Recapitalization • Machinery

Southpointe Ventures, Capitala Group and Source Capital Exits Aerial Access Equipment

On August 11, 2007, private equity firm Source Capital invested in machinery company Aerial Access Equipment from Southpointe Ventures, Capitala Group and Source Capital

Investment Context
  • This is Source Capital’s 2nd transaction in the Machinery sector.
  • This is Source Capital’s 7th transaction in the United States.
  • This is Source Capital’s 2nd transaction in Louisiana.
Investment Fate
  • Aerial Access Equipment was sold to a financial buyer in 2019.

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Investment Summary

Date August 11, 2007
Target Aerial Access Equipment
Sector Machinery
Investor(s) Source Capital
Sellers(s) Southpointe Ventures
Capitala Group
Source Capital
Deal Type Recapitalization

Target Company

Aerial Access Equipment

Baton Rouge, Louisiana, United States
Aerial Access Equipment is a provider of heavy equipment rental, sales, and repair services focused on aerial work platforms, boom lifts, scissor lifts, and related lift equipment. Aerial Access Equipment was founded in 1998 and is based in Baton Rouge, Louisiana.
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Investor Overview 1

Investor

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 Context for Investor #
Overall 7 of 44
Sector: Machinery 2 of 3
Type: Recapitalization 2 of 4
State: Louisiana 2 of 2
Country: United States 7 of 44
Year: 2007 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-03 S&S Industries

Yonkers, New York, United States

S&S Industries, Inc. is a manufacturer of brassiere underwire. The company operates manufacturing facilities in Central America and Asia to supply its customers’ global operations. S&S drives innovation in the industry by designing products that enhance the wearability, style, and durability of underwire bras. S&S Industries was founded in 1947 and is based in Yonkers, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-05-01 AirWorx Construction Equipment

Indianapolis, Indiana, United States

AirWorx Construction Equipment is a distributor of new and used construction equipment such as Aerial Work Platforms and Telehandlers for the construction and industrial markets in the Indiana, Ohio, and Kentucky regions. AirWorx Construction Equipment was founded in 1996 and is based in Indianapolis, Indiana.

Sell -

Seller Profiles 3

SELLER

Southpointe Ventures

Atlanta, Georgia, United States

Investor


Category Private Equity Firm
Founded 2003
Size Small
Type Sector Agnostic
DESCRIPTION

Southpointe Ventures is a private equity group that targets smaller, established companies in the Southeast United States. Southpointe looks to invest in companies that allow for faster growth and higher return potential due to the company's lower overhead structure, market flexibility, and efficiency. The Firm focuses on companies with revenues of $5 to $50 million and EBITDA of $1 to $5 million. Southpointe will not invest in start-ups, turnarounds or real estate. Southpointe Ventures was founded in 2003 and is based in Atlanta, Georgia.


Deal Context for Seller #
Overall 1 of 4
Sector: Machinery 1 of 1
Type: Recapitalization 1 of 1
State: Louisiana 1 of 1
Country: United States 1 of 4
Year: 2007 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-02-28 Southern Parts & Engineering Co.

Alpharetta, Georgia, United States

Southern Parts & Engineering Co. is a value-added distributor and servicer of industrial air compressors and parts. SPECO provides a deep mix of rotary and reciprocating compressor parts, and through its machining operation in St. Louis can manufacture custom parts to customer specifications or to match OEM requirements.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-01 Southern Parts & Engineering Co.

Alpharetta, Georgia, United States

Southern Parts & Engineering Co. is a value-added distributor and servicer of industrial air compressors and parts. SPECO provides a deep mix of rotary and reciprocating compressor parts, and through its machining operation in St. Louis can manufacture custom parts to customer specifications or to match OEM requirements.

Sell -
SELLER

Capitala Group

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1998
PE ASSETS 2.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Capitala Group is an asset manager that provides equity and mezzanine capital to mid-sized companies valued up to $250 million. Funds are generally used to support growth needs, add-on acquisitions, management/leveraged buyouts, and recapitalizations. Capitatala will invest across the US, but generally targets opportunities located in the Southeast. Industry preferences include building products, business services, consumer/reteail, general industrial, healthcare, and technology. Prospective companies typically have revenues greater than $10 million and EBITDA of at least $3 million. Capitala was formed in 1998 and is headquartered in Charlotte, North Carolina.


Deal Context for Seller #
Overall 4 of 56
Sector: Machinery 1 of 1
Type: Recapitalization 2 of 3
State: Louisiana 1 of 2
Country: United States 3 of 55
Year: 2007 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-29 V12 Group

Red Bank, New Jersey, United States

V12 Group is a premium data provider through proprietary technology, businesses of all sizes gain access to over 5 billion premium consumer, business and automotive records. V12 Group is based in Red Bank, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-11-01 Living Earth

Dallas, Texas, United States

Living Earth is a manufacturer and provider of mulch, compost, and other landscaping materials in the State of Texas. The Company operates thirteen locations, primarily in the metropolitan areas of Dallas and Houston, selling to commercial contractors and nurseries. Living Earth was founded in 1985 and is based in Dallas, Texas.

Buy -
SELLER

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 Context for Seller #
Overall 2 of 19
Sector: Machinery 1 of 2
Type: Recapitalization 1 of 1
State: Louisiana 1 of 2
Country: United States 2 of 19
Year: 2007 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-03 S&S Industries

Yonkers, New York, United States

S&S Industries, Inc. is a manufacturer of brassiere underwire. The company operates manufacturing facilities in Central America and Asia to supply its customers’ global operations. S&S drives innovation in the industry by designing products that enhance the wearability, style, and durability of underwire bras. S&S Industries was founded in 1947 and is based in Yonkers, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-05-01 AirWorx Construction Equipment

Indianapolis, Indiana, United States

AirWorx Construction Equipment is a distributor of new and used construction equipment such as Aerial Work Platforms and Telehandlers for the construction and industrial markets in the Indiana, Ohio, and Kentucky regions. AirWorx Construction Equipment was founded in 1996 and is based in Indianapolis, Indiana.

Sell -