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Advanced Lighting Technologies, Inc.
Saratoga acquired Advanced Lighting Technologies, Inc. in December 2003 by co-sponsoring a Chapter 11 bankruptcy reorganization plan with the Company management, including its founder. Advanced Lighting is a world leader in designing, manufacturing and marketing of metal halide and other lighting products, including materials, system components, systems and production equipment. The business was previously publicly-traded on the Nasdaq exchange.
Originally spun-off from General Electric in 1983, Advanced Lighting is a vertically integrated industry leader with a proven ability to continually innovate and market new applications of metal halide products. The business has three primary operating units: Venture Lighting International, a leading manufacturer of metal halide lamps and ballasts; APL Engineered Materials, the world’s leader with approximately a 95% share in key dose materials for metal halide and high-pressure sodium lighting products; and Deposition Sciences, Inc., developer and manufacturer of advanced optical thin film coatings and deposition coating machinery for industrial and military applications including specialty coatings for high energy efficient lamps.
To view Advanced Lighting's website CLICK HERE.
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Data Return, LLC
In May 2003, Saratoga acquired Data Return, pursuant to Section 363 of the bankruptcy code out of the Divine Inc. estate. Saratoga is backing the existing management team, including the founder of Data Return. The business, formed in 1997, has since grown to over $50 million in revenue and is recognized as an industry leader with many high profile customer relationships. The business was previously acquired by Divine in January 2002 and pulled into bankruptcy when parent company Divine filed for Chapter 11 protection in February 2003.
Data Return provides outsourcing services to integrate, host, manage and support all of the network, hardware and software infrastructure required to operate external-facing website applications for corporations. Distributed end users access these applications located in Data Return’s centralized data centers from remote locations over the Internet. To manage, support and deliver applications to distributed remote end users, Data Return manages, combines and integrates a broad range of both technological infrastructure components and IT outsourcing services. In particular, Data Return maintains specific teams of certified IT professionals that are responsible for 24/7 monitoring, support, maintenance and operations of customers’ applications and all of the various supporting infrastructure components. Data Return has a large base of recurring revenue from over 200 enterprise customers including Match.com (subsidiary of USA Interactive), H&R Block, BMW, Hewlett-Packard, and GMAC.
The Data Return investment fits well with Saratoga’s investment focus on the information services sector. Other attractive investment characteristics include a large base of recurring revenue, strong profitability, long standing customer relationships, industry leadership and opportunity for substantial growth.
To view Data Return's website CLICK HERE
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Sericol, Inc.
In 2003, Saratoga teamed up with the existing management to acquire Sericol from British Petroleum. Sericol is the world market and technology leader in screen printing inks and related pre-press products with approximately $200 million in annual sales. The Company has a leading market position in UV inks for graphic (point of purchase, decals and posters) and industrial (CD and DVD manufacturing, specialty packaging) printing. The Company’s advantage in these markets has been gained through superior product quality, technological innovation, and customized service.
Sericol has a strong global presence with direct sales in 18 countries and distribution to another 70. The Company has approximately 1,200 employees located around the world with manufacturing facilities in Kansas City as well as in the UK, Australia, Brazil, India and China.
Sericol was sold in 2005 to Fuji Photo Film Co., Ltd.
To view Sericol's website CLICK HERE.
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NAT, Inc.
NAT provides transaction processing software and services for administering warranty and service contracts for consumer products. Clients that use the company’s proprietary systems are leading providers of automotive, consumer retail, home warranty and service plans, and include three of the top 10 insurance companies, one of the top five automotive manufacturers and two major auto-glass service providers. Currently, NAT’s business is focused on automotive and retail extended warranty programs.
NAT’s business plan targets the automotive sector through factory warranty and extended warranty programs, the retail sector through extended service plans, and the real estate/insurance sector through home warranty programs. NAT differentiates itself as the only systems vendor in its automotive niche that has developed and installed a workflow solution for the complete Extended Warranty Contract (EWC) transaction from origination at the franchised auto dealer through settlement with the insurance company.
To view NAT's website CLICK HERE.
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EUR Systems, Inc.
EUR Systems, Inc. is a leading services provider of outsourced billing and customer care solutions to the telecommunications industry, offering a complete back office which effectively frees the client to focus on its own core business. Together with company management, Saratoga Partners completed the recapitalization of EUR in May 2000.
