May 2010
Southerland, Inc.
On May 18, 2010, Argosy Private Equity invested in Southerland, Inc. Headquartered in Nashville, TN, and founded in 1893, Southerland is a value-oriented, mattress manufacturer servicing the Southeast, Southwest and Midwest regions of the United States. Through its Southerland, Elizabeth Jordan, Sleep Xpressions, Estate, Refresh and 8M product lines, the Company maintains relationships with over 450 customers, including strong relationships with some of the largest mattress retailers in the United States.
Led by three seasoned industry executives, Southerland is well-positioned to expand on its current market position and take advantage of attractive industry dynamics. Argosy provided most of the junior capital, investing $6.0 million in subordinated debt. In addition, management invested alongside Argosy. Argosy’s financing funded the purchase of Southerland from the Southerland family by an Employee Stock Ownership Plan (“ESOP”).
Gichner Holdings, Inc. Exit
On May 19, 2010, Argosy Investment Partners III, L.P. exited its investment in Gichner Holdings, Inc. (www.gichner.us). Headquartered in Dallastown, Pennsylvania, Gichner is a leading designer, manufacturer and integrator of tactical and specialty shelters, products, solutions, modular containers, subsystems and support equipment for the U.S. military, its allies, and leading defense prime contractors. During Argosy’s hold period, Gichner developed and implemented a strategic plan that successfully grew the business both organically and through an important strategic acquisition. From 2007 through 12-months ended December 31, 2009, Gichner grew its revenue from $48.6 million to $147.1 million (74% compound annual growth rate) and EBITDA from $5.5 million to $16.9 million (75% CAGR). The Company was sold to Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a national defense, information technology, assurance and security solutions provider for $133 million in cash, or approximately 7.5 times trailing twelve months EBITDA at the time of closing.
December 2009
Sure Fit, Inc.
On December 30, 2009, Argosy Private Equity invested in Sure Fit, Inc. Headquartered in Allentown, PA, Sure Fit (www.surefit.com) is the nation’s leading provider of ready-made slipcovers, fitted removable furniture covers used primarily for redecoration and protection. The Company offers slipcovers and related accessories through both the retail market and direct channels. Sure Fit Retail sells through national retailers and their captive websites, independent internet retailers, and third party catalogs. Sure Fit Direct sells products through a Company-owned website and catalog, as well as advertisements through television, magazines and other marketing media.
Sure Fit has been the acknowledged category leader since the Company’s founding in 1914, and features high levels of brand recognition, established relationships with leading national retailers, and a consistently updated array of targeted products, many of which are patent-protected. Argosy Private Equity co-invested alongside Guardian Capital Partners, a Wayne, PA-based lower middle market private equity firm, to fund the purchase of Sure Fit’s assets from the prior owners, D.E. Shaw & Co.
December 2009Liberty Propane Exit
On December 31, 2009, Argosy Investment Partners III, L.P. exited its investment in Liberty Propane (http://www.libertypropane.net ). Based in Overland Park, KS, Liberty is a retail propane distribution company that focuses on providing fuel primarily for home heating purposes. Since Argosy made its original investment in the Company in 2005, Liberty has grown through acquisitions and is now ranked as the 9th largest retail propane distribution company in the United States . Liberty was sold to Inergy, L.P. on December 31, 2009. Inergy is one of the largest propane distribution companies in the United States and trades on the NASDAQ exchange under the symbol “NRGY.”
August 2009
Ranger International Services Group, Inc.
On August 12, 2009, Argosy Private Equity invested in Ranger International Services Group, Inc. Headquartered in Greenville, SC, Ranger provides specialized technical and labor services to the U.S. Department of Defense and Armed Forces, including: air terminal services for the U.S. Air Force’s Air Mobility Command and maintenance, modification and overhaul services as a prime and sub-contractor to the U.S. Armed Forces for tactical vehicles, aircraft and aerospace ground equipment.
Ranger and its subsidiaries, CAV International and U.S. Logistics, is the sixth platform company in Argosy’s Aviation Services sector focus group. The Company has built a strong reputation for providing consistent high-quality technical services. Led by a seasoned and expert management team, Ranger is well positioned for continued growth as it markets its combined CAV and USL capabilities.
January 2009
Karl's Rental Center, Inc.
On January 21, 2009, Argosy Private Equity invested in Karl's Rental Center, Inc. (www.karls.com). Headquartered in Oak Creek, WI (just south of Milwaukee), Karl's is ranked by industry trade magazine Special Events as being among the top event rental companies in the United States. Karl's primary business (in which it holds a leading nationwide market share) is the rental of large temporary structures (clearspan, frame and pole) and infrastructure equipment (seating, staging, dance floor, power/HVAC, kitchen equipment, etc.).
The Company has built a reputation as being one of the premier event rental companies in the nation and, as such, is a supplier to some of the most prestigious events in the country, including the Super Bowl, PGA tour events, and New York Fashion Week. Karl's was recently awarded the contract to be the exclusive temporary structure provider at the 2010 Winter Olympics in Vancouver, Canada.
December 2008
Joliet Holdings, LLC
On December 1, 2008, Argosy Private Equity invested in Joliet Holdings, LLC (www.joliet-equipment.com). Headquartered in Joliet, IL (located approximately one hour southwest of downtown Chicago), Joliet manufactures, distributes and repairs large, electric industrial motors. A primary focus of its business is on the sale of DC and AC electric traction motors to the oil and gas drilling industry, primarily to rig manufacturers and drilling contractors. In addition, Joliet services, repairs and remanufactures DC and AC electric motors for use in a variety of other industries, including automobile shredding, marine propulsion, power generation and rail transportation.
MTN Capital (www.mtncapital.com), along with the company's management team, co-invested with Argosy Private Equity. Mr. Robert LeBlanc has been introduced by the investors as an operating partner to work with Joliet's management. Previously, Mr. LeBlanc was President and CEO of Handy & Harman ($400 million diversified manufacturer or electronic materials, specialty fasteners and connectors, among other products) and Executive Vice President of Elf Atochem North America ($1.7 billion specialty chemical and polymer company).
August 2008
Caldwell Consumer Health, LLC (dba Revive Personal Products)
On August 29, 2008, Argosy Private Equity invested in Revive Personal Products (www.revivepersonalproducts.com). Headquartered in Madison, New Jersey, Revive is focused on the acquisition and revitalization of “orphan” over-the-counter consumer healthcare products.
In an all cash transaction, the Company purchased the worldwide rights to Stim-U-Dent ® (oral care), Fresh ‘n Brite ® (denture toothpaste), and Healthy Woman ® (soy menopause supplement), and the US rights to Gynol II ® and Conceptrol ® (female contraceptives). The initial focus of the company will be to provide significant attention to these brands.
Revive is actively seeking to acquire additional niche brands.
