M&A Deal Summary

Source Capital, Merit Capital Partners and Ancor Capital Partners Acquire Displayit

On January 1, 2018, private equity firm Source Capital, mezzanine finance firm Merit Capital Partners and private equity firm Ancor Capital Partners acquired manufacturer Displayit

Acquisition Highlights
  • This is Source Capital’s 2nd, Merit Capital Partners’ 11th and Ancor Capital Partners’ 2nd transaction in the Manufacturing sector.
  • This is Source Capital’s 21st, Merit Capital Partners’ 83rd and Ancor Capital Partners’ 21st transaction in the United States.
  • This is Source Capital’s 6th, Merit Capital Partners’ 4th and Ancor Capital Partners’ 1st transaction in Georgia.

M&A Deal Summary

Date 2018-01-01
Target Displayit
Sector Manufacturing
Buyer(s) Source Capital
Merit Capital Partners
Ancor Capital Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

Displayit

Buford, Georgia, United States
Displayit is a designer and manufacturer of portable and modular displays and exhibits. Displayit was founded in 1996 and is based in Buford, Georgia.

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Buyer(S) 3

Buyer

Source Capital

Atlanta, Georgia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2002
Size Small
Type Sector Agnostic
DESCRIPTION

Source Capital is a private equity firm that invests in mature, smaller companies in a variety of sectors. The Firm generally looks to support management-backed leveraged acquisitions, recapitalizations, growth financings, and various turnaround situations. Source Capital's broad industry focus includes business services, consumer, distribution/supply, healthcare, and light manufacturing. The Firm prefers control investments, but will selectively review minority situations. Target companies are typically profitable with at least $2 million in EBITDA. Source Capital will not invest in venture deals, high tech, or real estate. Source Capital was formed in 2002 and is based in Atlanta, Georgia.


DEAL STATS #
Overall 21 of 38
Sector (Manufacturing) 2 of 3
Type (Buyout (LBO, MBO, MBI)) 12 of 20
State (Georgia) 6 of 8
Country (United States) 21 of 38
Year (2018) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-11-13 Backyard Products

Monroe, Michigan, United States

Backyard Products is a designer, manufacturer, and marketer of ready-to-assemble and installed wood-based storage buildings and other outdoor structures. Its product lines include storage buildings and accessories, gazebos, playhouses, and playsets. Backyard Products was founded in 1975 and is based in Monroe, Michigan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-05-03 M&M Carnot

Federalsburg, Maryland, United States

M&M Carnot is a provider of industrial refrigeration equipment and control systems for cold storage, food processing, and other industrial applications. M&M designs build, manufactures and service industrial refrigeration systems around the world. M&M Carnot was founded in 1969 and is based in Federalsburg, Maryland.

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 84 of 98
Sector (Manufacturing) 11 of 13
Type (Buyout (LBO, MBO, MBI)) 53 of 62
State (Georgia) 4 of 4
Country (United States) 83 of 97
Year (2018) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-18 Green Creative

Sanford, Florida, United States

Green Creative LLC is a developer and manufacturer of innovative light-emitting diode (“LED”) lighting for the Commercial, Industrial, and Specification markets. The company has served the North American commercial lighting market with an industry-leading product offering of LED lamps and LED luminaires. With its headquarters in Silicon Valley, CA and R&D center in Shanghai, China, the company’s LED lighting solutions have been widely adopted by some of the largest companies in the world. Green Creative was founded in 2010 and is based in Sanford, Florida.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-04-18 Choice Adhesives

Cincinnati, Ohio, United States

Choice Adhesives is a manufacturer and distributor of specialty, custom formulated industrial adhesives. Choice manufactures solvent‐ and water‐borne adhesives for a wide variety of end-market applications, including high-pressure laminates, building products, footwear, plastics, flooring, belting, and foam fabrication, among others. Choice Adhesives is based in Cincinnati, 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 21 of 26
Sector (Manufacturing) 2 of 2
Type (Buyout (LBO, MBO, MBI)) 12 of 14
State (Georgia) 1 of 1
Country (United States) 21 of 26
Year (2018) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-11-28 Industrial Timber

Tupelo, Mississippi, United States

Industrial Timber is a designer and manufacturer of outsourced, ready-to-assemble just-in-time wooden frames for the upholstered furniture industry. The company works with furniture manufacturers to supply the designed, most efficient frames available, helping them improve quality while making a positive impact on their bottom line. Industrial Timber was founded in 1999 and is based in Tupelo, Mississippi.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-09-10 Statinmed Research

Dallas, Texas, United States

Statinmed Research is an operator of health care consultant company in the health economics and outcomes research (HEOR) discipline that provides research, consulting and targeted communications to global pharmaceutical, biotechnology, and health information companies. Statinmed Research was founded in 2007 and is based in Dallas, Texas.

Buy -