Acquiring and Advising Distressed and Underperforming Companies for Over 20 Years
There’s a science and art to running a going-out-of-business sale
(and business is booming)
This article provides insight into the process.
But if you’d rather keep your company in business and avoid a GOB, talk to us.
Source: CNBC
Executive Coaching, when combined with real-time tactical expert advisory guidance, delivers extraordinary results by improving the performance and prospects for the advancement of senior executives while delivering a boost to a company’s profitability and cash flow.
This four-minute video includes excerpts from an hour-long tactical session between Gary Nacht, Principal of Synergy Enterprises, and the CFO of an underperforming sporting goods distributor, during which solutions were explored to address the CFO’s concerns about softening sales trends, under-performing rep groups, unfocused marketing activities and how to better define and execute critical short and-mid term priorities.
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Digital Products International Receives
$35 Million Investment
St. Louis Business Journal
April 12, 2018
Main Street Capital Corp. (NYSE: MAIN), an investment firm based in Houston, has invested $35.2 million in St. Louis-based electronics maker Digital Products International Inc.
The portfolio investment will help recapitalize DPI, according to a statement by the company. Main Street Capital and a co-investor teamed up with DPI to complete the transaction. The $35.2 million in funding includes first-lien, senior secured debt and a direct equity investment.
Main Street Capital declined to comment on the investment.
DPI is a consumer electronics maker that provides its products under a host of proprietary brands and private labels. The company’s brands include GPX, iLive, iLive Platinum, Culinair, Zeki, SkyRider, Gran Prix, Amped Wireless and Memorex (CE). Products sold by DPI include Bluetooth and Wi-Fi devices, smartphone accessories and drones. DPI’s consumer electronics are sold to retailers, e-commerce platforms and home shopping networks.
DPI was previously known as GPX, the brand name of one of the company’s products. A New Jersey-based private equity firm* bought the company in 2004 and DPI was later acquired by its management, according to the company’s website.
Main Street Capital, a public company, provides long-term debt and equity capital to lower middle-market companies that have annual revenue between $10 million and $150 million. It also offers debt capital to middle-market companies.
*Synergy Enterprises, LLC
View original article here:
The global consumer electronics market is expected to grow to $1.5 trillion by 2024, according to research firm Global Market Insights.
Thank you for your interest in learning more about Synergy Enterprises.
I specialize in acquiring and advising distressed and underperforming companies, ranging from $15 million in sales to over $1 billion across a diversity of industries, including retail, distribution, wholesale and manufacturing, and covering the gamut from consumer products to apparel.
On the buy side, I began acquiring distressed and underperforming companies in 1997, including Kmart Canada (a $1.2 billion Canadian big-box retailer), Gemini Industries (a $160 million Philips-branded distributor of consumer electronics), GPX Inc. (a $180 million private label consumer electronics company), AmerTac (a $60 million branded distributor of lighting accessories) and Northern Reflections (a $100 million, 150-store Canadian womenswear retail chain) which I still own today.
Most of these acquisition opportunities come from “being in the right place at the right time.” I often hear from professionals (attorneys, accountants, financial planners and advisors, bankers) who become aware of a distressed situation and refer them to me. I also often hear from senior executives involved with a distressed business who have an interest in a management buyout or friendly restructuring.
On the advisory side, my approach is quite different from a typical consulting engagement. First, I work personally with only a limited number of distressed or underperforming companies at any given time. Second, it is an immersive, collaborative and highly motivating process that includes in-depth interviews with all senior executives and results in a detailed strategic and tactical plan to deliver quantifiable and measurable short-term results. In many cases I am asked to stay on for an additional period of time to implement the plan so owners and management can stay focused on running their business. I offer three levels of service to match the degree of severity and any budget constraints.
Other Activities. I am also an active speaker for various business associations, deliver online webinars talking about the 10-Step Turnaround Process I use to return companies to profitability and positive cash flow, publish articles describing my experiences working with distressed and underperforming companies, and am often invited to speak at private company’s client events.
Links to all of these can be found below. Again, thank you for your interest. I will look forward to hearing from you.
