Hampshire Equity Buys Broom-Maker In Secondary Deal

New York, March 21, 2006 - Hampshire Equity Partners has bought Impact Products LLC, which has supplied brooms, mops, trash bins and other products to the janitorial industry since 1963, for an undisclosed amount from Park Avenue Equity Partners.

Hampshire Equity provided between $7 million and $20 million in equity in the transaction, as is typical for the firm, in a deal valued at less than $100 million, said Michael McGovern, a principal at the firm. Current management will maintain a minority stake in the company.

Patriot Capital Funding Inc. arranged $13 million in debt financing for the deal and Fifth Third Bank also provided an undisclosed amount of debt.

Toledo, Ohio-based Impact makes and sells lines of janitorial products to educational, commercial, hotel and other janitorial contractors. It has over 4,000 items that are sold to wholesalers and distributors.

Impact's annual revenue is less than $100 million, McGovern said. Other financial details were not disclosed.

New York-based Park Avenue bought a controlling stake of Impact in October 2001 from the company's employees, leaving a minority stake with management. The company made one add-on acquisition, White Mop Ringer Co., in 2002 and sales grew "rapidly," said Daniel Kinder, a principal at Park Avenue.

Asked about the return on the Impact investment, Kinder said, "It's right where we wanted it to be," declining to be more specific.

The sale was the second realization out of Park Avenue's first fund, Park Avenue Equity Partners I LP, which closed with $110 million in 1999. The firm is planning to raise another fund, which is slated to have a $300 million cap. Kinder would not say where the firm is in its fund-raising process.

Hampshire Equity liked the investment because Impact operates in a market fairly resistant to downturns, McGovern said. Some of the company's products, such as mops and brooms, have to be replaced frequently because they are used so often.

New York-based Hampshire Equity invested in Impact out of its third fund, Hampshire Equity Partners III LP, which closed with $166 million in 2001. The firm invests in a variety of industries, although it has the most experience in niche manufacturing, specialty retail, media, health care, business services and consumer product.

Brown Gibbons Lang & Co. was financial advisor to Impact Products.

Reach Hampshire Equity at 212-453-1600
Park Avenue Equity at 212-758-4446.