An affiliate of middle market private equity firm Charlesbank Capital Partner is to acquire Polyconcept from Investcorp.
Equity for the transaction will be provided by Charlesbank and management, Partners Group and certain other investors.
Additional terms of the agreement have not been disclosed.
Polyconcept is a value-added supplier in the USD30 billion promotional products industry. Sourcing products from hundreds of manufacturers, the company then customises them on behalf of its 35,000 reseller customers and ships the products to end-consumers (typically businesses) located in the US, Europe and across the world.
Polyconcept offers one of the industry’s broadest assortments, with over 25,000 SKUs across hard goods and premium apparel, providing customers with an integrated set of services including product design, global sourcing, digital services, sales tools, order management, customisation and next-day shipping.
Josh Klevens, managing director at Charlesbank, says that his firm was attracted to the company’s strategic position and its diversification across customers, suppliers, price points and geographies. “Polyconcept is a market leader in both the US and Europe, with superior customer service and global capabilities,” he says. “We are very pleased to have the opportunity to partner with the management team to expand the business globally, building on their track record of success and tapping into new opportunities for growth.”
Maud Brown, managing director of corporate investment North America at Investcorp, says: “When we acquired Polyconcept, we recognised the company’s potential to become a leading international brand with a global presence. We worked closely with senior management to transform the business into the global leader that it is today, supporting a series of strategic acquisitions and realising success through expanding into new markets, launching new product categories, building out a key digital presence and implementing significant operational enhancements. We believe that Polyconcept is very well-placed for the future, and we wish management and Charlesbank the best of luck in this new phase of growth.”
“We have had a successful chapter with Investcorp and are thankful for its partnership over the years,” says Gene Colleran, chief executive officer for Polyconcept. “We are excited to forge a new partnership with Charlesbank, which has a long history of joining forces with management teams to grow their businesses. With Charlesbank’s financial support, strategic guidance and significant network of contacts, we look forward to working together to create substantial value for the future.”
Subject to the satisfaction of regulatory requirements and other customary closing conditions, the transaction is anticipated to close later in the third quarter of 2016.
William Blair & Company and Barclays served as financial advisers to Investcorp and fellow investor 3i, and Gibson, Dunn & Crutcher served as legal adviser to the company.
For Charlesbank, Jefferies Group served as financial adviser, with Goodwin Procter acting as legal adviser and PricewaterhouseCoopers advising on accounting and tax issues.
Goldman Sachs Bank USA, RBC Capital Markets and Natixis, New York Branch, have committed to provide the first lien debt financing for the transaction, and GSO Capital Partners has committed to provide the second lien debt financing.
