H.I.G. Capital News
H.I.G. Capital, L.L.C.
1001 Brickell Bay Drive
Miami, FL 33131
H.I.G. Capital Completes Sale of Halo Branded Solutions
MIAMI - March 13, 2007 - H.I.G. Capital, a leading Miami-based private equity firm, announced today the sale of HALO Branded Solutions, Inc. ("HALO") to Compass Diversified Trust, a private equity firm based in Westport, CT. The purchase price was $62.5 million.
Founded in 1952 and headquartered in Sterling, Illinois, HALO is one of the largest domestic distributors of logo-based promotional products in the country. HALO provides its customers a one-stop resource for the design, sourcing, management and fulfillment across all categories of its customers' promotional products needs. Operating under the brand names HALO and Lee Wayne, HALO services more than 30,000 clients in a wide range of industries.
H.I.G. acquired HALO in May 2003 through a 363 bankruptcy sale process. Since H.I.G.'s acquisition, the Company has effectuated a successful acquisition strategy, completing four acquisitions to expand into new geographies and product lines. The Company has also streamlined its operations in order to solidify the best-in-class value proposition that it offers to independent representatives and customers. Since H.I.G.'s acquisition, the Company's revenues have tripled and profit margins have improved significantly. These successes culminated in HALO CEO Marc Simon's being named the promotional products industry "Person of the Year" in 2006.
"During the last four years with H.I.G. as our financial sponsor, we have created a significant amount of value through growth and operations improvements to become the leading supplier in our sector. H.I.G. has been a value-added partner in this process and we appreciate the relationship that we have had with them," said Marc Simon, CEO of HALO.
"We are lucky to have partnered with such an outstanding management team. They have done a superb job growing the business and building the undisputed leading platform in the sector. As a result, the Company has delivered a fantastic return for H.I.G.'s investors, and we are confident that HALO will continue to be successful in the future" remarked Doug Berman, Managing Director of H.I.G. Capital.
About H.I.G. Capital
H.I.G. Capital LLC ("H.I.G.") is a leading private equity and venture capital investment firm with more than $3.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has completed more than 75 transactions. The firm currently manages a portfolio of more than 50 companies with combined revenues of more than $7 billion. For more information, please visit the H.I.G. website at www.higcapital.com.