Warburg to Buy CROSSMARK

Warburg Pincus has agreed to make a majority investment in CROSSMARK. Financial terms were not announced. Company management will have a “significant” equity position. Plano, Texas-based CROSSMARK is a sales and marketing services company in the consumer goods industry. BofA Merrill Lynchadvised CROSSMARK, while Slava Leykind and Fuad Sawaya of Sawaya Segalas provided financial advice to Warburg.

PRESS RELEASE
CROSSMARK, a leading sales and marketing services company in the consumer goods industry, today announced that it has entered into a definitive merger agreement with an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, whereby Warburg Pincus will make a majority investment in CROSSMARK. The management owners of CROSSMARK will maintain a significant equity position and continue to actively lead the company after the transaction closes. Terms of the transaction were not disclosed.

CROSSMARK, founded in 1905, has been providing solutions for some of the most powerful brands in the world to achieve their business objectives across a wide range of retail channels. The company’s expertise in sales, merchandising and in-store marketing spans the grocery, mass, club, drug, dollar, convenience store, consumer electronics and specialty channels. CROSSMARK creates value for manufacturers and retailers, from profitable sales growth and improved ROI to in-store brand-equity building and shopper loyalty.

CROSSMARK CEO John Thompson said the investment will allow CROSSMARK to achieve its growth objectives faster than it could do on its own.

“The Warburg Pincus partnership will provide growth capital that will allow CROSSMARK to make acquisitions, expand our service offerings, and further enhance our capabilities to deliver even better service to our clients and customers,” Thompson said. “We are pleased to have a partner with a common vision and a track record of backing management with resources, expertise and relationships.”

Jim Neary, Managing Director, Warburg Pincus, said, “We are excited to partner with a management team and company with proven success in providing innovative solutions for its world-class client base. CROSSMARK operates in an industry where the demand for outsourced services among manufacturers and retailers continues to increase, along with dynamics favorable to the continued growth of in-store marketing services.”

Rob Feuer, Managing Director, Warburg Pincus, added, “Building on CROSSMARK’s industry leadership – combined with its diverse network of key retailers, talented workforce and unique approach – we believe the company is well positioned for sustained growth and success.”

BofA Merrill Lynch acted as exclusive financial advisor to CROSSMARK. Sawaya Segalas & Co., LLC acted as financial advisor to Warburg Pincus. Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Warburg Pincus.

About CROSSMARK

CROSSMARK is a leading sales and marketing services company in the consumer goods industry, providing growth solutions with exceptional service to manufacturers and retailers. For more than 100 years, CROSSMARK has helped the most powerful brands in the world achieve their business objectives across a wide range of retail channels. Expertise encompasses the areas of Headquarter Sales, Retail Merchandising, Retailer Solutions, Event Marketing, In-Store Data Collection, Shopper Marketing, Retail Analytics, and Retail Technology Solutions. Headquartered in Plano, Texas, CROSSMARK employs more than 34,000 associates worldwide with 47 offices throughout the U.S., Canada, Mexico, Australia and New Zealand. For more information, visit www.crossmark.com.

About Warburg Pincus

Warburg Pincus is a leading global private equity firm focused on growth investing. The firm has more than $30 billion in assets under management. Its active portfolio of more than 125 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $40 billion in over 650 companies in more than 30 countries.

The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, Sao Paulo and Shanghai. For more information, visit www.warburgpincus.com.

 

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