Versa Capital 2014 Year-End Update

  • Concluded BridgeStreet Global Hospitality acquisition
  • Vestis Retail Group acquired NASDAQ–traded retailer Sport Chalet
  • BCC Software spun out of Bell and Howell, Refinanced
  • Avenue Stores completed dividend recapitalization
  • Versa team expansion continues with a new Managing Director of Operations and several new additions to the investment and transaction development teams as well
  • Versa Fund III activated January 1, 2015 (and final closing held January 31, 2015)
     

Selected Portfolio Company Highlights

allen.png

Allen-Vanguard - Strong order backlog driven by foreign military and government sales supported by operational improvements and new product pipeline. Contingent litigation assets resulted in a substantial realization prior to year-end.

Avenue - A $90 million refinancing provided a dividend while the company was left with modest leverage and ample liquidity. Positive comp store sales plus strong EBITDA growth of over 50% y-o-y accent the launch of a new store opening strategy.

Bell & Howell - Restructuring completed with consolidation of manufacturing operations in Durham, NC and spinout of BCC Software division, retirement of all 3rd party debt and achievement of strong y-o-y EBITDA gains.

Black Angus - Positive same store sales growth for 21 consecutive quarters, outpacing its peer group. The first new restaurant under Versa ownership opened in 2014 to tremendous success, further reinforcing the growth strategy.

BridgeStreet Global Hospitality - Acquisition concluded in Mar-14. New capital structure alleviates liquidity issues that limited growth and margins. The business generated strong EBITDA in 2014 and is poised for substantial growth.

Civitas - Completed standardization and consolidation for all newspapers resulting in substantial operating expense savings. The streamlined company is now focused on revenue and advertising share.

Hatteras - Three new boat models launched in 2014 including the 45’ Hatteras Express, the most successful launch in 10 years selling through the newly revamped dealer network. Significant new production process improvements identified with implementation underway.

Polartec - EBITDA more than doubled in 2014. The company continues to focus on the diversification of its customer base through new product and technology innovation allowing further entry into adjacent markets. 

Vestis – Vestis acquired west-coast retailer Sport Chalet, its third retail brand, in Aug-14, creating a retailer with 150 stores nationwide. Former CEO Mark Walsh was reinstated to lead the combined platforms. Cost savings are on pace to be achieved earlier than anticipated. 

KEY CONTACTS

Transactions

Suzanne Yoon
Managing Director

Rick Schreiber
Managing Director

Jonathan Tyburski
Principal

OTHER KEY CONTACTS

Kamal Advani
Managing Director

Jeff Armbrister
Managing Director

Bob Blumenthal
Managing Director

Matthew Levitties
Managing Director

David Lorry
Managing Director

Bill Quinn
Managing Director

Lior Yahalomi
Managing Director

Randy Schultz
Chief Financial Officer 

Tom Kennedy, Esq.
General Counsel 

Greg Segall
Chairman & CEO

Paul Halpern
Chief Investment Officer

Raymond French
Chief Operating Officer