– Recovering From the Loss of a Major Customer –
LinkedIn Article Excerpt from a Turnaround Success Story– Five Common Company Behaviors That Can
Lead to Business Distress, Declining Profitability and Losses –
– An Article About the Most Critical Life Cycle
Phase of an Underperforming or Distressed Company –
Acquisition vs. Advisory
– An Executive Summary –
Acquisitions. I specialize in acquiring and advising distressed and underperforming companies, ranging from $20 million to over $1 billion in revenue across a diversity of industries, including retail, distribution, wholesale and manufacturing, and covering the gamut from consumer products to apparel.
On the buy side, I began acquiring distressed companies in 1997, including Kmart Canada (a $1.2 billion Canadian big-box retailer), Gemini Industries (a $160 million Philips-branded distributor of consumer electronics), GPX Inc. (a $180 million private label consumer electronics company), AmerTac (a $60 million branded distributor of lighting accessories), and Northern Reflections (a $100 million, 150-store Canadian womenswear retail chain). All of these companies, except for Northern Reflections, were sold to strategic buyers after a successful turnaround. I continue to be a principal shareholder of Northern Reflections to this day.
Most of these acquisition opportunities come from “being in the right place at the right time.” I often hear from professionals (fund/investment managers, attorneys, accountants, financial planners and advisors, bankers) who become aware of a distressed situation and refer them to me to provide a solution. I also frequently hear from senior executives and board members involved with a distressed business who have a pressing interest in a management buyout or friendly restructuring.
Advisory Services. On the advisory side, my approach is very different from a typical consulting engagement. First, I work personally with only a limited number of distressed or underperforming companies at any given time. Second, it is an immersive, collaborative and highly motivating process that includes in-depth interviews with all senior and second-tier executives and results in a detailed strategic and tactical plan to deliver quantifiable and measurable short-term results. In many cases, I am asked to stay on for an additional period of time to implement the plan so owners and management can stay focused on running their business. As you can read elsewhere on this website, I offer three levels of service to match the degree of severity and any budget constraints.
Depending on the specific transaction, I offer both referral fees and partnership interests to those who bring opportunities to me.
Separately, I am also an active speaker for various business associations, deliver online webinars talking about the 10-Step Process I use to return companies to profitability and positive cash flow, and am often invited to speak at private company client events.
The New York Times
by Julie Cresswell
August 11, 2017
Acquisition and advisory opportunities come to us from a variety of sources:
| 1. | Business Owners (and brokers), often looking to discretely sell an underperforming or failing subsidiary or division of a larger parent company; |
| 2. | Lenders and Investors facing potential losses on a portfolio account; |
| 3. | The professional community, including accountants, lawyers and bankruptcy advisers looking to provide their client with an alternative solution; and |
| 4. | Senior executives who are involved with (or interested in) a distressed company and want to be part of fixing it. |
Whether for an acquisition or advisory project, we treat referrals with the utmost privacy and discretion. Referral rates vary depending on the specific circumstances and degree of involvement in the transaction before, during and post-closing.
Whether we are acquiring or advising, we love fixing underperforming and broken companies. Here are a few things that are important to us:
Commitment to Working In Partnership With Management. An effective, value-building turnaround requires all parties to collaborate and work in close concert with one another. We pride ourselves on working with management throughout the due diligence process and post-acquisition. We also proactively encourage those at every level of management ready and willing to step up to the plate to take on more responsibility. We want everyone to win and, to reward for these efforts, always offer pay-for-performance incentive plans with no limit on the upside.
Commitment to a Healthy Balance Sheet. For any company, the right capital structure is critical. We carefully restructure balance sheets to ensure a proper level of liquidity during and after a turnaround. We can also provide additional capital to fund growth and/or expansion opportunities as they arise.
Long-Term Focus. We are always open to the possibility of a future strategic sale once the turnaround has taken hold, but are patient and focus on maximizing value over the long term. We do not have predetermined exits or timetables. In all cases, we carefully asses and evaluate exit opportunities in close concert with management.
Discretion and Respect – The challenges inherent in managing an effective turnaround require more than just attention to finance and operations. Motivation, culture and perceptions also play a key role, and we conduct ourselves with the utmost professionalism, confidentiality and discretion.
An Open Letter to Clients and Prospects
For over 25 years, I have been in the business of acquiring and advising distressed and underperforming companies, as well as helping companies prepare for private equity, debt financing or strategic sale.
