2021 HIGHLIGHTS 25+ YEARS PARTNERING WITH OUTSTANDING MANAGEMENT TEAMS TO ACCELERATE VALUE CREATION - Sun Capital Partners
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2021 MID-YEAR HIGHLIGHTS 25+ YEARS PARTNERING WITH OUTSTANDING MANAGEMENT TEAMS TO ACCELERATE VALUE CREATION
2021 MID-YE AR RE VIEW SUN CAPITAL’S DEAL SWEET SPOT
Defensible businesses in growing markets with
tangible performance improvement opportunities
VERTICALS
TOTAL
CAPITAL 420.5
$
» MILLION » 4 Platforms BUSINESS
SERVICES CONSUMER HEALTHCARE INDUSTRIALS TECHNOLOGY SMALL CAP
INVESTED
12 Add-Ons GEOGRAPHIC FOCUS
REALIZED
GROSS 775.0
$
» MILLION » 2 Exits
NORTH AMERICA AND EUROPE
PROCEEDS
5 Dividends INVESTMENT FOCUS
REVENUE
ACCELERATING
Platform: $50 Million-$1.0 Billion
VALUE CREATION Add-On: Any amount
Sun Capital collaborates with
outstanding management teams to
Y
EQUITY INVESTMENT
EG
SI
accelerate value creation through
AT
ZE
No Minimum
operational excellence
R
» 335.0
ST
Maximum: $500 Million
FINANCINGS $ DEAL
SWEET
COMPLETED MILLION SPOT
TR
N
AN
IO
SA
AT
TRANSACTION TYPE CONTROL BUYOUTS
C
IP
TI
C
O
Corporate Carve-Out With flexibility around seller and
TI
N
R
Founder-Owned management participation, and
TY
PA
PE
Sponsor-to-Sponsor non-control equity investments
2 0 2 1 M I D -Y E A R H I G H L I G H T S 2
2021 PLATFORM ACQUISITIONS
Industry: Business Services Industry:
(Transportation & Logistics) Industrial Services
Transaction Type: Transaction Type:
Corporate Carve-Out Sponsor to Sponsor
Century Distribution Systems HQ: EIS is a leading provider of HQ:
is a global digital logistics Glen Allen, Virginia mission-critical environmental and Fort Worth, Texas
provider offering supply chain infrastructure services, including
Seeking Add-Ons? Seeking Add-Ons?
management and freight abatement, decontamination
Yes Yes
forwarding services. and remediation.
DOWNLOAD BUSINESS
> READ PRESS RELEASE > READ PRESS RELEASE
SERVICES CRITERIA
2 0 2 1 M I D -Y E A R H I G H L I G H T S 3
2021 PLATFORM ACQUISITIONS
Industry: Industry:
Technology Technology
Transaction Type: Transaction Type:
Founder-Owned Sponsor to Sponsor
Exadel builds critical enterprise- HQ: LoanLogics is a digital HQ:
wide products and platforms with Walnut Creek, California mortgage solutions provider Jacksonville, Florida
a focus on accelerating digital creating the premier investor
Seeking Add-Ons? Seeking Add-Ons?
transformation for blue chip network ecosystem for digital
Yes Yes
customers around the world. loan commerce.
