AUSTIN, Texas - Despite an unpredictable political climate in 2016, Blue Sage enjoyed an active and productive year. We trained our focus on identifying compelling investment opportunities, building value alongside our operating partners, and evolving our team to generate top quartile risk-adjusted returns for our investors.
Blue Sage Capital: 2016 In Review
During the year, we completed two platform acquisitions:
In October, we acquired Magnum Systems, Inc., a Kansas City-based pneumatic material handling company. Through its Taylor and Smoot brands, Magnum has a combined 95 years of history designing and manufacturing automated packaging and material handling solutions for the agricultural, chemical, and food markets. Magnum’s highly engineered products handle free-flowing materials that are difficult to package or convey and are deployed in a variety of manufacturing environments.
In December we partnered with management to recapitalize Broken Arrow Communications, Inc. (“BACOM”), providing liquidity for the founder and growth capital for an exceptional management team. With a leading presence in thirteen western U.S. markets, BACOM is the largest provider of services for the installation, modification, construction, and maintenance of wireless communication facilities and related infrastructure. BACOM is poised to meet rapidly evolving needs associated with the impending rollout of 5G technology and the Internet of Things.
In addition, we completed a bolt-on acquisition for an existing portfolio company:
In May, Marine Accessories Corporation (“MAC”) completed the purchase of the TurboSwing brand, a patented outboard tow bar, along with the assets of MAE, a European distributor of marine products. In addition to broadening MAC’s boating products portfolio, this acquisition will accelerate global distribution.
In 2016, Blue Sage achieved strong operating performance across the portfolio.
At Blue Sage, we focus on transforming small businesses with our intellectual and financial capital. Through our differentiated toolkit and network of strategic and operating resources, we enable companies to reach their full potential. We are pleased that in 2016, each of our portfolio companies successfully executed on strategic initiatives to drive long-term growth.
During the year, we promoted two senior members and welcomed two new additions to the team.
Identifying, underwriting, closing and building under-resourced lower middle market companies is a complex process. In order to perform systematically and at the highest level, we are intentional in the way we attract, mentor and evolve investment talent.
As such, we are pleased to announce the promotions of Jonathan Pearce and Eric Weiner to Principal. Jonathan and Eric joined Blue Sage in 2013 and have demonstrated skill in executing investments and leadership at the portfolio and firm level. Jonathan joined Blue Sage from Avista Capital Partners, and Eric joined from Berkshire Partners.
In the summer of 2016, we welcomed Austin Prentice and Afshar Sanati to Blue Sage. Austin previously worked in the Global Energy Investment Banking Group at Citi in Houston, where he advised on M&A, capital markets activities, and other strategic transactions in the oil and gas industry. He graduated from Southern Methodist University with a B.A. in Political Science and a minor in Biology.
Afshar joined Blue Sage from the Dallas office of The Boston Consulting Group, where he partnered with public and private sector clients on strategic and operational initiatives. Afshar graduated summa cum laude from the University of Arkansas with a B.S.B.A. in Finance and minors in Accounting and Spanish.
About Blue Sage Capital
Blue Sage Capital is an Austin, Texas-based private equity firm specializing in growth, recapitalization and buyout financings of small middle market companies. With over fifteen years as a team and over $200 million in assets under management, we have extensive experience transitioning founder-run businesses and seek companies with leadership in their niche. Most of Blue Sage’s investments are in established, profitable companies with $20 million to $100 million of revenue and $3 million to $12 million of cash flow. Blue Sage invests in a variety of industries, with each initial investment ranging from $10 million to $20 million.
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