M&A Deal Summary

Summit Park, Stellus Capital Management and Digital Fuel Capital Acquire Ledge Lounger

On November 10, 2021, private equity firms Summit Park, Stellus Capital Management and Digital Fuel Capital acquired furniture company Ledge Lounger

Acquisition Highlights
  • This is Summit Park’s 1st, Stellus Capital Management’s 1st and Digital Fuel Capital’s 1st transaction in the Furniture sector.
  • This is Summit Park’s 17th, Stellus Capital Management’s 12th and Digital Fuel Capital’s 16th transaction in the United States.
  • This is Summit Park’s 2nd, Stellus Capital Management’s 2nd and Digital Fuel Capital’s 1st transaction in Texas.

M&A Deal Summary

Date 2021-11-10
Target Ledge Lounger
Sector Furniture
Buyer(s) Summit Park
Stellus Capital Management
Digital Fuel Capital
Deal Type Recapitalization
Advisor(s) Jefferies (Financial)
Akin Gump Strauss Hauer & Feld (Legal)

Target

Ledge Lounger

Katy, Texas, United States
Ledge is an in-pool and backyard furniture and accessories platform with an omni-channel go-to-market strategy. Since the introduction of their first in-pool Chaise, Ledge has grown to include patio furnishings, umbrellas, cabanas and outdoor games, all designed to withstand the harsh pool and outdoor environments. Ledge Lounger was founded in 2011 and is based in Katy, Texas.

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Buyer(S) 3

Buyer

Summit Park

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 245M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Summit Park Partners is a private investment firm that acquires lower middle-market companies. Summit Park looks for profitable, established businesses in consumer services, business services, value-added distribution, and light manufacturing. The Firm targets businesses with revenues of $20 to $150 million and EBITDA between $4 and $15 million. Prospective transaction types include recapitalizations, management buyouts, family successions, corporate divestitures, and industry consolidations. Summit's geographic preference is within the Southeast and Mid-Atlantic US. Summit Park was formed in 2005 and is based in Charlotte, North Carolina.


DEAL STATS #
Overall 18 of 24
Sector (Furniture) 1 of 1
Type (Recapitalization) 12 of 18
State (Texas) 2 of 3
Country (United States) 17 of 23
Year (2021) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-13 Fast Growing Trees

Fort Mill, South Carolina, United States

Fast Growing Trees is an operator of trees and shrubs and offers consumers a broad variety of high-quality trees and shrubs through its websites fast-growing-trees.com and brighterblooms.com. Fast Growing Trees was founded in 2006 and is based in Fort Mill, South Carolina.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-07-07 Artifact Uprising

Denver, Colorado, United States

Artifact Uprising is a provider of printed photo products with elevated quality, thoughtful design, and responsibly-sourced materials. Artifact Uprising was founded in 2012 and is based in Denver, Colorado.

Buy -
Buyer

Stellus Capital Management

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Stellus Capital Management is a provider of debt and equity capital to middle-market companies headquartered throughout the US and Canada. For credit commitments, Stellus looks to provide $10 to $50 million of capital to help support buyouts, acquisitions, recapitalization, growth opportunities, rescue financing, distressed situations, as well as bridge loans. Sectors' of interest for Stellus' credit practice includes business services, energy, general industrial, government, healthcare, software and specialty finance. Stellus' equity practice seeks to provide $30 to $50 million to small and mid-sized energy (upstream, oilfield services, midstream) companies. Stellus Capital was originally formed in 2004 as Laminar Direct Capital and operated as the direct investing unit of D.E. Shaw. The Group became independent in 2012. Stellus has offices in Houston, New York City, and Washington DC.


DEAL STATS #
Overall 12 of 23
Sector (Furniture) 1 of 1
Type (Recapitalization) 3 of 4
State (Texas) 2 of 6
Country (United States) 12 of 23
Year (2021) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-21 Gen3 Marketing

Blue Bell, Pennsylvania, United States

Gen3 Marketing is a digital marketing agency that provides affiliate marketing services to customers (“advertisers”) by optimizing advertisers’ positioning of their products and services on third party websites (“publishers” or “affiliates”). Gen3 Marketing was founded in 2007 and is based in Blue Bell, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-11 Munch s Supply

Hillside, Illinois, United States

Munch's Supply is an HVAC distributor and third-generation family business focused exclusively on supplying heating and cooling industry contractors with quality products. Munch's Supply was founded in 1956 and is based in Hillside, Illinois.

Sell -
DESCRIPTION

Digital Fuel Capital is a private investment firm focused on investing in and acquiring companies involved in digital marketing. This includes e-commerce, digital marketing service companies, and advertising/marketing technology companies. Digital Fuel was established in 2015 and is headquartered in Newton, Massachusetts.


DEAL STATS #
Overall 17 of 18
Sector (Furniture) 1 of 1
Type (Recapitalization) 2 of 2
State (Texas) 1 of 1
Country (United States) 16 of 17
Year (2021) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-10 RugsUSA

Cranbury, New York, United States

RugsUSA helps customers turn their houses into homes, offering a stunning array of rug styles, materials, and sizes to suit every design need and budget. With an expansive selection of rugs and home décor products, attractive price points, seamless online shopping experience, and best-in-class fulfillment and customer care, the company is an experienced e-commerce pioneer and rug industry leader, with over eight million rugs sold to nearly two million homes. RugsUSA was founded in 1998 and is based in Cranbury, New York.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-22 Renovation Brands

Florence, Alabama, United States

Renovation Brands is a distributor and retailer of electric fireplaces, electric heating appliances, customized fireplace mantels, and outdoor heating products. Renovation Brands was founded in 2002 and is based in Florence, Alabama.

Sell -