Tenex Capital buys Pemco America

Tenex Capital Management has acquired Pemco America Inc. Financial terms weren’t announced. Palm Beach Capital, which owned a majority, was the seller. Sarasota, Florida-based Pemco is professional employer organization that provides human resource administrative outsourced solutions. Brookwood Associates advised Pemco.

PRESS RELEASE

Brookwood Associates is pleased to announce that it served as the exclusive financial advisor to PEMCO America, Inc. (“PEMCO” or “Company”), and its majority shareholders, Palm Beach Capital (“PBC”), on its sale to Tenex Capital Management (“Tenex”). Based in Sarasota, FL, PEMCO is a leading nationwide professional employer organization (“PEO”) that focuses on providing human resource administrative outsourced solutions. The Company has established itself as a major player in the PEO industry through a combination of organic growth, a multi-regional business consultant network, and a history of successful add-on acquisitions.

This transaction extends Brookwood’s successful track record advising technology-enabled outsourced business services companies, including PEOs. Brookwood’s strong sector knowledge and process management skills were instrumental in generating a successful outcome for both management and the shareholders of PEMCO. The business services industry continues to attract strong interest from both private equity investors and strategic acquirers, and Brookwood adds significant value in these transactions.

PEMCO America, Inc. (www.progressiveemployer.com), based in Sarasota, FL, is one of the fastest growing PEOs in the nation. PEMCO is a full service provider of payroll administration, workers’ compensation, employee benefits, and human resource management. Since 1999, PEMCO’s philosophy for becoming one of the largest PEOs in the U.S. has been to “Focus on the Customer” while allowing uncompromising integrity and relentless attention to detail to drive growth.

Palm Beach Capital (www.pbcap.com), based in West Palm Beach, FL, is a private equity investment firm that partners with management teams in middle market buyouts, recapitalizations and growth equity investments. PBC’s disciplined approach to operational improvement through the provision of intellectual capital, financial resources and proprietary network of alliances ensure PBC is building strong businesses with lasting value.

Tenex Capital Management (www.tenexcm.com), based in New York, NY, is a private equity fund that invests in middle-market companies. Tenex utilizes an in-house team of hybrid investment professionals skilled in operational leadership, investing and capital markets structuring to maximize long-term value creation. Tenex’s deep operating experience allows the firm to collaborate with management teams to capitalize on business and market opportunities. Tenex has established a successful track record investing in diverse industries, including industrials, manufacturing, and health and business services.

Brookwood Associates (www.brookwoodassociates.com), based in Charlotte, NC and Atlanta, GA, is a leading middle-market investment banking firm founded in 1989 offering advisory services regarding mergers and acquisitions, financings, fairness opinions and bankruptcies/restructurings. Brookwood has several areas of sector focus, including representing outsourced and technology-enabled business services companies.