Buyout (LBO, MBO, MBI) • Financial Services

McKenna Gale Capital and Parallel49 Equity Acquire CPI Card

On June 29, 2007, private equity firms McKenna Gale Capital and Parallel49 Equity acquired financial services company CPI Card

Acquisition Context
  • This is McKenna Gale Capital’s 2nd and Parallel49 Equity’s 1st transaction in the Financial Services sector.
  • This is McKenna Gale Capital’s 3rd and Parallel49 Equity’s 4th transaction in the United States.
  • This is McKenna Gale Capital’s 1st and Parallel49 Equity’s 1st transaction in Colorado.
Investment Fate
  • CPI Card went public in 2015.

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M&A Deal Summary

Date June 29, 2007
Target CPI Card
Sector Financial Services
Buyer(s) McKenna Gale Capital
Parallel49 Equity
Deal Type Buyout (LBO, MBO, MBI)

Target Company

CPI Card

Littleton, Colorado, United States
CPI's corporate headquarters in Littleton, Colorado.
CPI's corporate headquarters in Littleton, Colorado.
CPI Card is a provider of comprehensive financial payment card solutions in North America. CPI produces financial payment cards, provides integrated card services to card-issuing banks, and personalizes financial payment cards as well. CPI's customers are primarily national and regional banks, independent community banks, credit unions, managers of prepaid debit programs, group service providers, and card processors. CPI Card was founded in 2007 and is based in Littleton, Colorado.
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Buyers Overview 2

Buyer

McKenna Gale Capital

Toronto, Ontario, Canada

Category Private Equity Firm
Founded 1995
PE ASSETS 600M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

McKenna Gale Capital is a Canadian independent provider of mid-market mezzanine debt and common equity financing. McKenna looks for companies with a total enterprise value in excess of $25 million, and seeks to commit to $7 million to $75 million per transaction. The firm invests in a wide range of industries excluding real estate development, primary mining and primary oil and gas. Investments include management buyouts, acquisitions, expansion and growth capital, and go-private transactions. McKenna Gale Capital was founded in 1995 and is based in Toronto, Ontario.


Deal Context for Buyer #
Overall 5 of 6
Sector: Financial Services 2 of 2
Type: Buyout (LBO, MBO, MBI) 4 of 5
State: Colorado 1 of 1
Country: United States 3 of 4
Year: 2007 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-06-15 Filogix

Toronto, Ontario, Canada

Filogix, a Toronto-based provider of business solutions to Canada's real estate and mortgage-related industries. Filogix' core products connect mortgage lenders with independent mortgage brokers, lenders' in-house salesforces, and other data providers that participate in the mortgage process. Brokers and salespeople enter mortgage application data into a Filogix system, which then transmits the application to lenders for underwriting. The Company also provides workflow management products designed to increase the efficiency of both originators and lenders.

Sell $213M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-09-04 Winters Bros. Waste Systems

Danbury, Connecticut, United States

Winters Bros. Waste Systems provides waste removal, garbage collection, and container services. Its services include commercial rubbish and recycling, residential services, construction demolition, and transfer stations. Winters Bros. Waste Systems was founded in 1950 and is based in Danbury, Connecticut.

Sell -
Buyer

Parallel49 Equity

Vancouver, British Columbia, Canada

Investor Investor Investor


Category Private Equity Firm
Founded 1996
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Parallel49 Equity is a private equity firm that invests in mid-sized companies in Canada and the US. The Firm concentrates its investment efforts in the Western and Mid-western regions of both countries. Target businesses generally have enterprise values of $25 to $150 million and are profitable with $5 to $30 million of EBITDA. Parallel49 pursues acquisitions of public or private companies, management-led buyouts, recapitalizations and sales of subsidiaries of larger companies. Broad areas of interest include manufacturing, service, and distribution. Parallel49 will not invest in start-ups, new technologies, turnarounds or companies active in real estate development, gaming, restaurant or primary resource sectors. Parallel49 was formerly known as Tricor Pacific Capital. The Firm has offices in Vancouver, British Columbia, and Chicago, Illinois.


Deal Context for Buyer #
Overall 12 of 26
Sector: Financial Services 1 of 1
Type: Buyout (LBO, MBO, MBI) 8 of 15
State: Colorado 1 of 1
Country: United States 4 of 13
Year: 2007 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-20 Consolidated Utility Services

Omaha, Nebraska, United States

Consolidated Utility Services, Inc. is a provider of a full spectrum of utility damage prevention process services and solutions. CUS’s customers include companies in the utility (gas, electric, water, sewer), telecommunications and cable industries. CUS provides critical services that help customers manage cost and service risks associated with damage to their buried infrastructure caused by a broad range of excavation activity.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-08-03 Golden Boy Foods

Burnaby, British Columbia, Canada

Golden Boy Foods Ltd. is a manufacturer, marketer and distributor of more than 400 private label and branded food products, including peanut butter, baking nuts, snacking nuts, trail mixes, raisins, dried fruits and jams.

Buy -