Summit Partners Sees Good Signs in $172M Deal –

Hoping to be to signs what Dell Computer Corp. is to computers, Summit Partners in April acquired a majority stake in EMED Co., a maker and direct marketer of signs and related products, for a total transaction value of $172 million.

BancBoston Capital provided $110 in senior debt for the deal. Summit partners paid $36 million in equity and $26 million from its in-house mezzanine fund, according to Martin Mannion, a general partner at the Boston-based firm.

EMED, based in Buffalo, New York, directly markets its products, such as “Employees Must Wash Hands” and “Biohazard” signs, to businesses through a series of catalogs. The company specializes in customized orders and same-day delivery. It had 1998 revenue of approximately $52 million.

A Summit Partners statement said the investment was the Boston firm’s second largest to date. Its largest investment was in ETEK Dynamics, in which Summit Partners invested $100 million in equity.

Claire Gruppo, president of Gruppo, Levey + Capell, which advised EMED on the transaction, said the sign market is very fragmented.

Ms. Gruppo said EMED decided to sell to Summit Partners because of the firm’s track record with business-to-business marketing companies.

Summit will use the company as a platform, Ms. Gruppo said.