Roark Capital Group and Entrepreneur Partners have acquired Peachtree Business Products, an Atlanta-based provider of direct marketing supplies, according to a regulatory filing. No pricing terms were disclosed.
Roark Capital Group, an Atlanta-based private equity firm, and Entrepreneur Partners, a Philadelphia-based private equity partnership announced today that they have through affiliates acquired Peachtree Business Products, a Marietta, Georgia-based multi-channel direct marketer of specialty business products and marketing materials for residential property managers, parking facilities and other end markets. Entrepreneur Partners contributed its portfolio company AmeriFile, a St. Louis, Missouri-based direct marketer of specialty business products to physicians, dentists, veterinarians and other healthcare practitioners. A Roark affiliate provided the equity required to finance the acquisition.
The combined business, which will be headquartered in Marietta, provides rapid turnaround, customized solutions via catalogs, direct mail, the Internet and call centers to over 250,000 small business customers nationally. By leveraging its proprietary database with its customers’ unique design specifications, Peachtree can rapidly replenish high-quality personalized products in an easy and cost effective manner, allowing small businesses to act and feel like big businesses.
Bruce Newman, CEO of AmeriFile, will run the combined company. Steve Wexler, Chairman of AmeriFile and former owner of Medical Arts Press, will continue on as Chairman of the combined business, and Scott Luntz, an experienced direct marketing executive and founder of Fairfield Mint, will also join the board.
“Peachtree delivers high quality products, specialized expertise and great customer service. Roark’s experience in direct marketing and with acquiring businesses from entrepreneurial founders made them a great partner for us in this transaction,” said Salem D. Shuchman, Managing Partner of Entrepreneur Partners.
“We believe that a combination with AmeriFile together with the expertise of Entrepreneur Partners and Roark Capital Group, make them the right owner for Peachtree going forward,” said Robert W. Baggett, Chairman and Co-owner. David W. Boatwright, Peachtree President and Co-owner said, “The new owners’ expertise in direct marketing will help the company better anticipate and meet the needs of the customers in the various markets in which Peachtree operates.”
Ezra Field, Managing Director of Roark Capital, stated “Peachtree is an attractive business to business direct marketer with a very sticky, stable customer base. It nicely fits Roark’s strategy of investing in companies with recurring revenues and multiple opportunities for growth. We look forward to continuing the legacy of Peachtree’s founders, who built a strong company by focusing on the needs of small business owners nationwide.”
Neal Aronson, Managing Partner of Roark Capital, added “We’re excited about the opportunity to work with Entrepreneur Partners. I’ve known Salem Shuchman for over 20 years, and have great respect for the expertise he and his colleagues bring to this sector.”
Roark’s investment in the acquisition of Peachtree represents the firm’s 15th investment in a business owned by a founding entrepreneur or family. The investment is Roark’s first of 2010. In August 2009, Roark completed its 15th investment in the franchise industry when it acquired Pet Valu, Canada’s leading small-format specialty retailer and wholesale distributor of pet food and supplies. In September 2009, Roark completed a $100 million growth capital investment in Waste Pro USA, a non-hazardous solid waste management services company headquartered in Longwood, Florida. In addition, Roark invested additional funds in its portfolio company PSC to support its acquisition of North Shore Agency in November 2009.
The acquisition of Peachtree continues the growth of AmeriFile since Entrepreneur Partners first invested in 2007. “As with all our investments, we have always envisioned AmeriFile as a platform to build a leading company in its field and the acquisition of Peachtree is a great step in that direction” said Salem Shuchman.
GE Capital Corporation and Golub Capital have co-arranged a credit facility to support the acquisition.
About Roark Capital Group
Roark Capital Group is an Atlanta-based private equity firm that specializes in business and consumer service companies with attractive growth prospects and revenues ranging from $20 million to $1.0 billion. Roark focuses on middle-market investment opportunities through family-owned business transfers, management/corporate buyouts, recapitalizations, going-private transactions, and corporate divestitures. In addition to direct marketers, Roark has acquired 15 franchise/multi-unit brands that collectively have more than 45,000 points of distribution, 2,600 franchisees, and $4 billion in system-wide revenues across 50 states and 36 countries. Its current franchise portfolio includes Carvel, Cinnabon, Schlotzky’s, Moe’s Southwest Grill, Seattle’s Best Coffee International, McAlister’s Deli, Money Mailer, Fast Signs, Batteries Plus, Primrose Schools and Pet Valu. The firm has more than $1.5 billion of equity capital under management. For more information, visit www.roarkcapital.com.
About Entrepreneur Partners
Entrepreneur Partners is a Philadelphia-based private equity firm that focuses on making control and minority investments in business-to-business and business-to-consumer multi-channel direct marketers. The partners of the firm include veteran private equity professionals, experienced operating executives and successful entrepreneurs from the direct marketing field. For more information about Entrepreneur Partners, please visit www.entrepreneurpartners.com.
About Peachtree Business Products
Peachtree Business Products is a multi-channel direct marketer of customized and replenishable business products and marketing materials to residential property managers, parking facilities and healthcare practitioners including physicians, dentists, and veterinarians. The company markets its products via catalogs, direct mail, the Internet and a call center. Peachtree has an in-house design team that enables the company to produce 24,000 made to order forms, signs, reminders, marketing products, and supplies in a quick and cost-effective manner. The company has developed a loyal customer base by being a reliable value-added partner that delivers quality products in a manner that is both timely and easy for the purchaser. The company was founded in 1973 and is based in Marietta, Georgia. For more information, visit www.pbp1.com.