Investment Summary

Midwest Mezzanine Funds, Valor Equity Partners and Denargo Capital Exit CoolSys

On January 8, 2007, private equity firm Arsenal Capital Partners and mezzanine finance firm Audax Private Debt invested in business services company CoolSys from Midwest Mezzanine Funds, Valor Equity Partners and Denargo Capital

Investment Highlights
  • This is Arsenal Capital Partners’ 1st and Audax Private Debt’s 4th transaction in the Business Services sector.
  • This is Arsenal Capital Partners’ 10th and Audax Private Debt’s 19th transaction in the United States.
  • This is Arsenal Capital Partners’ 1st and Audax Private Debt’s 2nd transaction in California.
Investment Fate
  • CoolSys was sold to a consortium of financial buyers in 2016.
  • CoolSys was sold to a consortium of financial buyers in 2019.

Investment Summary

Date 2007-01-08
Target CoolSys
Sector Business Services
Investor(s) Arsenal Capital Partners
Audax Private Debt
Sellers(s) Midwest Mezzanine Funds
Valor Equity Partners
Denargo Capital
Deal Type Secondary Buyout
Advisor(s) William Blair (Financial)
McKenna Long & Aldridge LLP (Legal)

Target

CoolSys

Brea, California, United States
CoolSys is a refrigeration and HVAC services company, specializing in a full spectrum of best-in-class service experiences and solutions for customers in the retail, food service, commercial and industrial market segments. CoolSys was founded in 2001 and is based in Brea, California.

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Investor(S) 2

Investor

Arsenal Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 10.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Arsenal Capital Partners is a private equity firm focused on middle-market healthcare, specialty industrial, and financial service companies. Specifically, Arsenal looks to acquire businesses in the areas of specialty chemicals, aerospace/defense, transportation, environmental services, business services, insurance, asset management, financial technology, medical products, healthcare IT, and healthcare contract research/manufacturing. The Firm typically seeks to commit $50 to $300 million per investment in profitable businesses with at least $10 million of EBITDA. Funds are generally used to support buyouts, recapitalizations, growth financings, consolidations, and divestitures. The Firm avoids investing in companies reliant on high levels of technology. Arsenal Capital Partners was formed in 2000 and is headquartered in New York City.


DEAL STATS #
Overall 10 of 58
Sector: Business Services M&A 1 of 4
Type: Secondary Buyout M&A Deals 1 of 15
State: California M&A 1 of 3
Country: United States M&A 10 of 51
Year: 2007 M&A 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-01 Tempo Financial Holdings

Greenwood Village, Colorado, United States

Tempo Financial Holdings Corporation (dba i-Transfer) is a global payments and processing company providing inter-country money transfer / remittance services for individuals with an emphasis on speed, reliability, and regulatory compliance. Formed by Arsenal in 2008, i-Transfer operates in the United States and Europe through an extensive network of agents, retail locations, and correspondent relationships.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-04 Renaissance Mark

Elk Grove Village, Illinois, United States

Renaissance Mark is the largest North American provider of prime labels and brand imaging solutions to the packaging industry. The company's product offering includes glue-applied, pressure sensitive, and film labels for food, beverage, health & beauty aid, and pharmaceutical customers. Arsenal sold Renaissance Mark to Fort Dearborn Company in 2007.

Sell -
Investor

Audax Private Debt

New York, New York, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2000
PE ASSETS 5.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Mezzanine is the mezzanine finance arm of the Audax Group. The Firm focuses on investing in both private and public, US-based middle market companies with a strong history of cash flows and consistent revenue growth. Audax will consider subordinated mezzanine debt commitments, second lien or junior secured debt, preferred stock and common stock. The Firm seeks to invest in companies with EBITDA between $10 and $100 million. Types of transaction include MBOs, LBOs, growth capital financings, acquisition financings, and recapitalizations. Audax Private Debt is based in New York, New York.


