M&A Deal Summary

Mentor Capital Partners, First Analysis, KRG Capital Partners, NMP Capital and Apollo Global Management Acquire SquareTwo Financial

On August 1, 2005, distressed investor Mentor Capital Partners, venture capital firm First Analysis, private equity firm KRG Capital Partners, mezzanine finance firm NMP Capital and asset manager Apollo Global Management acquired financial services company SquareTwo Financial

Acquisition Highlights
  • This is Mentor Capital Partners’ 1st, First Analysis’ 2nd, KRG Capital Partners’ 1st, NMP Capital’s 1st and Apollo Global Management’s 1st transaction in the Financial Services sector.
  • This is Mentor Capital Partners’ 1st, First Analysis’ 18th, KRG Capital Partners’ 19th, NMP Capital’s 25th and Apollo Global Management’s 6th transaction in the United States.
  • This is Mentor Capital Partners’ 1st, First Analysis’ 1st, KRG Capital Partners’ 4th, NMP Capital’s 2nd and Apollo Global Management’s 1st transaction in Colorado.

M&A Deal Summary

Date 2005-08-01
Target SquareTwo Financial
Sector Financial Services
Buyer(s) Mentor Capital Partners
First Analysis
KRG Capital Partners
NMP Capital
Apollo Global Management
Deal Type Buyout (LBO, MBO, MBI)

Target

SquareTwo Financial

Denver, Colorado, United States
SquareTwo Financial Corp. (Formerly Collect America) financial service company that purchases non-performong credit card debt and obtains other debt placements from credit-granting organizations for distribution to its proprietary national network of franchised law firms. This network utilizes Collect America's proprietary technology including computer database, collection software and communication system and collection methodology and operating philosophy.

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Buyer(S) 5

Buyer

Mentor Capital Partners

Yardley, Pennsylvania, United States

Category Distressed Investor
Founded 1994
Size Small
Type Sector Agnostic
DESCRIPTION

Mentor Capital is a private equity and venture capital firm that targets early stage and special situation investments in public and private companies with revenues less than $50 million. Areas of interest include business services, financial services, consumer, distribution, logistics, healthcare, life science, industrial technology, information technology, and media. Mentor can invest in a variety of securities including subordinated notes, preferred stock, common stock, warrants, and royalty streams. Mentor was formed in 1994 and is located in Yardley, Pennsylvania.


DEAL STATS #
Overall 1 of 1
Sector: Financial Services M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 1 of 1
State: Colorado M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2005 M&A 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-02-07 Neoware

King of Prussia, Pennsylvania, United States

Neoware, Inc. is a provider of enterprise software, thin client appliances, and related services that make computing more open, secure, reliable, affordable and manageable.

Sell -
Buyer

First Analysis

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Venture Capital Firm
Founded 1981
PE ASSETS 800M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

First Analysis is a financial advisory and investment firm. First Analysis' private equity arm targets investments in growth companies at all stages of development. The Group looks for opportunities based primarily in the US and can commit up to $10 million of equity per transaction. Sectors of particular interest include outsourced services, (business/government services, education, environmental services, healthcare services, marketing services); information technology, (business integration, call centers, healthcare IT, network security, open source, sensor systems, transaction processing); and chemistry enabled businesses (advanced materials, chemicals, healthcare products, polymers, purification). First Analysis was formed in 1981 and is based in Chicago, Illinois.


DEAL STATS #
Overall 19 of 60
Sector: Financial Services M&A 2 of 3
Type: Buyout (LBO, MBO, MBI) M&A Deals 9 of 11
State: Colorado M&A 1 of 1
Country: United States M&A 18 of 57
Year: 2005 M&A 1 of 1
PREVIOUS 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.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-03 CCS Medical

Farmers Branch, Texas, United States

CCS Medical, Inc. (formerly Chronic Care Solutions Inc) is a rapidly growing provider of quality home medical supplies and services to patients with chronic conditions throughout the United States. By working closely with healthcare professionals and healthcare organizations we ensure the seamless coordination and efficient delivery of critical medical supplies directly to our patients' doorsteps. We are a leader in the industry and are recognized as the most-recommended provider by healthcare professionals because of our commitment to quality, compliance and superior customer care.

Sell $360M
Buyer

KRG Capital Partners

Denver, Colorado, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1996
PE ASSETS 4.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

KRG Capital Partners is a private equity investment firm focused on acquiring controlling interests in middle-market companies. Prospective transaction situations include owner recapitalizations, management buyouts of private companies, mangement buyouts of corporate divisions, outright purchases, and family successions. Target companies typically generate sales of $35 to $400 million and EBITDA of $10 to $100 million. Sectors of interest include healthcare services, medical technology and life sciences; business services and distribution; construction materials and services; transportation services; marketing; specialty finance and insurance; aerospace, defense, and government services; energy services and products; and infrastructure. KRG primarily looks for opportunities located in the US and Canada but will selectively consider investments in Western Europe. KRG was formed in 1996 and is based in Denver, Colorado with additional offices in Mill Valley, California and Las Vegas, Nevada.


