M&A Deal Summary

Midwest Mezzanine Funds and KCB Private Equity Acquire Thrift Books

On February 28, 2011, mezzanine finance firm Midwest Mezzanine Funds and private equity firm KCB Private Equity acquired internet software and services company Thrift Books

Acquisition Highlights
  • This is Midwest Mezzanine Funds’ 1st and KCB Private Equity’s 1st transaction in the Internet Software and Services sector.
  • This is Midwest Mezzanine Funds’ 34th and KCB Private Equity’s 3rd transaction in the United States.
  • This is Midwest Mezzanine Funds’ 1st and KCB Private Equity’s 1st transaction in Washington.

M&A Deal Summary

Date 2011-02-28
Target Thrift Books
Sector Internet Software and Services
Buyer(s) Midwest Mezzanine Funds
KCB Private Equity
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) D.A. Davidson & Co. (Financial)

Target

Thrift Books

Tukwila, Washington, United States
Thrift Books sells used books through online marketplaces. Thrift Books currently sells its books through Thriftbooks.com, a proprietary online platform, and through other third-party platforms, including Amazon.com, Barnesandnoble.com, and Half.com. Thrift Books was founded in 2003 and is based in Tukwila, Washington.

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Buyer(S) 2

Buyer

Midwest Mezzanine Funds

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1992
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Midwest Mezzanine Funds (MMF) is a provider of junior capital to lower middle-market, US and Canadian companies. MMF looks to invest $4 to $15 million to support buyouts, acquisition financings, recapitalizations, and growth capital needs. Prospective companies generally have consistent profits ($3 million of EBITDA), low capital intensity, and sustainable competitive advantages. Broad areas of interest include manufacturing, value-added distribution, and services. MMF will not invest in high technology, energy, or real estate. Midwest Mezzanine was formed in 1992 and has offices in Chicago and Monroe, Michigan.


DEAL STATS #
Overall 34 of 81
Sector (Internet Software and Services) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 17 of 32
State (Washington) 1 of 2
Country (United States) 34 of 81
Year (2011) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-12-15 Sunrise Windows & Doors

Temperance, Michigan, United States

Sunrise Windows & Doors is a manufacturer and distributor of premium-priced, energy-efficient, custom replacement vinyl windows and patio doors, distributing its products through specialty window dealers, home improvement contractors, and building products distributors. Sunrise Windows & Doors was founded in 1994 and is based in Temperance, Michigan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-03-01 Water Providers

Decatur, Texas, United States

Water Providers Ltd. (dba SweetH2O Transfer Services) provides water transfer services to the natural gas market.

Sell -
Buyer

KCB Private Equity

Pasadena, California, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1986
Size Small
Type Sector Agnostic
DESCRIPTION

KCB Private Equity is a private equity arm of KCB Management, an asset management firm. KCB focuses on small and medium sized businesses located primarily in West US, will also consider exceptional opportunities through North America. The Firm targets companies with strong market position, customer concentration, highly differentiated business model, products and services led by strong management team. KCB invests in companies with EBITDA of $1 to $6 million and revenues of $10 to $60 million. Specific areas of interest includes retail, consumer products and services, healthcare services, education and training services, light manufacturing and distribution services. Types of transaction include public to private, divestitures, growth capital and share holder’s liquidation. KCB Private Equity was based in Pasadena, California.


DEAL STATS #
Overall 3 of 5
Sector (Internet Software and Services) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 2 of 3
State (Washington) 1 of 1
Country (United States) 3 of 5
Year (2011) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-02-24 Integrated Systems Improvement Services

Sierra Vista, Arizona, United States

Integrated Systems Improvement Services, Inc. is a provider of information technology, training, intelligence and security services to federal agencies and corporations.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-02-25 Uncle Milton

Thousand Oaks, California, United States

Uncle Milton develops, produces and markets toys that have play value and maximum kid-appeal. Uncle Milton was founded in 1946 and is based in Thousand Oaks, California.

Buy -