Archway utilizes a sophisticated technology platform to execute sales and marketing programs by procuring, managing and distributing marketing materials, in-store signage, samples and products on behalf of its large group of Fortune 500 clients. The company operates over four million square feet of warehouse facilities across fourteen major metropolitan areas throughout the United States and Canada. Investcorp will work closely with Archway’s management team to further grow its customer base and consolidate the industry.

“Over the past four years, despite economic headwinds, Archway has more than doubled in size, broadened its service offerings, and emerged a leader in the marketing logistics and fulfilment industry,” said Chris McCollum, Managing Director at Investcorp. “We look forward to partnering with Archway to continue this strong growth and expansion of its leadership position in this growing industry.”

Archway was acquired from an investor group led by Tailwind Capital, Black Canyon Capital and members of the management team.

“Investcorp’s operational and financial resources are tremendous assets to Archway as we seek to build on our success – increase our scale, broaden our service offerings and become more valuable to the clients we serve,” said Clay Perfall, CEO of Archway. “We’re excited by the opportunity to continue our progress with the support and sponsorship of Investcorp.”

GE Capital Markets, Inc. and ING Capital LLC served as Joint Lead Arrangers and Administrative Agents of the senior debt financing. The mezzanine financing was provided by Audax Group and Oaktree Capital Management, L.P.

Investcorp was advised by PricewaterhouseCoopers, Gibson Dunn & Crutcher and K-2 Partners. Piper Jaffray & Co. also acted as financial advisor to Investcorp. Robert W. Baird & Co. Incorporated acted as sellside advisor for Tailwind Capital and Black Canyon Capital.

The takeover gives the firms BJ’s 190 wholesale clubs in 15 U.S. states for a valuation of about 7.1 times earnings before interest, tax, depreciation and amortization, less than the 8.9 times median multiple of six industry deals in the past five years. Using the same valuation as Leonard Green’s pending buyout of 99 Cents Only Stores, BJ’s would have garnered a price of about $57 a share.

“This was an opportunistic price — management wanted to get it done,” Brian Sozzi, an analyst at Wall Street Strategies Inc. in New York, said today in an interview. “As a shareholder, you don’t want to see this type of deal and haggling going into the holiday season.”

BJ’s rose $2.18, or 4.5 percent, to $50.26 at 11:45 a.m. in New York Stock Exchange Composite trading. The shares had gained less than 1 percent this year before today.

Retail Investments

Leonard Green, which manages about $9 billion, has taken part in at least five retail deals in the past year, including offers for fabric seller Jo-Ann Stores Inc. (JAS) and J. Crew Group Inc. The firm also has holdings in Whole Foods Market Inc., the largest U.S. natural-goods grocer, and Petco Animal Supplies Inc.
The transaction may close in the fourth quarter, the companies said. Today’s offer is a 38 percent premium compared with BJ’s closing price as of June 30, 2010, when Leonard Green disclosed it owned 9.5 percent of the stock.

BJ’s, No. 3 after Costco Wholesale Corp. (COST) and Wal-Mart Stores Inc. (WMT)’s Sam’s Club, is a membership-based warehouse club offering food, household products, apparel and office equipment.

“BJ’s is primarily an East Coast retailer at this point,” Sozzi said. “CVC and Leonard Green will have to invest a considerable amount of money to expand to the West Coast.”

Industry Acquisitions

The average premium for 22 pending or completed acquisitions of North American retail-discount store companies in the past five years was 20 percent, according to data compiled by Bloomberg. The biggest was the proposed $7.7 billion acquisition of Family Dollar Stores Inc. by Trian Fund Management in February.

Family Dollar rejected Trian’s offer in March, and Trian has since urged the retailer to reconsider.

Zayre Corp., now known as TJX Cos., opened the first BJ’s in Medford, Massachusetts in 1984, and named it after executive Mervin Weich’s wife, Barbara Jane, according to Hoovers.com. BJ’s became part of Zayre’s Waban Inc. unit, which then spun off BJ’s in 1997.

