Blue Point Capital Partners and Endeavour Capital have exited their interests in Legend Brands, selling the company to publicly traded RPM International Inc. Blue Point invested in Legend Brands from its 2006 vintage fund, Blue Point Capital Partners II, L.P. – a $400 million lower middle market buyout fund. Terms were sales were not released. Legend Brands, based in Burlington, Wash., is a designer and manufacturer of highly engineered restoration and cleaning products.
Blue Point Capital Partners, in conjunction with Endeavour Capital, announced that the firms have sold their interests in Legend Brands to RPM International Inc. (NYSE: RPM). Blue Point invested in Legend Brands from its 2006 vintage fund, Blue Point Capital Partners II, L.P. – a $400 million lower middle market buyout fund. Sale terms were not disclosed.
Legend Brands, headquartered in Burlington, WA, is a leading designer and manufacturer of highly engineered restoration and cleaning solutions for the remediation and maintenance of healthy indoor settings. Legend’s family of companies boasts 140 years of combined experience and encompasses a robust portfolio of the industry’s most recognized brands, including Dri-Eaz, Unsmoke, ODORx, Microban and Sapphire Scientific. The Company is widely regarded for the highest-quality, best-value air movers, dehumidifiers, portable air conditioners, disinfectants and smoke, odor and mold remediation products. Legend Brands also operates the Restoration Sciences Academy, which provides industry-leading education services and professional certification programs at campuses throughout North America and Europe.
“Our initial investment was in Dri-Eaz, the global leader in education, innovation and equipment serving the restoration industry,” said Mark Morris, a partner with Blue Point. “We were able to grow that leadership position, while at the same time diversify the product portfolio significantly, through organic growth and add-on acquisitions. Additionally, the Blue Point team in China assisted management with optimization of the supply chain to ensure cost competitiveness from a global perspective. Under the ownership of Endeavour and Blue Point, Legend’s revenue and EBITDA almost doubled.”
Chad Heath, a managing director with Endeavour, said, “The equity group worked closely with management to develop a dynamic strategic plan focused on expanding the distribution channel at the outset of our ownership and then leveraging that channel with the introduction of new products. During this period, Legend grew its chemical products offering, developed a technology-leading, van-mounted carpet cleaning system and introduced environmentally friendly detergents, among other initiatives — further solidifying the Company’s market-leading position.”
Bill Bruders, chief executive officer of Legend Brands, added, “Our partnership with Blue Point and Endeavour solidly positioned Legend as an industry leader with a strong platform and expanded capabilities in the restoration services sector. Going forward, we will continue to thrive on our embedded culture of innovation, introducing new products and broadening our distribution networks.”
Blue Point Capital Partners (www.bluepointcapital.com), with offices in Charlotte, Cleveland, Seattle and Shanghai, is one of the largest and most active resident middle market private equity firms in each of its target markets and focuses principally on investments in manufacturing, distribution and service businesses that primarily address commercial and industrial markets. Blue Point’s presence in the economies of both the United States and China positions the firm to create value by helping its investee firms to globalize. Blue Point has extensive experience in identifying, evaluating and successfully completing a variety of private equity investment transactions, including recapitalizations, management buyouts, corporate divestitures and industry consolidations. The principals of Blue Point have completed over 100 investments with a total transaction value of more than $2 billion.
Endeavour Capital (www.endeavourcapital.com), with offices in Portland, Seattle and Los Angeles, invests in leading manufacturing and services companies in the Western United States. Endeavour Capital was formed in 1991 to provide a patient source of private capital to well-managed, middle-market businesses throughout the West. Endeavour has made over 30 “platform” investments, as well as numerous other add-on investments, in its 20-year history.