M&A Deal Summary

American Capital, Graham Partners and Argosy Partners Acquire Nailite International

On April 16, 2003, private equity firms American Capital, Graham Partners and Argosy Partners acquired building materials company Nailite International from Eureka Equity Partners and Sun Capital Partners

Acquisition Highlights
  • This is American Capital’s 3rd, Graham Partners’ 4th and Argosy Partners’ 1st transaction in the Building Materials sector.
  • This is American Capital’s 80th, Graham Partners’ 6th and Argosy Partners’ 1st transaction in the United States.
  • This is American Capital’s 3rd, Graham Partners’ 1st and Argosy Partners’ 1st transaction in Florida.
Investment Fate
  • Nailite International went bankrupt in 2009.
  • Nailite International was sold to a strategic buyer in 2009.

M&A Deal Summary

Date 2003-04-16
Target Nailite International
Sector Building Materials
Buyer(s) American Capital
Graham Partners
Argosy Partners
Sellers(s) Eureka Equity Partners
Sun Capital Partners
Deal Type Secondary Buyout

Target

Nailite International

Miami,, Florida, United States
Nailite International Inc. ('Nailite'), a niche manufacturer of molded polypropylene siding ('MPS') for the remodeling and new construction housing markets. Founded in 1978, Nailite International Inc. was the first company in the siding business to develop an injection molded siding product that replicates the appearance of the traditional siding materials of natural cedar, brick and stone, thereby offering homeowners the low cost and minimal maintenance benefits of artificial siding without having to sacrifice aesthetics.

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Buyer(S) 3

Buyer

American Capital


Category Private Equity Firm
Founded 1997
PE ASSETS 22.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Capital was a publicly traded buyout and mezzanine investment firm. American Capital invested in buyouts, growth capital financings, acquistion financings, and recapitalizations. The Firm looked to finance businesses with at least $4 million in EBITDA and valued between $20 and $500 million. American Capital ws a generalist firm with broad interest in traditional industries such as manufacturing, distribution, and services. American Capital's European investment affiliate is European Capital. European Capital looked to invest $10 to $600 million of equity, mezzanine, and/or senior debt in similar opportunities across Europe. American Capital was formed in 1997 and in January 2017, merged with Ares Capital Management.


DEAL STATS #
Overall 82 of 265
Sector: Building Materials M&A 3 of 10
Type: Secondary Buyout M&A Deals 4 of 60
State: Florida M&A 3 of 12
Country: United States M&A 80 of 253
Year: 2003 M&A 8 of 28
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-04-15 FMI International

Carteret, New Jersey, United States

FMI International, Inc is a leading third party logistics provider to the U.S. apparel industry. The services include including freight forwarding, transloading, warehousing, distribution, and local and long distance ground transportation to the U.S. import apparel industry. Along the entire transport route, FMI offers a comprehensive inventory tracking system that enables customers to locate their merchandise at any point on the supply chain. FMI is one of the few companies in the industry with expertise in garment-on-hanger shipping, a shipping method in which delicate apparel remains hung on slick rails throughout its transport, avoiding the weight and pressure of other garments that could adversely affect their appearance.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-05-20 Hilco Vision

Mansfield, Massachusetts, United States

Hilco Vision is a distributor of branded and consumable professional eyecare products and optical accessories throughout the eye healthcare supply chain. Hilco Vision has a diverse suite of branded and non-branded optical products and accessories, offering more than 30,000 SKUs and an expansive distribution network, uniquely allowing the Company to serve both optical chains and independent optical locations alike as a "one-stop-shop." Hilco Vision was founded in 1956 and is based in Mansfield, Massachusetts.

Buy -
Buyer

Graham Partners

Newtown Square, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 6.8B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Graham Partners is a private equity that targets middle market industrial and manufacturing companies. The Firm seeks to invest in businesses based in the US and also consider investments in Canada and Western Europe. Graham Partners focuses on strong growth potential companies with high return on invested capital, led by experienced management teams in revenues between $30 - $500 million and EBITDA between $5 million and $50 million. The firm typically invests between $10 million and $100 million in equity and the balance via debt and can invest higher than $100 million through co-investments. Broad areas of interest include building products, water management, medical products, consumer products, packaged food & beverage, packaging, aerospace/defense, agriculture, capital equipment, energy related products, home and outdoor, sports and leisure, and transportation services. Prospective transaction types include MBOs, recapitalization and growth capital financing. Graham Partners is an affiliate of The Graham Group was formed in 1988 and is based in Newton Square, Pennsylvania.


DEAL STATS #
Overall 6 of 60
Sector: Building Materials M&A 4 of 7
Type: Secondary Buyout M&A Deals 2 of 12
State: Florida M&A 1 of 2
Country: United States M&A 6 of 52
Year: 2003 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-02-20 Eldorado Stone

San Marcos, California, United States

Eldorado Stone LLC is a producer of architectural stone veneer for residential and commercial siding applications.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-02-06 Dynojet

Las Vegas, Nevada, United States

Dynojet is a manufacturer of aftermarket performance-enhancing automotive parts and accessories as well as diagnostic equipment for the Powersports industry. Dynojet was founded in 1972 and is based in North Las Vegas, Nevada.

