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About Source Capital, LLC
Source Capital, LLC is a private equity firm founded in 2002 which makes both control equity investments and mezzanine debt
investments in mature, lower middle-market U.S. companies across a range of industries. Source Capital’s investment strategy
targets healthy growing companies with greater than $1.5 million in EBITDA seeking a growth-oriented partner. Source Capital has
completed acquisitions and invested across a broad selection of industries including: business services, light manufacturing,
consumer products, healthcare, and value-added distribution. Source Capital has offices in Atlanta and San Francisco.
Investment Profile
Target size:
 Trailing twelve-month EBITDA of at least $1.5mm
 Exceptions will be made for distressed businesses with a
history of operating at or above this level (typically
revenue of $15mm up to $150mm)
 No EBITDA minimum for add-on transactions
Situations:
 Management-backed, leveraged buyouts
 Distressed, turnarounds, special situations
 Acquisitions / divestitures
 Recapitalizations and refinancings
 Growth financings
Acquisition criteria:
 Strong and defensible market position
 Long-term competitive advantage
 Significant barriers to entry
 Recurring and predictable cash flow
 Limited capex and working capital requirements
 Management willingness to participate in upside
 For distressed: Explanation of events that have led to
distress
Management criteria:
 Actively seeking experienced owners and managers
eager to partner with us to grow their businesses
Management criteria (cont’d):
 Prefer investments where management remains, but
will selectively consider other situations
 We align financial interests with top managers through
incentive-based compensation programs
Investment model:
 Innovative and flexible approach to investment
structures
 Ability to rapidly close investments and create
structures that align interests of all parties
 Typically take controlling interests, although will
selectively review non-controlling opportunities for
high-growth companies
Industries of interest:
 Flexible and open to all industries,
except for high tech
 Past investment have included:
 Business services
 Industrial and light manufacturing
 Healthcare
 Consumer products
 Distribution / supply (value-added)
 Always seeking businesses that would be
complementary to current portfolio
ATLANTA
SAN FRANCISCO
th
75 14 Street
Suite 2700
Atlanta, Georgia 30309
Phone: 404.249.8315 ♦ Fax: 770.234.4152
www.source-cap.com
480 Pacific Avenue
nd
Suite 200, 2 Floor
San Francisco, CA 94133
Phone: 415.409.1719 ♦ Fax: 630.839.7008
Thomas S. Harbin
[email protected]
404.249.9330
Katherine Harbin Clammer
[email protected]
415.409.1719
Chad P. Riedel
[email protected]
404.249.8293
Benjamin S. Emmons
[email protected]
404.353.6694
C. David Cox
[email protected]
404.844.5385
Andrew L. Mathes
[email protected]
404.249.8385
Matthew P. Smith
[email protected]
404.844.5383
Dan Lawrence
[email protected]
678.999.8120
Thomas van der Meulen
[email protected]
404.664.5546
Gerald W. Webb
[email protected]
901.628.2162
Current Equity Investments
ABUTEC Investment Date: December 2012 • Atlanta, Georgia • www.abutec.com
ABUTEC is a leading manufacturer of emission control products serving various industry segments including oil & gas, landfill and wastewater treatment. The
company specializes in offering high efficiency enclosed flares that reduce harmful emissions to meet regulatory standards in a developing North and South
American market. The company has engineered enclosed flares that comply with EPA regulatory standards (Quad O), producing up to 99.9%+ destruction and
removal efficiency of harmful emissions.
Aerial Access Equipment Investment Date: June 2004 • Baton Rouge, Louisiana • www.aae-la.com
AAE is a provider of heavy equipment rental, sales, and repair services focused on aerial work platforms, boom lifts, scissor lifts and related lift equipment with six
locations in the central and southern Louisiana, Alabama, Mississippi and Texas gulf coast regions. AAE’s primary source of revenue is renting aerial work platforms
to chemical refineries, fabricators, non-residential construction contractors and contractors for off shore oil and gas drilling platforms.
Onsite Equipment Maintenance (Add-on ♦ Baton Rouge, Louisiana), Cook Coastal Rental (Add-on ♦ Spanish Fort, Alabama)
Backyard Products Investment Date: November 2005 ♦ Monroe, Michigan ♦ www.backyardbuildings.com
Backyard is a designer, manufacturer and marketer of ready-to-assemble and installed wood-based storage buildings, playsets and other outdoor structures.
Backyard (dba Handy Home Products and Heartland Industries) has a product line which includes storage buildings and accessories, gazebos, timber buildings and
playsets.
Kid’s Creations (Add-on ♦ Kansas City, Kansas)
CRH Holdings, LLC Investment Date: December 2012 ♦ Atlanta, Georgia
CRH Holdings, LLC is a platform company for building a consumer and quality focused urgent care center industry leader through both acquisitions and de novo
development. The founders are experienced private equity and operations professionals that have led companies and investments in the healthcare industry as
well as the consumer and retail industries--all three of which are relevant in successfully managing urgent care centers.