DOWNLOAD TECHNOLOGY DOWNLOAD TECHNOLOGY
> READ PRESS RELEASE > READ PRESS RELEASE
INVESTMENT CRITERIA INVESTMENT CRITERIA
2 0 2 1 M I D -Y E A R H I G H L I G H T S 4
2021 ADD-ON ACQUISITIONS SEEKING ADD-ON ACQUISITIONS
We are looking for Add-On opportunities, irrespective of
company size, for our current portfolio companies, including:
Sector: Environmental Services
HQ: Harrogate, United Kingdom
Sector: Packaging
HQ: Leeds, United Kingdom
AMGS, Flotech, Oneline Brake Hose Producton FL Family Primary Care Centers Full Circle Restoration Sector: Chemicals
HQ: Ames, Iowa
SECTOR:
SECTOR: SECTOR: SECTOR:
Property Restoration and Sector: Transportation & Logistics
Environmental Services Automotive Primary Care
Reconstruction Services HQ: Glen Allen, Virginia
ACQUIRED BY: ACQUIRED BY: ACQUIRED BY: ACQUIRED BY: Sector: Primary Care
Adler & Allan Flexitech Clinical Care (MBMG) Cotton Holdings HQ: Doral, Florida
Sector: Property Restoration
and Reconstruction
HQ: Houston, Texas
Sector: Technology
HQ: Walnut Creek, California
Sector: Technology
HQ: Jacksonville, Florida
Initial Packaging, Four04 Packaging Olin Dental Group PW Defence SoCal Dermatology
Sector: Dental
HQ: Langhorne, Pennsylvania
SECTOR: SECTOR: SECTOR: SECTOR:
Packaging Dental General Industrial Dermatology
Sector: General Industrial
HQ: Franksville, Wisconsin
ACQUIRED BY: ACQUIRED BY: ACQUIRED BY: ACQUIRED BY:
Coveris Simply Beautiful Smiles WesCom Signal and Rescue West Dermatology Sector: General Industrial
HQ: Havant, United Kingdom
Sector: Dermatology
HQ: Newport Beach, California
> CONTACT OUR SENIOR TRANSACTION TEAM
2 0 2 1 M I D -Y E A R H I G H L I G H T S 5
“ The Sun Transformation System 2021 EXIT
helped us identify a number of key HQ: Type of Buyer: Sector: Exit date:
areas for improving performance, High Wycombe, United Kingdom Strategic Retail August 2, 2021
creating value, expanding our market
Business Description:
and accelerating revenue growth. Our Dreams is the leading bed and mattress retailer in the UK, with 209 stores
and a robust online platform selling both Dreams-manufactured products
shared values and focus on delivering a and third-party brands.
Financial Performance
FINANCIAL PERFORMANCE
customer-first strategy, combined with Value Creation: (£ millions)
EBITDA1 Revenue 1
Dreams was acquired out of insolvency in 2013. The investment thesis was
Sun’s operational knowledge, enabled focused on turning around a mismanaged business with a strong underlying
£80.0
£375.0
brand. Sun Capital implemented an ambitious plan to dramatically improve
the transformation of the business. profitability through the application of our operational toolkit, the Sun
£70.0
£60.0
£300.0
Transformation System (STS).
£225.0
Mike Logue, Dreams £50.0
(former portfolio company) ptimized Retail Store Footprint - At the time of the transaction, Sun
O £40.0
£150.0
Capital restructured Dreams’ footprint and streamlined its operations by £30.0
closing 106 underperforming stores. £20.0
£75.0
£10.0
ransformed Team and Culture - Sun Capital hired a new CEO, who
T £0.0 £0.0
WATCH SUN TRANSFORMATION SYSTEM VIDEO partnered with Sun Capital to execute Dreams’ value creation plan.
20
cq
21
15
16
19
14
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18
13
20
cq
21
14
17
18
13
15
16
19
-£10.0
20
20
20
20
20
20
20
20
20
20
20
20
-A
20
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20
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20
Further, Sun Capital recommended augmenting the management team
e
e
Pr
Pr
by creating positions such as a Buying Director, Marketing and Digital
Director, Operations Director and HR Director. The employee base
was re-trained and re-focused around customer service, which led to Despite being forced to close its stores for 7 months because of COVID,
improved in-store conversion rates and increased customer satisfaction. Dreams was able to weather an unprecedented environment for retailers.
Not only was the Company able to effectively manage these newfound
R
ationalized Product Line - The Company reduced available SKUs by 24%, challenges, but also it was able to complete an add-on acquisition and
and introduced higher margin, Dreams-branded products, which generate increase its value culminating in a successful exit.
a 10% higher margin compared to third-party brands. In 2020, 29% of
revenue was derived from products manufactured in Dreams’ facilities.
Past performance is not necessarily indicative of future results. Pre-acquisition Sales and EBITDA numbers have
emodeled Store Base - Dreams made a substantial investment in its
R been provided by the Company, but may include certain assumptions and adjustments made during diligence.
store base, completing a company-wide refurbishment, which resulted in
increased sales per square foot.
uilt E-Commerce Platform - Dreams strengthened its digital capabilities
B
> READ PRESS RELEASE
and online presence, causing e-commerce sales to grow from 9% of
revenue at acquisition to 22%.
