Morgenthaler recapitalises, makes promotion

The Cleveland, Ohio middle market buyout firm announces an investment in rePipe, a pipe rehabilitation services company, and promotes Simon Feiglin to principal.

Cleveland, Ohio-based middle-market buyout firm Morgenthaler Partners announced the recapitalisation of rePipe.


Terms of the deal were not disclosed, though Morgenthaler’s press statement set the transaction value between $50 million (€41 million) and $250 million (€205 million). Boston-based middle-market private equity firm Parthenon Capital invested in rePipe in 2000 and remains a “significant investor,” according to the statement.


rePipe provides underground construction and pipe rehabilitation services to municipalities, utility districts, government agencies and other organizations. According to the statement, rePipe is the second largest company focused on the $1.4 billion trenchless pipe rehabilitation market. The company reported 2003 revenues of approximately $125 million.


In the statement, Morgenthaler general partner Peter Taft said his firm was “drawn to rePipe because of its management team and their public company experience and discipline [and] the company’s broad range of service offerings.” Taft also said Morgenthaler sees consolidation potential in the highly fragmented pipe rehabilitation industry, which is growing at approximately 15 percent per year.


Morgenthaler also announced the promotion of Simon Feiglin to principal from senior associate.


Feiglin joined Morgenthaler in 2000. Previously, he served with Chicago-based Willis Stein & Partners, another middle-market specialist, focusing on a variety of sectors. Before that, Feiglin worked for New York-based Goldman, Sachs & Co. as an investment banking analyst in the communications, media and entertainment group.


Founded in 1968, Morgenthaler Partners has a middle-market buyout business based in Cleveland, Ohio, and a venture capital group in Menlo Park, California. Morgenthaler manages a total of $2 billion in capital. In July 2001, the firm closed an $850 million fund aimed at both buyout and venture capital investments.