Identity Group manufactures custom identity products engineered to communicate a brand, message, location, or creative theme, and is best known for manufacturing and marketing customized interior signs. Identity Group’s customization capabilities allow it to produce high-volume, custom orders for businesses nationally and internationally. In addition to interior signage, Identity Group’s products include sign systems, dimensional lettering, stock signs, custom and stock stamps, and embossed, engraved, or printed identity products. The company is based east of Nashville in Cookeville, TN (www.identitygroup.com).
Part of the growth strategy that Ancor has developed for Identity Group is to provide capital to initiate an aggressive acquisition strategy of other providers of interior signage in market niches such as health care and hospitality.
“Identity Group has a strong management team and we’re excited to partner with them,” said Ancor Capital Managing Partner Raymond Kingsbury. “Together, we can allow the company to execute on its plan to be the dominant leader in the industry.”
Ancor Capital Partners invests in companies with enterprise value of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is based in Fort Worth (www.ancorcapital.com).
“The ability to team with an equity sponsor such as Ancor and their partners, including Merit and PNC, brings new life into our company and positions us on a strong platform on which we can drive growth,” said Brad Wolf, President and Chief Executive Officer of Identity Group. “Our management team has reinvested in the business along with Ancor, and we are excited to be a part of such a vibrant group of investors.”
“This is our sixth transaction with Merit Capital Partners, and we are especially pleased to once again be teaming with them in this acquisition,” said Ancor Capital Partner Randall Keene. “We also are very pleased to have PNC Mezzanine partner with us on Identity Group as we have known them for several years, we have great respect for them and their strategy and we look forward to building a long-term relationship with them.”
Merit Capital Partners invests mezzanine and equity capital of $20 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. Merit is currently investing its fifth fund, Merit Mezzanine Fund V, LP, with total commitments of $612.5 million. The firm was founded in 1993 and is based in Chicago (www.meritcapital.com).
PNC Mezzanine will invest from $10 million to $40 million per transaction, and can lead financings of up to $60 million. The group invests in companies with revenues greater than $20 million and EBITDA greater than $5 million. Investments will typically take the form of second lien debt, subordinated debt or subordinated debt with warrants, and preferred stock with a dividend. Equity investments will be considered in conjunction with a mezzanine investment. PNC Mezzanine Capital was founded in 1989 and is based in Pittsburgh (www.pncmezzanine.com).
2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14