator Industries, Inc.
Manufacturer of injection molded footwear
GEAR for Sports
Custom imprinted and embroidered sportswear
Glazed Investments LLC
Krispy Kreme franchisee
Great American Cookie Co.
Franchisor of fresh-baked cookie outlets
Jackson Products Inc.
Safety products for welding, highway, and industrial markets
Jordan Industries, Inc.
Multi-industry conglomerate (20 companies)
Manufacturer of transparent tape and adhesive products
Manufacturer of industrial valves, pumps, and meters
Nielsen & Bainbridge, Inc.
International manufacturer of frames and mat board for the custom framing and presentation markets
PBT Brands, Inc.
Automotive repairs and maintenance chemical products
Polaris Pool Systems, Inc.
San Marcos, CA
Manufacturer and distributor of automatic pool cleaners for inground swimming pools.
Professional Paint, Inc.
Manufacturer and distributor of architectural paints and coatings in the western US
Rally Manufacturing Co.
Manufacturer and marketer of automotive aftermarket products
Colorado Springs, CO
Manufacturer of bicycle suspension components
Rockwood Industries Inc.
Manufacturer of pigments and specialty construction chemicals
Sate-Lite Mfg. Co. Inc.
Manufacturer of reflector products for bicycle and vehicles
Seagull Lighting Products Inc.
Manufacturer of lighting fixtures
Tee Jays Manufacturing Company
Manufacturer of private label knitwear and fleecewear
San Jose, CA
Distributor of telephones and related equipment
Universal Technical Institute
Private post-secondary education and training
W-H Energy Services, Inc.
Oilfield services and equipment
We welcome inquiries about our investment activities from business owners, investment bankers, business brokers and other intermediaries, and executives or managers. NewCastle Partners is accustomed to paying transaction-based finder’s referral fees in cash and in equity when appropriate.