Morgan Stanley (MS) provided financial advice to BJs, and Wilmer Cutler Pickering Hale and Dorr LLP provided legal counsel. Potter Anderson & Corroon LLP served as legal counsel to BJ’s committee of independent directors, according to the statement.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays Capital Inc. and Jefferies & Co. acted as financial advisers to CVC and Leonard Green, while General Electric Capital Corp. and Wells Fargo Capital Finance LLC provided financing.

Latham & Watkins LLP provided legal advice to Leonard Green while Simpson Thacher & Bartlett LLP advised CVC.

Mr. Fraser is one of the most accomplished executives in the global inorganic chemicals and industrial minerals industries. His most recent position was President and CEO of Chemical Lime, a leading producer of inorganic chemicals with over 70 facilities throughout North America and the Caribbean. Prior to this, Mr. Fraser was President and CEO of OCI Chemical, a leading global producer of carbonates. Previously, Mr. Fraser held various executive roles with French chemical and pharmaceutical firm Rhone-Poulenc and also Stauffer Chemical. Mr. Fraser’s board experience includes KMG Chemicals (NASDAQ: KMGB), OCI Company Ltd (KOSE:A010060) and ANSAC.

This is the latest appointment in Advent’s Operating Partner Program, a long-established and successful element of the firm’s highly operational approach to investing. The program includes over 80 senior industry executives, many of whom have been involved in multiple Advent investments. These executives typically assist in activities such as finding attractive investment opportunities, conducting due diligence, and creating and driving value creation plans for Advent’s portfolio companies.

Stephen Hoffmeister, Managing Director in Advent’s Industrials group, said: “Chris’s outstanding track record in the broader chemicals industry, and particularly in inorganic materials and industrial minerals, makes him a great addition to our chemicals team. We look forward to working with Chris to develop investment opportunities on a global basis.”

Commenting on his appointment, Mr. Fraser added: “Advent has an excellent track record in chemicals and materials, and I am pleased to join a firm with such deep sector knowledge and a consistent focus on the industry.”

Advent International has been active in the chemicals and materials sector for over 20 years and has invested in more than 20 companies. Advent’s recent investments in the sector include: Oxea, one of the world’s leading producers of Oxo chemicals and their derivatives; HC Starck, a global leader in refractory metals, advanced ceramics and electronic chemicals; and Vinnolit, one of Europe’s leading specialty PVC producers.

Mr. Cullen spent over 24 years with Thomson Corporation (Thomson Reuters), in a variety of leadership positions in the education, scientific and healthcare information services businesses. He was CEO of the scientific and healthcare division, a $1.1bn group that provided information solutions to academia, researchers and healthcare professionals. Prior to that Mr. Cullen worked for the education division as CEO of the international group heading up the businesses outside the US. He also started businesses for Thomson in Asia while living in Singapore.

Since leaving Thomson, Mr. Cullen has been working with private equity firms and early stage businesses in the US and Asia, both on boards and as an adviser. He also sits on the boards of the Lasker Research Foundation and Manhattanville College.

We are thrilled to have Bob at the helm of Veritext. He has the experience and talent to build on Veritext’s strong foundation and lead us during a period of tremendous growth,” says Nancy Josephs, EVP and COO of Veritext.

Upon joining Veritext, Mr. Cullen said, “I’m truly looking forward to joining the team at Veritext. What has been accomplished in the last 13 years as they’ve built an industry leading position is truly amazing. The future couldn’t be brighter as we work to better serve our clients by providing enhanced technology-based solutions and services.

About Veritext Veritext was founded in 1997 with the goal of providing superior services to the legal industry. With over a decade of continued industry excellence, Veritext is the established leader in providing technology-driven deposition and litigation support services to law firms and corporations around the globe. More information can be found at www.veritext.com

NEW YORK, July 6 /PRNewswire/ — Investcorp, a global provider and manager of alternative investment products, announced today that it has acquired Veritext Holding Company, a leading national provider of deposition and litigation support services to law firms, Fortune 500 corporations, and regulatory agencies in the United States. The terms of the transaction were not disclosed.

Veritext was acquired from an investor group led by The Riverside Company and members of the management team that bought the company in August 2005.