Urgent Medcare (Add-on ♦ Huntsville, Alabama)
Nelbud Services
Investment Date: November 2011 ♦ Atlantic City, New Jersey ♦ www.nelbud.com
Nelbud is a provider of commercial kitchen fire prevention and related maintenance services, including exhaust and ventilation system cleaning and inspection.
Nelbud’s services represent essential fire prevention and inspection measures that are legally mandated by local, state, and national fire codes by cleaning
accumulated grease build-up in kitchen hood duct systems.
Mc Q Clean (Add-on ♦ Columbus, Ohio)
The Penray Companies Investment Date: December 2010 ♦ Chicago, Illinois ♦ www.penray.com
Penray is a manufacturer and marketer of automotive chemicals serving the heavy-duty truck and automotive aftermarket segments. The company produces
aerosol and liquid chemical products and sells under the Penray® and Super-X® brands as well as private label. Penray specializes in providing diesel engine coolant
filters and liquids to the professional fleet technician.
Pickaway Plains Ambulance Service
Investment Date: September 2006 ♦ Circleville, Ohio ♦ www.ppa-ems.com
Pickaway is a provider of scheduled and emergency ambulance transportation services to both stretcher and wheelchair patients throughout central Ohio. Pickaway
has both exclusive and non-exclusive contracts with hospitals, hospice centers, municipalities and assisted-living facilities to transport patients.
Hocking Valley Health Professionals (Add-on ♦ Carbon Hill, Ohio)
Precision Manufacturing
Investment Date: August 2010 ♦ Morristown, Tennessee ♦ www.precisionboilers.com
Precision is a designer, manufacturer & marketer of electric, electrode and gas-fired steam and hot water boilers and accessories for commercial & industrial
applications. The Company has been operating for 70 years and maintains leading global market positions in the industrial & commercial electric and high voltage
jet electrode boiler segments.
S&S Industries
Investment Date: October 2006 ♦ Long Island City, New York
S&S is the largest global designer and manufacturer of specialty wire products (underwires) and metal and plastic products (principally rings and slides) used by
companies around the world to produce bras and other lingerie products. S&S operates manufacturing facilities in Central America and Asia to supply its customers’
global operations. S&S’ underwires and other bra components are sold to more than 250 intimate apparel companies and apparel retailers in approximately 50
countries.
Source Recycling Investment Date: August 2011 ♦ Baltimore, Maryland ♦ www.sourcerecycling.com, www.terrapinrecycling.com
Source Recycling is a recycler of ferrous and non-ferrous metals based in the mid-Atlantic region with operations in North Carolina. Source buys scrap metal from
peddlers, scrap dealers and manufacturing companies, provides for the transportation of the materials to its primary facility and processes the material for sale to a
wide variety of customers.
Sparus Holdings (Southern Cross, JW, Spear & EZTech)
Investment Date: March 2009 ♦ Atlanta, Georgia ♦ www.sparusholdings.com
Sparus is a provider of natural gas pipeline leak detection services to operators of utilities and outsourced long-term project management, control, planning and
scheduling services. Pipeline leak detection surveys are mandated on a recurring basis by a variety of federal, state and local regulations with frequency determined
by the surrounding population density. Spear places qualified engineers and professionals within companies that design, build and service highly specialized
facilities.
JW’s Pipeline Integrity Services, LLC (Add-on ♦ Dallas, Texas)
Sun & Skin Care Research
Investment Date: April 2012 ♦ Cocoa, Florida ♦ www.sscrinc.com
Sun & Skin Care Research is a leading manufacturer of sunscreen and skin lotion products in the U.S. and in key markets around the world. Its products are sold
under brands such as Ocean Potion®, BullFrog and No-Ad®. SSCR also partnered with Jimmy Buffett’s Margaritaville franchise to manufacture a new line of skin care
products under the Parrot Head™ brand. SSCR sells its products recognized for quality and value around the world to nearly 800 customers in over 70 countries.
BullFrog (Add-on ♦ Chattanooga, Tennessee)
Surf Technicians Investment Date: August 2007 ♦ Santa Cruz, California ♦ www.surftech.com
Surftech is a global provider and distributor of branded surfboards and the dominant player in its market niche with unmatched retail distribution capabilities and a
proprietary technology that makes its products lighter and more durable than those of its competitors. Surftech has developed a powerful co-branded licensing
model with over fifty product designers and athletes in the surf industry.
Strive International (Add-on ♦ Santa Cruz, California)
VSM Management Investment Date: April 2012 ♦ Atlanta, Georgia
VSM Management is a regional dental practice management company that operates thirteen locations across Georgia and South Carolina. The company’s two
Georgia locations focus on children’s oral health services by providing operative and preventative care for lower income families and underserved markets where
there is limited access to dental care. The company’s eleven locations across South Carolina provide comprehensive general, specialty and cosmetic dental care to
patients of all ages.
