Sun Capital Partners

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]

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

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, 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. "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. "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. "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. "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.
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  30. Staff, Tire Business. "BREAKING NEWS: Pep Boys buys Big 10 Tire Stores - Tire Business". Tire Business. Retrieved March 20, 2017.
  31. "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. "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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