M&A Deal Summary

PNC Mezzanine Capital, Ancor Capital Partners and Merit Capital Partners Acquire Identity Group

On May 27, 2014, mezzanine finance firm PNC Mezzanine Capital, private equity firm Ancor Capital Partners and mezzanine finance firm Merit Capital Partners acquired marketing company Identity Group from Saw Mill Capital

Acquisition Highlights
  • This is PNC Mezzanine Capital’s 1st, Ancor Capital Partners’ 1st and Merit Capital Partners’ 2nd transaction in the Marketing sector.
  • This is PNC Mezzanine Capital’s 43rd, Ancor Capital Partners’ 12th and Merit Capital Partners’ 70th transaction in the United States.
  • This is PNC Mezzanine Capital’s 4th, Ancor Capital Partners’ 1st and Merit Capital Partners’ 1st transaction in Tennessee.

M&A Deal Summary

Date 2014-05-27
Target Identity Group
Sector Marketing
Buyer(s) PNC Mezzanine Capital
Ancor Capital Partners
Merit Capital Partners
Sellers(s) Saw Mill Capital
Deal Type Secondary Buyout
Advisor(s) Lincoln International (Financial)

Target

Identity Group

Nashville, Tennessee, United States
Identity Group is a manufacturer of custom identity products engineered to communicate a brand, message, location, or creative theme. Identity Group is best known for manufacturing and marketing customized interior signs and wayfinding products for large-scale construction and renovation projects. Identity Group was founded in 1957 and is based in Nashville, Tennessee.

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Buyer(S) 3

Buyer

PNC Mezzanine Capital

Pittsburgh, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

PNC Mezzanine Capital is the subordinated debt investing arm of PNC Bank. PNC Mezzanine looks to provide $10 to $50 million of junior capital to middle-market companies in a variety of industries. Prospective companies generally have revenues of $20 million and EBITDA greater than $4 million. Broad sectors of interest include niche manufacturing, value-added distribution, and business or consumer services. PNC will not invest in early-stage or technology-driven businesses; real estate, commodity-based or capital-intensive companies; businesses with high customer or vendor concentration; or declining businesses. PNC Mezzanine was formed in 1989 and is based in Pittsburgh, Pennsylvania.


DEAL STATS #
Overall 44 of 77
Sector (Marketing) 1 of 1
Type (Secondary Buyout) 10 of 15
State (Tennessee) 4 of 4
Country (United States) 43 of 73
Year (2014) 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-01 Century Mold

Rochester, New York, United States

Century Mold is a leading designer and manufacturer of high quality, precision molded thermo-plastic components. The Company supplies its products primarily to Tier 1 automotive/truck suppliers for use in under-the-hood car and truck applications. Century Mold offers an integrated solution, including design, engineering and production of precision molds; high quality injection and insert molding of close tolerance plastic components; and assembly and finishing operations. The Company's parts are on over 60% of all cars and light duty trucks manufactured in North America.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-14 Prospect Mold

Cuyahoga Falls, Ohio, United States

Prospect Mold is a designer and manufacturer of complex molds, tooling and production parts for a variety of industries, including automotive and aerospace. Prospect Mold was founded in 1945 and is based in Cuyahoga Falls, Ohio.

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 STATS #
Overall 12 of 26
Sector (Marketing) 1 of 1
Type (Secondary Buyout) 4 of 5
State (Tennessee) 1 of 1
Country (United States) 12 of 26
Year (2014) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-27 Carex Health Brands

Sioux Falls, South Dakota, United States

Carex Health Brands, Inc. is a designer and marketer of branded home medical equipment. Carex produces and sells products under four brands – Carex, Apex, Bed Buddy and Thera-Med. Products include mobility aids, bath safety products, medication compliance aids, and hot/cold therapy products. Carex’s customers are primarily big box retailers, chain pharmacies, grocery stores and pharmaceutical distribution companies.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-11-05 Transhield

Elkhart, Indiana, United States

Transhield designs and manufactures highly engineered environmental protective and corrosion-inhibiting covers that protect boats, vehicles, military equipment, and equipment during storage and transportation. Transhield was founded in 1994 and is based in Elkhart, Indiana.

Buy -
Buyer

Merit Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 2.2B 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 $25 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 was formed in 1993 and is based in Chicago, Illinois.


DEAL STATS #
Overall 71 of 98
Sector (Marketing) 2 of 2
Type (Secondary Buyout) 8 of 11
State (Tennessee) 1 of 1
Country (United States) 70 of 97
Year (2014) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-01 Carter-Waters

Kansas City, Missouri, United States

Carter-Waters LLC is a distributor of construction materials and equipment utilized in concrete construction applications to commercial, highway and residential contractors. The Company operates 12 locations in Missouri, Kansas and Southern Illinois. Carter-Waters also maintains an extensive rental inventory of concrete forming and shoring products and operates a custom rebar fabrication facility.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-08-01 TGR Industrial Services

Houston, Texas, United States

TGR Industrial Services is a national provider of Non-Destructive Testing and Heat Treating Services. Non-destructive testing represents a subcategory of the Testing, Inspection & Certification sector which aims to detect flaws, cracks, variations and minute changes in objects without damaging the products being tested. TGR Industrial Services was founded in 1976 and is based in Houston, Texas.

Buy -

Seller(S) 1

SELLER

Saw Mill Capital

Briarcliff Manor, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 610M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Saw Mill Capital is a private equity firm focused on middle-market company acquisitions valued up to $200 million. Saw Mill prefers businesses with defensible market positions, solid growth prospects, and historical cash-flow. Sectors of interest include manufacturing, specialty distribution, and service. Saw Mill looks to commit between $15 and $75 million per transaction in companies with at least $3 million of EBITDA. Saw Mill will not invest in retail, healthcare services, media/telecom, information technology, financial services, personnel based services, apparel or businesses driven by fad or fashion. Saw Mill Capital was formed in 1997 and is based in Briarcliff Manor, New York.


DEAL STATS #
Overall 7 of 15
Sector (Marketing) 1 of 1
Type (Secondary Buyout) 4 of 9
State (Tennessee) 1 of 1
Country (United States) 6 of 14
Year (2014) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-17 Janus International

Temple, Georgia, United States

Janus International is a global turnkey supplier of premium doors, hallway systems, locks, interior solutions, and ancillary technologies to the self-storage, commercial construction, and other industrial sectors. Janus International was founded in 2002 and is based in Temple, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-31 Denali

Russellville, Arkansas, United States

Denali is a provider of specialty waste and environmental recycling and disposal services in the United States, performing mission-critical daily organic waste collection, processing, recycling, and disposal for municipal, industrial food processing and downstream industrial customers. Denali is based in Russellville, Arkansas.

Sell -