Buy -
Buyer

Argosy Partners

Toronto, Ontario, Canada

Investor


Category Private Equity Firm
Founded 1995
Size Small
Type Sector Agnostic
DESCRIPTION

Argosy Partners is a private equity firm that provides capital to small and medium-sized Canadian businesses. Argosy markets its services through its Shotgun and Succession funds. The Shotgun Fund is designed for time sensitive opportunities with company sales between $10 and $100 million. The Succession Fund is designed to allow business owners to partially liquidate ownership. Industry sectors of interest include manufacturing, distribution, and service. Arogosy Partners was formed in 1998 and is based in Toronto.


DEAL STATS #
Overall 1 of 1
Sector: Building Materials M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 1
State: Florida M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2003 M&A 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-02-13 Nailite International

Miami,, Florida, United States

Nailite International Inc. ('Nailite'), a niche manufacturer of molded polypropylene siding ('MPS') for the remodeling and new construction housing markets. Founded in 1978, Nailite International Inc. was the first company in the siding business to develop an injection molded siding product that replicates the appearance of the traditional siding materials of natural cedar, brick and stone, thereby offering homeowners the low cost and minimal maintenance benefits of artificial siding without having to sacrifice aesthetics.

Sell -

Seller(S) 2

SELLER

Eureka Equity Partners

Philadelphia, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
Size Small
Type Sector Agnostic
DESCRIPTION

Eureka Equity Partners is a private equity firm focused on partnering with management in acquiring middle-market companies generating sales up to $100 million. The Firm will consider both control and non-control investments. Sectors of interest include communications, consumer products and services, healthcare, and transportation. Eureka invests in the range of $10 to $25 million per transaction. Eureka's geographic coverage is within the US with a preference for opportunities located in the Eastern and Mid-Atlantic US. Eureka was formed in 2004 and is based in Philadelphia, Pennsylvania.


DEAL STATS #
Overall 2 of 24
Sector: Building Materials M&A 1 of 2
Type: Secondary Buyout M&A Deals 1 of 5
State: Florida M&A 1 of 3
Country: United States M&A 2 of 24
Year: 2003 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-09 Montreal Maine & Atlantic

Hermon, Maine, United States

Montreal, Maine & Atlantic Corporation operates a regional railroad system located in Maine, Vermont, Quebec and New Brunswick. MMA acquired out of bankruptcy most of the assets of the former Bangor & Aroostook Railroad Company. MMA transports a wide variety of commodities for its customers, with paper and wood related products being by far the biggest contributors to both volume and revenue.

Buy $4M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-05-01 C/G Electrodes

Saint Marys, Pennsylvania, United States

C/G Electrodes is a leading manufacturer of consumable graphite electrodes used in the electric arc furnaces of steel mini-mills. These electrodes allow production temperatures to reach 5000 degrees Fahrenheit, believed to be the highest operating temperature in any industrial manufacturing process in the world. Cyprium Partners’ investment facilitated the buyout of minority shareholders of C/G.

Buy -
SELLER

Sun Capital Partners

Boca Raton, Florida, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 13.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Sun Capital's corporate headquarters in Boca Raton, Florida.
Sun Capital's corporate headquarters in Boca Raton, Florida.

Sun Capital Partners is a large private equity firm focused on leveraged buyouts, equity, debt, and other control investments in North America, Asia, and Europe. Sun looks for businesses that can benefit from the Firm's operating experience including underperformers, turnarounds, and special situations. Target companies typically have $50 million to $1 billion in revenue with strong market positions. Sectors of interest include paper and packaging, food and beverages, metals and mining, automotive after-market parts, consumer products, financial services, healthcare, media and communications, building products, telecommunications, technology, retailing and catalogs, restaurants, manufacturing and industrial. Sun Capital was formed in 1995 and is based in Boca Raton, Florida.


DEAL STATS #
Overall 1 of 131
Sector: Building Materials M&A 1 of 7
Type: Secondary Buyout M&A Deals 1 of 34
State: Florida M&A 1 of 5
Country: United States M&A 1 of 90
Year: 2003 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-02-01 Mackie

Bothell, Washington, United States

Mackie engineers, markets and distributes a wide range of professional audio and musical instrument products worldwide. Its product lines include sound reinforcement systems, analog, and digital mixers, studio products, and bass amplifiers. Loud Audio is the parent for world-recognized brands Ampeg, EAW, Mackie, and Martin Audio. Mackie was founded in 1988 and is based in Bothell, Washington.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-05-01 Elan Nutrition

Grand Rapids, Michigan, United States

Elan Nutrition, Inc. is a manufacturer of nutritional snacks for the local market.

Buy -