Secondary Buyout • Consumer Products

River Associates and Northstar Capital Acquire Weaver Leather

On February 25, 2016, private equity firm River Associates and mezzanine finance firm Northstar Capital acquired consumer products company Weaver Leather from Heartwood Partners

Acquisition Context
  • This is River Associates’ 1st and Northstar Capital’s 8th transaction in the Consumer Products sector.
  • This is River Associates’ 24th and Northstar Capital’s 72nd transaction in the United States.
  • This is River Associates’ 3rd and Northstar Capital’s 4th transaction in Ohio.
Investment Fate
  • Weaver Leather was sold to a consortium of financial buyers in 2021.

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M&A Deal Summary

Date February 25, 2016
Target Weaver Leather
Sector Consumer Products
Buyer(s) River Associates
Northstar Capital
Sellers(s) Heartwood Partners
Deal Type Secondary Buyout

Target Company

Weaver Leather

Mount Hope, Ohio, United States
Weaver Leather is a provider of leather and nylon products and accessories into the Western-style equine, livestock, pet, and arborist markets. Weaver manufactures, markets, and distributes a broad line of branded and non-branded leather, nylon/synthetic, hardware, and other products and product accessories uniquely designed for its four consumer-focused divisions (equine, livestock, pet, and arborist) - and its wholesale supply division. Weaver Leather was established in 1973 and is based in Mount Hope, Ohio.
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Buyers Overview 2

Buyer

River Associates

Chattanooga, Tennessee, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 1.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

River Associates is a private equity firm that targets buyouts, divestitures and recapitalizations of lower middle-market companies. River looks for investments in manufacturing, high-margin distribution, industrial services and 'non-faddish' retail companies. The Firm focuses on companies located in the US and Canada with minimum sales of $15 million and EBITDA of $3 to $12 million. River Associates avoids investing in heavily regulated industries as well as start-up, high-technology, commodity or natural resource companies. River Associates was formed in 1989 and is based in Chattanooga, Tennessee.


Deal Context for Buyer #
Overall 25 of 39
Sector: Consumer Products 1 of 3
Type: Secondary Buyout 6 of 7
State: Ohio 3 of 5
Country: United States 24 of 37
Year: 2016 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-16 Industrial Magnetics

Boyne City, Michigan, United States

Industrial Magnetics is a provider of highly engineered solutions for magnetic separation and material handling, particle processing, and process automation applications. Industrial Magnetics was founded in 1961 and is based in Boyne City, Michigan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-05 TrueNet Communications

Jacksonville, Florida, United States

TrueNet Communications, Inc. is a provider of communications network infrastructure services specializing in delivering consulting, engineering, installation and technical services to the Broadband, Wireless and Wireline Carrier, Energy and Utility, and corporate and government markets. TrueNet is extremely well positioned to capitalize on the demand for broadband infrastructure driven by the ever increasing need for bandwidth

Sell -
Buyer

Northstar Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Northstar Capital is a mezzanine finance firm that provides junior capital to middle-market companies operating in the value-added distribution, light manufacturing, business services, financial services, education, and specialty healthcare sectors. Northstar's typical investment size is $5 to $30 million in businesses generating sales of $20 to $300 million with an EBITDA of at least $3 million. Prospective companies have stable cash flows and sustainable margins. Investments typically have maturities of five to eight years. Northstar does not invest in start-ups, real estate development, natural resource exploration, or high technology companies. Northstar Capital was formed in 1993 and is based in Minneapolis, Minnesota.


Deal Context for Buyer #
Overall 75 of 121
Sector: Consumer Products 8 of 13
Type: Secondary Buyout 13 of 22
State: Ohio 4 of 4
Country: United States 72 of 116
Year: 2016 2 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-16 Industrial Magnetics

Boyne City, Michigan, United States

Industrial Magnetics is a provider of highly engineered solutions for magnetic separation and material handling, particle processing, and process automation applications. Industrial Magnetics was founded in 1961 and is based in Boyne City, Michigan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-10 Superior Health Linens

Batavia, Illinois, United States

Superior Health Linens LLC is a provider of textile rental and maintenance services for the healthcare marketplace which utilizes the latest laundry technology and system controls for rapid turnaround and delivery of linen and other textiles. Superior Health Linens was founded in 1990 and is based in Batavia, Illinois.

Sell -

Seller Profile 1

SELLER

Heartwood Partners

Norwalk, Connecticut, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1982
PE ASSETS 1.6B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Heartwood Partners is a private equity firm focused on partnerships with middle-market companies across the US. The Firm prefers to invest in family owned and managed companies where it can leverage strategic resources for long-term growth. Target companies are typically profitable with $5 to $30 million of EBITDA with up to $400 million in revenue. Sectors of interest include agriculture, automotive, consumer products, distribution, food, industrial services, niche manufacturing, packaging, and chemicals. Heartwood Partners was formed in 1982 and is headquartered in Norwalk, Connecticut.


Deal Context for Seller #
Overall 10 of 23
Sector: Consumer Products 2 of 2
Type: Secondary Buyout 4 of 11
State: Ohio 1 of 1
Country: United States 10 of 23
Year: 2016 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-14 M&Q Packaging

Schuylkill Haven, Pennsylvania, United States

M&Q Packaging is a manufacturer of high-temperature, ovenable packaging used in food service, food processing, medical, and industrial markets. Its products include proprietary Pansaver food preparation products as well as engineered meat processing packaging, cleanroom packaging, vacuum bagging films, sterilization packaging, and solvent recovery bags. M&Q Packaging is based in Schuylkill Haven, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-01 Lone Star Beef Processors

San Angelo, Texas, United States

Lone Star Beef Processors LP is a cattle processor and supplier of premium grass-fed lean beef, providing an essential ingredient used in the production of retail ground beef for end consumers. Lone Star Beef Processors was founded in 2007 and is based in San Angelo, Texas.

Sell -