Lakewood Capital and a consortium of other investors, including existing management, has acquired Vacuum Systems International.
Vacuum Systems International (VSI) is a remanufacturer and fleet rotational program manager of commercial vacuum cleaners and steamers. The company’s products are used by large multi-location companies in approximately 72,000 facilities in 16 countries. VSI has the capability of servicing nearly every major brand of commercial vacuum cleaner in the world. The company was founded in 1994 by its current President and CEO Diana Richards and is based in Cleveland (www.vacuumhelpline.com).
“Partnering with Lakewood will provide our management and employees with the resources not only to meet existing customers’ needs, but also to enable us to broaden our reach significantly,” said Ms. Richards. “Additional equipment platforms and services tailored to particular industry segments have been developed and our new partners are critical to our efforts to bring each of these new initiatives to market.”
Lakewood Capital makes control investments in lower middle market companies in partnership with management. The firm was founded by its managing partner Roger Knight in 2007 and is headquartered in Rowayton, CT (www.lakewoodcap.com).
“We are particularly excited about joining with such a strong group of investment partners on VSI, many of whom have built their own successful private equity firms,” said Mr. Knight. “Lakewood formed an investment vehicle, Spartacus Partners, to enable high net worth individuals to invest alongside Lakewood on promising lower middle market transactions. VSI is a perfect example of a smaller company that has developed a unique product/service and is well positioned to grow significantly with the benefit of our financial and strategic support.”
Canal Holdings provided approximately $3 million of senior subordinated debt to support the transaction. Canal typically invests from $2 million to $7 million per transaction and may co-invest with institutional investors on larger opportunities. The firm was founded by its CEO Kevin Coyne and is headquartered in Twinsburg, OH (www.canalmezz.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-17-15