Detroit-based private equity firm Rockbridge Growth Equity has sold Purchasing Power, an e-retailer offering a voluntary benefit to companies and membership organisations across the US, to private equity firm Flexpoint Ford.
Founded in 2001, Purchasing Power is one of the fastest-growing voluntary benefit companies and the leader within the purchase programme industry offered through employers.
Along with a financial wellness platform available at no cost to its customers, Purchasing Power offers an employee purchasing programme for name brand consumer products and services using convenient payroll deduction.
Available to millions of people as a voluntary benefit at organisations with 1,000+ employees or members, Purchasing Power is offered across more than 20 industry sectors. Its client list includes Fortune 500 companies, associations and government agencies.
Since partnering in 2011, Purchasing Power has leveraged Rockbridge's investment to focus heavily on the continued development of its technology platform, optimising the customer's experience and dramatically increasing its product offering from 400 SKUs to more than 50,000 today. These initiatives helped to more than double Purchasing Power's revenue and triple earnings before interest, tax, depreciation and amortisation (EBITDA) during the partnership.
"Our strategic partnership with Rockbridge Growth Equity has been extremely valuable for Purchasing Power," says Richard Carrano, president and CEO of Purchasing Power. "Through this collaboration, we have increased our revenue streams, expanded our financial wellness platform and undergone rapid growth and expansion allowing us to provide customers with an even more convenient and stress-free way to purchase the items they need."
Rockbridge Growth Equity was founded in 2007 by Brian Hermelin, Kevin Prokop, and Quicken Loans and Rock Ventures founder and chairman Dan Gilbert. The firm invests in companies that specialize in financial and business services, consumer-direct marketing, and sports, media and entertainment industries.
"Purchasing Power's focus on providing voluntary purchase programmes to a wide customer base is unmatched in its industry and the management team has exceeded our expectations," says Kevin Prokop, managing partner of Rockbridge Growth Equity. "We have enjoyed working with the team and look forward to watching the company continue to grow."
Lazard Middle Market acted as the lead financial adviser and Jefferies also served as a financial adviser to Purchasing Power. Honigman Miller Schwartz and Cohn provided legal counsel. Boston-based Falcon Investment Advisors partnered with Rockbridge Growth Equity on the initial acquisition of Purchasing Power.
