Business Description:

Velocity Express, originally a TH Lee Putnam Ventures portfolio company, is the leading provider of customized, time critical delivery and logistics solutions to multi-location, blue chip customers in the United States.

Transaction Details:

Assisted in major balance sheet restructuring resulting in the elimination of over $43 million of liabilities and increased liquidity of $26 million.

Restructured organization and led IT initiatives that eliminated $34 million of SG&A.

Directed the effort to acquire and integrate largest competitor, CD&L, in 2006.  Also, led the financing for the transition in bond and preferred stock issuance of greater than $100 million.

Investment:

Preferred stock investments led by MCG Global

Significant           Co-Investors:

TH Lee Putnam

Charter Oak Partners

Linden Capital, L.P.

Pequot Capital Management, Inc.

Scorpion Capital Partners

Silver Oak Capital, LLC

Source of Transaction:

MCG Global was retained by TH Lee Putnam Ventures due to its extensive transportation experience and close relationship with former CEO.

Exit:

Active Investment

NOVATIONS GROUP -  www.novations.com

Business Description:

Novations is a leading human capital training and consulting firm providing solutions to increase the capacity of individuals and organizations in six integrated practice areas:  Diversity & Inclusion, Communications, Project Management, Selection, Development, and Sales & Service.  Novations primarily serves large and medium sized enterprises and counts as clients more than half of the Fortune 500.

Transaction Details:

Expand the repository of content.

Integrate the sales process to deliver multiple practice area solutions to each customer Development of global delivery capabilities.

Expansion into new channels.

Identified and consummated attractive add-on acquisition of ProGroup, Inc., to further strengthen company resources, customer relationships, and product offerings for diversity practice area.

Investment:

MCG Global sponsored management buyout.

Significant           Co-Investors:

Source of Transaction:

Auction.  MCG had previously identified opportunities in the training and consulting market through their operating manager network.

Business Description:

Imperial Headwear is a leading headwear manufacturer and marketer focused primarily on the sports field, particularly golf or the “green grass” channel.  Founded in 1916, Imperial products are sold in 89 of the top 100 golf courses in the United States and has been a valued partner of the PGA and USGA for more than 15 years.

Transaction Details:

Investment:

Significant           Co-Investors:

Altamont Capital Partners.

Source of Transaction:

Auction.  MCG had previously identified opportunities in the headwear segment through their Operating Manager network.

Business Description:

Global Household Brands is a leading manufacturer of household products which it sells primarily to grocers, mass merchandisers, retail pharmacies, military distributors and home improvement retailers throughout the United States, Canada and Mexico.  Global’s brand lineup includes X-14, 2000 Flushes and Carpet Fresh which compete in the mildew remover, bathroom cleaner, automatic toilet bowl cleaner and rug and room deodorizer categories.

Transaction Details:

Strong brand names in X-14, 2000 Flushes and Carpet Fresh.

Significant operating improvements made at the manufacturing level.

Development of Carpet Fresh No Vacuum product increasing brand sales from $6 million to $27 million in one year while re-energizing the entire rug and room deodorizer category.

Investment:

Leveraged buyout transaction with equity and subordinated debt with warrants led by MCG Global, LLC.

Significant           Co-Investors:

Friedman Billings Ramsey, Sycamore Ventures.

Source of Transaction:

Identified opportunity through personal relationship with a former member of Fleet/Summit Leveraged Asset Lending Group.

Exit:

Stock Sale to WD-40 Company, April 2001.

Business Description:

Carson Holdings was the 52% owned subsidiary of Carson, Inc. that was publicly traded on the Johannesburg Stock Exchange.  With manufacturing plants in Midrand, South Africa and Accra, Ghana, Carson Holdings is the leading manufacturer and marketer of personal care products (hair care, skin care and toiletries) for black consumers throughout the continent of Africa.

Transaction Details:

Untapped market at time of MCG Global, LLC acquisition of Carson, Inc.

Widely recognized Dark & Lovely brand was aspirational product line in Africa.

Initial sales volume of less than $1mm produced through contract manufacturer grew to more than $50 million ($80 million without currency devaluation).

Carson Holdings decided to fund continent-wide expansion with support from African investment community.

Public shares were currency for several strategic acquisitions.

Investment:

Consummated initial public offering on Johannesburg Stock Exchange in July 1996 with investment participation from major South African institutional investors and certain principals of MCG Global, LLC.

Significant          Co-Investors:

Standard Corporate & Merchant Bank, Old Mutual, SANLAM, WIP Holdings.

Source of Transaction:

Identified by MCG Global, LLC after meeting with several interested South African investment banks.

Follow-on Activity:

Subsequent to IPO, Carson Holdings acquired four strong branded businesses, which extended the Company’s product line into skin care and toiletries, most notably Sadie, the largest unit producer of deodorant in South Africa.

Exit:

Principals exited after significant increase in share price, through a secondary offering in March, 1998.

Business Description:

Leading cosmetics manufacturer focusing on “budget” nail polish and lipstick. 

Transaction Details:

Identified roll-up strategy for budget cosmetics industry.

Acquired largest competitor and three other niche cosmetics companies in 1 year period.

Acquisition integration issues and systemic change in cosmetic industry caused decline in cash flow and over-leveraged balance sheet.  

Investment:

Leveraged buyout transaction with equity and preferred stock led by MCG Global, LLC 

Significant          Co-Investors:

Avatex

Source of Transaction:

Identified opportunity through relationship with an attorney at Milbank, Tweed, Hadley & McCloy LLP, who was representing the seller

Business Description:

Carson, Inc. is the leading global manufacturer and marketer of hair and skin care products for people of color.  Carson sells its products, with such strong brand names as Dark & Lovely, Ultra Sheen, Beautiful Beginnings, Gentle Treatment and Magic, in the United States, Western Europe, the Caribbean and in more than 60 other countries around the world including South Africa, Ghana and Brazil.

Transaction Details:

Targeted a consumer demographic growing in size and disposable income.

Owned significant asset in market leading, high quality, highly recognized brand name – Dark & Lovely.

Tremendous opportunity to expand internationally, primarily in Africa, where international sales grew from $1 million in revenue when acquired to over $80 million at the time of sale.

Fragmented industry ripe for consolidation.  

Investment:

Leveraged buyout transaction with equity led by MCG Global, LLC in addition to seller equity re-investment.

Significant          Co-Investors:

JP Morgan, Merrill Lynch, Former Owner

Source of Transaction:

Identified opportunity through personal relationship with member of the Board of Directors of Carson, Inc.

Follow-on Activity:

In addition to the successful growth, capital markets activity and acquisitions of Carson Holdings, Carson, Inc. completed an initial public offering on the NYSE in October 1996, a high-yield bond offering in October 1997 and two strategic acquisitions, most notably of Johnson Products in July 1998.

Exit:

Stock sale to L’Oreal in July, 2000.