Category Archives: News

31Aug/13

Cave Creek Capital Management Leads Recapitalization of Denny’s and DelTaco Franchisee

PHOENIX, AZ ( 4 September 2013) Cave Creek Capital Management is pleased to announce its investment in QK Holdings LLC, the largest Denny’s franchisee in the United States.  QK operates 84 Denny’s and DelTaco restaurants in Arizona, Colorado, New Mexico, Oregon, Texas and Utah generating over $100 million in annual revenues.

Doug Koch, President of QK Holdings, said, “We are looking forward to growing even faster with the strategic guidance and additional capital from our new partners.  They structured a deal which met our needs perfectly”.  CCCM’s transaction funded both growth capital and personal liquidity for the Founders who maintain a majority interest in the Company.  Robbie Qualls, Doug Koch and Dennis Ekstrom will continue as Chairman, CEO and COO of the Company.  Kevin Fechtmeyer, Managing Partner of CCCM, noted “QK is a classic example of our investment approach; pick strong operators who don’t necessarily need to sell but would like an institutional partner to fund growth,  cash out some of the shareholders and leave the management team with an even larger equity upside in the future.”

Co-investors included Stewart Capital of Stilwell, Kansas and Seacoast Capital, an SBIC based in San Francisco and Boston.  The senior lenders in the transaction included lead agent, GE Capital, National Bank of Arizona and Alliance Bank of Arizona.

Dennys Corp.

Denny’s Corp  (NASDAQ: DENN) is a leading national franchised chain of family restaurants with nearly 1,700 locations worldwide.  Founded in 1953, Denny’s has built a strong brand with its America’s Diner theme and its Grand Slam ™ and $2-$4-$6-$8 Breakfast, lunch and dinner specials.

DelTaco Corp.

DelTaco is a national quick service restaurant (“QSR”) chain offering freshly prepared, value for the money Mexican and American favorites.  The Company, founded in 1964, is based in Lake Forest, CA and has grown rapidly to over 500 locations in 16 states becoming the second largest Mexican QSR concept in the U.S.

Cave Creek Capital Management LLC

Cave Creek Capital, based in Phoenix, AZ, is a growth investor with the flexibility of a family office, the talent of a major firm and a much wider range of capital solutions than traditional private equity funds.  Cave Creek Capital does not require control and can invest in both equity and debt.  With no structural deadlines, we can be patient investors and focus on long term goals.  This enables Cave Creek Capital’s management partners to achieve leadership in their markets and generate exceptional growth and returns.

For more information, please contact:

G. Kevin Fechtmeyer
Managing Partner
Cave Creek Capital Management LLC
2355 E Camelback Rd Suite 510
Phoenix, AZ 85016
480-478-6960
kfechtmeyer@cavecreekcapital.com

04Dec/12

Kenexa Acquired by IBM for $1.3 Billion

Accelerates Social Business for Workforce Transformation

ARMONK, N.Y. – 4 December 2012 . . . IBM (NYSE: IBM) today announced the closing of its acquisition of Kenexa. Kenexa bolsters IBM’s leadership in helping clients embrace social business capabilities while gaining actionable insights from the enormous streams of information generated from social networks every day. The net purchase price is approximately $1.3 billion.

Kenexa, a leading provider of recruiting and talent management solutions, brings a unique combination of Cloud-based technology and consulting services that integrates both people and processes, providing solutions to engage a smarter, more effective workforce across their most critical business functions.

Kenexa complements IBM’s strategy of bringing relevant data and expertise into the hands of business leaders within every functional department, from sales and marketing to product development and human resources.

The adoption of social business technology is further accelerating the growth of big data and the need for analytics in the enterprise. A recent global IBM study revealed that 57 percent of surveyed CEOs identified becoming a social business as a top priority and more than 73 percent are making significant investments to capture and draw insights from available data.

The survey also reveals that 70 percent of CEOs cite human capital as the single biggest contributor to sustained economic value. The combined strengths of IBM and Kenexa provide organizations with unique capabilities that allow them to increase workforce efficiencies and gain insight from their business information.

“By creating a smarter workforce, employees can drive innovation to bring products and services to market faster, resolve problems before they arise to improve customer service, and increase sales by building new skills — linking the right experts to the right clients,” said Alistair Rennie, general manager, social business, IBM. “The combination of Kenexa’s world-class human capital management solutions and IBM’s social business and analytics leadership uniquely positions IBM to help clients generate real returns from their social business investments, while helping them to be more competitive in their markets.”

Today, Kenexa is an industry leader in cloud-based software and recruiting process outsourcing (RPO.)  Kenexa supports more than 8,900 customers across a variety of industries, including financial services, pharmaceuticals, retail and consumer, including more than half of the Fortune 500.

Since IBM announced its intent to acquire Kenexa in August, Kenexa has seen continued momentum with customers around the globe. Kenexa has signed sizeable, multiyear contracts with several major companies, and recently announced that Cargill, an international producer and marketer of food, agricultural, financial and industrial products and services, has signed a three-year agreement to use Kenexa to implement, develop and oversee an employee engagement survey to its entire workforce of 140,000 employees around the world.

The Kenexa acquisition complements IBM’s social business and HR business services leadership. For three consecutive years, IDC ranked IBM number one in enterprise social software. Today, more than 60 percent of Fortune 100 companies have licensed IBM’s solutions for social business.

Through its combination of social software, analytics, content management, IBM’s maturity and strength in business process services and deep industry expertise, IBM is uniquely positioned to help organizations capture information, create insights and generate interactions that translate into real business value.

At IBM’s Connect conference, the premier social business client event in January 2013, IBM will detail how it will help clients use social technology, analytics, talent management, and human insights to attract and retain the right talent, to enable employee skills for the greatest impact, and to align activities to improve company performance – leading to real, positive business outcomes and competitive advantage. Register to attend Connect 2013 at www.ibm.com/connect.

With the closing of this acquisition approximately 2,800 Kenexa employees in 21 countries join IBM.  Consistent with its strategy, IBM will continue to support Kenexa clients and enhance Kenexa technologies while allowing these organizations to take advantage of the broader IBM portfolio.

About IBM
For more information visit www.ibm.com/social-business.

Contact:
Karen Lilla
IBM Communications
1-617-693-8115
karen_lilla@us.ibm.com

 

SOURCE

 

23Jul/12

Leading Snack Food Distributor Liberty Distribution Completes Sale to Vistar

(Chandler, AZ) In June 2012, Liberty Distribution completed its sale to Vistar, a division of Performance Food Group.  Founded in 1998 by Jim Schweikert, Liberty Distribution grew to become the leading snack food distributor to non-food retailers.  G. Kevin Fechtmeyer, Managing Partner of Cave Creek Capital, noted, “This was a tremendously successful investment due to the energy and teamwork of Liberty’s management which helped grow its revenues by nearly 400% since our investment in 2008.  This Transaction generated a return of 5.5 times our initial investment.

Patrick Hagerty, President and CEO of Vistar noted, “We have long admired Liberty, they pioneered the availability of candy and snacks to nonperishable retailers. This category is now common place in retail industries where it was virtually unknown just 15 years ago. We are excited to be adding the entrepreneurial spirit of Liberty’s management team and we are confident that they will be instrumental in helping Vistar meet its long term growth strategy.”

Cave Creek Capital Contact:
Jourdin Lambright, Marketing Associate
Phone: (480) 478-6960
jlambright@cavecreekcapital.com

13Jul/12

Bastech Named One of 50 Fastest Growing Companies

Bastech, (Jacksonville, FL) a leading provider of chemical solutions to the paper, pulp and mining industries, was named as one of the 50 fastest growing companies by the Jacksonville Business Journal, as well as one of the top 10 fastest growing companies in total revenues in the region.  Bastech was ranked 6th in total revenue growth and 24th in percentage revenue growth, averaging over 54% annually over the last three years.

