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Sun Capital Partners

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Sun Capital Partners, Inc.
Company typePrivate
Founded1995; 29 years ago (1995)
HeadquartersBoca Raton, Florida, United States
Key people
Rodger Krouse (co-CEO)
Marc J. Leder (co-CEO)
ProductsPrivate Equity Funds
Websitewww.suncappart.com

Sun Capital Partners, Inc., is an American private equity firm specializing in leveraged buyouts.[1] Sun Capital was founded in 1995 by Marc J. Leder and Rodger Krouse, former classmates at the Wharton School of the University of Pennsylvania and investment bankers at Lehman Brothers.[1][2]

As of 2020, Sun Capital has raised approximately $13 billion through seven flagship buyout funds and has invested in more than 420 portfolio companies worldwide with revenues in excess of $50 billion across a broad range of industries, including business services, technology healthcare, paper and packaging, building products, and general consumer, industrial, and retail sectors, among others.[3][4][5] Sun Capital is headquartered in Boca Raton, Florida, with additional offices in New York City and Los Angeles, and an affiliate with offices in London.[3][6] As of March 31, 2020, Sun Capital reported $6.1 billion in assets under management invested across 33 portfolio companies.[7][3]

Sun Capital's investment strategy involves a variety of proprietary operational tools to help portfolio companies grow revenue, lower costs, improve company cultures, and enhance processes.[8] Sun Capital targets platform companies with revenues between $50 million and $1.0 billion as well as smaller add-on acquisitions.[9] Sun Capital focuses on several transaction types, including corporate carve-outs, founder-owned, and sponsor-to-sponsor.[9]

History

In 2014, Private Equity International and Privcap reported that Sun Capital stood to return 9-times its investment in Emerald Performance Materials after more than tripling the portfolio company's earnings in its six years under Sun's stewardship.[10][11] Sun Capital originally formed Emerald through a corporate carveout of food ingredients and industrial specialties divisions of Lubrizol.[12]

In 2015, Sun Capital sold Point Blank Enterprises after helping the portfolio company grow revenue by adding new products and tripling exports.[13] Sun's sale of Point Blank was subsequently deemed "Turnaround Deal of the Year" by Buyouts Insider.[14] Sun Capital originally assembled Point Blank's assets through bankruptcy auction processes.[15]

In 2016, The Wall Street Journal reported that Sun Capital had returned more than 18-times its investment in Critical Flow Solutions, after more than doubling the portfolio company's earnings in less than two years.[16] Sun originally formed Critical Flow in 2015 in a corporate carveout of three business units from Curtiss-Wright Corporation.[17] The Wall Street Journal subsequently reported that Sun Capital's sale of Admiral Petroleum Co. and Lemmen Oil Co. returned 1,530 times Sun Capital's original investment.[18]

In 2017, PitchBook highlighted Sun Capital Partners VI as one of the top six performing billion-dollar US buyout funds in the prior five years, with an internal rate of return of 65.1%.[19] PitchBook subsequently reported that Sun Capital had sold Aclara Technologies for $1.1 billion after acquiring the smart infrastructure systems provider for $130 million in 2014, sponsoring four add-on acquisitions, and helping quadruple earnings during the investment period.[20]

In 2018, The Wall Street Journal reported that "Sun Capital cashes in again on manufacturing with Robertshaw Sale" after Sun helped the appliance components manufacturer more than double earnings over a four-year period and sell for approximately $900 million.[21]

In 2019, PE Hub reported that Sun Capital had sold Horizon Group Holdings after helping the HVAC services company successfully complete ten add-on acquisitions, enter four new markets, and increase headcount by over 800 professionals.[22]

In 2020, PE Hub reported that Sun Capital's investment in ClearChoice Management Services looked like "a clear home run" after helping the dental implant provider approximately double earnings over a three-year period and sell for more than $1.1 billion.[23]

