Recapitalization • Distribution

American Capital and BRS Acquire Seroyal International

On January 11, 2005, private equity firms American Capital and BRS acquired distribution company Seroyal International

Acquisition Context
  • This is American Capital’s 4th and BRS’s 2nd transaction in the Distribution sector.
  • This is American Capital’s 2nd and BRS’s 1st transaction in Canada.
  • This is American Capital’s 2nd and BRS’s 1st transaction in Ontario.
Investment Fate
  • Seroyal International was sold to a publicly-traded strategic buyer in 2011.

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M&A Deal Summary

Date January 11, 2005
Target Seroyal International
Sector Distribution
Buyer(s) American Capital
BRS
Deal Type Recapitalization

Target Company

Seroyal International

Richmond Hill, Ontario, Canada
Seroyal International Inc. and Seroyal USA Inc. (together, 'Seroyal') is a leading marketer and distributor of branded nutritional supplements and homeopathic medicines to healthcare professionals in Canada and the U.S.
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Buyers Overview 2

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 Context for Buyer #
Overall 140 of 265
Sector: Distribution 4 of 6
Type: Recapitalization 11 of 21
State: Ontario 2 of 4
Country: Canada 2 of 4
Year: 2005 3 of 43
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-07 Rocky Brands

Nelsonville, Ohio, United States

Rocky Brands is a designer, manufacturer and marketer of footwear and apparel. Rocky Brands was founded in 1932 and is based in Nelsonville, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-02-01 Cycle Gear

Benicia, California, United States

Cycle Gear is an omni-channel retailer of apparel, accessories, and parts dedicated to motorcycle riders and enthusiasts through its equity investments in RevZilla, which operate as independent sister companies. Cycle Gear delivers a best-in-class shopping experience across its footprint of 146 stores in 36 states while RevZilla advances the digital shopping experience through an innovative technology and media platform, digital expertise and award-winning customer service. Cycle Gear was founded in 1974 and is based in Benicia, California.

Sell -
Buyer

BRS

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 1.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

BRS is a private equity investment firm that specializes in management buyouts and recapitalizations of middle-market companies with strong market positions and growth potential. Broad areas of interest include consumer products, consumer services, food/nutrition, restaurants, retail, and distribution. BRS looks to commit $10 to $25 million per transaction. BRS was formed in 1995 and is based in New York, New York.


Deal Context for Buyer #
Overall 21 of 46
Sector: Distribution 2 of 2
Type: Recapitalization 5 of 8
State: Ontario 1 of 2
Country: Canada 1 of 4
Year: 2005 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-10-08 B&G Foods

Parsippany, New Jersey, United States

B&G Foods is a manufacturer, seller, and distributor of a diversified portfolio of high-quality, shelf-stable branded food products including pickles and peppers, hot sauces, wine vinegar, maple syrup, molasses, snack foods, fruit spreads, pasta sauces, beans, ready-to-use spices, salad dressings, marinades, taco shells and kits, and taco sauce and seasonings. B&G Foods was founded in 1822 and is based in Parsippany, New Jersey.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-27 Alliance Laundry

Ripon, Wisconsin, United States

Alliance Laundry is a manufacturer of stand-alone commercial laundry equipment in North America. It produces a full line of washing machines, dryers, and pressing machines under the brand names of Speed Queen, UniMac, Huebsch and Ajax. Alliance Laundry Systems was founded in 1908 and is based in Ripon, Wisconsin.

Sell $450M