Lincoln International Represents Code Hennessy & Simmons LLC in the sale of the Mining Services Division of American Asphalt & Grading Company to ClearLight Partners LLC
CHICAGO, July 8, 2008 – Lincoln International, a leading global mid-market investment bank, has announced the sale of the Mining Services Division (“Mining Services”) of American Asphalt & Grading Company (“AAG”) which is a portfolio company of Chicago-based investment firm, Code Hennessy & Simmons LLC (“CHS”)., The buyer is ClearLight Partners (“ClearLight”), a private investment firm based in Newport Beach, California. Going forward, ClearLight has re-branded the business as Gold Canyon Mining and Construction Company. Lincoln International acted as the exclusive financial advisor and also rendered a fairness opinion to the Board of Directors of AAG in the transaction. Terms of the transaction were not disclosed.
Based in Phoenix, AZ, Mining Services is a leading provider of specialized mine site services to the gold and copper mining industries including site development, site reclamation and contract mining services. Mining Services’ professional management, excellence in project execution and extensive knowledge of the mining industry have positioned Mining Services as one of the leading providers of mine site services in the western United States. This market-leading position has translated into impressive levels of revenue growth and profitability and provides an excellent platform for further growth as a provider of site services within additional geographies and commodity types.
“Gold and copper prices have been trending upward since the second half of 2005 as a result of increasing global demand for primary metals, and analysts expect the price of gold and copper to remain strong through 2010 and beyond,” said Rob Brown, Managing Director of Lincoln International. “The increased mining activity driven by this trend has fueled Mining Service’s growth in recent years, and this transaction will allow the business to further expand its reach and resources to take full advantage of the current market.”
Building upon its long-term relationship with CHS, Lincoln’s transaction team worked closely with CHS and Mining Services’ senior management in every aspect of the transaction and also performed an in-depth analysis and valuation of the Mining Services division to provide a fairness opinion in connection with the transaction “Lincoln executed a very disciplined and competitive process that highlighted Mining Services’ strong market position and excellent growth opportunities,” said Rich Lobo, Partner of CHS. “Lincoln’s thorough understanding of key value drivers of the business, outstanding execution and expert advice from our initial meetings up through closing generated a superb outcome for Mining Services and its shareholders.”
“Lincoln’s fairness opinion to a portfolio company of CHS demonstrates Lincoln’s growing fairness opinion and valuation services practice to private equity firms,” remarked Patricia Luscombe, Managing Director with Lincoln International and one of the leaders in its fairness opinion practice.
About Code, Hennessy & Simmons
CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. CHS targets well-managed companies focused on growth with enterprise values between $75 million and $1 billion. With particular expertise in the Business & Consumer Services, Distribution, Consumer Products and Infrastructure & Industrial Products sectors, CHS has completed 69 platform investments and 163 add-on investments. Founded in 1988, CHS has formed five private equity funds and currently manages over $2.5 billion of capital. For additional information about CHS, please refer to the firm’s website at www.chsonline.com.
About ClearLight Partners
ClearLight Partners is a private equity firm based in Newport Beach, California with $600 million under management. ClearLight makes long-term investments in successful middle-market companies with strong management teams and attractive growth prospects.
About Lincoln International
Lincoln International specializes in merger and acquisition services and private capital raising for leading organizations involved in mid-market transactions. With offices in Chicago, Frankfurt, London, Los Angeles, Madrid, New York, Paris, Vienna and strategic partnerships with China Everbright and other partner firms in Asia, Lincoln International has strong local knowledge and contacts in the key global economies. The organization provides clients with senior-level attention, in-depth industry expertise, and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest.
www.lincolninternational.com.
| back |
