Prophet Equity has sold CID Resources, a designer and provider of medical uniforms, to publicly traded Superior Uniform Group for approximately $88 million in cash and stock.
Prophet Equity first invested in CID Resources in June 2010 in partnership with the company’s president H.P. Park. “When we joined forces with Prophet Equity in 2010, we were convinced that the partnership would generate unique results, and we were right,” said Mr. Park. “Prophet Equity consistently provided the right level of strategic direction and support our team needed as we grew our business.”
CID Resources (Creative in Design) is a manufacturer and distributor of medical scrubs including nursing scrubs, tops, pants, lab coats, and warm up jackets. The company’s products are sold to specialty uniform retailers and online medical uniform retailers under the company owned WonderWink brand and under the licensed brands of Carhartt and Mary Engelbreit Studios. CID’s net sales for the year ended December 31, 2017 were $65.3 million. The company is headquartered northwest of Dallas in Coppell, TX (www.cidresources.com) (www.wonderwinkscrubs.com).
“We have thoroughly enjoyed our partnership with the CID team over the past eight years,” said Ben Eakes, Managing Director at Prophet Equity. “CID’s focused product strategy, elite global sourcing, and customer-centric approach resulted in impressive annual sales and EBITDA growth rates of 71% and 60%, respectively. CID’s emergence as an industry leader is a reflection of the dedication of CID’s President, H.P. Park, and his outstanding executive team.”
Prophet Equity makes control investments of $5 million to $50 million in companies with annual revenues of up to $500 million and enterprise values of $10 million to $250 million. Sectors of interest include financial services; healthcare; manufacturing; natural resources and energy; automotive & transportation; business and consumer services; consumer products; defense & aerospace; and distribution. The firm is headquartered in Southlake, TX (www.prophetequity.com).
“CID is another special situation investment success story for Prophet Equity,” said Ross Gatlin, Prophet’s CEO and Managing Partner. “Working collaboratively with the CID team to deploy our Holistic Value Creation™ process, the combined teams drove extraordinary operational and financial results while generating a uniquely positive outcome for our investors and all stakeholders. We thank H.P. and his team for their unwavering commitment and dedication to maximizing value, and we wish them all the very best.”
Superior Uniform Group (NASDAQ: SGC), the buyer of CID, manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields as well as for the industrial, commercial, leisure and public safety markets. The company has annual revenues of $270 million and is headquartered near Tampa in Seminole, FL (www.superiorgroupofcompanies.com).
Piper Jaffray (www.piperjaffray.com) was the financial advisor to both CID and Prophet Equity. Cross Keys Capital (www.ckcap.com) was the financial advisor to Superior Uniform.
© 2018 Private Equity Professional | May 7, 2018