M&A Deal Summary

The Halifax Group and Salem Halifax Capital Partners Acquire Service Champ

On April 23, 2010, private equity firm The Halifax Group and mezzanine finance firm Salem Halifax Capital Partners acquired distribution company Service Champ from Ares Private Equity Group, ZS Fund and The Jeffrey Hart Group for 87M USD

Acquisition Highlights
  • This is The Halifax Group’s 2nd and Salem Halifax Capital Partners’ 3rd transaction in the Distribution sector.
  • This is The Halifax Group’s 3rd and Salem Halifax Capital Partners’ largest (disclosed) transaction.
  • This is The Halifax Group’s 13th and Salem Halifax Capital Partners’ 12th transaction in the United States.
  • This is The Halifax Group’s 1st and Salem Halifax Capital Partners’ 2nd transaction in Pennsylvania.
Investment Fate
  • Service Champ was sold to a consortium of financial buyers in 2012.
  • Service Champ was sold to a strategic buyer in 2017.

M&A Deal Summary

Date 2010-04-23
Target Service Champ
Sector Distribution
Buyer(s) The Halifax Group
Salem Halifax Capital Partners
Sellers(s) Ares Private Equity Group
ZS Fund
The Jeffrey Hart Group
Deal Type Secondary Buyout
Deal Value 87M USD
Advisor(s) BB&T Capital Markets (Financial)

Target

Service Champ

Chalfont, Pennsylvania, United States
website
Service Champ is an distributor of automotive aftermarket maintenance parts and accessories to oil change shops, distributing over 4,500 consumable products, including oil filters, air filters, wiper blades, and chemicals, to locations in the United States and Canada.

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Buyer(S) 2

Buyer

The Halifax Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1999
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

The Halifax Group is a private equity firm focused on investing in established, profitable, and growing companies. The Firm prefers completing transactions in partnership with management and typically looks to invest $40 to $80 million per acquisition. Prospective companies generally have revenues of at least $20 million and EBITDA greater than $5 million. Sectors of interest include business services, healthcare services, infrastructure services, and 'wellness' products and services. Halifax prefers opportunities located in North America. The Halifax Group was formed in 1999 and is based in Washington, DC, with additional offices in Dallas, Texas and Raleigh, North Carolina.


DEAL STATS #
Overall 15 of 39
Sector (Distribution) 2 of 2
Type (Secondary Buyout) 3 of 14
State (Pennsylvania) 1 of 1
Country (United States) 13 of 34
Year (2010) 1 of 2
Size (of disclosed) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-09-16 Nutrition Physiology

Guymon, Oklahoma, United States

Nutrition Physiology Co. LLC is a researcher, developer, marketer and supplier of natural and organic, feed additives designed to improve overall herd health and feed efficiency in cattle feedlots and dairies.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-04-30 Animal Supply Company

Grand Prairie, Texas, United States

Animal Supply Company is a pet food and supply distributor that provides weekly service to customers nationwide. With more than 1,000,000 square feet of warehouse space and some of the most advanced distribution technologies available, the company delivers over 15,000 unique SKUs to more than 9,000 customers with market-leading efficiency and accuracy. Animal Supply Company was formed in 1987 and is based in Grand Prairie, Texas.

Buy -
Buyer

Salem Halifax Capital Partners

Marietta, Georgia, United States

website


Category Mezzanine Finance Firm
Founded 1999
PE ASSETS 105M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Salem Halifax Capital Partners is a mezzanine investment firm that targets investments in traditional manufacturing, distribution, and service businesses located in the Southeast US. Salem looks to commit $2 to $10 million of junior capital in companies with predictable cash-flows and sales of $10 to $75 million. Salem Halifax was originally formed in 1999 and was known as Venture Capital Solutions from 1999 to 2004. Salem has offices in Winston-Salem, North Carolina, and Atlanta, Georgia.


