The Selling Company: Team Products is a leading supplier of consumer electronic products to over 500 national and regional mass marketing retail chains and stores including Wal-Mart and Target.
Why the company was sold: The shareholders, largely in their 40s, desired to obtain a measure of liquidity to reduce their risk concentration. In addition, they desired human and monetary growth capital to expand their very fast-growing business.
Capital Alliance’s Performance: Mining its proprietary database, an acquirer with a long-term relationship to Capital Alliance was identified and introduced to Team Products. Capital Alliance Corporation received interest from 30 strategic and financial acquirers, as well as four offers within six weeks of going to the market.
Terms of the Transaction: The selling shareholders received cash for 70% of the company, significant earn-out opportunities and retained 30% of the company.
The Acquiring Company: HIG Capital is a large private equity investor, managing companies with over $5 billion in total revenues. With HIG’s participation, the company more than doubled its revenues within 18 months of closing.