Select Investments

  • 2003: Sun Capital Partners acquired bagel chain Bruegger's Enterprises[24] and majority share of Mackie Designs.[25]
  • 2005: Sun Capital Partners acquired Creekstone Farms.[26]
  • 2005: Sun Capital Partners acquired Exopack, but following the purchase of additional international companies,[27] the company became Coveris.[28]
  • 2006: Sun Capital completed 33 transactions (both portfolio and add-on acquisitions) among which was Marsh Supermarkets of Indianapolis, Indiana, the owner/operator of 128 supermarkets/food stores, and 400 Village Pantry convenience stores, among other divisions.[29]
  • 2006: Sun Capital Partners acquired Big 10 Tire Stores.[30]
  • 2006: Sun Capital Partners acquired Del Monte Canada which it then sold it to ConAgra Foods in 2012.[31]
  • 2007: Sun Capital acquired majority stake in The Limited from L Brands in 2007 and the rest in 2010. They wrote off the investment and closed stores in 2017.[32]
  • 2007 Sun Capital Partners acquired Restaurants Unlimited Inc for an unspecified amount.[33]
  • 2008: Sun Capital Partners completed 26 transactions including a majority interest in Gordmans, a department store chain headquartered in Omaha, Nebraska.[34]
  • 2008: Sun Capital Partners acquired Frontier Spinning Mills.[35]
  • 2008: Sun Capital Partners acquired Kellwood.[36]
  • 2010: Sun Capital Partners acquired V&D, the largest Dutch warehouse chain that employed 10,000 people.[37] The chain went bankrupt in 2015 when Sun Capital Partners refused to extend additional credit.[37]
  • 2011: Sun Capital completed 33 transactions including an investment in The SCOOTER Store,[38] acquired NextPharma (UK), Polestar UK Print, the Britton Group, Vitro America, Contessa Premium Foods and Scotch and Soda (clothing), an Amsterdam-based clothing manufacturer/retailer and Kobusch-Sengewald, a German-based packaging provider. Sun Capital has also exited Bruegger's Bagels[24] which was acquired by Groupe Le Duff and Big 10 Tires which was acquired by Pep Boys.
  • 2012: Sun Capital completed 30 transactions including Strauss Innovation, a Germany-based home furnishing and apparel retailer, American Golf UK clothing retailer Bonmarché, CornerStone Research & Development, Certified Power and Elix Polymers. Sun Capital has also exited Thermasys which was acquired by Wellspring Capital Management, Del Monte Canada was sold to ConAgra Foods[31] and Raybestos Powertrain was sold to Monomoy Capital Partners,[39] FRS was sold to Park-Ohio Holdings,[40] Sonneborn was sold to One Equity Partners[41][42] and Fearmans Pork was sold to Sofina Foods.[43]
  • 2012: Sun Capital acquired S&N Communications.[44]
  • 2013: Sun Capital completed eighteen acquisitions, eight exits and two IPOs. Some transactions include: Johnny Rockets was sold to Sun Capital Partners in 2013.[45] A majority stake in food packaging company Paragon Print and Packaging was also acquired by Sun Capital Partners in 2013.[46]
  • 2014: Sun Capital completed the acquisitions of ADTI, Aclara and Robertshaw. Sun Capital exited Wabash, Farfield Companies, Certified Power, Cornerstone, Manoir Aerospace, Emerald Performance Materials, DBA Apparel[47] and Chicago Leisure.
  • 2015: Sun Capital completed the acquisitions of Critical Flow Solutions, Flabeg, Flexitech and Flamingo Horticulture. Sun Capital exited Point Blank, VPS, Fazoli's, Vari-Form, Hickory Farms, Polestar and LOUD Technologies, Inc.
  • 2015: Sun Capital sold Point Blank to JLL Partners.[48]
  • 2016 Sun Capital Partners exited Kellwood Company, Admiral,[49] Critical Flow Solutions[50] and Innocor.[51]
  • 2016: Sun Capital Partners acquired Furniture Factory Outlet.[52]
  • 2017: Sun Capital Partners acquired BWGS,[53] Arrow Tru-Line,[54] Horizon Services,[55] AMES Taping Tools,[56] and C&K Holdings.[57]
  • 2017: Sun Capital Partners sold Creekstone Farms to Marubeni Corp.[58] and NextPharma to CapVest.[59]
  • 2018: Sun Capital Partners acquired ClearChoice Holdings,[60] Afriflora[61] and ESIM Chemicals.[62]
  • 2018: Sun Capital Partners sold Aclara,[63] Robertshaw,[64] Albéa[65] and Demilec.[66]
  • 2019: Sun Capital Partners sold Horizon Services.[67]
  • 2019: Sun Capital Partners sold Rebecca Taylor and Parker fashion brands to Vince. Sun Capital Partners also owns 75% of Vince. [68]
  • 2020: Sun Capital sold Boston Market. [69]

