Glencoe Capital has acquired Novo 1, Waukesha, Wisc.-based provider of inbound and outbound customer interaction solutions. No financial terms were disclosed. Glencoe did the deal out of its Michigan Opportunities Fund, and said that it would create more than 300 new jobs in the State of Michigan.
Glencoe Capital’s Michigan Opportunities Fund has acquired the inbound telephone customer service business and certain other assets of Novo 1, in a move that promises to create more than 300 new jobs in the State of Michigan, announced David S. Evans, Chairman and Chief Investment Officer of Glencoe Capital.
“Our investment in Novo 1 continues the Michigan Opportunities Fund’s strategy to invest in growing companies that can generate attractive returns to our investors, while promoting business growth and fostering job creation that together help improve the economic vitality of the State of Michigan,” said Evans.
Formed in 2000 and based in Waukesha, Wis., Novo 1 is a leading provider of inbound and outbound customer interaction solutions to clients across industries. With revenues of $43 million last year, Novo 1 ranked as the 25th-largest inbound services provider in the domestic US in 2008, according to Customer Inter@ction Solutions magazine.
Under Glencoe’s ownership, Novo 1 plans to open a customer care and contact center in western Michigan by early 2010 that will employ more than 300 personnel. Novo 1 has five contact centers throughout the US, including in Texas, Montana, and Wisconsin, with its new headquarters located in Fort Worth, TX. The company has more than 400 corporate clients and employs more than 1,100 customer-care specialists and specializes in the healthcare, service dispatch, and transportation and logistics vertical markets.
“In Novo 1, Glencoe Capital is supporting a growing business that has a solid operating platform, a management team that averages 15 years with the company, and a history of success,” said Jason Duzan, Managing Director of Glencoe Capital’s Michigan Opportunities Fund.
“Novo 1 has performed well over the past few years and is looking to expand further both geographically and operationally,” said Duzan. “With its highly qualified workforce, its location in the Midwest US and its diverse business base, the State of Michigan is the ideal setting to continue that expansion.”
Glencoe’s Michigan Opportunities Fund represents a groundbreaking partnership between the public and private sectors, leveraging equity capital to make lead-sponsored acquisitions and growth equity investments in companies in the State of Michigan or in businesses that want to expand operations into the State. “Private equity, partnered with Michigan’s top business leaders and government, represents a dynamic part of the model for a successful economic future in the State of Michigan,” said Evans.
The acquired operations will continue to operate under the Novo 1 brand name and will be managed by its existing management team. This is the second investment by the Michigan Opportunities Fund.
About the Michigan Opportunities Fund
Glencoe Capital’s Michigan Opportunities Fund invests in companies that show the promise of future growth or where operational improvements will create additional value. Investment targets are lower middle-market companies with EBITDA in excess of $3 million and with minimum equity capital requirements of $10 million. The Fund is a participant in the InvestMichigan! initiative established by the State of Michigan in 2008. More information is at www.glencap.com.
About Glencoe Capital
Founded in 1993, Glencoe Capital is a private equity firm focused on lead-sponsored acquisitions and growth equity investments in lower middle-market companies. Glencoe Capital and its affiliates manage a number of private equity funds, including the Michigan Opportunities Fund and Glencoe Capital Partners III, L.P. The firm has over $1 billion under management. More information is at www.glencap.com.