Sun Capital Partners can be a ray of sunshine for flourishing (or struggling) companies. The private investment firm specializes in making leveraged buyouts and equity and debt investments. It also acquires interests in bankrupt or underperforming firms. After acquisition, Sun Capital provides operating advice and additional capital to its portfolio companies. It typically invests in firms with $50 million to $3 billion in annual sales and does not rule out any industry when considering investments, but is partial to specialty manufacturers, retailers, restaurants, and apparel, technology, telecommunications, and home furnishing companies. Sun Capital has nearly $10 billion of capital under management.
Sun Capital's acquisition and investment targets include private businesses, divisions of larger companies, and publicly-traded companies. The firm focuses on middle-market growth companies that can benefit from its operational resources, and prides itself on closing deals within 30 days -- relatively quickly by private equity standards.
The company targets companies that generate more than $3 billion, though it's typically acquired companies generating between $50 million and $500 million. Since its founding in 1995, Sun Capital has invested in more than 315 companies.
Its current investment portfolio consists of interests in more than 70 firms, including: bath and kitchen products maker American Standard Brands, Hickory Farms, and retailers Pamida, ShopKo Stores, and Marsh Supermarkets. Sun Capital also has several restaurant chains within its portfolio, including Boston Market, Fazoli's, Garden Fresh, and Restaurants Unlimited.
Sun Capital Partners is a global investor with offices in Boca Raton, Los Angeles, and New York. Beyond the US, Sun Capital has offices in London, Frankfurt, Paris, and Shenzhen.
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Sun invests in companies operating in several sectors, including: paper and packaging, food and beverages, metals and mining, automotive parts, consumer products, financial services, healthcare, media and communications, building products, telecommunications, technology, retailing and e-commerce, restaurants, and manufacturing and industrial, among others.
Sun Capital's seeks to maximize shareholder value by investing in well-established, middle-market growth companies that can use its operational resources to grow substantially in value. In March 2014, Sun Capital bought Missouri-based Aclara Technologies LLC, a supplier of "smart" meters to electric, gas, and water utilities in the US, from ESCO Technologies.
The firm has helped grow its portfolio companies by encouraging strategic acquisitions of their own. In 2014, for example, its bedding materials manufacturer Sleep Innovations purchased nearly all of the assets of the national foam manufacturer Flexible Foam Products. In 2013, its affiliate Trulite Glass & Aluminum Solutions, one of North America's largest architectural glass and aluminum fabricators, acquired Western States Glass Corporation of Northern California (WSG), a glass fabricator and distributor.
As a turnaround firm, Sun Capital has also been encouraging its affiliates to divest product lines and brands that are stifling growth. In 2014, Sun Capital affiliates sold off three brands which included the sale of specialty chemical producer Emerald Performance Materials to American Securities; vitamin manufacturer Cornerstone Research & Development to Integrity Nutraceuticals; and fluid power and power train product distributor Certified Power Inc. to Brinkmere Capital Partners.
In 2013, Sun Capital's food-focused affiliates, JGC Foods LLC and Sunrise Growers-Frozsun Foods, sold their investments in Harry's Fresh Foods to Joshua Green Corporation. Another affiliate sold its investment in powertrain sensor supplier Wabash Technologies to Sensata Technologies.