Saw Mill Capital Partners has acquired MeTEOR Education from Hudson Ferry Capital. The acquisition of MeTEOR as made through Saw Mill’s second fund, Saw Mill Capital Partners II LP, which had a final close in July 2017 with $340 million in capital commitments. The buy of MeTEOR is the fourth investment made by this fund.
MeTEOR is a provider of classroom, technology and administrative furniture to the educational and institutional markets. The company’s services include design, consulting, project management, and installation to public and private schools in the K-12 market. The company specializes in larger projects where a school district is undergoing a major expansion or modernization program. MeTEOR currently serves more than 30 state markets across the country and is headquartered in Gainesville, FL (www.meteoreducation.com).
MeTEOR uses research-driven learning environment design, build, and implementation services to create physical settings—complete with modern seating options, desks and advanced technology—that are integrated with best practices teaching methods. This combination, according to the company, allows for greater student learning experiences that result in measurable increases in basic literacy, collaborative learning, and complexity of student tasks at all grade levels.
“We see MeTEOR Education as a truly unique and attractive partner in transforming the education landscape,” said Scott Rivard, a Partner at Saw Mill Capital. “We value the strong culture, differentiated offerings and solid growth strategy the company’s leadership team has built and look forward to partnering with MeTEOR as we serve the growing demand for high-impact learning environments.”
Saw Mill Capital invests in North American-based manufacturing, industrial and commercial service, and specialty distribution businesses with $25 million to $200 million of revenues and $5 million to $25 million of EBITDA. The firm was founded in 1997 and is headquartered north of New York City in Briarcliff Manor, NY (www.sawmillcapital.com).
Hudson Ferry first invested in MeTEOR Education in March 2010. “We are exceptionally pleased with our investment in MeTEOR. The company more than tripled in size, broadened its product offering and improved gross margins during the seven years of Hudson Ferry Capital’s investment. We worked with the management team to improve vendor relationships, clarify financial reporting, develop key success metrics, and finance growth. We are delighted that the MeTEOR sale has generated a 3x multiple of invested capital,” said Bruce Robertson, a Partner of Hudson Ferry Capital.
Hudson Ferry invests in lower middle market companies with enterprise values of $15 million to $75 million, revenues of $15 million to $75 million, and EBITDAs of $3 million to $8 million. Sectors of interest include niche manufacturers; business services providers; and outsourcing providers. Hudson Ferry was founded in 2007 and is based in Rye Brook, NY (www.hudsonferry.com).
“Hudson Ferry was an incredible partner as MeTEOR has grown and impacted students across the country. They brought so much more than capital to the table – their experience, support, and focus were instrumental in our growth and the full development of our products and services with High Impact Learning Environments and Experiences. Their involvement has helped us transform traditional schools into vibrant future-ready communities of learning for students around the entire country,” said Bill Latham, CEO of MeTEOR.
Signal Hill (www.signalhill.com), a Daiwa Securities Group company, was MeTEOR’s financial advisor for this transaction.
© 2018 Private Equity Professional | January 18, 2018