M&A Deal Summary

DeltaPoint Capital Management, Crofton Capital, Boston Harbor Capital Partners, HCAP Partners and Pine Street Capital Partners Acquire CognitiveTPG

On September 25, 2012, merchant bank DeltaPoint Capital Management, private equity firm Crofton Capital, private equity firm Boston Harbor Capital Partners, growth capital firm HCAP Partners and mezzanine finance firm Pine Street Capital Partners acquired technology hardware company CognitiveTPG

Acquisition Highlights
  • This is DeltaPoint Capital Management’s 1st, Crofton Capital’s 1st, Boston Harbor Capital Partners’ 1st, HCAP Partners’ 1st and Pine Street Capital Partners’ 1st transaction in the Technology Hardware sector.
  • This is DeltaPoint Capital Management’s 8th, Crofton Capital’s 1st, Boston Harbor Capital Partners’ 1st, HCAP Partners’ 30th and Pine Street Capital Partners’ 15th transaction in the United States.
  • This is DeltaPoint Capital Management’s 1st, Crofton Capital’s 1st, Boston Harbor Capital Partners’ 1st, HCAP Partners’ 1st and Pine Street Capital Partners’ 1st transaction in Illinois.

M&A Deal Summary

Date 2012-09-25
Target CognitiveTPG
Sector Technology Hardware
Buyer(s) DeltaPoint Capital Management
Crofton Capital
Boston Harbor Capital Partners
HCAP Partners
Pine Street Capital Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

CognitiveTPG

Chicago, Illinois, United States
CognitiveTPG is a provider of high-performance point-of-sale transaction and barcode printers to the retail, banking, self-service kiosk, healthcare, hospitality, automotive service, and manufacturing/ logistics sectors. CognitiveTPG is based in Chicago, Illinois.

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Buyer(S) 5

Buyer

DeltaPoint Capital Management

Rochester, New York, United States

Investor


Category Merchant Bank
Founded 1996
Size Small
Type Sector Agnostic
DESCRIPTION

DeltaPoint Capital Management is a private equity firm that targets investments in privately held New York based companies with at least $10 million in sales. Prospective transaction situations include management led buyouts, generational transitions, acquisition financings, recapitalizations, divestitures, and growth capital financings. DeltaPoint will consider investments in manufacturing, distribution, and specialized services. The Firm will not invest in retail, venture capital, early stage, or turnaround situations. DeltaPoint was formed in 1996 and is based in Rochester, New York.


DEAL STATS #
Overall 8 of 10
Sector (Technology Hardware) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 4 of 4
State (Illinois) 1 of 1
Country (United States) 8 of 10
Year (2012) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-04-08 PACS Industries

Bethpage, New York, United States

PACS Industries, Inc. is a leading independent manufacturer of medium-voltage metalclad switchgear, Power and Control Center (PCC) buildings, and structural substations. The Company serves electric utilities, large manufacturing plants, and many other industries that require large blocks of electric power to operate their facilities such as the steel industry, the data center industry, the wind power industry, the oil & gas industry, and the railway traction industry, among others. DeltaPoint's strategy is to achieve significant growth through organic means and by acquisition, taking advantage of the Company's proprietary technology, while enhancing value by professionalizing and refining the Company's managerial activities. PACS is located in Bethpage, NY and Mt. Vernon, OH

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-01-07 Auburn Armature

Auburn, New York, United States

AAI (Auburn Armature Inc.) Patriot Capital provided financing to the company to support management's growth plans. Auburn Armature, Inc. distributes and repairs electrical power equipment and provides related services in the northeastern Unites States, primarily in New York State. The Company is headquartered in Auburn, NY with four branches to serve the market.

Buy -
DESCRIPTION

Crofton Capital LLC is a growth focused private equity firm that invests in and provides strategic resources to small and midsize businesses based primarily in the Northeast US. Crofton Capital looks for companies generating $1 to $5 million of EBITDA and revenues less than $50 million. Sectors of interest include business services, consumer products/services, distribution, e-commerce, manufacturing, software, and technology hardware. Crofton Capital was formed in 2009 and is based in Newton, Massachusetts.