Read full story at the Jacksonville Business Journal 

Cave Creek Capital Contact:
Jourdin Lambright, Marketing Associate
Phone: (480) 478-6960
jlambright@cavecreekcapital.com

01Feb/12

Bastech LLC Completes Refinancing with SunTrust Bank

Bastech LLC (Jacksonville, FL), a leading provider of performance chemical solutions to the paper/pulp and mining industries, completed a $14 million refinancing with SunTrust Bank.  The proceeds were used to repay its remaining senior and subordinated debt and to expand its credit facilities.  The senior term and revolver financing allowed Bastech to substantially lower its interest costs and provides ample funding for future working capital needs.

Bastech sales have grown more than 350% since the 2007 acquisition by Cave Creek Capital and Courtney Group and its financing needs have grown larger and more complex.  President, Bob Closs, noted, “SunTrust will be an excellent partner going forward as we continue to expand and service our client’s growing needs, particularly as our sourcing and sales grow outside of the United States”.

Cave Creek Capital Contact:
Jourdin Lambright, Marketing Associate
Phone: (480) 478-6960
jlambright@cavecreekcapital.com

26Jan/12

Greenwich Associates Survey Ranks Integro Tops in Broker Client Loyalty

New York (January 25, 2012) – Insurance brokerage and risk management firm Integro, established in 2005 as an alternative to legacy brokers, has overtaken them in ‘lead broker’ client loyalty, according to results of Greenwich Associates’ annual industry survey.

Integro earns a perfect 100 score when clients are asked if they’d recommend the firm to peers – eleven points higher than the 89 average for the ‘Big-Three’ (Marsh, Aon and Willis Group).

“Integro wins strong loyalty recognition from clients, especially lead clients, all of whom would recommend Integro to a peer in the industry,” said David Fox, Greenwich Associates managing director. “Integro is more than up to the challenge of the tough market. The firm is demonstrating strong results as it builds its presence as measured by total clients and clients citing Integro as their lead or most important broker.”

Peter Garvey, Integro President and CEO, said, “We created Integro to fill a gap in the broker marketplace – a firm capable of competing with the very biggest companies on offerings designed to deliver our services in a personalized, customized manner. It is gratifying to be recognized by clients and to know that my colleagues are providing results worthy of such recognition.”

According to Greenwich Associates’ research, pace-setting performance in several categories boosted Integro’s standing, including:

  • Customer Satisfaction: Integro’s 100 score bests the ‘big-three’ average of 91 as lead broker;
  • Broker’s Ability to Understand Client’s Business Needs: At 95, a stellar showing for Integro and well above the ‘big-three’ average 81;
  • Broker’s Global Coordination and Management: Integro’s 100 dramatically outpaces the ‘big-three’ average client 70 rating;
  • Ease of Working with Brokerage: Integro’s 95 soared above the ‘big-three’ average 82;
  • Broker’s Ethical Standards: Integro’s 100 contrasts with the average ‘big-three’ 93 rating.

Integro also earns exceptionally high marks for Firm Transparency, Broker Innovation, Coordinating Claims Processing with Carriers, and Client Satisfaction with Visit Frequency, among others.

The Greenwich Associates survey, conducted in late 2011, covers insurance brokerage and carrier needs of U.S.-based companies with annual sales over $500 million. In-depth telephone interviews are conducted with senior professionals responsible for insurance and risk management. These professionals are asked to comment on the most important client service elements for each broker and carrier such as professional knowledge, execution, service, and underwriting. This analysis identifies the best corporate insurance carriers and brokers and highlights valuable information on the needs of risk management professionals.

Greenwich Associates is the premier strategic consulting and research source for providers and users of financial services worldwide.

 

 

About Integro
Integro is an insurance brokerage and risk management firm designed to serve organizations with complex risks. Repeatedly praised and awarded for dedicated client service, Integro’s industry-leading brokers operate from offices worldwide. Its headquarter office is located at 1 State Street Plaza, 9th Floor, New York, NY 10004. 1-877-688-8701. www.integrogroup.com

Editorial Contact:
Betsy Van Alstyne
Integro
Tel: 212-295-5445
betsy.vanalstyne@integrogroup.com

18May/11

Integro acquires Pleasant Hill’s Argo Insurance Brokers

San Francisco Business Times by Chris Rauber

Date: Wednesday, May 18, 2011, 11:06am PDT – Last Modified: Wednesday, May 18, 2011, 1:12pm PDT

Integro, a New York-based insurance brokerage and risk management firm with an outpost in San Francisco, said Wednesday it has acquired San Francisco’s Argo Insurance Brokers.