DEAL STATS #
Overall 12 of 18
Sector (Distribution) 3 of 4
Type (Secondary Buyout) 2 of 4
State (Pennsylvania) 2 of 2
Country (United States) 12 of 18
Year (2010) 1 of 2
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-10-01 Simkar

Philadelphia, Pennsylvania, United States

Simkar Corp. is a manufacturer of linear and compact fluorescent, exit and emergency, HID and vandal resistant lighting fixtures for commercial, industrial and residential applications.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-05-28 Private Label Cosmetics

Fair Lawn, New Jersey, United States

Private Label Cosmetics is a manufacturer of proprietary cosmetics including skin care, hair care, creams, lotions, lip gloss, etc.

Sell -

Seller(S) 3

SELLER

Ares Private Equity Group

Los Angeles, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 2003
PE ASSETS 20.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ares Private Equity Group is the private equity arm of Ares Management, a global alternative asset manager. The Ares Private Equity Group specializes in opportunistic majority/shared control investments in under-capitalized middle-market companies. Ares looks for companies with strong franchises and attractive growth opportunities. The Group prefers to be the lead investor and will invest across the capital structure, including common equity, preferred equity, convertible equity/debt and senior debt. Areas of interest include business services, defense, healthcare, manufacturing, industrial, energy and consumer products and services. Ares Private Equity Group was formed in 2003 and is based in Los Angeles, California.


DEAL STATS #
Overall 8 of 43
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 3 of 16
State (Pennsylvania) 1 of 2
Country (United States) 7 of 39
Year (2010) 2 of 6
Size (of disclosed) 8 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-04-21 ATD

Huntersville, North Carolina, United States

ATD is one of the largest independent suppliers of tires to the replacement tire market. It operates more than 130 distribution centers, including 24 distribution centers in Canada, serving approximately 80,000 customers across the U.S. and Canada. ATD was established in 1935 and is based in Huntersville, North Carolina.

Buy $1.3B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-04-30 LyondellBasell

Houston, Texas, United States

LyondellBasell is a large plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. LyondellBasell Industries was founded in 1955 and is based in Houston, Texas.

Buy -
SELLER

ZS Fund

New York, New York, United States

website


Category Private Equity Firm
Founded 1985
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

ZS Fund L.P. is a private equity firm engaged in making long-term investments in established middle-market companies. The firm focuses on transactions that provide liquidity to business owners while enabling them to maintain a significant ownership stake and keep their company independent. ZS pursues privately-held, closely-held, or publicly-traded companies that have a high return on capital relative to industry peers. The firm targets companies with an annual operating profit of at least $4 million. ZS Fund L.P. was founded in 1985 and is based in New York City.


DEAL STATS #
Overall 2 of 9
Sector (Distribution) 1 of 3
Type (Secondary Buyout) 2 of 5
State (Pennsylvania) 1 of 1
Country (United States) 2 of 9
Year (2010) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-01 Transervice Logistics

Lake Success, New York, United States

Transervice Logistics is a National transportation services and third-party logistics company providing contract maintenance, full-service leasing, and contract carriage services for private trucking fleets. Transervice Logistics was founded in 1969 and is based in Lake Success, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-15 Industrial Air Tool

Pasadena, Texas, United States

A leading distributor of tools, equipment and consumable supplies to oil and gas drillers and refiners.

Buy -
SELLER

The Jeffrey Hart Group

Highland Beach, Florida, United States

website


Category Private Equity Firm
Founded 1991
Size Small
Type Sector Agnostic
DESCRIPTION

The Jeffrey Hart Group, Inc. is a private investment group focused on recapitalizations and succession transactions. The Firm will consider opportunities in a variety of sectors with at least $4 million in operating profits. The Jeffrey Hart Group, Inc. was formed in 1991 and is based in Highland Beach, Florida.


DEAL STATS #
Overall 1 of 5
Sector (Distribution) 1 of 2
Type (Secondary Buyout) 1 of 2
State (Pennsylvania) 1 of 1
Country (United States) 1 of 5
Year (2010) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-01 Transervice Logistics

Lake Success, New York, United States

Transervice Logistics is a National transportation services and third-party logistics company providing contract maintenance, full-service leasing, and contract carriage services for private trucking fleets. Transervice Logistics was founded in 1969 and is based in Lake Success, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-15 Industrial Air Tool

Pasadena, Texas, United States

A leading distributor of tools, equipment and consumable supplies to oil and gas drillers and refiners.

Buy -