Caymus Equity Partners and Centerfield Capital Partners have sold Direct Marketing Solutions (DMS) to Main Street Capital.
In September 2012, Caymus sourced and structured the acquisition of DMS from San Francisco-based Alpine Investors with Centerfield partnering with Caymus as a co-investor in the equity.
Direct Marketing Solutions is a provider of omni-channel direct marketing services to a range of clients that are active in the banking, alternative lending, technology and telecom sectors. DMS, founded in 1982, is led by CEO Mike Sherman and President Steve Sherman and is headquartered in Portland, OR (www.teamdms.com).
“Caymus Equity has been instrumental in supporting our growth and providing strategic guidance in support of our success,” said Mike Sherman. “The firm has been a true partner to DMS and provided the necessary support and resources to expand our platform. Caymus Equity’s guidance through strategy deployment and leading business practices proved invaluable in driving a shared vision for the company and we’re excited to continue building on a successful foundation.”
“During Caymus Equity’s five-year ownership of DMS, revenue grew by nearly 140 percent and EBITDA nearly doubled,” said Geoffrey Faux, Caymus Equity Managing Partner. “Investing alongside and partnering with an exceptional management team, led by Mike and Steve Sherman, we expanded DMS’ service offerings enabling the company to become increasingly important to their blue-chip customer base and solidified DMS as a leader in the direct marketing industry.”
Caymus invests from $3 million to $25 million in middle and lower-middle market companies that are valued from $10 million to $100 million and have revenues of $10 million to $100 million and EBITDA of $2 million to $12 million. Sectors of interest include business services, healthcare services, consumer, and niche manufacturing. The firm is based in Atlanta with an additional office in New York (www.caymuspartners.com).
The sale of DMS, which closed on February 13, 2018, marks the first full exit for Caymus Equity Partners. “After several recapitalizations, the DMS sale represents the first full realization for Caymus Equity. This was a milestone for Caymus and a terrific return for our limited partners,” said Ollie Maggard, Caymus Equity Managing Partner. “We thank Mike and Steve Sherman for their tremendous accomplishments and wish them continued success with Main Street Capital.”
Main Street Capital provides senior and subordinated debt and equity capital to lower middle market companies with revenues of $10 million to $150 million and EBITDA from $3 million to $20 million. Sectors of interest include consumer discretionary, energy, financials, healthcare, industrials, materials, technology, telecommunications and transportation. Main Street Capital is headquartered in Houston (www.mainstcapital.com).
Duff & Phelps (www.duffandphelps.com) was the financial advisor to DMS.
© 2018 Private Equity Professional | March 1, 2018