M&A Deal Summary

L2 Capital Partners and Salem Investment Partners Acquire Rugs Direct

On April 27, 2017, family office L2 Capital Partners and mezzanine finance firm Salem Investment Partners acquired e-commerce company Rugs Direct

Acquisition Highlights
  • This is L2 Capital Partners’ 1st and Salem Investment Partners’ 1st transaction in the E-Commerce sector.
  • This is L2 Capital Partners’ 5th and Salem Investment Partners’ 41st transaction in the United States.
  • This is L2 Capital Partners’ 2nd and Salem Investment Partners’ 3rd transaction in Virginia.

M&A Deal Summary
Date 2017-04-27
Target Rugs Direct
Sector E-Commerce
Buyer(s) L2 Capital Partners
Salem Investment Partners
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) Dinan & Company LLC (Dinan Capital Advisors) (Financial)

Target

Rugs Direct

Winchester, Virginia, United States
Rugs Direct is an online retailer of decorative area rugs for consumers, professional designers, and commercial customers throughout the U.S. and Canada. Rugs Direct provides customers with a virtual product portfolio of over 200,000 SKUs across a diverse range of lifestyles and aesthetics, including contemporary, bohemian, and traditional. Rugs Direct was founded in 1997 and is based in Winchester, Virginia.

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Buyer(S) 2

Buyer

L2 Capital Partners

Devon, Pennsylvania, United States

Investor Investor Investor Investor Investor

Category Family Office
Founded 2011
Size Small
Type Sector Agnostic
DESCRIPTION

L2 Capital Partners is a lower middle-market private equity firm focused on investing in manufacturing, distribution and service companies. L2 looks to invest up to $20 million per transaction to support shareholder liquidity needs, ownership transitions, or for growth. L2 will consider opportunities throughout North America with generating $10 to $125 million in revenue and up to $20 million of EBITDA. L2 Capital was formed in 2011 and is based in Devon, Pennsylvania.

DEAL STATS #
Overall 5 of 17
Sector (E-Commerce) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 3 of 11
State (Virginia) 2 of 3
Country (United States) 5 of 17
Year (2017) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-02-16 Surface Preparation Technologies

New Kingstown, Pennsylvania, United States

Surface Preparation Technologies is a provider of rumble strips and related critical roadway safety services. Surface combines 30+ years of roadway infrastructure expertise and a fleet of proprietary, technologically advanced equipment. Surface Preparation Technologies was founded in 1988 and is based in New Kingstown, Pennsylvania.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-08 Medical Physics

Brecksville, Ohio, United States

Medical Physics is a provider of medical physics staffing and support services, based in Brecksville, Ohio.

Buy -
Buyer

Salem Investment Partners

Investor Investor Investor Investor Investor

Category Mezzanine Finance Firm
Founded 1999
PE ASSETS 450M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Salem Investment Partners specializes in debt and equity investments in privately-held, middle-market businesses across the Southeast and Mid-Atlantic regions of the US. Salem looks to invest $2 to $10 million per transaction to help support growth, acquisitions, recapitalizations, and buyouts. Sectors of interest include business services, light manufacturing, consumer products, and distribution. Salem Investment Partners was formed in 1999 and is based in Greensboro, North Carolina.

DEAL STATS #
Overall 41 of 58
Sector (E-Commerce) 1 of 2
Type (Buyout (LBO, MBO, MBI)) 28 of 40
State (Virginia) 3 of 4
Country (United States) 41 of 58
Year (2017) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-01 PSA Worldwide

Colorado Springs, Colorado, United States

PSA Worldwide create awareness for programs which educate on sexual assault prevention, domestic and dating violence prevention, substance abuse prevention, child abuse, bullying, suicide prevention, and overall wellness! PSA Worldwide is based in Colorado Springs, Colorado.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-01 Himalayan Handmade Candles

Duluth, Georgia, United States

Himalayan Handmade Candles is a manufacturer of fragranced candles in reusable original containers. Himalayan candles are poured using artisan techniques with a natural soy wax blend and high quality essential and fragrance oils. They will burn exceptionally well a clean even burn with minimal sooting, leaving little to no residue and a lingering fragrance. Himalayan Handmade Candles is based in Duluth, Georgia.

Buy -
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