Dubin Clark has sold its portfolio company InProduction, a provider of rental staging and seating, to ZMC Management.
Dubin Clark first invested in InProduction – then Michigan-based SGA Production Services – in 2015 and closed four add-on acquisitions during its ownership term.
The first add-on was the buy of T&B Equipment Company, a Virginia-based provider of temporary seating, flooring, and camera towers for large outdoor events, in August 2016. A year later, in August 2017, Dubin Clark formed InProduction to house its investments in SGA Production Services and T&B Equipment Company and relocated the headquarters of the two businesses to Chicago.
Beginning in 2018, InProduction acquired CommuniLux Productions, a Dallas-based provider of design and fabrication services for scenic studios (January 2018); the US rental assets of Indiana-based Nussli including an inventory of more than 25,000 seats (December 2018); and in August 2019 it acquired Seating Solutions, a New York-based provider of temporary seating and modular stadiums.
Today, InProduction considers itself to be the largest provider of temporary seating, staging, structures, and scenic production to the United States events industry. The company services are provided to large-scale corporate, social, and sporting events, and include design, fabrication, delivery, installation, and on-site execution and tear-down.
“Our partnership with Dubin Clark was a guiding light, providing direction and clarity,” said Jason Tedrow, the CEO of InProduction. “As we step into this new phase with ZMC, we are filled with anticipation for what lies ahead, building on the legacy and foundation we’ve established. In partnership with Dubin Clark, InProduction successfully undertook four add-on acquisitions, evolving into a cohesive and distinct leader for event transformations.”
“We could not be prouder of the outcome at InProduction,” said Brent Paris, a managing partner at Dubin Clark. “During our partnership, we were able to integrate four add-on acquisitions, drive market leadership, and position the company for significant growth while navigating through the pandemic. We would like to thank Jason Tedrow and the entire team for their leadership and contribution to a great result.”
Dubin Clark invests in companies that have from $10 million to $100 million in sales and adjusted EBITDA margins of greater than 10%. Sectors of interest include branded consumer, niche industrial manufacturers, and specialty services. Dubin Clark was founded in 1984 and has offices in Boston, Massachusetts, and Jacksonville Beach, Florida.
“It is clear that InProduction is a valuable partner to their clients. Best-in-class service providers like InProduction will no doubt benefit from the tailwinds in the live events industry and we are excited to support their growth both organically and via acquisition,” said Jordan Turkewitz, the managing partner and co-chief investment officer at ZMC.
New York City-headquartered ZMC (Zelnick Media Capital) was founded in 2001 by investor Strauss Zelnick – the CEO of video-game producer Take-Two Interactive (its titles include Grand Theft Auto and Red Dead Redemption) and is an active investor in the media, entertainment, communications, and technology sectors.
ZMC is currently investing through its fourth fund, ZMC IV LP, which began fundraising in March 2023. In November 2019, ZMC held a hard cap and final close of ZMC III LP with total capital commitments of $775 million.
“We have a longstanding thesis that the live events ecosystem will continue to flourish with an increasing number of events coupled with a growing emphasis on premium and VIP experiences. We are impressed with what the team at InProduction has built and are excited to partner with them in this next phase of growth,” said Ripan Kadakia, a partner at ZMC.
TD Cowen was the financial advisor to InProduction and Dubin Clark on this transaction, and Houlihan Lokey was the financial advisor to ZMC.
© 2023 Private Equity Professional | September 14, 2023
