Versa Capital has recapped its portfolio company Bell and Howell which it acquired in June 2011. In so doing, Versa created BCC Software as a new company independent of its former parent, Bell and Howell. Versa now holds majority ownership positions in both Bell and Howell and BCC, and in connection with the transaction Monroe Capital has provided BCC with a new revolving credit and term loan facility to support its growth.
“We believe that there are many benefits to be gained by both Bell and Howell and BCC with BCC operating independently,” said BCC Chairman and Versa CEO Greg Segall. “BCC is the leader in postal software solutions and data marketing services. As it expands into new markets with new services and solutions offerings, BCC’s growth will best be accomplished as a stand-alone business.
BCC Software creates postal software applications and provides data marketing services. The company was founded in 1978 and delivered mailing technology solutions under the BCC name for more than 30 years until its purchase by Bell and Howell in 2005. BCC employs approximately 75 people and is based in Rochester, NY (www.bccsoftware.com).
“The BCC spin-off allows Bell and Howell to retire its outstanding third party debt under its credit facility with our valued lending partners PNC Business Credit and Crystal Financial, further advancing our organizational progress,” said Ramesh Ratan, Bell and Howell CEO. “We’re excited about Bell and Howell’s opportunity set, and the team and I remain committed to realizing them through the continued execution of our own growth strategy. At the same time, BCC Software as an independent business will benefit from the focus, oversight and capitalization that come with being a free-standing business. This transition stands to make the two independent businesses stronger while BCC remains an important strategic partner with Bell and Howell as we work closely to create new services and solutions for our customers.”
Christopher Lien, President of BCC, will continue to lead the company. Mr. Lien has spent more than 22 years in the data and mailing industries and has received national recognition for his contributions, most recently in his industry election as Industry Chair of the Postmaster General’s Mailers Technical Advisory Committee, a 49-year-old organization with more than 150 members of the mailing industry.
“Chris has an exemplary, productive team, and we are committed to supporting their efforts both operationally and financially,” said Mr. Segall. “Additionally, Bell and Howell is now in a better position to focus on its core competencies and continue to deliver valued products and services to its customers and partners.”
Bell and Howell is a provider of document processing, microfilmers, scanners, and financial services. Customers operate in the banking, insurance, telecommunications, public utilities, postal, freight operators, governments and print and mail service bureaus sectors. The “Bell & Howell” trademark is also licensed to makers of various electronic consumer products. Headquartered with manufacturing in Research Triangle Park, NC, the company maintains engineering, sales and business presence in Wheeling, IL, Dallas, TX, Allentown, PA, Waterloo, Ontario, and overseas facilities in the UK and Germany (www.bellhowell.net).
Versa Capital Management invests in special situations involving middle market companies with revenues in the $50 million to $1 billion range or assets of $25 million to $500 million. The firm has $1.4 billion of capital under management and is based in Philadelphia (www.versa.com).
2014 PEPD • Private Equity’s Leading News Magazine • 6-23-14