Veritext has its headquarters in New Jersey and operates within the stable and growing legal services industry through its 30 locations across six core geographic regions in the largest legal markets in the United States.  The company provides technology and services that capture testimony during a deposition which is a critical part of the discovery phase of most civil litigation cases in the United States.

“Over the past several years, Veritext’s management team, led by CEO Michael Sandler and  COO Nancy Josephs, has built a market leading company by leveraging its proprietary technology to offer a variety of highly differentiated deposition services,” said Chris McCollum, a Managing Director in Investcorp’s private equity business. “We believe that Veritext has multiple ways to grow.  It has a leading position in the growing deposition services market, the capability to generate strong free cash flow and the opportunity to complete further add-on acquisitions.

“We believe Veritext offers an appropriate investment risk/return balance. Over the past 18 months we’ve evaluated many new investments and ended up passing on companies we liked where the opportunity would indicate an ultimate lower return profile than we were willing to accept.”

“Investcorp’s deep operational resources and financial support give us the platform to offer new services, expand our sales force and continue to make strategic add-on acquisitions,” said Nancy Josephs, Veritext’s co-founder and Chief Operating Officer.

Madison Capital Funding was the Sole Lead Arranger and Administrative Agent of the senior debt financing. The mezzanine financing was provided by Oaktree Capital Management, L.P and PennantPark Investment Corporation.

Investcorp was advised by Marks Baughan & Co (M&A), Wyatt Partners (industry), PriceWaterhouseCoopers (financial and accounting), and Gibson Dunn & Crutcher (legal).   Harris Williams & Co. acted as sellside advisor for The Riverside Company.

About Veritext

Veritext was founded in 1997 with the goal of providing superior services to the legal industry. With over a decade of continued industry excellence, Veritext is the established leader in providing technology-driven deposition and litigation support services to law firms and corporations around the globe.  More information can be found at www.veritext.com.

About Investcorp  

Investcorp is a leading provider and manager of alternative investment products.  It has offices in New York, London andBahrain and is publicly traded on the London Stock Exchange (IVC) and Bahrain Stock Exchange (INVCORP).  Investcorp has six lines of business:  private equity, hedge funds, real estate, technology investment, Gulf growth capital and MENA Mezzanine.  Founded in 1982, Investcorp has grown to become one of the largest and most diverse alternative investment managers in terms of both product offerings and geography.

Further information is available at www.investcorp.com.

SOURCE Investcorp

PRESS RELEASE
CVC Capital Partners (“CVC”), a leading global private equity firm, is pleased to announce the appointment of Thomas (“Tom”) Renyi as a senior advisor to CVC. Mr. Renyi will become a member of CVC’s U.S. Advisory Board and Global Financial Institutions Advisory Board to support CVC’s activities in the financial services sector.

Mr. Renyi has had a distinguished career in the financial services industry and recently retired as Executive Chairman and Director of The Bank of New York Mellon Corporation. Previously, Mr. Renyi served as Chairman and Chief Executive Officer of The Bank of New York Mellon Corporation and its predecessor institution, The Bank of New York, from 1997 to 2007. In addition to successfully growing the Company through numerous strategic initiatives, Mr. Renyi played an essential role in initiating, leading, executing and integrating the merger of The Bank of New York and Mellon Financial, one of the industry’s most successful and transformational transactions.

Mr. Renyi’s career at the Bank of New York began in 1971 and included key leadership roles in securities servicing, credit policy and capital markets. In 1989, Mr. Renyi led the transition team responsible for integrating the Irving Trust Company into The Bank of New York, which was the largest merger in the U.S. Banking industry at the time and set the stage for the next chapter in The Bank of New York’s global growth.

Mr. Renyi currently serves on the Board of Directors of Public Service Enterprise Group Incorporated and RiskMetrics Group. He is a past chairman of The Financial Services Roundtable.

Kamil Salame, CVC Partner and Head of the U.S. Financial Institutions Group, said: “We are delighted to welcome Tom to CVC. He is a tremendously successful executive who is held in the highest regard in our industry. Tom has played an important role in shaping and transforming the financial services sector and we are confident Tom’s experience will be extraordinarily valuable to CVC as we assess opportunities at this particularly dynamic time.”