The remarkable growth in size and profits EUR has achieved over the last five years is attributable to both the tremendous increase in telecommunications subscribers and providers and the resultant proliferation and growing complexity of services EUR offers. The highly regulated and competitive nature of the telecom industry has created an increasingly complicated billing process, which has spurred demand for EUR's expertise in such areas as inter-carrier access billing (in which EUR enjoys a particularly strong market position), invoice production and distribution, management reporting, customer maintenance and sales support. EUR currently processes in excess of 300 million messages per month for such customers as AT&T, Global One, IBM Global Services, Time Warner Telecom, US West and more than 30 independent local exchange carriers.
Saratoga's role in effecting EUR's transition from a family- to management-owned company has not only fostered a greater entrepreneurial environment, it has also provided the managerial guidance and financial backing necessary to ensure the Company's growth through organic expansion, resource redeployment, and strategic alliances. Particularly substantial growth opportunities include domestic and international carrier access billing and convergent billing solutions for its telco customers.
To view EUR's website CLICK HERE.
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Datavantage Corporation
In January 2000, Saratoga Partners acquired a controlling equity position in Datavantage Corporation, a leading developer and integrator of in-store information system software for specialty retailers. The Company's two main software products are Store 21®, a point-of-sale transaction system, and XBR TrackTM, a business intelligence and fraud detection system.
Based in Cleveland, Ohio, Datavantage is one of the largest and fastest growing companies in its industry, achieving dramatic growth in Net Sales and EBITDA over the last three years through the wide acceptance of Store 21® in the marketplace and the successful rollout of XBR TrackTM. Store 21® is currently used by approximately 50 retail chains representing 7,500 store and 12,000 POS terminals, while XBR TrackTM is used by approximately 50 retailers processing data from over 20,000 stores.
Datavantage seeks to grow both organically and through strategic acquisitions. Working with Saratoga, the Company is focusing on an aggressive expansion of Store 21® and XBR TrackTM, the development of technological innovations which will enable it to meet the market demands of the future, and the identification of strategic growth partners.
To view Datavantage's website CLICK HERE.
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Emeritus Corporation
Emeritus Corporation is one of the largest owners and operators of assisted living facilities in the United States, with 135 managed properties in 29 states. The assisted living industry provides living facilities for elderly people who require assistance with such activities of daily living as bathing, dressing, and taking medication, but who do not require the more expensive attention of a nursing home or hospital.
Emeritus was founded in 1993 by Dan Baty, the former chairman of The Hillhaven Company, a large nursing home operator. From its inception, Emeritus embarked upon a rapid growth path, acquiring and building over 10,000 assisted living apartments. At the present time, its focus has shifted to growing occupancy rates and further increasing operating margins.
At yearend 1999, Saratoga Partners made a substantial investment in Emeritus, with the result that in Saratoga’s being the largest single shareholder in this publicly traded company.
To view Emeritus' website CLICK HERE.
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Communications Software Consultants (Commsoft)
Commsoft is a transaction processing software company which serves the ILEC, CLEC and wireless markets of the telecommunications industry with highly scalable, convergent billing and customer care license software products. In its 18 year history, Commsoft has compiled an impressive roster of clients covering most of the United States as well as select international telecommunications companies.
Saratoga Partners attracted Commsoft’s founder, Larry Davis, back to the Company at the time of investment. Mr. Davis is further expanding Commsoft’s existing customer base and breadth of products.
To view CommSoft's website CLICK HERE.
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STC Wireless Resources, Inc.
STC is an engineering and technical support service provider for the wireless industry. STC' customers include manufacturers of wireless equipment, paging carriers, cellular, PCS and satellite companies, regional Bell companies, interconnect companies and wireless internet service providers.
Having purchased the assets of STC Wireless Resources, Inc. from Preferred Networks Inc. in May 1999, Saratoga Partners is working actively with management to guide STC' strategy to establish a strong regional organization which will develop into a focused national provider servicing wireless customers including AT&T Wireless, Cingular and American Tower. This strategy reflects the Company's ongoing efforts to capitalize on the fragmented nature of the wireless engineering and technical support industries.
To view STC's website CLICK HERE.
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Koppers Inc.
Koppers is a leading integrated producer of carbon compounds and treated wood products for use in a variety of markets including the chemical, railroad, aluminum and steel industries. The Koppers name has been associated with the carbon compounds and wood treating businesses for over 70 years. With approximately $800 million in revenues, Koppers has a leading position in most of its markets.