DEAL STATS #
Overall 19 of 120
Sector: Business Services M&A 4 of 18
Type: Secondary Buyout M&A Deals 6 of 58
State: California M&A 2 of 10
Country: United States M&A 19 of 118
Year: 2007 M&A 2 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-02 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 -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-31 Totes Isotoner

Cincinnati, Ohio, United States

Totes Isotoner Corp. is a designer, wholesaler, distributor and retailer of branded accessories for the cold and wet weather markets. Product lines include umbrellas, accessories, gloves, slippers, and sunglasses under a number of brands such as totes, Isotoner, and Aris.

Sell $288M

Seller(S) 3

SELLER

Midwest Mezzanine Funds

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1992
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Midwest Mezzanine Funds (MMF) is a provider of junior capital to lower middle-market, US and Canadian companies. MMF looks to invest $4 to $15 million to support buyouts, acquisition financings, recapitalizations, and growth capital needs. Prospective companies generally have consistent profits ($3 million of EBITDA), low capital intensity, and sustainable competitive advantages. Broad areas of interest include manufacturing, value-added distribution, and services. MMF will not invest in high technology, energy, or real estate. Midwest Mezzanine was formed in 1992 and has offices in Chicago and Monroe, Michigan.


DEAL STATS #
Overall 6 of 58
Sector: Business Services M&A 1 of 6
Type: Secondary Buyout M&A Deals 2 of 25
State: California M&A 2 of 7
Country: United States M&A 6 of 57
Year: 2007 M&A 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-01 Fab-Tech

Colchester, Vermont, United States

Fab-Tech, Inc. is a manufacturer of coated stainless steel, corrosive fume exhaust systems for the semiconductor, university lab and other industrial markets. Fab-Tech was founded in 1987 and is based in Colchester, Vermont.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-02-01 Sentient Medical Systems

Hunt Valley, Maryland, United States

Sentient Medical Systems is a provider of intraoperative monitoring (“IOM”) services and non-surgical diagnostic monitoring services to approximately 300 health care facilities in 24 states.

Buy -
SELLER

Valor Equity Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 2001
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Valor Equity Partners is an operationally focused venture capital and growth equity firm focused on acquiring control or non-control positions in high growth companies across various stages of development. Area of interest include industrial products, manufacturing, infrastructure, industrial maintenance, energy services, healthcare, and business services. Valor Equity Partners is based in Chicago, Illinois.


DEAL STATS #
Overall 2 of 10
Sector: Business Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 1
State: California M&A 2 of 3
Country: United States M&A 2 of 10
Year: 2007 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-06-23 Sizzling Platter

Murray, Utah, United States

Sizzling Platter is a restaurant management company focused on adding and scaling segment-leading concepts in outstanding demographic areas across the US and select international markets. Sizzling Platter has become a preferred partner for high growth, high return on capital brands looking to scale within the Company’s footprint. Sizzling Platter strives to build lifetime guests across its concept portfolio utilizing lean enterprise techniques and technology to achieve operational excellence. The Company applies its systems, process, human capital, and passion for the restaurant business to quickly build scale within its target markets. Sizzling Platter was founded in 1963 and is based in Murray, Utah.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-12-01 Smith Energy Services

Carthage, Texas, United States

Smith Energy Services is a provides maintenance and construction services related to natural gas pipelines, gathering systems, well sites and compressor stations as well as equipment rental and vacuum and pressure truck services. Smith Energy Services was founded in 1988 and is based in Carthage, Texas.

Buy -
SELLER

Denargo Capital

Greenwood Village, Colorado, United States

Investor Investor


Category Private Equity Firm
Founded 2003
Size Small
Type Sector Agnostic
DESCRIPTION

Denargo Capital is a private equity investor that looks for buyout, recapitalization, industry consolidation, and growth situation investments. The Firm looks for companies generating at least $10 million in revenue and valued up to $100 million. Denargo Capital was formerly known as Tamarac Capital LLC and is affiliated with BACE Capital Advisors, an investment banking unit. Denargo Capital was formed in 2003 and is based in Greenwood Village, Colorado.


DEAL STATS #
Overall 1 of 1
Sector: Business Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 1
State: California M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2007 M&A 1 of 1