To read full article, click here.

02Mar/11

Cave Creek Capital Sponsors Vistage All-City Event

Last Wednesday over 200 executives from around the state gathered at the Ritz Carlton in Phoenix for the state’s annual Vistage All-City Event.  Cave Creek Capital Management served as the Platinum Sponsor, giving all in attendance the opportunity to learn about the firm and how private equity can help them grow their businesses.  Throughout the day, executives had the opportunity to network with one other and gain insight from expert speakers.  Highlights included a session on “small talk” with Debra Fine and later a discourse by Keith McFarland on developing effective strategy.

Vistage International was founded in 1957 and has always had the same objective: to help executives make better decisions, achieve better results, and enhance their lives.  Still operating under those same principals, Vistage has grown to over 14,000 members in 16 countries, becoming one of the world’s leading chief executive organizations.  For more information on Vistage, please visit www.vistage.com

Cave Creek Capital Management is a private equity firm headquartered in Scottsdale, AZ.  Cave Creek Capital partners with management teams through leveraged buyouts, growth capital and/or mezzanine investment structures.  They use their capital, experience and relationships to enhance a company’s growth and competitive position.  They seek market leaders in targeted sectors such as business services, specialty manufacturing, financial services, consumer, media, and energy.  They focus on businesses that are cash flow positive, preferably $2.0 million in EBITDA and above, and their average investment hold period is approximately five years.

Cave Creek Capital Contact:
Jourdin Lambright, Marketing Associate
Phone: (480) 478-6960
jlambright@cavecreekcapital.com

15Aug/10

Liberty Distribution Company Completes Recapitalization

Liberty Distribution Company (Chandler, AZ), the leading distributor of confections and snacks to non-food retailers, completed its recapitalization in August, refinancing its senior and mezzanine debt while repurchasing shares from Cave Creek Capital.  During the last two years, Liberty’s sales have more than doubled, cementing its leadership in its segment.  Wells Fargo, in conjunction with C3 Capital and Bush O’Donnell Investments, led the refinancing.  CCCM’s investment was valued at 4.2 times its initial investment, representing a gross annualized IRR of 75.4%. CCCM retains a minority investment in Liberty.  The transaction allowed management to own a majority stake and provided incremental capital for further growth.

Cave Creek Capital Contact:
Jourdin Lambright, Administrator
Phone: (480) 478-6960
ea@cavecreekcapital.com

12Aug/09

The VMC Group, Inc. completes recapitalization with Fifth Third Bancorp

The VMC Group, Inc. (Bloomingdale, NJ) a leading manufacturer of vibration isolation and seismic design and shock control systems, refinanced its senior and subordinated debt in conjunction with repurchasing shares from its previous mezzanine investor. Fifth Third Bancorp led the $20.4 million refinancing with a combined senior and mezzanine financing package.

“We are very pleased to complete a successful recapitalization during one of the most turbulent periods in the history of the debt markets” stated VMC CEO John Wilson. “Our sales had grown over 125% since our initial buyout in 2005 and the new capital positions VMC for its next stage of growth”. Cave Creek Capital is a shareholder and advised VMC in structuring and closing the transaction. Managing Partner Kevin Fechtmeyer notes; “We were fortunate to have received several term sheets from lenders given VMC’s strong performance in a soft economy. Fifth Third was a reliable and creative partner in this process and they moved decisively to complete the transaction within the targeted terms and timeframe.”

The prior mezzanine investor, Hill Street Capital, received liquidity for a portion of its shares at a valuation of 8X the original valuation and retains a minority interest in VMC.

Cave Creek Capital Contact:
Jourdin Lambright, Administrator
Phone: (480) 478-6960
ea@cavecreekcapital.com