In September 1997, Koppers received an unsolicited bid from a strategic acquirer to purchase certain shareholder interests and gain control of the Company. Through is proprietary relationships, Saratoga capitalized on an exclusive opportunity by investing $30 million into Koppers in October 1997, allowing the Company to remain independent by consolidating majority control with Saratoga and management.
In December 1997, Koppers completed a $413 million recapitalization in which the Company realigned its shareholder base, purchased the remaining interest in its Koppers Australia subsidiary, and refinanced its existing indebtedness, resulting in Saratoga’s ownership of a majority of the Company. The focus of Koppers management continues to be domestic and international revenue and market share growth, supplemented by selected acquisitions.
To view Koppers website CLICK HERE.
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Equality Specialties, Inc.
Equality Specialties, Inc. is a leading designer of decorative and accessory products for packaging, gift, display and apparel applications. In partnership with management, Saratoga Partners acquired the Company in November 1997.
In evaluating its strategic alternatives at the time of its sale, management chose to partner with Saratoga instead of selling the Company to a strategic buyer because they were enthusiastic about Equality’s growth prospects and the opportunity to work with a financial partner committed to growing the business and creating additional shareholder value. Equality will continue to build on its strong record of growth through product line expansion, further market penetration, and selected acquisitions.
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Scovill Fasteners Inc.
In November 1997, Saratoga Partners and Company management acquired Scovill Fasteners Inc., a leading manufacturer of apparel and specialty industrial fasteners with approximately $96 million in annual sales.
Saratoga has overseen the Company’s transition to offshore sourcing in order to match movement of customers to Asia. Capitalizing on its acknowledged reputation as a provider of exceptionally high quality products, and backed by a superior service network, Saratoga has worked with management to guide Scovill to further enhance the Company’s position domestically and internationally as the leading competitor in its markets.
http://www.scovill.com.
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Hawaiian Wireless, Inc.
In January 1996, Saratoga committed $5 million of equity as lead investor in Hawaiian Wireless, Inc., a newly formed cellular telephone company. Hawaiian Wireless utilizes cellular technology over the specialized mobile radio spectrum to deliver wireless telephone service throughout the Hawaiian islands. Operations commenced in January 1997 on the island of Oahu, one of the most attractive cellular phone markets in the United States. Hawaiian Wireless is targeting business customers by offering superior coverage in its market, local customer service, innovative rate plans, digital technology, and the ability to roam throughout North America.
Hawaiian Wireless was organized by the management of Atlantic Cellular Company, L.P., a Saratoga Partners III, L.P., portfolio company, and Atlantic's owners with $20 million of committed cash equity and $8.5 million of licenses and other assets. $16.25 million of the committed cash equity has been funded to date and it is expected that the balance will be funded as needed.
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J&W Scientific Incorporated
J&W Scientific Incorporated develops, manufactures, and markets capillary columns, a key consumable used in the separation and identification of chemical compounds in certain applications of gas chromatography. J&W is the world's largest supplier of fused silica capillary columns, with a market share more than double that of its nearest rival.
In 1995, Saratoga teamed up with J&W's existing management and Dr. Walter Jennings, one of the Company's founders, to acquire J&W from Fisons plc., the U.K. pharmaceutical and instrumentation concern, for $35 million. J&W's strategy is to optimize internal operating earnings, increase international market share, and actively pursue acquisition opportunities to further enhance its product line and profitability.
J&W was sold in March 2000 to Agilent Technologies, Inc.
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USI Insurance Services Corp.
USI Insurance Services Corp. was formed by Saratoga Partners and Bernard Mizel, a member of Saratoga’s Executive Program, to serve as an acquisition vehicle within the commercial insurance brokerage and services industry. Prior to teaming up with Saratoga Partners, Mr. Mizel had successfully completed two consolidation plays in the commercial insurance brokerage industry, American Business Insurance, Inc. and Albert M. Bender Company.
Expert management built USI from a start-up operation in June 1994 to its current status as the 6th largest U.S. commercial insurance brokerage. The Company has consummated more than 100 acquisitions for an aggregate purchase price in excess of $400 million and attained annualized revenues in excess of $350 million.
Saratoga sold 90% of its interest in 1998 to a group of insurance and financial strategic investors. USI completed an initial public offering in October 2002.
To view USI's website CLICK HERE.
