Lazard Middle Market Advised
Safemark Systems,
an American Capital, Ltd. portfolio
company,
in its Sale to Milestone
Partners
TRANSACTION
DESCRIPTION
Lazard Middle Market advised Safemark Acquisitions,
Inc. (d/b/a Safemark Systems), an American Capital, Ltd.
portfolio company, in its sale to Milestone Partners III,
L.P. Safemark Systems is the leading provider of in-room safes to the
hospitality market.
TRANSACTION HIGHLIGHTS
Safemark Systems has installed more than 500,000
safes in hotels and resorts over the past 25 years. Through its pioneering
revenue sharing program, Safemark offers hotels a no cost method to
generate additional income while providing their guests the security and
convenience of in-room safes. Safemark has been approved or specified by
virtually every major hospitality chain, often as the provider of choice.
With relationships with global franchisors and chains, as well as
manufacturing and distribution capabilities in Asia, the company reaches
customers worldwide.
Joseph Conte, a Managing Director at Lazard Middle
Market, commented that “Safemark’s brand equity and premier customer base
enable significant domestic and international growth opportunities within
and beyond the hospitality industry.”
George Oelschig, CEO of Safemark, said “Milestone has
proven its ability to help middle-market companies like Safemark achieve
success, and we are excited about the potential for our business with
Milestone on board.”
Eric Roth, a Director at Lazard Middle Market,
observed that “Safemark’s broad product offerings create comprehensive
market coverage that is unparalleled in the industry and provides an
impressive growth platform.”
Madison
Capital Funding LLC (www.madisoncapitalfunding.com)
and New Canaan Funding LLC (www.newcanaanfunding.com)
provided debt financing and co-invested equity alongside Milestone and
management. Lazard Middle Market (www.lazardmm.com)
advised Safemark Systems.
THE COMPANY
Safemark Systems (www.safemark.com), headquartered in
Orlando, FL, is the leading provider of in-room safes to the hospitality
market in North America, having installed more than 500,000 safes in
hotels and resorts over
the past 25 years. Safemark operates an extensive sales and
distribution network throughout North America, and enjoys alliances with such
prominent hospitality organizations as Avendra, Best Western, Cendant, Choice, Carlson
(Radisson), Interstate Hotels and Resorts, Marriott, USFS, Wyndham and
Walt Disney World.
THE
SELLER
American Capital, Ltd. (Nasdaq: ACAS) (www.americancapital.com), with
$20 billion in capital resources under management, is the only private
equity fund and the largest alternative asset management company in the
S&P 500. American Capital, both directly and through its global asset
management business, originates, underwrites and manages investments in
private equity, leveraged finance, real estate and structured
products. American Capital and its affiliates invest
from $5 million to $800 million per company in North America
and €5 million to €500 million per company in Europe.
American Capital was founded in 1986 and currently has 12
offices in the U.S. and Europe.
THE BUYER
Milestone Partners (www.milestonepartners.com) is
a private equity firm that partners with management
to invest in leveraged buyouts and recapitalizations of lower middle market businesses.
Milestone pursues successful niche-market leaders that provide high-margin products or
services. Milestone’s transactions typically provide liquidity to shareholders of privately-owned
businesses, facilitate the transition of ownership to key managers,
and allow management to capitalize on growth opportunities, while
maintaining the legacy of the founders. Milestone is currently
making investments through Milestone Partners III, L.P.
ABOUT LAZARD MIDDLE MARKET
Lazard Middle Market LLC
(www.lazardmm.com),
a subsidiary of Lazard Ltd (NYSE:LAZ), provides advice on mergers and
acquisitions, restructuring, and financings to the middle market. Formed
in 2007 with Lazard's acquisition of Goldsmith Agio Helms, Lazard
Middle Market has approximately 100 professionals in Minneapolis, New
York, Chicago, Los Angeles, and Charlotte.
If you would like more information about
this transaction, please contact:
