News
PNC Equity Partners Delivers Strong Gains for Investors with Exit of Fuel Distribution Company
Pittsburgh,PA [January 20, 2010]—PNC Equity Partners (“PNC Equity”) is pleased to announce the sale of Griffith Energy, Inc. (“Griffith”), a portfolio investment of PNC Equity Partners, L.P., to Superior Plus Corp. (“Superior”) for an aggregate purchase price of US$125 million. PNC Equity acquired Griffith in October 2003, and the transaction results in a 4.2x cash-on-cash return on the firm's initial investment.
Headquartered in Rochester, N.Y., Griffith is a leading retail and wholesale distributor of propane, heating oil and motor fuels in upstate New York. Over the course of its ownership, PNC Equity Partners successfully completed seven acquisitions alongside the Griffith management team, and EBITDA grew from $14.7 million to $29.4 million during that period. PNC Equity led a dividend recapitalization of the business in April 2009.
Superior (TSE:SPB), a Calgary-based diversified company that owns Canada's largest propane distribution business, acquired Griffith due to its strategic fit and complementary operations.
“We are very pleased with Griffith's performance and the outcome of our investment,” said Jack Glover, Partner of PNC Equity Partners. “The returns generated by this sale, despite the tough environment, are a testament to the quality of Griffith’s business model and its management. This transaction is a great example of PNC Equity's ability to create value and generate liquidity for our investors and limited partners, even during challenging times.”
“We were attracted to Griffith due to their experienced management team and leading market position in western and central New York,” said Justin Bertram, Vice President of PNC Equity Partners. “During the course of our ownership, we were able to further improve our customer density through organic growth and in-market acquisitions, which in turn drove significant economies of scale and cost-based competitive advantages.”
PNC Equity Partners was represented on the Board of Directors by Jack Glover, Justin Bertram and Peter Del Presto.
PNC Equity Partners (www.pncequity.com) invests in companies operating in "Micro Markets", making private equity investments of $10 million to $30 million in leveraged buyouts, recapitalizations and large minority financings of middle market companies with enterprise values between $25 million and $150 million across a variety of industry sectors. Investments for PNC Equity Partners are currently being made by PNC Equity Partners II, L.P., a private equity firm managed by an affiliate of The PNC Financial Services Group, Inc.
