2021 MID-YEAR HIGHLIGHTS
25+ YEARS PARTNERING WITH OUTSTANDING MANAGEMENT TEAMS TO ACCELERATE VALUE CREATION 2021 MID-YEAR REVIEW SUN CAPITAL’S DEAL SWEET SPOT
Defensible businesses in growing markets with tangible performance improvement opportunities
VERTICALS
TOTAL $ 4 Platforms BUSINESS CONSUMER HEALTHCARE INDUSTRIALS TECHNOLOGY SMALL CAP CAPITAL » 420.5 » SERVICES INVESTED MILLION 12 Add-Ons GEOGRAPHIC FOCUS
NORTH AMERICA AND EUROPE REALIZED $ 2 Exits GROSS » 775.0 » PROCEEDS MILLION INVESTMENT FOCUS 5 Dividends REVENUE ACCELERATING Platform: $50 Million-$1.0 Billion VALUE CREATION Add-On: Any amount Sun Capital collaborates with outstanding management teams to SIZE EQUITY INVESTMENT accelerate value creation through No Minimum operational excellence STRATEGY Maximum: $500 Million $ DEAL FINANCINGS 335.0 TRANSACTIONSWEET TYPE COMPLETED » MILLION SPOT TRANSACTION TYPE CONTROL BUYOUTS Corporate Carve-Out With flexibility around seller and Founder-Owned PARTICIPATION management participation, and Sponsor-to-Sponsor non-control equity investments
2021 MID-YEAR HIGHLIGHTS 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
2021 MID-YEAR HIGHLIGHTS 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
2021 MID-YEAR HIGHLIGHTS 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 Environmental Services Automotive Primary Care Sector: Transportation & Logistics 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
2021 MID-YEAR HIGHLIGHTS 5 2021 EXIT The Sun Transformation System 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. FiFINANCIALnancial PePERFORMANCErformance
Value Creation: (£ millions) customer-first strategy, combined with 1 1 Dreams was acquired out of insolvency in 2013. The investment thesis was EBITDA Revenue Sun’s operational knowledge, enabled focused on turning around a mismanaged business with a strong underlying £375.0 £80.0 brand. Sun Capital implemented an ambitious plan to dramatically improve £70.0 the transformation of the business. profitability through the application of our operational toolkit, the Sun £300.0 £60.0 Transformation System (STS). Mike Logue, Dreams £50.0 £225.0 (former portfolio company) Optimized Retail Store Footprint - At the time of the transaction, Sun £40.0 £150.0 Capital restructured Dreams’ footprint and streamlined its operations by £30.0
£20.0 closing 106 underperforming stores. £75.0
£10.0 Transformed Team and Culture - Sun Capital hired a new CEO, who £0.0 £0.0
WATCH SUN TRANSFORMATION SYSTEM VIDEO q 3 4 5 6 7 8 9 0 1 q 3 4 5 6 7 8 9 0 1 partnered with Sun Capital to execute Dreams’ value creation plan. c 1 1 1 1 1 1 1 2 2 c 1 1 1 1 1 1 1 2 2 -£10.0 A 0 0 0 0 0 0 0 0 0 A 0 0 0 0 0 0 0 0 0 - 2 2 2 2 2 2 2 2 2 - 2 2 2 2 2 2 2 2 2 re re Further, Sun Capital recommended augmenting the management team P P 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 Rationalized 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.
Remodeled Store Base - Dreams made a substantial investment in its Past performance is not necessarily indicative of future results. Pre-acquisition Sales and EBITDA numbers have 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.
Built E-Commerce Platform - Dreams strengthened its digital capabilities > READ PRESS RELEASE and online presence, causing e-commerce sales to grow from 9% of revenue at acquisition to 22%. 2021 MID-YEAR HIGHLIGHTS 6 GLOBAL SENIOR TEAM
EXECUTIVE COMMITTEE
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 [email protected] [email protected] SENIOR MANAGING DIRECTOR SENIOR MANAGING DIRECTOR SENIOR MANAGING DIRECTOR [email protected] [email protected] [email protected]
TRANSACTION SENIOR TEAM
BOCA RATON NEW YORK OPERATIONS SENIOR TEAM
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 [email protected] [email protected] [email protected] [email protected] Daniel Florian Jared Wien Raj Karanam Bruce Roberson MANAGING DIRECTOR MANAGING DIRECTOR MANAGING DIRECTOR Head of US Operations Team [email protected] [email protected] [email protected] SENIOR MANAGING DIRECTOR [email protected] Jeremy Stone Todd Plosker Marc Mabon Sergei Spiridonov MANAGING DIRECTOR MANAGING DIRECTOR GROUP COO MANAGING DIRECTOR [email protected] [email protected] [email protected] [email protected]
Rossen Georgiev Stephen Cella James Morris Tim Stubbs PRINCIPAL PRINCIPAL GROUP COO Head of EU Operations Team [email protected] [email protected] [email protected] SENIOR MANAGING DIRECTOR [email protected]
LOS ANGELES LONDON INFRASTRUCTURE SENIOR TEAM
Matthew Garff Mark Corbidge Deryl Couch Kelly Griffin MANAGING DIRECTOR MANAGING DIRECTOR General Counsel Head of Investor Relations [email protected] [email protected] MANAGING DIRECTOR MANAGING DIRECTOR [email protected] [email protected] Jordan Wadsworth Paul Daccus Angela Geffre Mark Hajduch MANAGING DIRECTOR MANAGING DIRECTOR Chief Human Resources Officer Head of Tax [email protected] [email protected] [email protected] MANAGING DIRECTOR [email protected] Jonathan Jackson PRINCIPAL [email protected]
2021 MID-YEAR HIGHLIGHTS 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 operational experience. Sun Capital focuses on defensible equity investments, financings and exits made by affiliates of Sun 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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