With 19 offices throughout Europe, Asia, and the United States, CVC has an industry-leading global presence. CVC currently has approximately $20 billion of uninvested equity capital, making the firm one of the top five sources of available private equity funds in the world. CVC has significant experience in financial services investments, and its dedicated Global Financial Institutions Group focuses on investing in leading financial businesses across Europe, North America and Asia.

SCRANTON, Pa., Oct. 26 2009 /PR Newswire/ — AZEK Building Products has named Rick Corry as Vice President-Sales, with responsibility for planning and directing AZEK sales strategies and continuing to build the AZEK brand. Reporting to Mr. Corry will be AZEK Regional Sales Managers, the VP of Retail Sales, Key Account Manager, and Customer Service Manager.

Corry has a varied background in LBM sales, management, national accounts and corporate leadership development. He worked for Owens Corning for 18 years, where his most recent position was National Director of Sales. He began his career as a field sales rep and worked his way up to manage the West Coast region before becoming National Director of Sales. He then went on to become CEO of Buildlinks, a construction management software company.

“I’m looking forward to bringing my sales and two-step distribution experience to AZEK Building Products,” said Corry. “I also plan to tap into my workforce performance background to help the sales force maximize their strengths and continue to support our channel partners.”

Most recently, Corry was General Manager of the Center for Creative Leadership in Greensboro, NC, a leadership training company.

Corry holds a Bachelor’s degree in Marketing from Oakland University, Rochester, MI. He will relocate to Scranton from Raleigh, NC, with his wife Michelle.

Mr. McShane was previously the Chairman and Chief Executive Officer of Grant Prideco, the global leader in the development of drill stem technology and the manufacture, sale, and service of drill pipes, drill bit technology and specialty tools. He served in this role for more than six years. During this time, Mr. McShane grew the company’s revenues by over three times to $1.9 billion and the operating income by 11 times to $590 million through organic growth and acquisitions. Mr. McShane left Grant Prideco in 2008 after its acquisition by National Oilwell Varco for $7.2 billion. Prior to joining Grant Prideco, Mr. McShane was the Chief Financial Officer of BJ Services, an international pressure pumping and oilfield services company. While at BJ Services, Mr. McShane helped grow the company from $350 million in revenues to $1.9 billion. He currently serves on the board of directors for two public companies, Complete Production Services and Spectra Energy, as well as two private companies.

David McKenna, Managing Partner and head of Advent International’s North American industrials practice, said, “The oil and gas services and equipment sector is an important area of focus for Advent globally. Mr. McShane’s extensive experience and his impressive track record in the sector will be extremely valuable to us, and we are very fortunate to have him on board. We look forward to working with him to identify and develop the right investment opportunities.”

Commenting on his new role, Mr. McShane said, “Advent has a long track record of successfully investing in a diverse range of companies globally and supporting management teams as they drive revenue growth and improve earnings. I look forward to sharing my knowledge and history with the investment professionals at Advent and with the management of portfolio companies in the oil and gas services and equipment sector.”

Advent International has been active in the industrials sector for over 20 years and has invested in over 70 companies globally. Among Advent’s previous investments in the industrials sector is Boart Longyear, the leading provider of drilling services, tools and equipment for the mining, construction, water and environmental industries worldwide, from which Advent exited in 2007. Current industrials sector investments include: Nukem (part of RWE Solutions), a diversified portfolio of energy-related services businesses; Bradco Supply, a leading distributor of residential and commercial roofing materials in the US; Oxea, one of the world’s leading manufacturers of Oxo chemicals; and Deutek, Romania’s largest decorative paints producer.

Advent’s Operating Partner Program involves business leaders from a range of sectors working as consultants to the firm in a variety of ways: sourcing investment opportunities, assisting with the due diligence process and advising on the strategic and operational development of portfolio companies. The use of operating partners is a fundamental and long-established element of Advent’s highly operational approach to investing. The program currently includes over 70 high-level individuals, many of whom have been involved in multiple Advent investments.