Buyout (LBO, MBO, MBI) • Food

Merit Capital Partners and Ancor Capital Partners Acquire Tom Cat Bakery

On December 31, 2008, mezzanine finance firm Merit Capital Partners and private equity firm Ancor Capital Partners acquired food company Tom Cat Bakery

Acquisition Context
  • This is Merit Capital Partners’ 3rd and Ancor Capital Partners’ 3rd transaction in the Food sector.
  • This is Merit Capital Partners’ 53rd and Ancor Capital Partners’ 6th transaction in the United States.
  • This is Merit Capital Partners’ 3rd and Ancor Capital Partners’ 2nd transaction in New York.
Investment Fate
  • Tom Cat Bakery was sold to a strategic buyer in 2016.

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M&A Deal Summary

Date December 31, 2008
Target Tom Cat Bakery
Sector Food
Buyer(s) Merit Capital Partners
Ancor Capital Partners
Deal Type Buyout (LBO, MBO, MBI)

Target Company

Tom Cat Bakery

Long Island City, New York, United States
Tom Cat Bakery, Inc. is a producer of premium artisan bread and sweet goods for casual and fine dining restaurants, Starbucks, other specialty retailers, and food service companies. Recognized as one of the founders of the artisan bread market in New York City, Tom Cat maintains one of the largest artisan bread and sweet goods product lines in the Northeast with over 350 products.
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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 53 of 105
Sector: Food 3 of 4
Type: Buyout (LBO, MBO, MBI) 37 of 63
State: New York 3 of 4
Country: United States 53 of 104
Year: 2008 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-06-02 PVI Industries

Fort Worth, Texas, United States

PVI Industries LLC is a manufacturer of commercial water heaters, firetube boilers, multi-tube boilers and related component parts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-03-01 Ferrara Fire Apparatus

Holden, Louisiana, United States

Ferrara Fire Apparatus, Inc. is a manufacturer and seller of fire apparatus in the United States and internationally. FFA manufactures over 300 fire trucks per year at its Louisiana facility and sells both directly and through a network of independently owned dealers. Ferrara Fire Apparatus was formed in 1988 and is based in Holden, Louisiana.

Buy -
Buyer

Ancor Capital Partners

Southlake, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
Size Small
Type Sector Agnostic
DESCRIPTION

Ancor Capital Partners is a private equity firm focused on recapitalizations of lower middle-market companies operating in the manufacturing, distribution, and healthcare sectors. Prospective businesses are generally valued between $25 and $150 million and are profitable with EBITDA of $5 to $15 million. The Firm prefers businesses located in the US. Ancor will does not invest in start-ups, turnarounds, or businesses in real estate, or energy exploration. Ancor Capital Partners was formed in 1994 and is based in Southlake, Texas.


Deal Context for Buyer #
Overall 6 of 27
Sector: Food 3 of 4
Type: Buyout (LBO, MBO, MBI) 5 of 13
State: New York 2 of 3
Country: United States 6 of 27
Year: 2008 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-01-01 Liguria Foods

Humboldt, Iowa, United States

Liguria Foods, Inc. is a producer of high-quality pepperoni, salami, and other premium protein pizza toppings for both pizzerias and sandwich shops.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-03-01 FCA Packaging

Moline, Illinois, United States

FCA Packaging is a provider of custom industrial packaging that includes wood, steel, corrugated and hybrid products, as well as expendable, reusable, and returnable solutions. FCA Packaging was founded in 1985 and is based in Moline, Illinois.

Buy -