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August 20, 2004
Huron Capital Realizes Top-Quartile Investment Returns in Two Portfolio Companies
Huron Realizes Substantial Gains In York Label and StyleCraft Home Collections
Detroit, MI – August 20, 2004 // On the heels of committing over $20 million to American Mobility and Guest Services, Inc. and Northern Cap & Glove Mfg, LLC over the last 45 days, Huron Capital Partners announced today that it realized top-quartile returns from its investments in York Label and StyleCraft Home Collections this week. According to Brian Demkowicz, Managing Partner of the firm, “These transactions are great exits for our investors. Coupled with our Prism realization last year, we have returned over 75% of total called capital through just three realizations, with 5 successful investments still remaining in the portfolio.”
On August 16, 2004, Huron recapitalized its investment in York Label through a financing valuing the business over $65 million. The recapitalization allowed Huron to realize over 2 times its investment in less than two years through a dividend distribution while retaining its entire equity ownership in the company. Financing was provided by Harris Bank, PNC, RBC Capital and Midwest Mezzanine. According to Demkowicz, “We are thrilled with the performance of York so far. We have one of the most savvy management teams in the industry and look forward to continuing our support for their aggressive growth initiatives.”
Based in York, Pennsylvania, York Label is one of the nation’s leading manufacturers of pressure sensitive labels and specialty packaging used in a wide variety of applications in the consumer products, medical, direct mail, CD/DVD and security markets. York supplies specialty packaging solutions to many of the country’s largest consumer products companies, movie and recording studios and financial services firms. York’s labels are recognized for their high-quality design characteristics, as well as their important role in providing product content and security information to consumers.
Separately, Huron announced that it has sold StyleCraft Home Collections to Linsalata Capital Partners. Huron realized over 4 times its investment in StyleCraft, generating an investment return exceeding 60%. Huron partnered with Management and MCM Capital Partners LLC in the original 2001 transaction. During their ownership, StyleCraft materially broadened its product line in order to become a premier supplier of home décor products, significantly increasing revenues and cash flow.
Huron Capital Partners LLC
Huron Capital is one of the leading private equity firms investing in lower middle-market companies. The firm typically invests between $5 million and $20 million in equity to sponsor management buyouts, recapitalizations, and corporate spin-offs of well-positioned companies having revenues up to $200 million. Huron’s strategy is to partner with strong management teams at niche manufacturing, specialty service, and value-added distribution companies that can be built through acquisition and organic growth.
Since the closing of its current fund in 2000, Huron has acquired 11 companies, realized 3 investments and returned over 75% of total called capital, generating top-quartile returns for its investors. Based on the success of the current fund, Huron expects to formally begin fundraising efforts for its next fund later this year with a target size of $150 million.
For further information, please visit Huron’s website at www.huroncapital.com.