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Brockway Moran Heats Up Portfolio –

Florida-based Brockway Moran & Partners this month recapitalized Dynamic Cooking Systems, a high-end distributor of outdoor barbecue grills. Terms of the transaction were not disclosed. Senior debt financing was provided by Indosuez Capital and GE Capital. Indosuez Capital also provided subordinated debt in the transaction. Brockway Moran purchased approximately 75% of the company.

Peter Brockway, a managing partner at the firm, said the transaction was a proprietary one and not gained through an auction process.

Dynamic Cooking Systems, based in Huntington Beach, Calif., manufactures outdoor gas barbecue grills, indoor ranges and ovens, commercial and institutional cooking equipment and outdoor patio heaters. The company had approximately $100 million in revenue on a trailing 12 month basis.

“This is a very fast growing company and the market they’re in has been growing at 25% per year,” said Brockway. “DCS is the market share leader on the outside and is a significant player on the inside.”

The company will use the capital to expand both its distribution and products offering as well as make some additional acquisitions, said Brockway.

In another transaction, Brockway Moran made four add-on acquisitions to its Gold’s Gym portfolio. The deal will convert a Gold’s Gym franchise in Fairfax, Va., a Fitness Zone gym and an Olympus Fitness gym in Baltimore, Md., and a World’s Gym in Pasadena, Calif.

“When we acquired Gold’s Gym in July 1999, we put in an acquisition facility because we knew we would be doing add-on acquisitions,” said Brockway. “What we want to do is expand in clusters and our current cluster is in the Los Angeles area where the original Gold’s Gym was, which is in Venice, Calif. And we also have a cluster in Washington D.C.

Brockway added that the firm currently has additional letters of intent in new geographies and will be adding another two or three markets before long.

Brockway Moran & Partners Fund LP capped at $200 million in 1998 and is currently half invested, said Brockway. Since then, the fund had made 14 acquisitions in six platform companies including Norwesco Inc., a manufacturer of rotationally molded polyethylene tanks for the agricultural and septic markets; TTM Technologies Inc., a manufacturer of complex boards for sophisticated electronics applications; Celeste Industries Corp., a manufacturer of specialty chemical and cabin service products for the commercial airline industry; Integrated Aerospace, a manufacturer of precision machined landing gear components, airframe components, and high value-added assemblies to aerospace OEMs and tier one suppliers; Dynamic Cooking Systems and Gold’s Gym.

In other Brockway Moran Partners news, the firm this month appointed M. Paul Jones as a senior associate. Jones was previously an associate in the Investment Banking department at Raymond James & Associates. Jones has experience in advising companies on divestitures, mergers and acquisitions.

The firm also appointed new associates Austin Connor and Tucker Morrison. Conner previously served as an analyst in the Investment Banking division of Donaldson, Lufkin & Jenrette. Austin’s duties there include M&A transactions; high yield and convertible debt financings; and public equity offerings. Morrison was previously an analyst in the Investment Banking division of Merrill Lynch & Co. where he assisted in the execution of acquisitions and divestitures, and in raising debt and equity capital.

Lastly, Bryson Anderson has joined the firm as its vice president and chief financial officer. Anderson’s new responsibilities include financial, tax and investor reporting of Brockway Moran & Partners.