Buyout (LBO, MBO, MBI) • Manufacturing

HSBC Capital and DeltaPoint Capital Management Acquire PCORE Electric Co.

On July 14, 2004, HSBC Capital and merchant bank DeltaPoint Capital Management acquired manufacturer PCORE Electric Co.

Acquisition Context
  • This is HSBC Capital’s 2nd and DeltaPoint Capital Management’s 1st transaction in the Manufacturing sector.
  • This is HSBC Capital’s 6th and DeltaPoint Capital Management’s 1st transaction in the United States.
  • This is HSBC Capital’s 2nd and DeltaPoint Capital Management’s 1st transaction in New York.
Investment Fate
  • PCORE Electric Co. was sold to a strategic buyer in 2007.

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M&A Deal Summary

Date July 14, 2004
Target PCORE Electric Co.
Sector Manufacturing
Buyer(s) HSBC Capital
DeltaPoint Capital Management
Deal Type Buyout (LBO, MBO, MBI)

Target Company

PCORE Electric Co.

Leroy, New York, United States
PCore is a LeRoy, N.Y.-based provider of high-voltage condenser bushings and related components and services to high-power transformer manufacturers. Houlihan Lokey Howard & Zukin advised the sellers.
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Buyers Overview 2

Buyer

HSBC Capital

New York, New York, United States

Category Private Equity Firm
Founded 1991
PE ASSETS 1.6B USD
Size Large
Type Sector Agnostic
DESCRIPTION

HSBC Capital (North America) the US and Canada principal investments arm of HSBC. HSBC Capital consists of HSBC Capital Canada and HSBC Capital USA. The Group focuses on making private equity and mezzanine investments in profitable, mid-market companies and select real estate transactions. The Group will consider both control and minority positions. Investment proceeds are generally used to support buyouts, expansion financings, recapitalizations, and real estate acquisitions. In addition to targeting US based opportunities, the Group will also consider investments in Latin America. Broad sectors of interest include manufacturing, service, and distribution. HSBC Capital was formed in 1991 and is based in New York City, HSBC Capital has become Graycliff partners on Dec 2011.


Deal Context for Buyer #
Overall 6 of 24
Sector: Manufacturing 2 of 3
Type: Buyout (LBO, MBO, MBI) 6 of 17
State: New York 2 of 8
Country: United States 6 of 23
Year: 2004 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-01 American Pacesetters Enterprises

Mesa, Arizona, United States

In January 2004, HSBC Capital invested mezzanine capital in American Pacesetters Enterprises (AMPE), a leading provider of subscription management services for trade journals. The investment financed the buyout of AMPE by Kidd & Company. HSBC Capital exited its investment in AMPE in December 2008.

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FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-02-01 Fitness Forum

Syracuse, New York, United States

HSBC Capital invested mezzanine capital in Fitness Forum, an operator of physical therapy clinics in the north-east. The investment financed the acquisition of additional clinics. HSBC Capital is the first institutional investor in Fitness Forum.

Buy -
Buyer

DeltaPoint Capital Management

Rochester, New York, United States

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 Context for Buyer #
Overall 1 of 10
Sector: Manufacturing 1 of 3
Type: Buyout (LBO, MBO, MBI) 1 of 4
State: New York 1 of 9
Country: United States 1 of 10
Year: 2004 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-28 IPLogic

Rochester, New York, United States

IPLogic is an IT professional services company focusing on voice and data networking. The Company provides technology consulting and integration services for medium to large companies, delivering secure, converged voice and data business technology solutions. Its solutions enable customers to focus on managing their core business by providing expertise in communications networking, application integration and managed services.

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