Recapitalization • Business Services

Merit Capital Partners and Monroe Capital Acquire Brook Furniture Rental

On July 1, 1998, mezzanine finance firm Merit Capital Partners and lender Monroe Capital acquired business services company Brook Furniture Rental

Acquisition Context
  • This is Merit Capital Partners’ 2nd and Monroe Capital’s 1st transaction in the Business Services sector.
  • This is Merit Capital Partners’ 20th and Monroe Capital’s 1st transaction in the United States.
  • This is Merit Capital Partners’ 4th and Monroe Capital’s 1st transaction in Illinois.
Investment Fate
  • Brook Furniture Rental was sold to a consortium of financial buyers in 2011.
  • Brook Furniture Rental was sold to a strategic buyer in 2023.

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M&A Deal Summary

Date July 1, 1998
Target Brook Furniture Rental
Sector Business Services
Buyer(s) Merit Capital Partners
Monroe Capital
Deal Type Recapitalization

Target Company

Brook Furniture Rental

Lake Forest, Illinois, United States
Brook Furniture Rental primarily rents furniture, accessories and related services to individuals, corporations and small companies in the “rent-to-rent” segment of the furniture rental industry. The “rent-to-rent” segments serve both corporate and individual customers who desire flexibility in meeting their temporary and transitional needs. Brook Furniture Rental was founded in 1979 and is based in Lake Forest, Illinois.
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Buyers Overview 2

Buyer

Merit Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 2.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Merit Capital Partners is a private investment firm that targets investments in middle market manufacturing, distribution, and service based businesses. Merit looks for companies generating at least $20 million in sales and at least $4 million in EBITDA. Merit can provide both equity and junior capital financing and looks to commit at least $15 million per transaction. Prospective transaction situations include management buyouts, recapitalizations, growth financings, divestitures, unsponsored transactions, and ESOPs. Merit Capital will not invest in start-ups, turnarounds, real estate, specialty retail, or oil/gas opportunities. Merit Capital was originally known as William Blair Mezzanine Capital and became independent in 2004. Merit Capital Partners was formed in 1993 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 20 of 105
Sector: Business Services 2 of 7
Type: Recapitalization 5 of 21
State: Illinois 4 of 11
Country: United States 20 of 104
Year: 1998 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-06-01 Williams

Atlanta, Georgia, United States

Williams is a designer, engineer and manufacturer of auxiliary equipment for gas turbines used in power plants and a variety of industrial applications. Williams was founded in 1998 and is based in Atlanta, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1998-12-01 May Logistics Services

Homewood, Illinois, United States

May Logistics Services, Inc. is a provider of logistics management and a variety of customized services related to its customers’ logistics needs through its operating subsidiary ADS. ADS is a national provider of logistics services to producers and consumers of steel, aluminum and non-ferrous metals.

Buy -
Buyer

Monroe Capital

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Lender
Founded 2004
PE ASSETS 14.1B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Monroe Capital is a provider of senior and junior debt and equity co-investments to middle-market companies in the US and Canada. Investment types include unitranche financings, cash flow and enterprise value based loans, asset based loans, acquisition facilities, mezzanine debt, second lien or last-out loans and equity co-investments. Monroe Capital is a generalist investor and will consider companies in the healthcare, technology, media, retail, consumer sectors. Monroe Capital was formed in 2004 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 1 of 135
Sector: Business Services 1 of 13
Type: Recapitalization 1 of 8
State: Illinois 1 of 8
Country: United States 1 of 134
Year: 1998 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-01 AmeriCast Technologies

Atchison, Kansas, United States

AmeriCast Technologies is a designer, manufacturer and supplier of high-engineered steel and iron castings and machined components for customers such as Caterpillar, General Electric and Electro-Motive.

Buy -