Keystone Capital has acquired Cherry Hill Holdings, a provider of mall-based photography services, from Eureka Growth Capital.
According to Keystone, Cherry Hill Photo is the US market leader in providing mall-based holiday photography services and products. Cherry Hill manages on-premises Santa and Easter Bunny photography programs for more than 325 mall locations throughout North America. The company provides a turn-key service offering, which includes Santa and Easter Bunny placement, support staff, photography service delivery, product merchandising and customer service during the Christmas and Easter seasons.
In 2014 the company placed more than 500 naturally bearded Santas at premiere and specialty centers throughout the United States and Canada. The company’s Santas have appeared on CBS’s “48 Hours,” “Good Morning America,” and “Late Night with Conan O’Brien”. Cherry Hill, led by Ed Warchol, President and CEO, was founded in 1961. The company is headquartered east of Philadelphia in Marlton, NJ (www.cherryhillphoto.com).
“We are excited by the opportunity to partner with the management team at Cherry Hill to build on their rich, decades-long history of providing world-class holiday experiences,” said Kent Dauten, Keystone Capital Managing Director. “The management team will continue to operate the business with the same enthusiasm and excellence in service they have always delivered, with Keystone Capital supporting the company’s growth and development”.
Keystone Capital invests in middle market companies with EBITDAs of $4 million to $20 million that are market leaders in niche, mature industries. Sectors of interest include niche manufacturing, industrial technology, food products and packaging, healthcare products and services, business and professional services. Keystone Capital was founded in 1994 and is based in Chicago (www.keystonecapital.com).
Mufson Howe Hunter (www.mhhco.com), a Philadelphia-based mid-market investment bank was the exclusive financial adviser to Cherry Hill. Peter Hill led the team for Mufson Howe Hunter
“We were extremely impressed with how Peter Hill and his team were able to identify the right buyers to introduce to the Cherry Hill opportunity and how well they were able to prepare the management team to convey the story succinctly and accurately to a diverse group of interested parties,” said Chris Hanssens, Managing Partner of Eureka Growth Capital.
Eureka Growth Capital makes control and non-control investments in companies with $10 million to $75 million in revenue. Initial equity investments range from $4 million to $10 million but larger investments can be made with co-investment from the firm’s limited partners. Eureka Growth prefers investment opportunities in the Mid-Atlantic and Eastern US. The firm was founded in 1999 and is based in Philadelphia (www.eurekagrowth.com).
Senior debt financing was provided by The Private Bank (www.theprivatebank.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-14-15
