SFW Capital Partners has completed a second dividend recapitalization of its portfolio company AGDATA, a provider of data and analytics to agricultural input and animal health manufacturers. The proceeds of the recapitalization were sourced from an increase in the company’s term loan and were used to fund a significant cash distribution to stockholders.
AGDATA is a provider of data and analytics to agricultural and animal health manufacturers throughout the US and Canada. AGDATA collects and analyses data from over 9,500 retailers and distributors and supports its customer’s utilization of this data to design and execute targeted marketing programs and for channel and salesforce management. The company is based in Charlotte, NC (www.AGDATA.net).
SFW Capital Partners acquired AGDATA from Carousel Capital in February 2010. At that time Golub Capital provided $37.5 million in senior debt to fund SFW’s acquisition. In August 2011, AGDATA completed its first dividend recapitalization, the proceeds of which were used to fund an initial distribution to stockholders. As a result of the two recapitalizations, AGDATA has distributed an amount equal to 70% of the original equity invested in the company.
“AGDATA has experienced solid growth by providing vital strategic information and analytics to the agricultural and animal health sectors,” said Roger Freeman, a Partner at SFW. “We look forward to continuing to work closely with the AGDATA leadership team to capitalize on the strong demand for strategic information and analytical tools in these markets.”
SFW focuses exclusively on analytical tools and related services companies, including providers of instrumentation, software, information and analytical services. SFW typically invests from $10 million to $75 million of equity in middle market companies that have up to $25 million in EBITDA. The firm has offices in Rye, NY and Hudson, OH (www.sfwcap.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 12-17-13
