As this is my last official blog column as CEO of ACG Boston, I would be quite remiss if I did not thank those many of you who have read my blogs with varying degrees of interest and/or amusement and were kind enough to tell me so.  I have really enjoyed my writing stint and hope to continue to be a contributor from time to time to this column.  I thank as well those who have penned a column or two for ACG Boston and strongly urge the rest of you to take a whirl with it on occasion A blog is best if kept short and sweet (the magic number seems to be around 350 words).  I know many of you have things to say and the blog style is quite liberating. You can write with your name acknowledged or adopt a pseudonym.

So, onto my last missive….

I am optimistic about the future and will doggedly remain so.  We Americans have growth in our genes and the thought of complacency is just not in our makeup.  Call us the Wheaties Americans (as in the breakfast of Champions), or “the do or die” crowd.  It is difficult to imagine that we would see that hill out there and choose not to climb it.  Manifest Destiny in its historical context has many negative connotations as it implies imperialism and dark deeds.  I choose to think of it as: it is Manifest in our collective spirit that our Destiny is not just to endure but to grow.

Isn’t this the basis then of M&A, a fundamental belief practiced again and again that companies can be acquired and grown? Yes we strayed off the path a bit by the allure of financial gymnastics and the greater fool theory.  However, in their purer forms, Venture Capital all the time, and Private Equity most of the time, have a “noble” intent to foster innovation and desirable growth.

As we move out of the rain, and the rain, and the rain into sunnier times it is exciting to imagine the opportunities that will abound and the spirit that will bring these opportunities to fruition.

Thanks for the read….

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It is with sadness that I announce to you that Gail Long has decided to step down as the CEO of ACG Boston to pursue opportunities in the deal business.  As a senior M&A professional, Gail believes that it is the right time to bring her experience back into the deal business, while still remaining actively engaged in ACG Boston as a volunteer.  Gail has offered to remain on the board and will remain on our Strategic Planning Committee.  During her leadership at ACG Boston, Gail has grown the membership and captained a number of innovative events and undertakings.  She has also reached out to many of you who have relied on her advice and contacts in order to make your ACG membership experience as fulfilling as possible.

One of Gail’s strongest assets has been her ability to expand and develop a strong staff.  It is therefore with a great deal of enthusiasm that I have promoted Christy Dancause to the position of Executive Director of ACG Boston.  Christy has been with the organization for more than three years and has exhibited a professionalism and leadership talent that many of you have come to know firsthand.  Christy will report to the Board of Directors through me.

To those of you who wish to reach Gail (her last day will be June 30th) you may reach her on her cell phone at 781-879-0469.  You may also reach her either on her ACG email (for a period of time) at glong@acgboston.org or at her home email of gail.long@gmail.com.  You may, of course, reach her as well through the Essential Network.

Change creates opportunity.  We are delighted that the staff of ACG Boston under Christy is more than able to work with the board, our volunteers, and each of you to bring you the enhanced success we believe ACG membership can provide you with.

Sincerely,

Janice L. Shields
President of the Board
ACG Boston

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Harris Williams & Co. is pleased to announce the sale of Lafarge S.A.’s Quality Pavement Repair division to The QUIKRETE® Companies, Inc. Harris Williams & Co. acted as the exclusive advisor to Lafarge. The transaction was led by John Neuner, Derek Lewis and Luke Semple.

“Don Nathan and the entire QPR team have developed a great product and built an outstanding brand in the pavement repair segment. We’re excited that we were able to find a partner for management that shares their vision for growth, and we look forward to watching the continued success of QPR and its RoadShop branded products,” said John Neuner, Managing Director at Harris Williams.

QPR is the leading producer of high performance pavement repair materials. Utilizing its proprietary formula, QPR manufactures, markets, and distributes high performance cold mix asphalt for pothole and roadway repair throughout the United States and Canada. The Company has a broad base of end users and sells its packaged bagged product through Lowe’s and its bulk product through a nationwide distribution network for use in the public and private sector. In addition to its bagged and bulk high performance asphalt products, QPR sells a line of complementary QPR RoadShop-branded pavement repair products including driveway sealer, cold and hot pour crack fillers, and a complete line of pavement repair tools.

