VSS Invests in Cast & Crew Entertainment Services

Veronis Suhler Stevenson, through its VSS Structured Capital II, has made a minority investment in Cast & Crew Entertainment Services in conjunction with the previously announced acquisition of the company by ZM Capital, ZelnickMedia’s private equity fund. Terms of the transaction were not disclosed.

Kind Of A Big Deal: ZM Capital Strikes First Deal With “Father Of Infomercials”

ZM Capital got off to a false start last year, when its first deal as a solo shop — a buyout of media services company Greenfield Online — fell apart.

But the firm, an investment subsidiary of ZelnickMedia, prevailed this week in its acquisition of Cannella Response Television, a Wisconsin-based broker of infomercial spots. ZM Capital brought in Palladium Equity Partners to share the equity load. The deal included no senior debt, but did have mezzanine notes and a small equity slice from VSS Structured Capital II (first investment from Veronis Suhler Stevenson’s second mezzanine fund).

ZM Capital purchased the privately-owned company from its founder Frank Cannella, who is credited with being “The Father of the Infomercial Industry,” according to ZM Capital’s Andrew Vogel. Management, which includes Cannella and CEO Robert Medved, has retained a significant stake. Petsky Prunier advised the seller on the transaction. Pricing terms weren’t disclosed.

Left At the Alter: How Some Firms Get Around Contingencies

It’s a familiar story line these days: Once the masters of their domains, private equity pros have faded from power and prestige with the onset of the credit crunch. Et cetera, et cetera.

Yesterday’s news provided further proof of this narrative. Macrovision rejected One Equity Partners, the firm it had lined up to buy TV Guide Network, in lieu of a strategic buyer. The price, $255 million, was only a slight bump from One Equity’s $225 million. The biggest difference of course, is those pesky contingencies. Unlike One Equity, strategic suitor Lionsgate would pay it all in cash. Private equity has been abandoned at the alter, and frankly, it’s a bummer.

I can’t say I’m surprised with the number of things that can do wrong in the deal-closing process these days. The flood of stories claiming

Kind Of A Big Deal: The Go-Shop That Went Somewhere

ZM Capital: a small investment subsidiary of ZelnickMedia that somehow managed to convince a $249 billion company with 91,000 employees to do its bidding.

Three weeks ago, most everyone assumed that Quadrangle Group’s agreement to buy media services company Greenfield Online was a done deal. It had a standard go-shop provision, but conventional wisdom tells us those rarely go anywhere. And besides, Greenfield’s stock was trading at a relatively small spread. Business as usual. Ho-hum. Then, seemingly out of nowhere, Microsoft upended the whole thing with a superior offer that Quadrangle was unable to match.

Who knew little ZM Capital was behind the scenes, plotting a rival bid, for almost a year?

ZM Capital To Buy Greenfield Unit from Microsoft

Microsoft Corp. announced that it will sell Greenfield Online’s Internet survey business to an affiliate of ZM Capital for an undisclosed amount. The sale would come after Microsoft completes its acquisition of Greenfield Online in Q4, with ZM lining up leveraged financing from NewStar Financial, CIT and VSS Structured Capital.  PRESS RELEASE Microsoft Corp. and […]

PEHUB Community

Join the 12505 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

PE HUB News Briefs

RSS Feed Widget

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget