Archives for May 30, 2012

Breakwater Completes Financing of WebXU

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Breakwater Investment Management has provided senior secured bridge financing for WebXU, an operator of consumer-branded websites and online businesses. “We approached Breakwater for a bridge loan and additional growth capital financing following our recent acquisition of Lot 6 Media,” said Matt Hill, Chairman and CEO of WebXU. “This financing from Breakwater frees up working capital to support WebXU’s accelerated growth. We are extremely pleased to be working with the professionals at Breakwater.”

WebXU is a media company that owns and operates a network of consumer-branded websites and online businesses. WebXU connects consumers with financial services, insurance, higher education, electronics, and other offerings. The company is headquartered in Los Angeles, CA (www.webxu.com).

“We had the flexibility to execute on WebXU’s request for bridge financing, while putting in place an additional tranche of capital for future growth needs,” said Saif Mansour, Managing Partner at Breakwater. “We are very pleased to be supporting this expanding Los Angeles-based Internet media company.”

Breakwater Investment Management specializes in direct investments in small to lower middle market growth businesses with annual sales ranging between $5 million and $100 million. The firm serves as general partner of Breakwater Structured Growth Opportunities Fund, LP, a $100 million open-ended private investment partnership organized in August 2008. The fund’s investment objective is to generate both current income and capital appreciation through secured debt investments accompanied with equity participation rights, primarily in growth-oriented companies across a variety of industries. The firm is based in Los Angeles, CA (www.breakwaterfund.com).

Eureka Growth Capital Exits Total Military Management

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Eureka Growth Capital today announced the sale of its investment in Total Military Management (“TMM”), a business process outsourcing company focused on the management of U.S. military and government household relocations, to TZP Capital Partners. “The Eureka team was a perfect fit for TMM,” said CEO Matt Connell. “Their business knowledge and experience aided us greatly and helped guide us through tremendous growth and industry challenges. Given the personal touch incorporated by Eureka, I could not imagine a better partnership or outcome.”

Total Military Management provides non-asset based logistics services used in the management of domestic and international U.S. military household relocations. TMM works with carriers, agents and other service providers to manage the complexities of procuring military moves, military base transportation procedures, and the systems put in place by the Department of Defense for authorization to conduct business with military base transportation offices. The company was founded in 2003 is headquartered in Jacksonville, FL (www.totalmm.com).

“With tremendous leadership from CEO Matt Connell and COO Kent Stermon, TMM grew rapidly during our partnership, executing a collaborative plan to increase penetration in specific geographic markets as well as expansion into entirely new markets,” said Chris Hanssens, Managing Partner of Eureka and former Chairman of TMM.

Eureka Growth Capital makes control and non-control investments in companies with $10 million to $75 million in revenue. Initial equity investments range from $4 million to $10 million, but larger investments can be made with co-investment from the firm’s limited partners. The firm prefers investment opportunities in the Mid-Atlantic and Eastern US. The firm was founded in 1999 and is based in Philadelphia, PA (www.eurekagrowth.com).

TZP Capital Partners makes control investments of between $20 million and $50 million in companies with enterprise values up to $200 million. Sectors of particular interest include real estate and relocation services, franchising, outsourced business and IT services, travel content and distribution, marketing and media services, and specialty finance. The firm is based in New York, NY (www.tzpgroup.com).

Edgeview Partners served as the exclusive financial advisor to Eureka and TMM.

GS Capital Partners and P2 Capital Partners Acquire Interline Brands

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Interline Brands, a distributor and direct marketer of maintenance, repair and operations products, today announced that it has entered into an agreement to be acquired by GS Capital Partners and P2 Capital Partners for $25.50 per share in cash. The transaction is valued at approximately $1.1 billion, including the assumption of debt.

In addition to equity from funds managed by GS Capital Partners and P2 Capital Partners, it is anticipated that certain members of company management will invest a portion of their proceeds from the transaction. GS Capital Partners and P2 Capital Partners have also secured committed debt financing from Goldman Sachs and Bank of America.

Interline Brands is a distributor and direct marketer of MRO products to a customer base of facilities maintenance professionals, professional contractors, and specialty distributors primarily throughout North America, Central America and the Caribbean. The company is based in Jacksonville, FL (www.interlinebrands.com) (NYSE:IBI).

GS Capital Partners is the private equity vehicle through which Goldman Sachs conducts its large, privately negotiated, corporate equity investment activities. GS Capital Partners is currently investing its GS Capital Partners VI fund. GS Capital Partners is a global private equity group with a focus on large, sophisticated business opportunities in which value can be created through leveraging the resources of Goldman Sachs (www.gs.com/pia).

P2 Capital Partners is a hedge fund manager that invests in the US public equity markets. The firm was founded in 2006 and is based in New York, New York (www.p2capital.com).

Barclays is serving as financial advisor to Interline and has provided a fairness opinion in connection with the transaction. Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal advisor to the company in connection with the transaction.

Goldman Sachs is acting as financial advisor to GS Capital Partners, and Fried, Frank, Harris, Shriver & Jacobson is acting as legal advisor. Debevoise & Plimpton is acting as legal advisor to P2 Capital Partners.

Platinum Equity Acquires Mobile IQ

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Quark, a portfolio company of Platinum Equity, announced today its acquisition of , a provider of cloud-based digital publishing services. “Quark’s intention is to be the leader in dynamic publishing. Our acquisition of Mobile IQ is the next step in offering the most comprehensive end-to-end solutions for publishing to mobile devices,” said Ray Schiavone, Quark President and CEO. “With the Mobile IQ team and their leading technology, we advance our ability to help organizations create structured content that can be combined with rich design and delivered across media channels in the most efficient ways possible.”

Mobile IQ is a provider of cloud-based digital publishing services largely under its brand PressRun. The company has an extensive background in enterprise mobile solutions and was responsible for developing the BBC News app, one of the most downloaded apps globally and the app that set the standard for news app design. Mobile IQ customers include The BBC, Time Inc., Metro, New England Journal of Medicine, Channel 4, and Top Gear. The company has offices in London and Basingstoke, UK and in San Francisco, CA (www.pressrun.com).

Quark is a provider of publishing software and services for print, Web, and interactive media to publishing and design experts. Quark was acquired by Platinum Equity in August 2011. The company was founded in 1981 and is based in Denver, CO (www.quark.com).

“It was evident from our early conversations that there is significant affinity between Mobile IQ and Quark’s approach to digital publishing,” said Shaun Barriball, Mobile IQ CEO and Founder. “This acquisition gives the Mobile IQ team an opportunity to continue developing an innovative roadmap for publishers, while expanding the use of our technology into new enterprise markets, such as financial services, manufacturing, and government.”

Platinum Equity invests in a range of industries including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Platinum Equity has completed nearly 120 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. The firm is based in Beverly Hills, CA and also has offices in New York, NY and London, UK (www.platinumequity.com).