Business Owners who are looking to eliminate refinancing risk, have access to follow-on capital from a true long term equity partner and want to benefit from the majority of the upside from the growth that they deliver have used Alaris to recapitalize their balance sheet.
$41.3M (3 tranches)
Global supplier of aircraft MRO and inventory management.
Killick was looking to refinance their balance sheet in an effort to create more flexibility to pursue their long-term growth objectives.The growth strategy for their MRO business required a partner who would allow them to acquire new inventory without having restrictive covenants prevent them from doing profitable deals.
Alaris’ investment allowed the company to pursue its long term growth strategy. The company immediately realized a dramatic increase in EBITDA with Alaris’ participation in the growth being capped by the collar.
Alaris provided follow on investments for multiple acquisitions in the MRO space, as well as for liquidity to certain equity holders
Killick was acquired in 2015 whereby the common equity holders garnered a disproportionate amount of the proceeds received on the sale due to Alaris’ capped exit proceeds and benefited greatly from Alaris’ limited participation in growth.
Full service marketing and advertising agency.
The management group at Sandbox had been executing a strategy to acquire regional marketing communication companies that complement the agency’s current operations, which will further diversify the existing client base, skill set, and industry experience.
As the company looked to continue to execute upon this business model, they were in search for a capital partner [NTD: use “capital partner” or “partner” rather than both throughout?] who shared their long-term vision to build out a world class marketing and advertising agency at a pace that made sense for the long-term health of the business.
Alaris’ first investment inSandbox allowed the company to recapitalize its balance sheet and set the company up with access to further capital to fund its growth strategy.
Sandbox management has the ability to continue to grow their business via acquisition knowing they have a long-term capital partner in Alaris who can help fund that growth for an indefinite time period. This has already proven valuable as Alaris has provided a second tranche to fund an acquisition for Sandbox.
At the same time, the culture instilled in the business was preserved which was paramount to the success of the business plan.
$42.5 (2 tranches)
Leading designer and manufacturer of wooden outdoor active play and modular structures.
The Solowave team had spent years building a high quality business in a very niche sector of the wooden outdoor play space.
The founders were seeking a partner that could facilitate a liquidity event for certain equity holders and execute on their growth strategy, and also allow management to maintain control over operations. Maintaining the culture that they had established was a key to the owners.
Alaris’ original investment provided a dividend recap for the common equity holders of the business and was followed by a subsequent second tranche of Alaris capital to help fund a new division of the business.
In September of 2016 the common equity holders sold the business which saw Alaris sell its preferred equity units along side the common equity holders. Due to the collar on the growth participation of Alaris’ distribution, the common equity holders were able to experience a much more beneficial portion of the sale proceeds then they would have if they had sold their common equity in the original liquidity transaction 5 years prior.