M&A Deal Summary

New Mountain Capital Acquires Diversified Foodservice Supply

On February 18, 2015, private equity firm New Mountain Capital acquired distribution company Diversified Foodservice Supply from KRG Capital Partners and Audax Private Debt

Acquisition Highlights
  • This is New Mountain Capital’s 2nd transaction in the Distribution sector.
  • This is New Mountain Capital’s 29th transaction in the United States.
  • This is New Mountain Capital’s 2nd transaction in Illinois.

M&A Deal Summary
Date 2015-02-18
Target Diversified Foodservice Supply
Sector Distribution
Buyer(s) New Mountain Capital
Sellers(s) KRG Capital Partners
Audax Private Debt
Deal Type Secondary Buyout
Advisor(s) Robert W. Baird & Co., Inc. (Financial)
Hogan Lovells (Legal)

Target

Diversified Foodservice Supply

Mount Prospect, Illinois, United States
Diversified Foodservice Supply is a distributor of maintenance, repair and operations parts, supplies, and equipment to the U.S. foodservice industry, serving over 250,000 foodservice customer locations. DFSI is uniquely positioned in the industry due to its strength in sourcing high quality parts from both original component and original equipment manufacturers. DFSI currently operates through multiple brands including AllPoints Foodservice Parts & Supplies, Tundra Restaurant Supply, Franklin Machine Products, Mill Hardware, and Restaurant Parts & More. Its brands are consistently recognized as market leaders in service, quality, and value. DFSI has a long track record of strong organic growth complemented by successful acquisitions. These acquisitions have helped to broaden its product offering and geographic footprint, enabling DFSI to provide industry-leading selection and service to its customers.

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Buyer(S) 1

Buyer

New Mountain Capital

New York, New York, United States
Category Private Equity Firm
Founded 2000
PE ASSETS 35.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

New Mountain Capital is a private investment firm focused on investment in public and private companies in a variety of industries. New Mountain generally invests $100 to $500 million per transaction and looks for businesses with strong market positions and high barriers to entry. New Mountain also prefers businesses that succeed in both good and bad economies. Sectors of interest include education, healthcare, business services, federal IT services, media, software, consumer products, logistics, financial services and technologies, and energy. New Mountain Capital was formed in 2000 and is based in New York City.

DEAL STATS #
Overall 33 of 95
Sector (Distribution) 2 of 2
Type (Secondary Buyout) 10 of 38
State (Illinois) 2 of 8
Country (United States) 29 of 90
Year (2015) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-31 Datavant Group

Alpharetta, Georgia, United States

Datavant Group is a large health data ecosystem, enabling patients, providers, payers, health data analytics companies, patient-facing applications, government agencies, and life science companies to securely exchange and organize their patient-level data. The company is focused on improving patient outcomes and reducing costs by removing impediments to the secure exchange of health data. Datavant Group offers the ability to access, exchange, and connect data among the thousands of organizations in its ecosystem for use cases ranging from better clinical care and value-based payments, to health analytics and medical research.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-08 Zep

Atlanta, Georgia, United States

Zep is a manufacturer and marketer of a wide range of high-efficacy maintenance and cleaning solutions for commercial, industrial, institutional, and consumer end-markets under well-known and respected brand names. The breadth of the Zep product portfolio provides customized, superior cleaning and maintenance solutions to a broad customer base including manufacturers, food processors and preparers, restaurants, hospitals, schools, municipalities, government organizations, hotels and car washes.

Buy $692M

Seller(S) 2

SELLER

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 31 of 41
Sector (Distribution) 3 of 3
Type (Secondary Buyout) 9 of 14
State (Illinois) 4 of 7
Country (United States) 30 of 40
Year (2015) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-11-05 OLSON

Minneapolis, Minnesota, United States

Olson provides digital marketing solutions around customer engagement and branding and is widely recognized for its innovative strategic advisory work, its software-driven customer loyalty programs and its analytics-based marketing.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-06-23 Core Label

Tyrone, Pennsylvania, United States

Core Label LLC is a provider of roll-fed labels for the beverage market.

Sell -
SELLER

Audax Private Debt

New York, New York, United States

Investor Investor Investor Investor Investor

Category Mezzanine Finance Firm
Founded 2000
PE ASSETS 5.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Mezzanine is the mezzanine finance arm of the Audax Group. The Firm focuses on investing in both private and public, US-based middle market companies with a strong history of cash flows and consistent revenue growth. Audax will consider subordinated mezzanine debt commitments, second lien or junior secured debt, preferred stock and common stock. The Firm seeks to invest in companies valued between $10 and $60 million. Types of transaction include MBOs, LBOs, growth capital financings, acquisition financings, and recapitalizations.

DEAL STATS #
Overall 32 of 51
Sector (Distribution) 3 of 3
Type (Secondary Buyout) 12 of 24
State (Illinois) 3 of 3
Country (United States) 32 of 51
Year (2015) 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-02-03 EAB

Washington, District of Columbia, United States

EAB is a provider of best practices research, student success management software and data-enabled enrollment solutions to the not-for-profit higher education and K-12 markets. The Company’s solutions help institutions increase enrollment yield, balance financial aid with revenue generation, drive higher student retention and success, and implement industry best practices derived from benchmarking and research. EAB was formed in 1983 and is based in Washington, District of Columbia.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-06-10 Area Wide Protective

North Canton, Ohio, United States

Area Wide Protective is a provider of professional traffic control design and execution services in support of utility infrastructure maintenance and construction activity. Area Wide Protective was founded in 1993 and is based in North Canton, Ohio.

Buy -
Mergr

Product

Company

Legal