References

  1. ^ a b "In a Romney Believer, Private Equity's Risks and Rewards". New York Times. Retrieved August 24, 2020.
  2. ^ "Interview With Sun Capital's Rodger Krouse". Privcap. Retrieved August 24, 2020.
  3. ^ a b c "About Us". Sun Capital Partners Website. Retrieved August 24, 2020.
  4. ^ "Sun Capital raises $2.3 billion for Fund VII". PitchBook. Retrieved August 24, 2020.
  5. ^ "Paper and Packaging". Sun Capital Partners. Retrieved August 24, 2020.
  6. ^ "Contact Us". Sun Capital Partners. Retrieved August 24, 2020.
  7. ^ "Our Portfolio". Sun Capital Partners. Retrieved August 24, 2020.
  8. ^ "Operations Strategy". Sun Capital Partners. Retrieved August 24, 2020.
  9. ^ a b "Investment Focus". Sun Capital Partners. Retrieved August 24, 2020.
  10. ^ "Sun Capital books $1bn plus exit on specialty chemicals company". Private Equity International. PEI. Retrieved November 16, 2020.
  11. ^ "Sun Capital's successful Emerald Performance Exit". Privcap. Privcap. Retrieved November 16, 2020.
  12. ^ "Lubrizol Sells Ingredients Businesses to Private Equity". Food Ingredients First. Food Ingredients First. Retrieved November 16, 2020.
  13. ^ "Sun Capital shines in buying, fixing and selling firms". Baltimore Sun. Baltimore Sun. Retrieved November 16, 2020.
  14. ^ "Deal of the Year, Turnaround, 2016". Buyoutinsider. Buyoutinsider. Retrieved November 16, 2020.
  15. ^ "Affiliate of Sun Capital Partners, Inc. Completes Sale of Point Blank Enterprises, Inc". Sun Capital Partners. Sun Capital Partners. Retrieved November 16, 2020.
  16. ^ "Sun Capital Returns More Than 18-Times Its Money on Critical Flow Sale". Wall Street Journal. WSJ. Retrieved November 16, 2020.
  17. ^ "Affiliate of Sun Capital Partners Completes Sale of Critical Flow Solutions for $210 Million". Sun Capital Partners. Sun Capital Partners. Retrieved November 16, 2020.
  18. ^ "Kreutzer's Take: How Sun Capital Turned a Mini Deal Into a Mammoth Multiple". Wall Street Journal. Retrieved August 24, 2020.
  19. ^ "The top 6 billion-dollar US buyout funds of the past five years". PitchBook. Retrieved August 24, 2020.
  20. ^ "Sun Capital to exit Aclara for $1.1B". PitchBook. PitchBook. Retrieved November 16, 2020.
  21. ^ "Sun Capital Cashes In Again on Manufacturing With Robertshaw Sale". Wall Street Journal. WSJ. Retrieved November 16, 2020.
  22. ^ "Sun Capital sells Horizon". PE Hub. PE Hub. Retrieved November 16, 2020.
  23. ^ "PE-backed Aspen Dental buys Sun Capital's ClearChoice in $1.1bn-plus deal". PE Hub. PE Hub. Retrieved November 16, 2020.
  24. ^ a b "How the Sun heated up bagel chain Bruegger's". Fortune. Retrieved March 20, 2017.
  25. ^ Benzuly, Sarah. "Sun Capital Infuses Mackie". MIX. Future plc. Retrieved January 4, 2019.
  26. ^ "Creekstone Farms broadens its market". kansas. Retrieved March 20, 2017.
  27. ^ Johnson, Jim. "Coveris grows through acquisitions with an eye toward smart fits - Plastics News". Plastics News. Retrieved March 20, 2017.
  28. ^ "Coveris continues to grow with new equipment". Retrieved March 20, 2017.
  29. ^ "Marsh hires Price Chopper executive as chairman, CEO". Retrieved March 20, 2017.
  30. ^ Staff, Tire Business. "BREAKING NEWS: Pep Boys buys Big 10 Tire Stores - Tire Business". Tire Business. Retrieved March 20, 2017. {{cite news}}: |first= has generic name (help)
  31. ^ a b "ConAgra Foods acquires Del Monte Canada - Canadian Packaging". Canadian Packaging. January 18, 2012. Retrieved March 20, 2017.
  32. ^ "The Limited owner almost doubles investment, but closing all stores". January 6, 2017.
  33. ^ Richman, Dan (March 28, 2007). "Restaurants Unlimited of Seattle is sold to Florida investment firm". Seattle Post-Intelligencer. Retrieved August 30, 2019.
  34. ^ Star, Lincoln Journal. "Gordmans celebrating 100 years". Fremont Tribune. Retrieved March 28, 2016.
  35. ^ "David Finnigan: Cotton Industry Provides Intriguing Investment Opportunities for Private Equity - PE Hub". PE Hub. January 19, 2012. Retrieved March 20, 2017.
  36. ^ "kellwood names jill granoff ceo". www.bizjournals.com. Retrieved March 20, 2017.
  37. ^ a b "Dutch retail chain V&D declared bankrupt". Reuters. December 31, 2015. Retrieved January 7, 2020.