DEAL STATS #
Overall 1 of 2
Sector (Technology Hardware) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 1 of 2
State (Illinois) 1 of 1
Country (United States) 1 of 2
Year (2012) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-08-14 Schylling

North Andover, Massachusetts, United States

Schylling is a toy and gift company known for its high-quality classic-style toys. The Company primarily sells into the specialty gift store distribution channel. The Company designs its own proprietary line of toys, designs toys for other brands under license agreements, and acts as a distributor for other toy companies via its unique distribution channel. Schylling was founded in 1975 and is based in North Andover, Massachusetts.'

Buy -
DESCRIPTION

Boston Harbor Capital Partners is a private equity firm focused on buyouts, growth investments in, and recapitalizations of lower middle-market companies. The Firm targets profitable companies ($2 to $10 million of EBITDA) with up to $100 million of revenue. Industries of interest include consumer products/services, internet software, e-commerce, healthcare, tech-enabled manufacturing, business services, digital marketing, and distribution. Boston Harbor Capital Partners was formed in 2008 and is based in Boston.


DEAL STATS #
Overall 1 of 2
Sector (Technology Hardware) 1 of 2
Type (Buyout (LBO, MBO, MBI)) 1 of 2
State (Illinois) 1 of 1
Country (United States) 1 of 2
Year (2012) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-01 Cambridge Sound Management

Waltham, Massachusetts, United States

Cambridge Sound Management, Inc. is a manufacturer of QtPro and Dynasound sound masking systems to help organizations across multiple industries protect speech privacy, reduce noise distractions, and fuel workplace productivity.

Buy $20M
Buyer

HCAP Partners

La Jolla, California, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 2000
PE ASSETS 320M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Huntington Capital is a mezzanine finance firm that provides both debt and equity financing to established, lower middle-market companies throughout California and the Southwest US. The Firm targets growth companies with positive cash flow, diversified customers, defensible market positions, and experienced management. The Firm looks to invest $2 to $15 million in companies generating revenues of $10 to $100 million. Areas of interest include manufacturing, services, healthcare, software, homeland security, retail, and information technology. Prospective transaction situations include buyouts, acquisitions, recapitalizations, and growth capital financings. Huntington Capital was formed in 2000 and is based in San Diego, California.


DEAL STATS #
Overall 30 of 64
Sector (Technology Hardware) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 9 of 10
State (Illinois) 1 of 1
Country (United States) 30 of 63
Year (2012) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-04-25 Anabi Oil

Upland, California, United States

Anabi Oil Corporation and its affiliates operate as a diversified distributor, retailer, and owner of motor gasoline products and properties throughout California. Beginning in 1991 with a single property in Baldwin Park, CA, the Company now carries various interests in one hundred twenty (120) properties throughout California.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-08-07 Crescent House Publishing

Carlsbad, California, United States

Scentsa is an award-winning multimedia technology company serving the global retail industry. Crescent House Publishing creates marketing and information software solutions for retailers and vendors to reinforce brand awareness, enhance sales training, and create in-store excitement.

Sell -
Buyer

Pine Street Capital Partners

Albany, New York, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2004
PE ASSETS 425M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Pine Street Capital Partners (PSCP) provides mezzanine capital to small and medium-sized private and public companies. PSCP will consider investments from $3 to $15 million in companies generating at least $10 million of sales. Target sectors include manufacturing, business services, consumer products, healthcare and media. PSCP prefers investments in the Northeast and Mid-Atlantic regions of the US, but will consider opportunities nationwide. Investment funds are typically used to support strategic acquisitions, growth, management and employee buyouts, and leveraged recapitalization. PSCP will not invest in the real estate, biotech and oil & gas industries. Pine Street Capital Partners was formed in 2004 and is based in Albany, New York.


DEAL STATS #
Overall 15 of 41
Sector (Technology Hardware) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 6 of 16
State (Illinois) 1 of 1
Country (United States) 15 of 41
Year (2012) 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-06-19 Renovation Brands

Florence, Alabama, United States

Renovation Brands is a distributor and retailer of electric fireplaces, electric heating appliances, customized fireplace mantels, and outdoor heating products. Renovation Brands was founded in 2002 and is based in Florence, Alabama.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-07 Mercantile

Williamsville, New York, United States

Mercantile is a full-service accounts receivable management company providing third and first-party and specialty collection services. Mercantile was founded in 1934 and is based in Williamsville, New York.

Buy -