Top 40 distributor HALO Branded Solutions (asi/356000) announced this morning that it has been purchased by a partnership between Audax Management Company, a Boston-based investment firm, and senior HALO management. Financial terms of the deal were not revealed.
“We are very pleased with our new partners at Audax. They are a prestigious investment firm with a proven track record of building success with their portfolio companies,” said Marc Simon, CEO of HALO, in a statement. “Their investment in HALO is a direct result of the hard work and industry-leading results our sales force and support team have achieved. This relationship will continue our efforts for profitable growth through investment in world-class sales support, carefully selected strategic acquisitions, and an added emphasis on attracting top-performing industry professionals to the HALO organization.”
In its statement, HALO said that no changes in management or operational direction of the company are expected as a result of its deal with Audax. “Our senior management team invested alongside Audax in this transaction,” said Simon.
In May 2012, HALO was acquired by Candlelight Investment Holdings for a total enterprise value of $76.5 million. Candlelight was a single-purpose investment vehicle formed at the time as a partnership between PSP Capital Partners LLC, a Chicago-based private investment firm, and HALO management. Four years later, HALO management has partnered with Audax, an equity company that invests in middle-market firms and currently has more than $10 billion in assets across all of its divisions.
“We are impressed with HALO’s leadership position in an industry that is positioned for strong growth,” said Timothy Mack, managing director for Audax. “The loyalty of their sales team, passion of their support staff, and vision of their leadership team provide an attractive platform for continued impressive financial performance. We are eager to invest in their success.”
HALO ranked sixth on last year’s Counselor Top 40, after reporting 2014 North American sales of $218.1 million, an 11% increase over the previous year’s results.