  38. ^ "The Scooter Store secures financing for growth". www.bizjournals.com. February 2, 2011. Retrieved January 7, 2020.
  39. ^ Shieber, Jonathan (March 3, 2012). "Monomoy Buys Raybestos Powertrain From Sun Capital". Wall Street Journal. ISSN 0099-9660. Retrieved December 29, 2019.
  40. ^ "Southfield's Fluid Routing Solutions acquired by Park-Ohio Industries". Crain's Detroit Business. March 6, 2012. Retrieved December 29, 2019.
  41. ^ "One Equity Acquires Sonneborn From Sun | Chemical & Engineering News". cen.acs.org. Retrieved December 29, 2019.
  42. ^ Dai, Shasha (March 6, 2012). "Sun Capital Nears Deal To Sell Sonneborn To One Equity Partners". Wall Street Journal. ISSN 0099-9660. Retrieved December 29, 2019.
  43. ^ Wursthorn, Michael (April 10, 2012). "Leaving The Trough, Sun Capital Sells Hog Slaughterhouse To Sofina". Wall Street Journal. ISSN 0099-9660. Retrieved December 29, 2019.
  44. ^ "Today's Transactions:
    Sun Cap Snaps Up S&N Communications"    . Mergers & Acquisitions. Retrieved March 20, 2017.
  45. ^ Luna, Nancy (June 18, 2013). "O.C.-based burger chain Johnny Rockets sold". The Orange County Register. Retrieved June 18, 2013.
  46. ^ "Paragon Print and Packaging Completes Investment Deal with Sun Capital Partners". Paragon Print and Packaging. Archived from the original on January 7, 2014.
  47. ^ "Hanesbrands Inc. - Investors - Press Release".
  48. ^ Pounds, Marcia Heroux. "Point Blank, bullet-proof vest maker, sold in Pompano Beach". Sun-Sentinel.com. Retrieved March 20, 2017.
  49. ^ "Sun Capital exits Admiral - PE Hub". PE Hub. November 16, 2016. Retrieved March 20, 2017.
  50. ^ "Affiliate of Sun Capital Partners Completes Sale of Critical Flow Solutions for $210 Million". www.businesswire.com. Retrieved March 20, 2017.
  51. ^ "Bain Capital Private Equity to buy Innocor from Sun Capital - PE Hub". PE Hub. December 14, 2016. Retrieved March 20, 2017.
  52. ^ "Sun Capital sees significant expansion ahead for latest acquisition". Retrieved March 20, 2017.
  53. ^ "Sun Capital acquires BWGS - PE Hub". PE Hub. January 4, 2017. Retrieved March 20, 2017.
  54. ^ "Affiliate of Sun Capital Partners Acquires Garage Door Hardware Manufacturer Arrow Tru-Line, Inc". Retrieved March 20, 2017.
  55. ^ "Sun Capital Acquires Horizon Services". Wall Street Journal. March 7, 2017. ISSN 0099-9660. Retrieved March 20, 2017.
  56. ^ "Sun Capital buys AMES - PE Hub". PE Hub. September 18, 2017. Retrieved September 19, 2017.
  57. ^ "European Affiliate of Sun Capital Partners Acquires Electromechanical Switch Maker C&K Holdings". Retrieved February 8, 2018.
  58. ^ "Sun Capital exits Creekstone Farms - PE Hub". PE Hub. July 20, 2017. Retrieved July 26, 2017.
  59. ^ "Sun European Partners affiliate to sell NextPharma". Private Equity Wire. June 29, 2017. Retrieved February 8, 2018.
  60. ^ "south florida private equity firm- acquires dental clinique". www.bizjournals.com. Retrieved February 8, 2018.
  61. ^ Riordan, Darragh (December 20, 2017). "KKR sells rose grower Afriflora to Sun European Partners - Real Deals". Real Deals. Retrieved May 23, 2018.
  62. ^ Langworth, Hannah (May 14, 2018). "Sun European acquires agricultural chemicals maker ESIM from Ardian". Real Deals. Retrieved July 3, 2018.
  63. ^ "Sun Capital to Sell Aclara Technologies for $1.1 Billion". Retrieved February 8, 2018.
  64. ^ Kreutzer, Laura (January 5, 2018). "Sun Capital Cashes In Again on Manufacturing With Robertshaw Sale". Wall Street Journal. ISSN 0099-9660. Retrieved March 15, 2018.
  65. ^ "PAI Partners acquires Albéa from Sun Capital - PE Hub". PE Hub. March 29, 2018. Retrieved May 23, 2018.
  66. ^ "Sun Capital closes $350M Demilec exit | PitchBook". Retrieved May 23, 2018.
  67. ^ McNulty, John (November 14, 2019). "Sun Sells Horizon to New Mountain". Private Equity Professional. Retrieved December 6, 2019.
  68. ^ Dhani, Mau. "Vince Acquires Rebecca Taylor and Parker - Fashionista". fashionista.com. Retrieved October 23, 2020.
  69. ^ "Boston Market Acquired by the Rohan Group of Companies". QSR magazine. Retrieved June 19, 2020.
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