M&A Deal Summary

Sterling Partners Private Equity and NMP Capital Acquire DBi Services

On August 5, 2016, private equity firm Sterling Partners Private Equity and mezzanine finance firm NMP Capital acquired business services company DBi Services from Tecum Capital and Alcentra Capital

Acquisition Highlights
  • This is Sterling Partners Private Equity’s 8th and NMP Capital’s 5th transaction in the Business Services sector.
  • This is Sterling Partners Private Equity’s 51st and NMP Capital’s 64th transaction in the United States.
  • This is Sterling Partners Private Equity’s 3rd and NMP Capital’s 3rd transaction in Pennsylvania.
Investment Fate
  • DBi Services was sold to a consortium of financial buyers in 2021.

M&A Deal Summary

Date 2016-08-05
Target DBi Services
Sector Business Services
Buyer(s) Sterling Partners Private Equity
NMP Capital
Sellers(s) Tecum Capital
Alcentra Capital
Deal Type Secondary Buyout
Advisor(s) Moelis & Co.
Forvis Mazars Capital Advisors (Financial)
Morgan Lewis (Legal)

Target

DBi Services

Hazleton, Pennsylvania, United States
DBi Services provides infrastructure maintenance, operations and management solutions in North America and Europe for government agencies, utilities, private industries, railways, retailers and other infrastructure owners. DBi Services was founded in 1978 and is based in Hazleton, Pennsylvania.

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Buyer(S) 2

Buyer
DESCRIPTION

Sterling Partners Private Equity is the private equity arm of asset management firm Sterling Partners. Sterling Partners Private Equityis focused on investing in small to medium-sized companies positioned for growth, either organically or through acquisitions. Sterling has a strong interest in businesses with differentiated products, defensible competitive positions, recurring revenues, and diversified customers. The Firm's target equity commitment size is $35 to $150 million. Broad sectors of interest include direct marketing, education, specialty distribution, specialty manufacturing, healthcare, technology, and business services. Sterling Partners was formed in 1983 and is based in Chicago, Illinois.


DEAL STATS #
Overall 53 of 66
Sector: Business Services M&A 8 of 9
Type: Secondary Buyout M&A Deals 3 of 4
State: Pennsylvania M&A 3 of 3
Country: United States M&A 51 of 62
Year: 2016 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-18 Longitude Licensing

Dublin, Ireland

Longitude Licensing is an intellectual property management company. Longitude holds a significant portfolio of patents addressing semiconductor memory and processing technologies.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-02-01 Laureate

Miami, Florida, United States

Laureate is a provider of higher education. The company’s network of 60 accredited campus-based and online universities offers undergraduate and graduate degree programs to more than 740,000 students across 29 countries. Laureate offers more than 130 career-focused, undergraduate, master’s, and doctoral degree programs in fields including architecture, art, business, culinary arts, design, education, engineering, health sciences, hospitality, information technology, law, and medicine. Laureate was founded in 1989 and is based in Miami, Florida.

Sell -
Buyer

NMP Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2000
PE ASSETS 4.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

NMP Capital is an independent investment firm focused on providing junior capital to a variety of lower middle-market companies in partnership with financial sponsors. NMP looks to commit $20 to $75 million in profitable companies with at least $10 million of EBITDA. NMP will consider opportunities in a wide range of industries including distribution, manufacturing, healthcare, and consumer. NMP Capital was formed in 2000 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 66 of 90
Sector: Business Services M&A 5 of 6
Type: Secondary Buyout M&A Deals 17 of 31
State: Pennsylvania M&A 3 of 5
Country: United States M&A 64 of 87
Year: 2016 M&A 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-05 MPP

Noblesville, Indiana, United States

MPP is a provider of custom-engineered powder metallurgy product solutions to customers in a variety of industries. MPP was founded in 1948 and is based in Noblesville, Indiana.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-09-08 General Products

Livona, Michigan, United States

General Products Corp. is a provider of full-service supplier of highly-engineered, complex and precision-machined components and assemblies to the North American automotive and heavy-duty truck markets.

Sell -

Seller(S) 2

SELLER

Tecum Capital

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 750M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Tecum Capital is a private equity firm focused on lower middle-market companies across the Eastern-US. Tecum will consider a variety of investment situations including leveraged buyouts, management buyouts, successions, strategic acquisitions, growth capital financings, and recapitalizations. Investment sizes range from $5 - $20 million. Industries of interest include manufacturing, plastics, specialty distribution, technology, healthcare services, defense, food, and business/consumer services. Tecum will not consider investments in start-ups or real estate. Tecum Capital was formed in 2005 and is based in Wexford, Pennsylvania.


DEAL STATS #
Overall 7 of 25
Sector: Business Services M&A 1 of 2
Type: Secondary Buyout M&A Deals 1 of 7
State: Pennsylvania M&A 6 of 12
Country: United States M&A 7 of 25
Year: 2016 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-19 Advanced Pavement Group

Islip, New York, United States

Advanced Pavement Group is an outdoor facility maintenance company (services include asphalt paving, seal-coating, drain installation and repair, concrete installation and repair, sweeping and debris removal, power washing, storm drain management, and maintenance) in the Northeast and Mid-Atlantic regions of the United States, servicing New York, New Jersey, Connecticut, Delaware, Pennsylvania, and Maryland. Advanced Pavement Group was founded in 1963 and is based in Islip, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-08-31 Sentrics

Ormond Beach, Florida, United States

Sentrics is a data-driven technology company focused on improving outcomes and experiences in the senior living industry. Sentrics provides the total well-being of each resident through actionable physical, medical, social, and mental data. Sentrics is based in Ormond Beach, Florida.

Buy -
SELLER

Alcentra Capital

New York, New York, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1998
PE ASSETS 540M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Alcentra Capital Corporation is the direct investment arm of asset management firm Alcentra. Alcentra capital looks to provide equity and subordinated debt to middle-market companies throughout North America. The Firm looks to invest $5 to $15 million per transaction in profitable companies with $5 to $15 million of EBITDA. Sectors of interest include healthcare, government services, business services, and defense. Alcentra Capital Corporation was formerly known as BNY Mellon-Alcentra Mezzanine Partners. The Group was originally established in 1998 and is based in New York City.


DEAL STATS #
Overall 32 of 40
Sector: Business Services M&A 4 of 4
Type: Secondary Buyout M&A Deals 7 of 8
State: Pennsylvania M&A 1 of 1
Country: United States M&A 31 of 38
Year: 2016 M&A 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-06-03 City Carting Holding Co.

Stamford, Connecticut, United States

City Carting Holding Co., Inc. is a provider of waste management and recycling services.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-11-03 Lugano Diamonds & Jewelry

Newport Beach, California, United States

Lugano Diamonds & Jewelry designs and retails high-jewellery pieces and custom jewellery, focusing on rare gems, intricate craftsmanship and luxury retail experiences. The Company serves an affluent international client base through boutiques in major cities and private-client appointments. Lugano Diamonds & Jewelry was established in 2004 and is based in Newport Beach, California.

Buy -