I’m often asked what kinds of acquisitions or advisory projects I look for, so here is a high-level perspective:
Acquisition Candidates
Advisory Services
All of the characteristics listed above, but an advisory client must also be ready and willing to make difficult choices. This is a highly collaborative process, but once strategic decisions are made and a turnaround plan approved by ownership, the new game plan must be put in place quickly and aggressively, with a sense of urgency and relentless focus on results.
We Buy Underperforming and Distressed Companies
Remember strategic conglomerations? Aggregations? Rolls-ups? Once revolutionary business practices that promised to spread business risk, level seasonality or leverage infrastructure. Appetites were big for acquisitions (strategic or otherwise) at almost any cost.
Fast forward. Today, many of these transactions have created portfolio orphans. These are divisions or subsidiaries of larger public or private parent companies that no longer (or never did) contribute to your strategic focus or bottom line. Worse, many of these orphans have become a drag on earnings and cash flow, and there is little interest in spending the management time or checkbook resources to deal with it.
Sound familiar? Is it time to clean house?
(A Proven Way to Reap the Benefits of a Restructuring and Avoid the Time and Expense of a Formal Court Process)
CFA Synergy Presentation (for website)
– Company Prepared for Multi-Channel Expansion –
FORT LAUDERDALE, FL — SPRING 2017 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, has completed a nearly two-year project with a technology company preparing to launch its unique, eco-friendly fire suppression and prevention products into consumer, industrial, retail and corporate channels.
The project spanned nearly all aspects of the Company’s operations and delivered a number of significant achievements, including:
| • | Created and executed a strategy to expand the product line-up beyond fire suppression (non-recurring revenue) into fire prevention (recurring revenue) |
| • | Organized the supply chain, documented and minimized lead times |
| • | Created and executed a strategy to expand the product line-up beyond fire suppression (non-recurring revenue) into fire prevention (recurring revenue) |
| • | Organized the supply chain, documented and minimized lead times |
| • | Contracted with third-parties to allow for large-volume production |
| • | Implemented control process for product development and R&D |
| • | Initiated project/priority tracking with deadlines and accountability |
| • | Hired senior executive sales team; began outreach for reps and distributors |
| • | Upgraded and streamlined marketing and sales collateral |
| • | Retained professional public relations firm and expanded investor outreach |
Gary Nacht, owner and CEO of Synergy Enterprises, stated “Stepping into a company with a large and vocal base of frustrated and disappointed investors was a challenge. The first few months were devoted to evaluating and assessing the Company’s strengths and weaknesses, which helped identify what needed to be done to get the Company on a path to success.”
“Over the ensuing months, working in close partnership with key executives, employees and the angel investor, priorities were brought into focus in real-time with steady but sure progress. By the end of the project, everyone was pulling the same direction, a handful of large sales opportunities were gaining traction, and the possibility of getting to cash flow positive was coming into sight.”
“I am especially proud to say that, as a hallmark of our way of doing business, every employee had an opportunity to contribute throughout the process. While some hard decisions had to be made, this collaborative approach was highly motivating and replaced the fear of uncertainty with optimism about the future,” Nacht added.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. In the fall of 2013, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
-Restructuring Returns $200 Million Company to Profitability-
FORT LAUDERDALE, FL — FALL 2013 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, has completed a three-month assignment with a $200 million Toronto-based consumer products company experiencing significant operating losses following the loss of a major customer.
The strategic restructuring touched every facet of the company’s operations, from product design to supply chain and logistics to staffing and I.T. systems. Key improvements included:
• Substantial Reduction in Overhead and other operating expenses
• Increased Gross and Net Margins
• Improved Global Vendor Terms and Liquidity
• Upgraded Data Capture, Access and Reporting
• Replaced Management Incentive Programs
Gary Nacht, owner and CEO of Synergy Enterprises, stated “This was a fully immersive experience that began with a comprehensive evaluation and assessment of the Company’s business practices. Working in close partnership with the owners, changes were implemented in real-time so that by the end of the project, the Company had already turned the corner and was well on its way to better margins and cash flow.”