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Capital Markets Assurance Corporation (CapMAC)
CapMAC is a triple-A rated financial guaranty insurance company that provides credit enhancement for asset-backed securities. As a financial insurer, CapMAC charges premiums to guarantee investors timely and complete payment on securities collateralized by such assets as auto loans, credit card receivables, boat loans, and trade receivables.
Saratoga Partners led a consortium of management and institutional investors in the 1992 acquisition of CapMAC from Citicorp in a $264 million transaction. Saratoga invested $40.5 million along with CapMAC management and other investors.
In late 1995, CapMAC completed an initial public offering at $20 per share. Since the offering, Saratoga has sold its interest in CapMAC through a secondary public offering, block sales, and distributions of stock. Total proceeds received were $99 million.
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Cannell Communications, L.P.
In 1990 Saratoga Partners joined with William Schwartz and Steven Cannell Studios to form Cannell Communications, L.P. Mr. Schwartz, previously the CEO of COX Communications, Inc., participated in Saratoga's Executive Program for over two years during which time he helped identify attractive acquisition opportunities among independent television stations.
Cannell's first acquisitions, WUAB in Cleveland, Ohio and WHNS in Greenville, South Carolina, were made in 1990 and followed by the purchase of KPDX-TV, the FOX affiliate in Portland, Oregon, in 1992.
Cannell sold WUAB in August 1994 for $63 million and WHNS and KPDX in January 1995 for $99 million.
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Atlantic Cellular Company, L.P.
Atlantic Cellular Company, L.P. was formed in 1989 by Saratoga as lead investor in partnership with Charles Townsend, the former CEO of Providence Journal Communications. Atlantic's business plan has been to acquire, build, and manage cellular telephone systems in small metropolitan markets and in rural service areas with proximity to major urban centers.
With 9 years, Atlantic owned and operated six cellular properties in four states and had evolved from a start-up operation into an established company with over 70,000 customers and $43 million in revenues. The Company was originally financed with $97 million of equity and no debt. As Atlantic grew and its business plan was validated, debt was utilized to finance external growth, which included the acquisition of wireless operations in Northwestern Massachusetts, Northeastern New York, and Northern Vermont.
In July 1998, Atlantic negotiated the advantageous sale of cellular telephone assets to Rural Cellular Corporation for $256.0 million and its PCS licenses to Omnipoint Corporation for $13.0 million, in preparation for the planned dissolution of the Company, which had substantially occurred by year end 1998.
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Haas Publishing Companies, Inc.
Haas Publishing Companies, Inc. is the largest publisher of apartment guides and journals in the United States, which it provides free to apartment seekers. The Company distributes its products in more than 45 markets located primarily in the Southeast, Central, and Southwestern United States, but expanded into the Northeast in late 1991.
Beginning in the spring of 1988, Saratoga Partners worked for more than a year with Haas management to develop a comprehensive business strategy, which ultimately resulted in Saratoga's purchase of Haas in September 1989 for $36 million. Benefiting from the cooperative management provided by Haas executives and Saratoga professionals, Haas expanded into five new markets, increased revenue by more than $200 million, and doubled its operating income in the four and one-half years following the acquisition. Saratoga sold the Company to K-III Communications in May 1994.
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Formica Corporation
Formica Corporation is the world's largest producer of high-pressure decorative laminates and the recognized world leader in laminate design and new product development. The Company enjoys the number one or two-market share position in each of its major markets and distributes its products through more than 7,000 independent distributors and dealers throughout the world. When an investor group announced in late 1988 that it had accumulated a position in Formica stock and was considering a takeover offer, Saratoga approached Formica's senior management to explore the feasibility of a corporate buyout. With management as its partner and Masco Corporation as a co-investor, Saratoga completed the $405 million acquisition of Formica in September 1989.
Saratoga developed an innovative financing structure using bank debt in five foreign countries and a tax mechanism to return borrowings to the United States. The transaction was financed with $83 million of equity, $173 million of senior bank debt, $100 million of publicly sold subordinated debt, and $45 million of privately placed discount debentures, the latter two financings arranged by Saratoga and executed by Dillon Read. To facilitate the transaction, Saratoga coordinated Dillon Read's efforts to provide $125 million of bridge financing.
Despite back-to-back recessions in North America and Europe, management succeeded in growing revenues and EBITDA enabling it to sell Formica to BTR Nylex Ltd. in January 1995 for $625 million.
