Transitions: SKM Affiliate Closes Three Deals, Appoints New MD –

Dallas-based SKM Growth Investors, an affiliate of New York-based private equity firm Saunders Karp Megrue, recently acquired Benetech, Inc., a supplier of dust suppression systems to electric utility, coal producing and petroleum refining companies.

In addition, SKMGI acquired Closet World, Inc., an independent manufacturer and installer of custom organizing features for closets, garage storage and home office units. Terms were undisclosed.

Closet World is based in Los Angeles, Calif.

Also, SKMGI this month appointed Timothy Zosel as managing director.

Prior to joining SKMGI, Zosel served as managing director at Goldner Hawn Johnson & Morrison, a Minneapolis-based middle-market private equity firm, where he was involved in control and minority equity investments in moderate-to-high growth private companies in a broad array of industries. In his new capacity, Zosel will join Barron Fletcher, managing director of SKMGI, in providing capital to private companies with revenue of less than $100 million.

In a statement, Fletcher said “We are excited to have Tim on the team and look forward to working with him as we continue to aggressively pursue investments in small-to-mid sized companies nationwide.”

SKM Growth Investors was launched in August 1999 and targets lower-middle market growth companies with revenues between $10 to $100 million (BUYOUTS Aug. 16, 1999, p. 3).

In a separate transaction, SKM Applied Technology Partners (SKM-ATP), a platform plastics company formed in 1997 by Ray Langton, SKM, and Harvey & Co., acquired Nadel Industries Inc., a manufacturer of plastic jars, compacts and cosmetics accessories. Terms of the transaction were undisclosed. The company was advised by OEM Capital Corp. and SKM-ATP was advised by Harvey & Co.

Ray Langton, co-founder and CEO of SKM-ATP, said Harvey &Co. introduced the firm to Nadel Industries in the fall of 1997. “It’s an excellent fit with our overall strategy,” Langton said. “We’re focused on the rubber and plastics industries and our strategy is identifying certain end use markets with health and beauty care being one of them, and what Nadel offers is the premier producer of thick, single mold plastic jars.”

Langton also said Nadel provides the platform with offshore capabilities. “We now have facilities in China and Mexico and in today’s world, it is extremely important to have that flexibility,” Langton said.

Some long-term goals for Nadel Industries include expanding its capabilities in the plastic jar category, integrating it with existing portfolio company Apollo Packaging for more value-added services, and grow its other product lines and accessories, Langton said.

Nadel Industries is based in Port Chester, NY and last year had annual revenue of $21 million.

Other companies currently in SKM-ATP’s health and beauty care products portfolio include Tri-Molded Plastics, Apollo Packaging, and Sussex Sparta. The platform’s engineered plastics groups include Modern Plastic Technics, Cascade Die Mold. The rubber components of the platform include AK Rubber and Michigan Rubber Products.

Saunders Karp Megrue was founded in 1991 and invests in leveraged and management buyouts, recapitalizations, refinancings, ESOP and turnaround transactions.