“Throughout the process, every employee had an opportunity to contribute, and several were promoted and placed in charge of putting key recommendations into place. While some hard decisions had to be made, this collaborative approach was highly motivating and replaced the fear of failure with optimism about the future,” he added.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. In the fall of 2013, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
-Transaction Reflects Strong Results of Synergy’s Turnaround Plan-
SADDLE RIVER, NJ – June 2 , 2010 – Synergy Enterprises, LLC (“Synergy”), a private investment and management advisory services firm, today announced the sale of Saddle River, NJ-based AmerTac, a leading designer, marketer and distributor of innovative and trend-right electrical, decorative and under cabinet lighting, decorative and functional hardware and lawn and garden products. Under the terms of the transaction, AmerTac has been sold to the owner of Dallas- based Jackson Deerfield Mfg. Corp., a domestic manufacturer and distributor of decorative wallplates. Financial terms of the transaction, which was completed today, were not disclosed.
Gary Nacht, Chairman and Chief Executive Officer of Synergy Enterprises, said “This transaction reflects the resounding success of our turnaround plan for AmerTac, which we acquired just over one year ago. Since our purchase of the Company, and under the strong leadership of its President, Sal Mirra and his management team, AmerTac achieved substantial sales growth through a combination of new product introductions, new customer acquisition and new channels of distribution, in additional to solid growth within its core customer base, all during a challenging retail environment. At the same time, we are pleased with the results of our hard work in increasing profitability, streamlining the operations of AmerTac‟s domestic and international offices and „going green.‟ Although this transaction occurred much sooner than we originally anticipated, selling this turnaround success story to a well-positioned strategic buyer is exactly what Synergy does best.”
About Synergy Enterprises, LLC
Synergy Enterprises, LLC. is a private investment and management advisory services firm specializing in acquiring underperforming retail, manufacturing and distribution companies, primarily, but not exclusively, in the consumer products and apparel industries. Headquartered in Miami Beach, Florida, the firm was founded by Chairman and CEO Gary A. Nacht, a 25-year veteran of corporate acquisitions whose track record includes such companies as Kmart Canada Ltd., Gemini Industries, Northern Reflections, Digital Products International and AmerTac, Inc.
About AmerTac
AmerTac is a leading designer, marketer and distributor of innovative and trend-right electrical, decorative and under cabinet lighting, decorative and functional hardware and lawn and garden products. Founded nearly 70 years ago, AmerTac enjoys leading market positions across its product categories, with a majority of its products based on the Company‟s own proprietary designs and patented technologies. AmerTac is supported in its operations by a leading-edge, low cost and fully outsourced manufacturing model that is based on one of the most flexible and leanest supply chains in the industry.
About Jackson Deerfield Mfg. Corp.
Jackson Deerfield Manufacturing is a domestic manufacturer and distributor of decorative wallplates. It was founded in 1957 as a manufacturer of wood products and today still manufactures product in its Texas facility.
– Veteran Turnaround Investment Firm Set to Undertake
Phased Growth Plan for Company –
SANTA BARBARA, CA and SADDLE RIVER, NJ – April 30, 2009 – Synergy Enterprises, LLC (“Synergy”), a private investment and management advisory services firm, today announced the acquisition of Saddle River, NJ-based AmerTac, a leading designer, marketer and distributor of innovative and trend-right electrical, decorative and under cabinet lighting, decorative and functional hardware and lawn and garden products. AmerTac was purchased from Heritage Partners, a leading private equity firm focused on partnering with family and founder-owned businesses. Financial terms of the transaction, which was completed today, were not disclosed.
Under the terms of the transaction, Gary Nacht, Chairman and Chief Executive Officer of Synergy Enterprises, has also assumed the roles of Chairman and CEO of AmerTac, effective immediately. Sal Mirra will continue in his role as Chief Financial Officer of the company, and the core of the executive management team will remain unchanged, with some additional senior industry veterans recruited through Synergy Enterprises expected to join AmerTac’s leadership group shortly.
Founded nearly 70 years ago, AmerTac today enjoys leading market positions across six product categories – night lights/specialty lights, wallplates, decorative hardware, under cabinet lighting, lighting controls/dimmers and lawn & garden products – and sells through the big box home center, mass merchandiser, hardware store and lighting showroom retail channels across the United States and Canada.
