Merit Capital Partners Exits Versatile Processing

Merit Capital Partners has exited its investment in Versatile Processing Group Inc., selling the company to Dallas, Texas-based private equity investor Insight Equity II L.P. Indianapolis-based Versatile is a provider of metal processing and recycling services to the electric utility and manufacturing industries. Terms of the deal were not released.

PRESS RELEASE
Merit Capital Partners completed the successful exit of its investment in Versatile Processing Group, Inc. Insight Equity II LP, a private equity firm headquartered near Dallas, Texas, acquired Versatile during the fourth quarter of 2011. Based in Indianapolis, Versatile is one of the leading providers of metal processing and recycling services to the electric utility and manufacturing industries. Versatile’s service offerings include the recycling of metal and plastic stripped from discarded wire and cable; the sorting and recycling of various scrap metals; and the decommissioning, repair and recycling of used electrical transformers. The Company operates facilities located in Defuniak Springs, Florida; Des Plaines, Illinois; Nabb, Indiana; and Wills Point, Texas.

In August 2005, Merit partnered with management and D. J. Dorman & Co., Inc., an independent sponsor located in Bloomfield Hills, Michigan, to acquire Versatile. During the investment period, Versatile made two significant add-on acquisitions and Merit provided additional capital to facilitate the transactions. These acquisitions significantly strengthened Versatile’s overall market position.

Dan Dorman, President of D. J. Dorman & Co., Inc., stated, “We have enjoyed working with Merit over the last 15 years. Their strategic and financial support of Versatile was integral in helping management grow the Company significantly during the investment period.”

Rob Van Vliet, President and CEO of Versatile, commented, “Merit was an excellent partner and enabled us to expand our product offering, enhance our management team and diversify our supplier base by supporting our strategic initiatives, which included making two key add-on acquisitions.”

Merit invested both subordinated debt and equity to support the acquisition of Versatile. Please contact Terry Shipp for additional information.