Lafarge S.A. is the world leader in building materials, with top-ranking positions in cement, aggregates and concrete, and gypsum. With more than 84,000 employees in 79 countries, Lafarge posted sales of Euros 19 billion in 2008. Based in Alpharetta, GA, the QPR Division was a business unit within Lafarge North America Inc., the largest diversified supplier of construction materials in the United States and Canada. In 2009 and for the fifth year in a row, Lafarge was listed in the Global 100 Most Sustainable Corporations in the World.

The QUIKRETE® Companies, Inc. is the largest manufacturer of packaged concrete in the United States and Canada and an innovative leader in the commercial building and home improvement industries. With more than 90 manufacturing facilities in the United States, Canada, Puerto Rico and South America, the Company manufactures over 200 professional-grade and consumer products, including concrete and mortar mixes; cements; concrete repair products; stucco, waterproofing, tile setting and blacktop products; floor underlayments; sand and aggregates; and other specialty and seasonal items.

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Main Street Capital Corporation announced that it has priced a public offering of 1,437,500 shares of its common stock, including the full exercise of the over-allotment shares, in an underwritten public offering. Pricing was set at $12.10 per share, and net proceeds from the offering, after deducting underwriting discounts and estimated expenses payable by Main Street, are expected to be approximately $16.3 million. Main Street intends to use the net proceeds from this offering to make investments in lower middle market companies in accordance with its investment objective and strategies, pay operating expenses and dividends to its stockholders, and for general corporate purposes.

Main Street is a principal investment firm that provides long-term debt and equity capital to lower middle market companies. Main Street’s investments are made to support management buyouts, recapitalizations, growth financings and acquisitions of companies that operate in diverse industry sectors and generally have annual revenues ranging from $10 million to $100 million. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides “one stop” financing alternatives to its portfolio companies.

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Genesee & Wyoming, Inc. announced that it has priced its public offering of 4,000,000 shares of its Class A Common Stock at $24.50 per share. GWI is expected to receive $92,600,000 in net proceeds from the sale of its Class A Common Stock, plus any proceeds received from the exercise by the underwriters of their over-allotment option. GWI intends to use the proceeds of the offering to repay all or substantially all of the amounts outstanding under its revolving credit facility and for general corporate purposes, including strategic investments and acquisitions.

GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia and the Netherlands and owns a minority interest in a railroad in Bolivia. Operations currently include 63 railroads organized in nine regions, with more than 6,800 miles of owned and leased track and approximately 3,100 additional miles under track access arrangements. GWI provides rail service at 16 ports in North America and Europe and performs contract coal loading and railcar switching for industrial customers.

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Tully & Holland is pleased to announce another successful buy-side M&A assignment.  The firm represented S&S Worldwide, Inc. in its purchase of the assets of a confidential Canadian company.  S&S Worldwide is a 103 year old family owned and managed marketer of crafts, sporting goods, and supplies to schools, recreation departments and healthcare facilities throughout the country.  Its sales are primarily to institutions through catalogs and the internet.

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Harris Williams & Co. is pleased to announce the sale of Nordco, a portfolio company of The Riverside Company, to OMERS Private Equity, a subsidiary of OMERS Administration Corporation (OMERS). Harris Williams & Co. acted as the exclusive advisor to Nordco. The transaction was led by Ned Valentine along with Joe Conner from the firm’s Transportation & Logistics Group.

“Despite challenging near-term economic conditions, the compelling long-term growth trends for the rail industry and the underlying need for investment in critical infrastructure continues to attract investors and drive substantial capital inflows to the rail sector,” said Ned Valentine, Managing Director at Harris Williams. “Nordco’s management team, led by CEO Bruce Boczkiewicz and in partnership with The Riverside Company, has built a great company in the sector through key strategic acquisitions as well as critical core product and service expansions. As a result, Nordco has continued to grow through the current economic downturn and is well positioned to play a vital role in the long term growth of the industry. We have greatly enjoyed working with Bruce and his team and we look forward to the continued progression of the Company in partnership with OMERS.”

