M&A Deal Summary

Capital Point Partners, Freestone Partners and Stonehenge Partners Acquire PAI

On October 5, 2007, Capital Point Partners, private equity firm Freestone Partners and mezzanine finance firm Stonehenge Partners acquired distribution company PAI

Acquisition Highlights
  • This is Capital Point Partners’ 1st, Freestone Partners’ 1st and Stonehenge Partners’ 2nd transaction in the Distribution sector.
  • This is Capital Point Partners’ 5th, Freestone Partners’ 2nd and Stonehenge Partners’ 44th transaction in the United States.
  • This is Capital Point Partners’ 2nd, Freestone Partners’ 2nd and Stonehenge Partners’ 4th transaction in Texas.

M&A Deal Summary

Date 2007-10-05
Target PAI
Sector Distribution
Buyer(s) Capital Point Partners
Freestone Partners
Stonehenge Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

PAI

Houston, Texas, United States
PAI is a distributor of nickel and nickel alloy pipes, fittings, and flanges. PAI markets its products worldwide through maintenance, repair, and operations distributors, pipe fabricators, engineering and construction companies, and end-users, in the chemical and petrochemical industries. PAI is based in Houston, Texas.

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Buyer(S) 3

Buyer

Capital Point Partners

Houston, Texas, United States

Category Private Equity Firm
Founded 1989
Size Small
Type Sector Agnostic
DESCRIPTION

Capital Point Partners (CPP) is an independently owned investment management firm providing mezzanine capital to middle-market companies throughout the US. CPP supports a wide variety of transaction types, including buyouts, recapitalizations and refinancings, mergers and acquisitions and growth or expansion situations. CPP invests junior capital nationwide in companies owned by established equity sponsor groups, companies with fundless sponsor involvement, and also directly with strong management team shareholders in non-sponsored companies. The Firm's target investment size is $5 to $20 million. CPP will not invest in real estate or oil/gas exploration. Capital Point Partners is based in Houston, Texas.


DEAL STATS #
Overall 5 of 12
Sector: Distribution M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 5 of 7
State: Texas M&A 2 of 4
Country: United States M&A 5 of 12
Year: 2007 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-01 OneTouchPoint

Hartland, Wisconsin, United States

OneTouchPoint provides print and document services that include digital document management, data exchange between OTP and its customers, just-in-time production and delivery, variable data printing, document hosting, and customized print solutions. OneTouchPoint was founded in 2007 and is based in Hartland, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-04-01 Ocala Recycling

Ocala, Florida, United States

Ocala Recycling is the leading scrap metal processor within its operating footprint of north central Florida. Ocala has a sister company, Blaze Recycling & Metals, which operates in a non-overlapping but adjacent region north of Ocala's footprint.

Buy -
Buyer

Freestone Partners

Houston, Texas, United States

Investor Investor Investor


Category Private Equity Firm
Founded 2001
Size Small
Type Sector Agnostic
DESCRIPTION

Freestone Partners is a private equity firm that targets growth-oriented companies operating in basic industries. Sectors of interest include manufacturing, distribution, and commercial/industrial services. Freestone prefers platform investments located in the southwestern and southeastern areas of the US. Prospective companies are generally profitable with proven management and generate $10 to $50 million in annual sales. The Firm's target investment size is Freestone $3 to $8 million per transaction. Freestone Partners is based in Houston, Texas.


DEAL STATS #
Overall 2 of 9
Sector: Distribution M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 1 of 5
State: Texas M&A 2 of 8
Country: United States M&A 2 of 9
Year: 2007 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-01 Sweet Leaf Tea Co.

Austin, Texas, United States

Sweet Leaf Tea Co. is a producer of iced teas, with flavors that include Original Sweet Tea, Mint & Honey Green Tea, Peach, Raspberry, Lemon & Lime, and other flavors.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-08-24 Service Refrigeration Co.

Humble, Texas, United States

Service Refrigeration Company was founded in 1986 by current president W.L. “Butch” Edmonds Jr. The company has grown steadily over the past 26 years and currently has over 180 full- time employees in five service regions across Texas.

Buy -
Buyer

Stonehenge Partners

Columbus, Ohio, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1999
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Stonehenge Partners is a private equity firm that seeks equity and mezzanine investments in lower middle-market companies with at least $10 million in sales. Stonehenge looks to invest ranging from $10 million to $50 million of equity/junior capital to support management buyouts, leveraged acquisitions, recapitalizations, and growth capital financings. Stonehenge prefers businesses operating in manufacturing, distribution, business services and healthcare. Stonehenge avoids investing in real estate, oil and gas, high technology and 'industries that are susceptible to a high degree of cyclicality'. Stonehenge was formed in 1999 and is based in Columbus, Ohio.


DEAL STATS #
Overall 46 of 68
Sector: Distribution M&A 2 of 5
Type: Buyout (LBO, MBO, MBI) M&A Deals 33 of 48
State: Texas M&A 4 of 7
Country: United States M&A 44 of 66
Year: 2007 M&A 4 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-10-03 Wisconsin Film & Bag

Shawano, Wisconsin, United States

Wisconsin Film and Bag produces custom polyethylene bags and film for the flexible packaging industry.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-11-01 PCI Solutions

Indianapolis, Indiana, United States

PCI Solutions is a commercial print provider primarily servicing the retail and grocery industry. PCI Solutions was founded in 1990 and is based in Indianapolis, Indiana.

Buy -