New York City-based Palladium Equity Partners said Thursday that it has completed the recapitalization of two portfolio companies, ABRA Auto Body & Glass and Teasdale Quality Foods. Proceeds of the recaps were used to fund an approximate $58 million distribution to investors in Palladium Equity Partners III. Also, as part of the transaction, Palladium Equity Partners will retain a majority ownership stake in both companies. ABRA is a provider of auto damage repair services while Teasdale Quality Foods is a producer of canned and dehydrated beans and hominy in the U.S., primarily serving the Hispanic market.
NEW YORK, July 25, 2013 /PRNewswire/ — Palladium Equity Partners, LLC (together with its affiliates, “Palladium”), a private investment firm focused on investments in the U.S. Hispanic marketplace, today announced that it has completed the recapitalizations of two portfolio companies – ABRA Auto Body & Glass (“ABRA”), a leading national provider of vehicle damage repair services, and Teasdale Quality Foods, Inc. (“Teasdale”), a leading producer and marketer of canned and dehydrated beans and hominy in the United States – allowing it to distribute approximately $58 million to investors in Palladium Equity Partners III, L.P., while continuing to be the majority owner of both companies.
Marcos A. Rodriguez, Managing Member of Palladium, commented, “Both ABRA and Teasdale exemplify the characteristics that Palladium seeks in its investments: strong and experienced management teams, market-leading positions, and compelling opportunities for growth. We are greatly pleased with the success we have achieved in working with ABRA and Teasdale, both of which are experiencing significant growth, and we look forward to continuing to press forward with them on the significant opportunities we see for them in the months and years ahead.”
The recapitalization of ABRA allowed for the return of approximately $24 million in capital to investors in Palladium Equity Partners III, representing 44% of invested capital. Since Palladium’s initial investment in October 2011, ABRA has accelerated its national expansion plan by completing ten add-on acquisitions and increasing EBITDA by more than 80%.
Teasdale executed a $94.5 million senior secured credit facility and returned approximately $34 million to investors in Palladium Equity Partners III, representing a return of 1.1x invested capital in less than two years. Since Palladium’s initial investment in September 2011, Teasdale has established a nationwide presence, entered new product categories and channels, and nearly tripled its EBITDA.
About ABRA Auto Body & Glass
Founded in 1984, ABRA is a recognized leader in collision repair, paintless dent removal, and auto glass repair and replacement with 124 company-owned vehicle damage repair centers and 49 franchised centers in 17 states. ABRA distinguishes itself by providing a solution that seeks to enable its insurance company partners to substantially improve customer satisfaction and drive policyholder retention, while simultaneously reducing repair costs and realizing substantial efficiencies in the claims management process.
About Teasdale Quality Foods
Teasdale is a leading producer and marketer of canned and dehydrated beans and hominy in the U.S., primarily serving the Hispanic market under its Teasdale brand as well as a wide range of private label products. The Company sells its products through the retail, foodservice, government and industrial channels, including grocery chains, distributors, club stores, dollar stores, restaurant chains, commissaries, Hispanic food manufacturers and the U.S government. The Company owns and operates manufacturing facilities in Atwater, CA, Hoopeston, IL and Greeley, CO.
About Palladium Equity Partners, LLC
Palladium is a middle market private equity firm with over $1 billion of assets under management focused primarily on buyout investments. Palladium seeks to acquire and grow companies in partnership with experienced management teams, with a special focus on companies benefiting from the growth in the U.S. Hispanic population. Palladium principals have been actively involved in the investment of $1.5 billion of capital in more than 50 portfolio companies since 1989 and have significant experience in financial services, business services, food, restaurants, healthcare, industrial, and media businesses. Palladium was founded in 1997 and is headquartered in New York City.