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Case Study: Segrets Recapitalization

 

Liz Claiborne, Inc. has capitalized Segrets, Inc.

 

Summary:

Segrets, Inc. (“Segrets”) designs and distributes the Sigrid Olsen lines of women’s sportswear.  These lines consist of Sigrid Olsen Sport, Sigrid Olsen Collection and SO Blue and are found in major department stores throughout the U.S. Segrets management team hired the principals of Tellson to identify a financial partner to provide growth capital to accelerate their expansion and address shareholder’s objectives.  The principals of Tellson completed the assignment by arranging for the recapitalization of a majority interest in Segrets by Liz Claiborne, Inc.

The recapitalization by Liz Claiborne, a $2.5 billion apparel, and accessories company positions Segrets as a fully independent subsidiary, giving Segrets management team unparalleled access to working capital and international distribution while providing liquidity to Segrets shareholders.  Tellson can assist rapidly growing companies by arranging additional growth capital, whether it involves selling a minority stake or a controlling stake.  In some cases, management and owners determine that the sale of a majority stake or selling the business intis entirety provides the best outcome, as was the case with Segrets.

 

Tellson:

Tellson works with the owners and management of middle market companies across many industries.  Our principal focus is to enhance shareholder value and maximize liquidity opportunities.  This can be accomplished by the addition of long-term or permanent equity to the company’s capital base.  Additionally, Tellson undertakes mergers & acquisition assignments, which include the partial or total sale of businesses, operating divisions and asset sales as well as recapitalizations and related transactions.

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Case Study: Capp Care Recapitalization

 

Beech Street, Inc. has recapitalized Capp Care

 

Summary:

Capp Care is a leading healthcare management and information technology company with a 15-year history.  It serves 3.5 million members and provides its customers access to its provider networks nationwide which includes 320 markets in 43 states, over 247,000 physicians’ offices and 2038 hospitals.  Capp Care’s management team hired the Principals of Tellson Securities to identify a partner to better enable the company to service its providers and enrollees and to address certain shareholder’s objectives.  The Principals of Tellson completed the assignments by arranging the recapitalization of Capp Care with Beech Street.

The combined Beech Street/Capp Care organization will now service over 17 million enrollees/beneficiaries through the management of over 300,00 individual physician locations, 4,000 hospitals and 100,000 specialty healthcare providers.  Beech Street provided the right match for our client, Capp care. The recapitalization places Beech Street as a leader in the rapidly consolidating PPO industry while providing liquidity to certain Capp Care shareholders.

 

Tellson:

Tellson works with the owners and management of middle market companies across many industries.  Our principal focus is to enhance shareholder value and maximize liquidity opportunities.  This can be accomplished by the addition of long-term or permanent equity to the company’s capital base.  Additionally, Tellson undertakes mergers & acquisition assignments, which include the partial or total sale of businesses, operating divisions and asset sales as well as recapitalizations and related transactions.

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Case Study: Fram-n-Lens Recapitalization

 

$37,000,000

National Vision Associates LTD. (NASDAQ: NVAL) has recapitalized Frame-n-Lens, Inc.

 

Summary:

Frame-n-Lens., one of the largest optical retailers in the United States engaged the Principals of Tellson to find an equity partner to invest $15 million to both restructure its balance sheet and provide necessary growth capital.  Prior to the engagement, the company had grown to 290 locations, including 160 in the California division, making it the largest retail optical chain in California. After reviewing the benefits of the offers made by potential investors, the Principals of Tellson and the client agreed that the best alternative was to arrange a majority recapitalization of Frame-n-Lens by National Vision Associates.

This story is common among middle market companies that are expanding rapidly.  Tellson can be successful in assisting your customers by providing additional growth capital, whether it involves selling a minority stake or a controlling stake.  In some cases, management and owners determine that the sale of a majority stake or selling the business in its entirety provides the best outcome, as was the case with the Frame-n-Lens recapitalization.

 

Tellson:

Tellson works with the owners and management of middle market companies across many industries.  Our principal focus is to enhance shareholder value and maximize liquidity opportunities.  This can be accomplished by the addition of long-term or permanent equity to the company’s capital base.  Additionally, Tellson undertakes mergers & acquisition assignments, which include the partial or total sale of businesses, operating divisions and asset sales as well as recapitalizations and related transactions.

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Case Study: E-commerce Recapitalization

 

$30,000,000

Summit Partners recapitalized E-Commerce Exchange

 

Summary:

E-Commerce Exchange (“ECX”), since its founding in 1989, has grown to be one of the largest independently owned providers of merchant account and transaction services to small and medium-sized online merchants.  ECX has a strong management team that had demonstrated the success and profitability of its business model.  ECX has a strong management team that had demonstrated the success and profitability of its business model.  ECX engaged the Principals of Tellson to identify a partner to assist ECX in achieving corporate growth and in maximizing shareholder value.  The Principals of Tellson completed the assignment by arranging a leveraged recapitalization of ECX.

Summit Partners, a $3 billion Venture Capital Fund, proved to be an ideal partner for ECX.  Summit’s fund is dedicated to investing in profitable, rapidly growing companies that have market or technology leadership potential.  The Recapitalization provided liquidity to the founding shareholders of ECX as well as providing the capital resources necessary to ensure the future growth of ECX.

 

Tellson:

Tellson works with the owners and management of middle market companies across many industries.  Our principal focus is to enhance shareholder value and maximize liquidity opportunities.  This can be accomplished by the addition of long-term or permanent equity to the company’s capital base.  Additionally, Tellson undertakes mergers & acquisition assignments, which include the partial or total sale of businesses, operating divisions and asset sales as well as recapitalizations and related transactions.