Done Deals: Long Point Closes Three Deals, Fund –

Rounding up close to $150 million for its debut fund, Long Point Capital, based in Royal Oak, Mich. and New York, also has scored three deals since launching its fund in 1998.

The firm since July has committed approximately $30 million in equity to Eurodesign, a kitchen cabinet manufacturer; Arch Aluminum and Glass Corp., a manufacturer and distributor of glass and aluminum products; and Atlantic Plywood, a distributor of plywood products.

When questioned about the firm’s fund-raising pace, Managing Director Ira Starr said he was excited by interest in the fund, but added that fund raising is “always tougher than you think it’s going to be.”

Launched in March of 1998 with a $150 million target, Long Point Capital held a first close in August of that year, before landing a final close on $146 million in late 1999.

The firm made its first acquisition in July, investing an undisclosed amount in Atlantic Plywood.

Starr said Long Point became interested in the plywood and laminated products industries because those industries have grown on a compound basis of approximately 8% a year for the last 20 years.

He also described the industries as fragmented and said Atlantic Plywood has a strong management team that will be able to pursue a consolidation strategy.

The Woburn, Mass.-based company distributes its products to industrial and commercial customers.

Long Point Capital acquired Florida-based Arch Aluminum and Glass Corp. in October.

Arch produces tempered, insulated and laminated glass products, mirrors and architectural aluminum products for contractors, original equipment manufacturers, retailers and foreign markets.

Starr said the company has enjoyed strong growth over the past five years, led by the Silverstein family who still manages it, and needed help with further growth. Long Point’s investment in the company cashed out other owners, Starr said, leaving the firm and the Silverstein family as owners.

Long Point Capital has assisted the company in making two acquisitions since October.

Arch intends to grow by entering new markets with acquisition and branch openings, Starr said.

Eurodesign, acquired in December, manufactures and installs kitchen cabinets for large production builders.

The company, based in Southern California, plans to roll out its business model to other geographic areas in the West and Southwest U.S.

Long Point Capital will assist the company in this geographic expansion, Starr said.

From Whence It Came

Long Point Capital was formed in early 1998 by three former partners of Morgan Lewis Githens & Ahn, which managed an equity fund focused on middle market companies, and a former executive at Masco Corp., which manufactures, sells and installs home improvement and building products. The partners include Starr, Bill Ughetta and John Morgan from Morgan Lewis, and Gerry Boylan from Masco.

The firm has formed an alliance with Masco that allows the portfolio companies access to its manufacturing, purchasing and marketing services.

Starr said Long Point Capital engaged in this alliance to differentiate itself from other financial buyers of middle market companies and wanted to provide more value than cash and structuring to its portfolio companies.

The Long Point Capital fund looks to acquire companies with strong management teams, revenues between $30 million and $200 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of at least $5 million. It focuses on companies in manufacturing and services.