Carolina Dental Alliance (Add-on ♦ Spartanburg, SC) , Foster Orthodontics (Add-on ♦ Anderson, SC), Marsh & Sasnett (Add-on ♦ Columbia, SC)
Prior Equity Investments
Airworx Construction Equipment & Supply Investment Date: January 2004 ♦ Exited: May 2008 ♦ Indianapolis, Indiana ♦ www.airworxcorp.com
Airworx is an independent construction equipment rental, sales, and repair company focused on aerial work platforms as well as sales of specialized construction
hardware with two locations in Indiana. Airworx’s primary sources of revenue are renting, selling, and repairing aerial work platforms as well as selling
construction supplies to construction contractors, developers and industrial companies throughout Indiana.
Greater Diversified Supply (Add-on ♦ Indianapolis, Indiana)
Bucks County Coffee Investment Date: December 2004 ♦ Exited: October 2008 ♦ Langhorne, Pennsylvania ♦ www.buckscountycoffee.com
Bucks is a leading micro-roaster in the mid-Atlantic region with approximately 40 retail locations in Washington, DC, southern New Jersey and throughout
Pennsylvania. Bucks sells premium coffee in both whole bean format and as brewed coffee as well as drinks, tea, fresh roasted nuts and other snacks out of its
coffee kiosks, stand-alone retail locations and through leading grocers in the region.
Pro Care EMS Investment Date: September 2005 ♦ Exited: October 2010 ♦ Atlanta, Georgia ♦ www.procareems.com
Pro Care is a provider of scheduled and emergency ambulance transportation services throughout the metro Atlanta market and surrounding regions. Pro Care has
both exclusive and non-exclusive contracts with hospitals, hospice centers, municipalities and assisted living facilities to transport patients.
Tri County EMS (Add-on ♦ Jefferson, Georgia)
Radiological Assistance Consulting & Engineering Investment Date: June 2004 ♦ Exited: April 2006 ♦ Memphis, Tennessee ♦ www.race-services.com
RACE is a processor and transporter of low level radioactive waste with specialization in processing large components from nuclear utilities. RACE’s primary source
of revenue is processing and transporting low-level radioactive waste for nuclear utilities, hospitals, universities and drug companies.
Current Debt Investments
Avery Partners Investment Date: April 2013 ♦ Atlanta, GA ♦ www.averypartners.com
Avery Partners is a leading provider of short-term, contract and permanent staffing services to the information technology, healthcare, government and energy
sectors throughout the U.S.
Bills Khakis Investment Date: June 2014 ♦ Reading, PA ♦ www.billskhakis.com
Leading designer and marketer of premium, branded men’s sportswear.
Hawaiian Falls Investment Date: December 2013 ♦ Dallas, TX ♦ www.hfalls.com
Operator of seven micro-waterparks in Texas developed using public/private partnerships.
Human Capital Institute Investment Date: September 2012 ♦ White River Junction, Vermont ♦ www.hci.org
Human Capital Institute (HCI) is a leading provider of events and educational resources focused on human capital management with an emphasis on information
and training regarding the ability to recruit and retain profitable employees.
Industrial Emergency Services Investment Date: March 2012 ♦ Baton Rouge, Louisiana ♦ www.iesllc.com
Industrial Emergency Services is an industry leader in providing emergency preparedness, response and related safety services. IES’ services include outsourced
industrial firefighting, basic and intermediate EMT services, rescue/standby and emergency response planning, safety training, and inspection of firefighting
systems.
Vita Nonwovens US Investment Date: September 2012 ♦ High Point, North Carolina ♦ www.vitausa.com
Vita Nonwovens US is a leading U.S. manufacturer of high quality nonwovens designed for thermal and acoustic performance, moisture management and
filtration. These products are utilized in a wide array of engineered applications across multiple end markets. Vita’s primary product offerings include: nontoxic
flame retardant and moisture absorptive fabrics for use in the mattress and bedding industry; noise reduction and thermal insulation components used by
automotive manufacturers; formaldehyde-free insulation materials for the building products and construction industry; along with an assortment of efficient and
environmentally sustainable filtration and medical products.
Weiss Instrument Investment Date: July 2011 ♦ Pittsburgh, Pennsylvania ♦ www.weissinstrument.com
Weiss is a value-added distributor and integrator of engineered control products and solutions to the waste water, power and general industrial markets. The
company exclusively represents over a dozen OEM’s, including Siemens, Schneider Electric and Foxboro in a territory that includes eight states. Weiss’ instruments
and control products have a critical production role needed to ensure safe, efficient and optimal processes.
Prior Debt Investments
S&S Worldwide Investment Date: November 2011 ♦ Logan, Utah ♦ www.engineeringexcitement.com
S&S Worldwide is a leading designer, fabricator and supplier of highly-engineered major amusement rides and is the largest located in the United States. S&S is the
market leader in launch tower rides and is a leading designer of high-end roller coasters. S&S has one of the world’s largest and most diverse installed bases with
more than 400 rides in over 30 countries.
One Source Investment Date: July 2011 ♦ Chicago, Illinois ♦ www.onesourcerental.com
One Source is an equipment rental company with seven branches operating in Indiana, Illinois, Kentucky and Missouri.