M&A Deal Summary

KRG Capital Partners, Leonard Green & Partners and Argentum Capital Partners Acquire White Cap Industries

On July 24, 1999, private equity firm KRG Capital Partners, private equity firm Leonard Green & Partners and growth capital firm Argentum Capital Partners acquired distribution company White Cap Industries for 240M USD

Acquisition Highlights
  • This is KRG Capital Partners’ 1st, Leonard Green & Partners’ 1st and Argentum Capital Partners’ 1st transaction in the Distribution sector.
  • This is KRG Capital Partners’ 3rd, Leonard Green & Partners’ 25th and Argentum Capital Partners’ largest (disclosed) transaction.
  • This is KRG Capital Partners’ 4th, Leonard Green & Partners’ 4th and Argentum Capital Partners’ 2nd transaction in the United States.
  • This is KRG Capital Partners’ 1st, Leonard Green & Partners’ 2nd and Argentum Capital Partners’ 1st transaction in California.
Investment Fate
  • White Cap Industries was sold to a publicly-traded strategic buyer in 2004.

M&A Deal Summary

Date 1999-07-24
Target White Cap Industries
Sector Distribution
Buyer(s) KRG Capital Partners
Leonard Green & Partners
Argentum Capital Partners
Deal Type Buyout (LBO, MBO, MBI)
Deal Value 240M USD
Advisor(s) Consilium Partners LLC (Financial)

Target

White Cap Industries

Costa Mesa, California, United States
website
White Cap, with 42 branch locations throughout the Western U.S. as of March 2000, is the largest domestic specialty supplier of tools and materials to industrial and commercial construction contractors. White Cap provides one-stop, high service solution to large professional contractors that demand a high service component from their supplier relationships. These services include expert technical advice (on and off the job site) during planning and construction, high order fill rates and innovative products that benefit the construction process and simplify the ordering, tracking and administration of their projects.

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Buyer(S) 3

Buyer

KRG Capital Partners

Denver, Colorado, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1996
PE ASSETS 4.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

KRG Capital Partners is a private equity investment firm focused on acquiring controlling interests in middle-market companies. Prospective transaction situations include owner recapitalizations, management buyouts of private companies, mangement buyouts of corporate divisions, outright purchases, and family successions. Target companies typically generate sales of $35 to $400 million and EBITDA of $10 to $100 million. Sectors of interest include healthcare services, medical technology and life sciences; business services and distribution; construction materials and services; transportation services; marketing; specialty finance and insurance; aerospace, defense, and government services; energy services and products; and infrastructure. KRG primarily looks for opportunities located in the US and Canada but will selectively consider investments in Western Europe. KRG was formed in 1996 and is based in Denver, Colorado with additional offices in Mill Valley, California and Las Vegas, Nevada.


DEAL STATS #
Overall 4 of 42
Sector (Distribution) 1 of 3
Type (Buyout (LBO, MBO, MBI)) 4 of 19
State (California) 1 of 2
Country (United States) 4 of 41
Year (1999) 3 of 3
Size (of disclosed) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-01-01 Lake Region Medical

Chaska, Minnesota, United States

Lake Region Medical, Inc. is a developer and manufacture of OEM devices, supplying the world’s largest medical device companies with minimally invasive delivery solutions.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-08-24 Case Logic Wireless

Longmont, Colorado, United States

Case Logic Wireless, Inc. is a designer and marketer of storage products and accessories for the audio, computer, photo/video, DVD, automotive and recreational markets.

Buy $480M
Buyer

Leonard Green & Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1989
PE ASSETS 70.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Leonard Green & Partners is a mega-sized private equity firm that invests in established companies that are leaders in their respective markets. Leonard Green will consider investments in consumer and business services, consumer products, distribution, media, and retail. Typical transaction values for acquisitions are between $500 million and $2 billion, however, the firm is capable of closing transactions valued up to $5 billion. Types of transactions include public-to-private, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds/restructurings, and acquisitions of divisions/assets from large corporations. Leonard Green & Partners was formed in 1989 and is based in Los Angeles, California.


DEAL STATS #
Overall 4 of 88
Sector (Distribution) 1 of 2
Type (Buyout (LBO, MBO, MBI)) 2 of 10
State (California) 2 of 12
Country (United States) 4 of 81
Year (1999) 1 of 1
Size (of disclosed) 25 of 28
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1997-09-03 Rand McNally

Chicago, Illinois, United States

Rand McNally provides fleet management and commercial transportation solutions, connected vehicle technology, and consumer travel and education products. Rand McNally was founded in 1856 and is based in Chicago, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-09-20 VCA

Los Angeles, California, United States

VCA, Inc. is an animal healthcare company operating in the United States and Canada. VCA provides veterinary services and diagnostic testing to support veterinary care, sells diagnostic imaging equipment and other medical technology products and related services to the veterinary market and provide various communication, marketing solutions and other services to the veterinary community. VCA provides pharmaceutical products and performs a variety of pet wellness programs including health examinations, diagnostic testing, routine vaccinations, spaying, neutering and dental care. VCA, Inc. was formed in 1986 and is based in Los Angeles, California.

Buy -
Buyer

Argentum Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Growth Capital Firm
Founded 1988
PE ASSETS 400M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Argentum Capital Partners is a private equity firm focused on investing in small to mid-sized companies with proven business models and the ability to become market leaders. Prospective transaction situations include growth capital financing, management buyouts, platform acquisitions, and recapitalization. The firm typically takes minority positions, except in the case of management buyouts. Industry sectors of interest include business services, healthcare, and technology. Argentum generally prefers opportunities located in the Eastern US, but will consider companies across the US. Argentum Capital Partners was formed in 1988 and is based in New York City.


DEAL STATS #
Overall 2 of 43
Sector (Distribution) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 2 of 10
State (California) 1 of 11
Country (United States) 2 of 40
Year (1999) 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-01-01 ImageCafe.com

Columbia, Maryland, United States

ImageCafe.com was a website superstore selling pre-created, semi-custom, professionally designed Websites for image-conscious small business owners seeking a professional looking Web presence without the high costs associated with hiring a Website design firm. It also offered content management tools enabling purchasers to easily customize and update the content (pictures and text) without the user having to know HTML or FTP.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-01-01 NetBOA

United States

netBOA outsourced COBRA benefits administration, HIPAA (Health Insurance Portability and Accountability Act) administration, and retiree benefits transaction processing for large corporations. The Company distinguished itself by offering more custom service than most of its competitors. Its clients included a large airline, utilities, and a regional telephone company. netBOA was acquired by Automatic Data Processing Inc.'s Major Accounts Services (NYSE: ADP) in January 2000.

Sell -