DEAL STATS #
Overall 19 of 42
Sector: Financial Services M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 14 of 19
State: Colorado M&A 4 of 4
Country: United States M&A 19 of 41
Year: 2005 M&A 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-07-20 CIVCO Holdings

Kalona, Iowa, United States

CIVCO Holding, Inc., (“CIVCO”) CIVCO is a global leader in the design, manufacture and marketing of specialized accessories, equipment and supplies that complement ultrasound and minimally invasive surgery for critical diagnostic and therapeutic procedures. CIVCO partners with the world’s leading medical OEMs to design manufacture and distribute innovative accessories including ultrasound image-guided biopsy systems, infection control products (transducer covers and surgical covers) and stabilizing and positioning systems, enabling ultrasound-guided diagnostic and therapeutic procedures. The Company also distributes a complete line of imaging supplies including SONY and Mitsubishi printers and consumable print media, transmission gels and warmers, disinfectants, cleansers and soaking systems.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-03 CCS Medical

Farmers Branch, Texas, United States

CCS Medical, Inc. (formerly Chronic Care Solutions Inc) is a rapidly growing provider of quality home medical supplies and services to patients with chronic conditions throughout the United States. By working closely with healthcare professionals and healthcare organizations we ensure the seamless coordination and efficient delivery of critical medical supplies directly to our patients' doorsteps. We are a leader in the industry and are recognized as the most-recommended provider by healthcare professionals because of our commitment to quality, compliance and superior customer care.

Sell $360M
Buyer

NMP Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2000
PE ASSETS 4.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

NMP Capital is an independent investment firm focused on providing junior capital to a variety of lower middle-market companies in partnership with financial sponsors. NMP looks to commit $20 to $75 million in profitable companies with at least $10 million of EBITDA. NMP will consider opportunities in a wide range of industries including distribution, manufacturing, healthcare, and consumer. NMP Capital was formed in 2000 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 26 of 90
Sector: Financial Services M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 12 of 22
State: Colorado M&A 2 of 2
Country: United States M&A 25 of 87
Year: 2005 M&A 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-01 Transtar Industries

Cleveland, Ohio, United States

Transtar Industries is a distributor and remanufacturer of automotive aftermarket transmission repair parts and manufacturers of automotive refinishing products. Transtar Industries was founded in 1975 and is based in Cleveland, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-19 Michaels of Oregon Co.

Overland Park, Kansas, United States

Michaels is an manufacturer of accessories for the hunting, shooting sports and law enforcement markets.

Sell -
Buyer

Apollo Global Management

New York, New York, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1990
PE ASSETS 72.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Apollo Global Management is a global alternative investment firm. The Firm segments its activity between private equity, capital markets, real estate, and publicly traded investment funds. Within private equity, Apollo targets traditional buyouts, distressed situations, as well as minority investments to help companies make acquisitions or fund other needs. Sectors of interest include chemicals, commodities, consumer/retail, distribution, transportation, financial services, business services, manufacturing, industrial, media/cable/leisure, packaging, and satellite/wireless. Apollo's geographic coverage spans Europe, North America, and Asia. Apollo manages publicly traded Apollo Investment Corporation, which provides equity and junior capital to middle-market companies, as well as Apollo Commercial Real Estate Finance, Inc. Apollo Global Management was formed in 1990 and is based in New York City.


DEAL STATS #
Overall 6 of 151
Sector: Financial Services M&A 1 of 9
Type: Buyout (LBO, MBO, MBI) M&A Deals 3 of 18
State: Colorado M&A 1 of 4
Country: United States M&A 6 of 108
Year: 2005 M&A 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-21 API Heat Transfer

Buffalo, New York, United States

API Heat Transfer is a designer and manufacturer of a wide range of heat transfer technologies that service virtually every industrial market including food and beverage, dairy, compressors, air separation, chemical processing, mobile vehicles, power generation, pharmaceuticals, HVAC, and a wide variety of general industrial applications.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-01 cxLoyalty

Stamford, Connecticut, United States

cxLoyalty is a provider of loyalty solutions for financial services, retail, travel, and telecom industries. cxLoyalty design, administer, fulfill and deliver market leading loyalty programs for respected clients and their customers. cxLoyalty is based in Stamford, Connecticut.

Buy -