Founded in 1926 and headquartered in Oak Creek, Wisconsin, the Nordco family of companies, which includes Nordco Inc., Nordco Rail Services, J.E.R. Overhaul, Shuttlewagon, and Dapco Industries, offers an extensive selection of products and services that help the railroad industry keep its trains running safely, efficiently and on time. In addition to industry-leading new maintenance-of-way (MOW) machinery, Nordco offers rebuilt MOW machinery, a full line of aftermarket replacement parts, in-house and on-site machinery inspection, maintenance and repair, reconditioned machinery rental, railcar movers, and ultrasonic testing services used in a variety of field and factory applications.

The Riverside Company is one of the leading global private equity firms investing in premier companies at the smaller end of the middle market. The firm focuses on industry-leading companies valued at up to $150 million in enterprise value. Riverside has more than $2.7 billion in capital under management and over 180 dedicated professionals in North America, Europe, and Asia with experience to complete deals quickly and smoothly.

OMERS Private Equity is one of Canada’s largest and most accomplished private equity investors. OMERS Private Equity manages the private equity activities of OMERS and today has in excess of $4 billion of investments under management. The group’s investment strategy includes the active ownership of businesses in North America and Europe.

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On June 10, 2009, Amazon.com, Inc. completed the acquisition of SnapTell Inc., a leader in image recognition-based mobile search technology located in Palo Alto, California. The acquisition provides Amazon.com, Inc. with industry leading mobile e-tailing research echnology. Canaccord Adams acted as exclusive financial advisor to SnapTell Inc. and its shareholders in executing this transaction.

SnapTell offers the industry’s leading and most scalable image recognition technology for camera phones. The technology is integrated into a complete hosted mobile marketing solution available to brands, marketers, and content owners worldwide. SnapTell offers the same technology in targeted applications for platforms such as the iPhone and Android. SnapTell’s technology was developed by a team of established industry experts with decades of collective experience in computer vision, search, and mobile applications.

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Audax, together with Mini-Skool, acquired Children’s University from private owners.

Audax acquired Mini-Skool in November 2007 as a leading national company operating high-quality, regionally-branded locations focused on multi-income households in growing markets. Audax will continue to work with management to drive growth through greenfield expansion and strategic add-on acquisitions.

Kenner Children’s University, Inc., based in Arlington, Texas, is a provider of academic and child care services to children ranging from preschool through sixth grade. The acquisition of Children’s University further expands the presence of Mini-Skool Early Learning Centers, Inc.  in the greater Dallas area. Mini-Skool is an operator of full and part-time specialized community child care centers and elementary schools in North America with over 100 locations focused on the development and early education of children ranging from six weeks to 12 years old.

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Canaccord Adams raised $146 million for Itron, Inc. via a sole-managed bought deal on May 27, 2009 and followed the next day with a $58 million transaction for Telvent.

Since 2003 Canaccord Adams’ Sustainability team has completed more than 130 transactions with an aggregate value of over US$5.6 billion and has provided financing and financial advisory services for over a decade to our Sustainability clients.

Telvent is an information technology company that provides real-time, value-added products, services and integrated solutions to the Energy, Transportation, Agriculture, Environmental and Public Administration industries. Its innovative technology and proven experience ensures secure and efficient management of the operating and business processes of the world’s leading companies.

Itron Inc. is a leading technology provider to the global energy and water industries. Serving as the world’s leading provider of intelligent metering, data collection and utility software solutions, their products include electricity, gas, water and heat meters, data collection and communication systems, including automated meter reading (AMR) and advanced metering infrastructure (AMI); meter data management and related software applications; as well as project management, installation, and consulting services.

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