Buyout (LBO, MBO, MBI) • Business Services

Ascent Equity Capital, Primus Capital, Frontenac and Baird Capital Acquire Encore Discovery Solutions

On December 2, 2003, private equity firms Ascent Equity Capital, Primus Capital, Frontenac and Baird Capital acquired business services company Encore Discovery Solutions

Acquisition Context
  • This is Ascent Equity Capital’s 1st, Primus Capital’s 2nd, Frontenac’s 8th and Baird Capital’s 2nd transaction in the Business Services sector.
  • This is Ascent Equity Capital’s 1st, Primus Capital’s 9th, Frontenac’s 28th and Baird Capital’s 18th transaction in the United States.
  • This is Ascent Equity Capital’s 1st, Primus Capital’s 2nd, Frontenac’s 3rd and Baird Capital’s 1st transaction in Texas.
Investment Fate
  • Encore Discovery Solutions was sold to a publicly-traded strategic buyer in 2011 for 100M USD.

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M&A Deal Summary

Date December 2, 2003
Target Encore Discovery Solutions
Sector Business Services
Buyer(s) Ascent Equity Capital
Primus Capital
Frontenac
Baird Capital
Deal Type Buyout (LBO, MBO, MBI)

Target Company

Encore Discovery Solutions

The Woodlands, Texas, United States
At Encore Discovery Solutions, we support many of the world’s leading law firms and corporations with end-to-end discovery management. Our world-class discovery professionals are experts who help our clients identify and implement the right process and technology for any discovery or similar data-intensive matter. Encore Discovery Solutions, Inc. was formerly known as Encore Legal Solutions, Inc. and changed its name to Encore Discovery Solutions, Inc. in June 2008.
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Buyers Overview 4

Buyer

Ascent Equity Capital

Chicago, Illinois, United States

Category Private Equity Firm
Founded 2002
Size Small
Type Sector Agnostic
DESCRIPTION

Ascent Equity Capital is a private equity firm that looks to partner with proven management when acquiring a companies. Ascent is particularly attracted to businesses with high-margins, low customer attrition, and recurring revenue where new leadership can improve operational performance. The Firm looks to invest up to $1 million per transaction. Sectors of interest include business-to-business services, consumer services/products, financial services, and media/publishing. Ascent Equity Capital (formerly Pinnacle Equity Capital) is based in Chicago and was formed in 2002 by Chad Mollman.


Deal Context for Buyer #
Overall 1 of 5
Sector: Business Services 1 of 2
Type: Buyout (LBO, MBO, MBI) 1 of 2
State: Texas 1 of 2
Country: United States 1 of 5
Year: 2003 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-02-16 Central Security Group

Tulsa, Oklahoma, United States

Central Security Group is a Full service provider of security alarm monitoring services for primarily residential customers. Central Security Group was founded in 1999 and is based in Tulsa, Oklahoma.

Buy -
Buyer

Primus Capital

Cleveland, Ohio, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1983
PE ASSETS 900M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Primus Capital is a private equity firm focused on investing in established companies in the business services, healthcare and education industry sectors. Primus looks for established, high-growth companies with strong management and predictable/recurring revenues. The Firm will consider both control and minority positions and has a target investment size of $15 to $70 million. Prospective transaction types include growth equity financings, recapitalizations, and management-led buyouts. Primus Capital was formed in 1983 and is based in Cleveland, Ohio.


Deal Context for Buyer #
Overall 10 of 60
Sector: Business Services 2 of 5
Type: Buyout (LBO, MBO, MBI) 7 of 13
State: Texas 2 of 3
Country: United States 9 of 59
Year: 2003 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-11-12 Marlin Capital Solutions

Mount Laurel, New Jersey, United States

Marlin Capital Solutions is a nationwide provider of capital solutions to small businesses with a mission of helping small businesses fulfill their American dream. Our products and services are offered directly to small businesses and through financing programs, with independent equipment dealers and other intermediaries. Marlin Capital Solutions was founded in 1997 and is based in Mount Laurel, New Jersey.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-03-01 Installed Building Products

Columbus, Ohio, United States

Installed Building Products is a manufacture, sale, and installation of building products for the commercial building industry. IBP provides insulations, shower doors, mirrors, shelving, waterproofing, gutters, garage doors, and fireplaces. Installed Building Products was founded in 1977 and is based in Columbus, Ohio.

Buy -
Buyer

Frontenac

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1971
PE ASSETS 2.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Frontenac is a Midwest US-based private equity firm that seek profitable, lower middle-market company investments with $5 to $25 million of EBITDA. Frontenac typically partners with management when pursuing acquisitions, including companies managed by owner-operators. Sectors of interest include financial services, healthcare services, education/HR services, manufacturing, publishing/media, and technology services. Frontenac was formed in 1971 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 30 of 81
Sector: Business Services 8 of 11
Type: Buyout (LBO, MBO, MBI) 17 of 25
State: Texas 3 of 5
Country: United States 28 of 77
Year: 2003 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-05-15 Allegiance Telecom

Dallas/Fort Worth Area, Texas, United States

Allegiance Telecom was launched as a competitive local exchange carrier (CLEC) to take advantage of the market opportunities created by the passage of the 1996 Telecommunications Act. It focused on serving small- to mid-sized businesses in major U.S. cities.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-01 Rasmussen University

Bloomington, Minnesota, United States

Rasmussen University is a post-secondary education company that provides career-oriented classroom and online educational programs through a network of fifteen campuses nationwide. Its programs, which range from certificate to graduate level, are focused on IT, business, and healthcare. Rasmussen University is based in Bloomington, Minnesota.

Buy -
Buyer

Baird Capital

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 3.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Baird Capital Partners (BCP) is the US private equity arm of Baird Private Equity. BCP makes investments in middle-market companies based in the US. BCP targets companies valued between $25 and $125 million and looks to invest between $15 and $35 million of equity per transaction. BCP focuses on three primary areas including business services (transaction processing, process outsourcing, professional services), healthcare (outsourcing services, medical products, contract manufacturing), and manufactured products (industrial/commercial, specialty consumer, distribution). BCP is affiliated with Baird Capital Partners Europe, Baird Capital Partners Asia, Baird Venture Partners, and Granville Baird Capital Partners. Baird Capital Partners is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 18 of 76
Sector: Business Services 2 of 13
Type: Buyout (LBO, MBO, MBI) 15 of 29
State: Texas 1 of 4
Country: United States 18 of 63
Year: 2003 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-08-01 PharMEDium Healthcare

Lake Forest, Illinois, United States

PharMEDium Healthcare Holdings, Inc. is a provider of intravenous (IV) admixture services supplied to the hospital market. The Company’s IV admixture service involves the mixing of drug compounds into intravenous solutions for infusion into patients.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-01 Erdman

Madison, Wisconsin, United States

Erdman is a healthcare planning, development, and design-build firm, partnering with hospitals, integrated health systems, and physician groups to provide optimal healthcare facility solutions. Erdman was founded in 1951 and is based in Madison, Wisconsin.

Buy $85M