Windjammer Capital Investors has acquires Global Claims Services, a provider of laboratory and data analysis services to property insurance companies. Windjammer partnered with management to acquire the business from The Riverside Company and provided a combination of equity and subordinated debt to complete the transaction.
“Global Claims Services represents another example of Windjammer seeking out and investing in niche market leaders with exceptional management teams, and illustrates our ability to invest in companies across a broad range of business models from business services companies to specialty distributors to manufacturing businesses that serve a wide range of industries and customers.” said Costa Littas, Managing Principal of Windjammer.
Global Claims Services (GCS) provides laboratory testing services and data analysis to insurance companies, building contractors and homeowners. GCS, which operates under the ITEL brand in the United States, determines the equivalent, commercially available replacement products for damaged flooring, roofing and siding, using its laboratories to process physical samples as well as measurements submitted via its mobile applications. The company is headquartered in Jacksonville, FL (www.itelinc.com).
“GCS provides a mission critical service to insurers and their policyholders to deliver laboratory-driven, independent data to enable insurers to fairly and accurately settle homeowner’s insurance claims in a very short timeframe,” said John Donahue, Principal at Windjammer, who led the transaction for the firm. “We look forward to supporting the company’s management team in continuing to grow the business through both organic initiatives and through strategic acquisitions.”
The Riverside Company realized a 2.8x gross cash-on-cash return and a 29% gross IRR on the sale of Global Claims Services.
Senior debt financing for this transaction was provided by Golub Capital and Ares Capital Corporation.
Windjammer Capital Investors makes control and non-control investments in middle market businesses with EBITDAs from $10 million to $40 million. Global Claims Services is the final platform investment in Windjammer Senior Equity Fund III. Windjammer maintains additional capital in Windjammer Senior Equity Fund III to support the growth initiatives of its Fund III portfolio companies to include add-on acquisitions. New platform investments will be made out of Windjammer’s recently initiated Senior Equity Fund IV. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).
“We are excited to be teaming up with Windjammer. They distinguished themselves in the sale process through their ability to quickly understand our business and complete their thorough diligence protocols in an expedited manner. We are confident that Windjammer will be a great partner given their historical track record of adding value post investment and look forward to their support in executing on the company’s growth strategy,” said Robert Logan the President and CEO of GCS.