peHUB Wire: Thursday, August 26, 2010

The sun is shining, the beloved BoSox are treading water and this is my final edition of the peHUB Wire.

As you might imagine, leaving this brand behind was a very difficult decision. Inertia is a powerful magnet. So too was the thought of going solo, rather than marrying another corporate overlord. But I honestly feel that this is the right decision for me, and my gut is right 50.1% of the time.

You, dear readers, are the best part of my job (no matter my employer), so I hope we can stay in touch. My email address going forward is Or you can follow me on Twitter @danprimack. Beginning tomorrow, peHUB Wires will be delivered by Buyouts editor David Toll. Look for his email in your inboxes each morning.

Finally, I owe lots of debts of gratitude for enabling me to have this extraordinary platform each morning. But there are a few people, in particular, I’d like to thank:

• Adam Reinebach: Thanks for originally hiring me, even though it’s unlikely that I could have told you the difference between debt and equity (true story: I had previously worked on a political campaign for a multi-millionaire – so Adam figured I wouldn’t be intimidated by big biz folks). And thanks for keeping me aboard when I moved back to Boston. You were right, I found a way to occupy my time.

• Jim Beecher: Thanks for being a helpful boss for the past three years, for encouraging peHUB and for putting out more than a few corporate fires (when it comes to office politics, I’m not exactly “go along to get along”).

• Matthew Burkley: Thanks for believing in, and funding, I had spent more than a year getting little more than eye-rolls in response to my proposal (largely because the word “blog” kept creeping into conversation). All it ultimately took was a 15-minute coffee klatch, which ended with you saying: “How much do you need to launch… [my reply]… Ok, done.”

• Erin Griffith: I hope you’re reading this in Bogota or wherever else your South American bus voyage has led you. Thanks for going above and beyond every single day. Whenever you return to the workforce, you can count on a very enthusiastic recommendation.

• Connie Loizos: Thanks for sharing a common editorial philosophy for a long, long time now (and for not murdering me when I gave notice). And for being a friend. I will always look forward to what you write next.

• Tim Ray/Brian Piccolo: Tim is the techie behind these emails, while Brian designed and maintains the website. Thanks for always being available (even at odd hours), and for giving me the peace of mind that comes with knowing others have my back.

It’s been a pleasure…

Top Three

Court Square Capital Partners has agreed to buy broadband provider Fibertech Networks from Nautic Partners and Ridgemont Equity Partners. The deal reportedly is valued at around $500 million.

ViewRay Inc., a Cleveland-based developer of image-guided radiation therapy systems, has raised $20 million in Series C funding. Siemens Venture Capital led the round, and was joined by Fidelity Biosciences, Kearny Venture Partners and OrbiMed Advisors.

Cisco has ac! quired ExtendMedia, a Newton, Mass.-based provider of video content management systems. No financial terms were disclosed. ExtendMedia had raised around $33 million in VC funding, from firms like Atlas Venture, TVM Capital and Venrock.

VC Deals

Lumenergi Inc., a Newark, Calif.-based provider of energy-efficient networked lighting systems, has raised $12.7 million in Series B funding. Braemar Energy Ventures led the round, and was joined by Townsend VC and return backers Low Carbon Accelerator Ltd. and Noventi Ventures.

Solazyme Inc., a South San Francisco, Calif.-based developer of biofuels through the use of microalgae, said that Bunge Ltd. (NYSE:BG) has joined the company’s Series D funding round as a strategic investor. No financial terms were disclosed. The company previously said that it hadraised $52 million in Series D funding from Morgan Stanley, Braemar Energy Ventures co-led the round, and were joined by insiders Lightspeed Venture Partners, The Roda Group, Harris and Harris Group, VantagePoint Venture Partners, Zygote Ventures, CTTV Investmentsand San-Ei Gen.

Buyout Deals

Blackstreet Capital has acquired Park Seed Co., a Greenwood, Colo.-based online and catalog retailer of plant seeds and other gardening supplies. The deal was valued at $13 million.

Leonard Green & Partners has acquired a $125 million piece of Fiesta Palms’ $380 million revolving credit line, according to FT Debtwire. The deal is in anticipation of a restructuring at Fiesta Palms, the parent company of the Palms Resort & Casino.

Mill Road Capital hascompleted its take-private acquisition ofMexican restaurant chain Rubio’s Restaurants Inc.The$8.70 per share! deal valued Rubio’s at around $91 million. Sellers included Rosewood Capital. Last October, Rubio’s rejected an $80 million buyout offer from Levine Leichtman Capital Partners.

Webster Capital has acquired Epic MedStaff, a provider of home healthcare services to medically-fragile and chronically-ill infants and children in Texas. No financial terms were disclosed, except that Fifth Street Capital provided debt financing.

Beijing New Cooperation Supermarket Chain, a Chinese operator of convenience stores and supermarkets, has raised $40 million in private equity funding from My Decker Capital.

Bad News

Oriental Trading Co., a direct marketer of party supplies and children’s arts and crafts, has filed for bankruptcy protection. Its primary owners are The Carlyle Group and Bentwood Partners.

PE-Backed M&A

Kellwood Co., a portfolio company of Sun Capital Partners, has acquired ADAM, a maker and marketer of high-end contemporary clothing. No financial terms were disclosed.

Mid-Atlantic Convenience Stores has acquired 58 convenience stores/fuel stations in Northern Virginia and Maryland from Exxon Mobile Corp. No financial terms were disclosed. MACS is a platform sponsored by Catterton Partners.

Packers Holdings LLC, a portfolio company of Blue Point Capital Partners, has acquired two contract cleaners serving the food processing industry: Kaiser Contract Cleaning Specialists Inc. and Canadian Contract Cleaning Specialists Inc. No financial terms were disclosed.

PE Exits

HP has acquired Stratavia, a Denver-based provider of database and application automation solutions. No financial terms were disclosed. Stratavia had raised around $11 million in VC funding from Asset Management Co., Adams Street Partners and Vista Ventures.

Nautic Partners and Norwest Equity Partners have agreed to sell Gaymar Industries, a maker of support surface and pressure ulcer management solutions, to Stryker Corp. (NYSE: SRK). The deal is valued at approximately $150 million in cash.

Firms & Funds

The Blackstone Group has asked a federal appeals court not to revive an investor lawsuit that accused it of hiding bad investments prior to its 2007 IPO.