M&A Deal Summary

Argosy Private Equity and Heartwood Partners Acquire American Leather Operations

On July 23, 2012, private equity firms Argosy Private Equity and Heartwood Partners acquired furniture company American Leather Operations

Acquisition Highlights
  • This is Argosy Private Equity’s 1st and Heartwood Partners’ 1st transaction in the Furniture sector.
  • This is Argosy Private Equity’s 45th and Heartwood Partners’ 12th transaction in the United States.
  • This is Argosy Private Equity’s 4th and Heartwood Partners’ 1st transaction in Texas.

M&A Deal Summary

Date 2012-07-23
Target American Leather Operations
Sector Furniture
Buyer(s) Argosy Private Equity
Heartwood Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

American Leather Operations

Dallas, Texas, United States
American Leather Operations is a designer and manufacturer of high-end, made-to-order, upholstered furniture sold through private label, retail, and hospitality channels. American Leather Operation was founded in 1990 and is based in Dallas, Texas.

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Buyer(S) 2

Buyer

Argosy Private Equity

Wayne, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1990
PE ASSETS 575M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Argosy Private Equity is the private equity arm of Argosy Capital, an asset management firm. Argosy Private Equity provides both debt and equity capital to lower middle-market companies located throughout the US. Argosy focuses on growth companies with experienced management teams and revenues between $15 and $100 million and EBITDA of $3 to $9 million. Argosy looks to invest $5 - $20 million per transaction. Specific areas of interest include manufacturing, business services, franchising and Value added distributions. The Firm will consider a variety of transaction types, including MBO’s, recapitalizations, growth equity and acquisitions. Argosy was formed in 1990 and is based in Wayne, Pennsylvania.


DEAL STATS #
Overall 45 of 86
Sector (Furniture) 1 of 2
Type (Buyout (LBO, MBO, MBI)) 30 of 52
State (Texas) 4 of 7
Country (United States) 45 of 86
Year (2012) 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-07-12 Kmco

Houston, Texas, United States

Kmco LLC is an operator of specialty chemical company serving the automotive, petroleum, industrial, and agricultural markets. Kmco was founded in 1975 and is based in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-09-06 Atlantic Diagnostic Laboratories

Bensalem, Pennsylvania, United States

Atlantic Diagnostic Laboratories is a provider of clinical testing laboratory specializing in high-end toxicology tests, including drug testing for methadone clinics, behavioral centers and pain management treatment, and clinical testing for hospitals and physician offices. Atlantic Diagnostic Laboratories was founded in 1979 and is based in Bensalem, Pennsylvania.

Buy -
Buyer

Heartwood Partners

Norwalk, Connecticut, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1982
PE ASSETS 1.6B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Heartwood Partners is a private equity firm focused on partnerships with middle-market companies across the US. The Firm prefers to invest in family owned and managed companies where it can leverage strategic resources for long-term growth. Target companies are typically profitable with $5 to $30 million of EBITDA with up to $400 million in revenue. Sectors of interest include agriculture, automotive, consumer products, distribution, food, industrial services, niche manufacturing, packaging, and chemicals. Heartwood Partners was formed in 1982 and is headquartered in Norwalk, Connecticut.


DEAL STATS #
Overall 12 of 29
Sector (Furniture) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 6 of 10
State (Texas) 1 of 2
Country (United States) 12 of 29
Year (2012) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-06-01 Linen Holdings

Gibbsboro, New Jersey, United States

Linen Holdings is a high service supplier of bath, bed and table linens and other textile products primarily on a replacement basis to small and mid-sized U.S. accounts in the hospitality, health care, government and school sectors.

Sell $105M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-09-19 AMES Group

Wilmington, North Carolina, United States

AMES is a specialty maintenance company which provides critical valve inspection and testing, preventative maintenance and repair solutions to the U.S. commercial nuclear power industry.

Sell -