2 0 2 1 M I D -Y E A R H I G H L I G H T S 6
GLOBAL SENIOR TEAM
E X E C U T I VE COMMIT TEE
Marc J. Leder Rodger R. Krouse M. Steven Liff Bruce Roberson Tim Stubbs
CO-FOUNDER AND CO-CEO CO-FOUNDER AND CO-CEO Head of PE North America Head of US Operations Team Head of EU Operations Team
mleder@suncappart.com rkrouse@suncappart.com SENIOR MANAGING DIRECTOR SENIOR MANAGING DIRECTOR SENIOR MANAGING DIRECTOR
sliff@suncappart.com broberson@suncappart.com tstubbs@suncappart.com
T R A N S AC T ION SENIOR T EA M
BOCA RATON NEW YORK OP ERAT I ON S SEN I OR T EA M
M. Steven Liff Elizabeth de Saint-Aignan Susan Clark Ulrich Otto
Head of PE North America MANAGING DIRECTOR MANAGING DIRECTOR GROUP COO
SENIOR MANAGING DIRECTOR edesaintaignan@suncappart.com sclark@suncappart.com uotto@suncappart.com
sliff@suncappart.com
Daniel Florian Jared Wien Raj Karanam Bruce Roberson
MANAGING DIRECTOR MANAGING DIRECTOR MANAGING DIRECTOR Head of US Operations Team
dflorian@suncappart.com jwien@suncappart.com rkaranam@suncappart.com SENIOR MANAGING DIRECTOR
broberson@suncappart.com
Jeremy Stone Todd Plosker Marc Mabon Sergei Spiridonov
MANAGING DIRECTOR MANAGING DIRECTOR GROUP COO MANAGING DIRECTOR
jstone@suncappart.com tplosker@suncappart.com mmabon@suncappart.com sspiridonov@suncappart.com
Rossen Georgiev Stephen Cella James Morris Tim Stubbs
PRINCIPAL PRINCIPAL GROUP COO Head of EU Operations Team
rgeorgiev@suncappart.com scella@suncappart.com jmorris@suncappart.com SENIOR MANAGING DIRECTOR
tstubbs@suncappart.com
LOS ANGELES LONDON I N F RA ST RU C T U RE SEN I OR T EA M
Matthew Garff Mark Corbidge Deryl Couch Kelly Griffin
MANAGING DIRECTOR MANAGING DIRECTOR General Counsel Head of Investor Relations
mgarff@suncappart.com mcorbidge@suncappart.com MANAGING DIRECTOR MANAGING DIRECTOR
dcouch@suncappart.com kgriffin@suncappart.com
Jordan Wadsworth Paul Daccus Angela Geffre Mark Hajduch
MANAGING DIRECTOR MANAGING DIRECTOR Chief Human Resources Officer Head of Tax
jwadsworth@suncappart.com pdaccus@suncappart.com ageffre@suncappart.com MANAGING DIRECTOR
mhajduch@suncappart.com
Jonathan Jackson
PRINCIPAL
jjackson@suncappart.com
2 0 2 1 M I D -Y E A R H I G H L I G H T S 7
FIRM OVERVIEW
Sun Capital Partners, Inc. is a global private equity firm
focused on partnering with outstanding management
teams to accelerate value creation. Since 1995, Sun Capital
has invested in more than 425 companies worldwide with This 2021 Mid-Year Highlights contains information regarding a
revenues in excess of $50 Billion across a broad range subset of investments made by affiliates of Sun Capital Partners,
of industries and transaction structures. The Firm has Inc. and does not represent all investments or exits made by such
built a reputation as a trusted partner, recognized for its affiliates. The information presented on page 2 represents all private
equity investments, financings and exits made by affiliates of Sun
operational experience. Sun Capital focuses on defensible
Capital Partners, Inc. during 2021. It should not be assumed that any
businesses in growing markets with tangible performance
investments discussed herein were or will be profitable, or that any other
improvement opportunities in the Business Services, investments will have similar characteristics. Past performance is not
Consumer, Healthcare, Industrial, and Technology sectors. necessarily indicative of future results. Portfolio companies identified
The Firm has offices in Boca Raton, Los Angeles and herein may not be representative of the entire portfolio and results may
New York, and an affiliate with offices in London. vary. The views expressed herein reflect the opinions of Sun Capital
Partners, Inc. as of August 6, 2021 and are subject to change. Nothing
herein constitutes an offer or solicitation of an offer to buy any security.
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