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Viking Office Products
With operations in the United States, Europe, and Australia, Viking Office Products is the world's largest mail order provider of professional office supplies. The Company features an extensive line of nationally advertised brand name items at a substantial discount from retail stationery store prices.
Viking was purchased from its founders in 1988 for $66 million. The purchase price was financed with $20 million of equity, $35 million of senior debt, and $10 million of subordinated debt, with a number of the existing management team receiving equity for the first time.
Viking's sales have increased from $80 million at the time of its acquisition to over $1 billion today. The strength of the Company's performance enabled Viking to use internally generated funds to expand internationally. Saratoga investors have realized the value of their Viking shares through secondary sales and direct distributions.
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Hi-Lo Automotive, Inc.
Hi-Lo Automotive, Inc. is a leading automotive aftermarket retailer in Houston, Texas and other metropolitan areas in South Texas and Louisiana, which is rapidly expanding its presence throughout other parts of Texas and the Southwest. Hi-Lo operates more than 125 company-owned stores that offer a wide range of automotive parts and is listed on the New York Stock Exchange.
Hi-Lo was purchased in 1987 for $70 million. The selling shareholders retained an equity stake in Hi-Lo and participated on its Board.
In 1991, Hi-Lo raised $35 million in an initial public offering of common equity priced at approximately five times Saratoga's cost. This was followed by a combined primary and secondary offering of shares in 1993, which was priced at approximately seven times Saratoga's cost. Saratoga's remaining shares were distributed to its partners in 1996.
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Norfolk Holdings Inc.
Norfolk Holdings Inc. produces natural gas and oil from 165 BCF of proven long-lived reserves located in Montana, Canada, and the offshore Gulf Coast. In 1986, in partnership with Norfolk's new management and The Prudential Insurance Company, Saratoga acquired a 71% interest in Norfolk for $82 million.
This transaction was financed by an equity investment of $21 million, $45 million of debt provided by The Prudential, and the assumption of Norfolk's outstanding bank debt. In 1993, Norfolk was sold to United Meridian Corporation.
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Gulf Coast Coca-Cola Bottling Company
In 1986, Saratoga Partners joined with Coca-Cola Bottling Company United, a Dillon Read client and one of the largest privately owned Coca-Cola bottlers in the country, as equal partners in the $155 million purchase of Gulf Coast Coca-Cola Bottling Company. Gulf Coast is the second largest franchised bottler of Coca-Cola and Dr. Pepper products in Louisiana and Mississippi.
The acquisition was financed with $22 million of equity and $133 million of debt. In 1988, Saratoga sold its interest in Gulf Coast to Coca-Cola United.
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James Communications
In June 1986, Saratoga Partners teamed up with William R. James, previously of Capital Cities Communications, to create a new cable television company - James Communications Inc. The stated goal of the new company was to acquire a critical mass of cable television systems.
In less than 19 months, in nearly 20 separate transactions, James Communications acquired systems serving approximately 100,000 subscribers. A critical aspect of James Communications' strategic success was a rapid increase in the cash flow of its acquisitions through technical improvement and an enhanced marketing effort.
In December 1987, James Communications was sold to First Carolina Communications for approximately $160 million ($1,660 per subscriber).
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The Bowery Saving Bank
In 1985, Dillon, Read & Co., Inc. joined with Richard Ravitch, former Chairman of the New York Metropolitan Transit Authority, in an analysis of The Bowery Saving Bank, an insolvent New York mutual savings bank. A proposal was formulated and negotiated which involved an equity infusion of $100 million into The Bowery, which was contributed by Saratoga Partners together with a group of outside investors including Warren Buffett.
This transaction was backed by a 15-year federal assistance agreement, and was the first federally assisted merger that involved the transfer of a depositor-owned institution to non-bank investors. In 1988, The Bowery was sold to H.F. Ahmanson & Co.
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Capital City Products Company
In December 1984, Dillon Read was retained by the Board of Stokely-Van Camp to opine on the fairness of a proposed acquisition of Stokely by the Quaker Oats Company. After acquiring Stokely, Quaker decided to spinoff Capital City Products, a Stokely subsidiary, which processes edible oils used by producers of confections and baked goods.
Working closely with Capital City management, Saratoga negotiated the acquisition of Capital City for approximately $50 million. During the three succeeding years, the Company's debt was substantially reduced through improved operating results and working capital management. The firm's equity was sold in March 1988 to Karlshamms, a Swedish industrial firm.
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