Business Owners have used Alaris to buyout their exiting shareholders and in the process, consolidate 100% of the common equity in their business where they have the ability to control the operations, strategic vision, culture and time horizon all while benefiting from the majority of the upside in the growth that they deliver.
Buyout of Private Equity
US$53.5M (2 tranches)
Leading distributor of chemical, biological, radiological, nuclear and explosive detection and protection equipment.
The company had a highly qualified management group who had successfully executed the business model over the prior years. As the company embarked on the next phase of growth, their goal was to find a partner who could help provide the existing sponsor with a liquidity event and allow the management team to control the strategic vision, operations and culture of the business.
Federal Resources used the intial proceeds from the Alaris investment to complete a management buyout of an existing equity sponsor as well as for the partial monetization of other minority shareholders. Subsequent proceeds were used for acquisitions.
“One of the best uses of Alaris' capital is for a management team to buy out exiting shareholders..."
– Steve King, CEO, Alaris
"We are grateful and excited about the opportunity. My team and I are looking forward to accomplishing great things during our partnership with Alaris."
– Robbie McWilliams, CEO, Federal Resources
CAD$67.5M (7 tranches)
National physiotherapy services.
Alaris backed an impressive management team who also contributed significant equity to help align interests. Management had laid out a growth through acquisition strategy for physiotherapy clinics in the heavily fragmented industry across Canada. Management believed that they could use Alaris’ non-control preferred equity alongside senior debt and cash from operations to accretively fund acquisitions of clinics.
Alaris provided an initial investment to help finance a management buyout of Lifemark.
Throughout the next seven years, Alaris provided six follow-on investments that were utilized together with senior debt to provide management with the capital needed to grow their business from 35 locations to over 100.
In June 2011, Lifemark was acquired by Centric Health in which Alaris rolled a portion of is preferred equity investment to help facilitate the transaction. Alaris’ remaining financial interest was sold in 2016 closing out a 12 year investment.
Sequel Youth and Family Services
US$73.5M (2 tranches)
Premier national provider of diversified behavioral health services.
Sequel was seeking a new financial partner to take out its existing equity sponsor and some other equity holders and to provide capital to continue growing our company. Sequel was looking for a partner that wasn’t dictating an exit time line.
“The financial architecture with Alaris provided was a wonderful solution because it 1) provides for an increasing share of the enterprise value of the company to common shareholders as as grew, 2) is permanent capital since it did not require us to sell or refinance at any point in the future, and 3) allowed us to retain control over the operations of the company.
Plus the folks at Alaris are great people and fantastic to work with.”
– Jay Ripley, Co-Founder & Chairman, Sequel Youth & Family Services
Buyout of Founder/Partner
Leading provider of civil construction services.
The founder of DNT was seeking a solution that would allow the management team of DNT to acquire his majority share of the business.
Management was focused on finding a solution that would allow them to control the operations, culture and vision of the business. Seeking a capital provider that would mitigate any possible refinancing risk was essential to completing a transaction.
Alaris made a non-control preferred equity investment which was used to redeem the founders common equity units in the business resulting in the management team seeing their pro-rata common equity ownership of the business increase to 100%.
The Alaris structure allowed for the management team to continue to execute on their vision and does not have a time horizon to be refinanced.
Seattle, Washington based management IT consulting firm that provides companies with local, customized consulting solutions.
The ownership group of Unify had spent years successfully building out the depth of their IT Consulting talent base and brand. The company was seeking a capital partner which would allow one of the partners to buy out a majority partner and maintain control of the business. Finding a partner who had the ability to continue to deploy capital with a longer-term time horizon was an important aspect to a transaction.
The Alaris investment was used to redeem the majority partner’s common equity and resulted in the remaining partner retaining 100% of the common equity of the business.
Partnering with Alaris also provides continued access to capital to assist management in executing its growth plan that doesn’t require a repurchase or exit and gives management the ability to continue to deploy capital as it sees fit.