Farragut Capital Partners Backs Management Buyout of Venn-Corp., Inc.
CHEVY CHASE, Md. – Farragut Capital Partners, LLC ("Farragut"), a mezzanine investment firm offering customized financing solutions to lower middle-market private companies, is pleased to announce the closing of a $3.8 million investment in Venn-Corp., Inc. (“Venn-Corp.” or “the Company”). Venn-Corp. (http://www.venn-corp.com/) represents the sixth investment of the team’s third fund, Farragut Mezzanine Partners III, LP.
Based in Vienna, Va., Venn-Corp. is an asset-light third-party logistics provider specializing in the transportation and delivery of fixtures, furniture, and equipment. The Company oversees all aspects of shipment through installation, synchronizing the schedules of carriers and vendors to maintain tight project deadlines. Current Venn-Corp. customers include Walgreens, Costco, and Loblaws, the leading grocery store chain in Canada. Farragut invested alongside Venn-Corp. management to purchase assets from the Capital Projects division of Canadian logistics firm Traffic Tech, Inc. and to fund working capital. “We are excited to partner with Venn-Corp. founders Michael Scotch and Brendan Cox as they transition the Capital Projects business into an independent, U.S.-based company,” said Phil McNeill, Managing Partner of Farragut. “In addition to offering innovative transportation services to customers in the U.S., the transaction has created almost two-dozen new jobs in Virginia and California.”
“When we selected Farragut as our financing partner, they invested the time necessary to understand our business drivers and how the Capital Projects division could be integrated with our existing operations to create scale that will allow us to grow more quickly,” said Michael Scotch, CEO of Venn-Corp. “They assembled a very professional team to work with us not only on the mezzanine financing but also in the negotiation of the MBO, providing flexible solutions to address our developing capital structure.”
About Farragut Capital Partners
Founded in 2011, Farragut Capital Partners, LLC is a private investment management firm providing mezzanine debt and equity capital to finance leveraged buyouts, generational transfers, growth capital financings, and recapitalizations. Its latest investment vehicle, Farragut Mezzanine Partners III, LP, held its final close in July 2013. Farragut seeks to invest up to $10 million in established middle-market companies with proven business models and consistent cash flows. The firm targets companies with strong, committed management teams and the potential for significant growth in equity value.
Farragut specializes in asset-light businesses with unique and defensible market positions, stable business models, and reasonable capital expenditure and working capital needs. The firm works with private equity groups, independent sponsors, senior lenders, and directly with owners and management teams to create and build value in its portfolio companies over time.