Selected portfolio company investments previously sourced, managed and successfully exited under the stewardship of Orchard Way’s Chief Investment Officer include:
Southern California Food Services Holding Corporation ("SCFSHC")
Knoxville, TN, San Diego, CA and Ventura County, CA
SCFSHC was formed to acquire businesses in the quick service restaurant (“QSR”) industry. A consolidation strategy was implemented beginning with the acquisition of six Wendy’s franchises and culminating in a total of 64 restaurants which had established SCFSHC as one of the largest Wendy's franchisees in the U.S. before being sold to another private equity fund.
Formatos Eficientes S.A. (Eki Discount Stores)
Buenos Aires, Argentina
Formatos Eficientes S.A. was acquired as a 22-store business and grown to approximately 100 stores over a three-year investment holding period to became one of the leading operators of soft discount mini-supermarkets known as Eki Discount located throughout Buenos Aires, Argentina before being sold to another private equity fund.
Mass Marketing Inc. (Super S Foods)
San Antonio, TX
A significant minority investment was made in Mass Marketing, Inc. a Texas based food retailer doing business as Super S Foods located in isolated, rural niche markets with high Latino demographics. Having increased the Super S store count from 53 to 60 the business was negatively impacted by severe drought conditions that led to the majority family owner’s decision to exit their ownership position. As a result, the business was opportunistically sold to an Oklahoma based retailer after an investment holding period of only 24 months.
Quimica Estrella S.A.
Buenos Aires, Argentina
A co-investment was made in Quimica Estrella S.A. (“QESA”) a producer and distributor of cotton hygienic products and consumer food products such as instant coffee, malt, chocolate powder, mate, rice and Christmas cakes. The investment was realized via a sale to a strategic buyer.
National Security Service (NSS)
Alabama, North Carolina and Florida
NSS comprised three security alarm businesses generating recurring revenue through the installation, servicing and monitoring of residential and commercial burglary and fire alarm systems. NSS was acquired as part of a consolidation and organic growth investment strategy. Over the investment holding period, NSS grew to be ranked among the top-twenty alarm companies nationwide, before being sold to a southeastern U.S. utility.
MLN Clinical Labs
The acquisition of the California division of the Mayo Foundation's clinical laboratory operation ("MLN") was based on a strategy to leverage the highly reputable laboratory's dominant share of several secondary markets. Moreover, the California clinical laboratory market comprised over 200 small clinical laboratories acquisition candidates providing ample scope for add-on acquisitions in this consolidating industry. The investment was held for approximately 2 years before being sold to a strategic acquiror.
Universal Standard Medical Laboratories, Inc. ("USML")
USML was formed for the purpose of acquiring the operations of a clinical laboratory (“MML”) which presented an attractive flagship investment due to its stable cash flows and the potential for a value creating regional consolidation strategy. USML subsequently made other opportunistic regional acquisitions providing the scale to take the company public only 18 months after acquiring MML.
NetSpend targeted an under-served consumer market in primarily Hispanic communities' by providing products designed for those not having access to a traditional bank account or a preference for alternative financial services. This investment involved assistance in the planning and due diligence required to execute on the company’s Series A funding. NetSpend subsequently was taken public on the NASDAQ exchange following which it was acquired by Total System Services, Inc. (“TSYS”).