Gary A. Nacht, Chairman and CEO of Synergy Enterprises and AmerTac, said, “It is a pleasure to invest in AmerTac, a company whose market position and potential I have long admired. In the near-term, I will be working closely with Sal Mirra and the rest of the AmerTac leadership team to ensure a smooth and seamless transition for the company, its employees, customers and business partners. Looking beyond the transition process, I am excited about the potential to create significant value at AmerTac, and we have already begun laying the groundwork to execute on our plans. As we move forward, we will be guided by our foremost commitment to create strong and profitable growth for AmerTac. We will do so through a phased turnaround strategy that will combine adding new product categories and exploring acquisition and branding opportunities, while closely controlling operating expenses. Taken together, we believe that our strategy will build on the solid foundation already in place at AmerTac, and open up a new chapter of opportunities in this company’s history.”
About Synergy Enterprises, LLC
Synergy Enterprises, LLC. is a private investment and management advisory services firm specializing in acquiring underperforming retail, manufacturing and distribution companies, primarily in the consumer products and apparel industries. Headquartered in Santa Barbara, California, the firm was founded by Chairman and CEO Gary A. Nacht, a 25-year veteran of corporate acquisitions whose track record includes such companies as Kmart Canada Ltd., Gemini Industries, Northern Reflections and Digital Products International.
– Following Fourth Straight Year of Double-Digit Growth –
FORT LAUDERDALE, FL — December 2008 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, has sold its stake in DPI, Inc. to Hagemeyer N.V., a Dutch-based shipping, trading and commodities house with interests in branded consumer electronic products. Terms of the transaction were not disclosed.
“Working hand-in-hand with the management team, we were able to nearly double the company’s revenues over the last four years and generate healthy profits after years of losses under prior ownership,” Mr. Nacht said. “This turnaround was wide-ranging, addressing everything from product development and sourcing to downsizing and cost control. Hagemeyer is stepping into a well-run, highly focused operation with a solid game plan that should continue to perform for years to come,” he added.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
CLIFTON, NJ – July 17, 2004– Dutch consumer electronics giant Royal Philips Electronics has agreed to purchase Gemini Industries in a blockbuster deal that is intended to move one of the largest U.S. broad line accessories companies solidly into the global marketplace.
The two companies signed an agreement last week whereby Philips, the long-time licensor of Philips- brand accessories to Gemini, will acquire the New Jersey-based supplier. Financial details of the acquisition were not disclosed.
Gemini— which supplies accessories for the audio, video, computing, gaming, digital imaging and telephony markets in the United States under the Philips, Zenith, Magnavox, Southwestern Bell and For Dummies brands— offers about 2,500 products. The privately held company, which recorded 2003 gross sales of about $200 million, employs about 500 people.
Through the acquisition of Gemini, Philips, which has its U.S. headquarters in Atlanta, said it will significantly grow the peripherals and accessories business activities on a global scale.
The current acquisition is designed to provide Philips and Gemini with an opportunity to broaden Gemini’s scope into Europe, better serve the global retailers’ needs, and leverage internal synergies between the two companies, said Philips, which has been a supplier to Gemini for the past eight years and has licensed its Philips-brand products as part of Gemini’s product portfolio.
As for changes that retailers will see, Gemini has no plans to cease using the existing brands that the company carries, with the most significant change for retailers being Gemini’s stronger ability to bring new products and different products to them under the Philips brand name. This will be accomplished by creating new products or by adding what Philips is selling in Europe, said Philips. All existing contracts are going to be honored and Gemini will continue to carry all existing brands, said Philips.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
-Secures New $45 Million Credit Facility to Support Future Growth-
SAINT LOUIS, MO, April 8th 2004 – GPX, Inc., a subsidiary of Hagemeyer N.V., one of the world’s leading trading companies, announced today that it has been acquired by its management team, led by President and CEO Bill Fetter, in partnership with Synergy Enterprises, LLC, a NJ-based private investment firm. Terms of the transaction were not disclosed.
GPX, with annual sales of approximately $150 million, offers a leading portfolio of consumer audio and video electronic products. Under the leadership of Mr. Fetter, who was appointed President and CEO in March 2003, the Company has implemented a number of key initiatives to strengthen its performance and competitive positioning, including restructuring its organization and revamping its product offering.
In connection with the acquisition, GPX has secured a new $45 million revolving credit facility with Congress Financial Corporation (New York) to position the Company for future growth, in addition to the Company’s $7 million credit facility with Shanghai Commercial Bank in Hong Kong.
Mr. Fetter commented,“We are excited about GPX’s prospects as an independent company and look forward to working with Synergy to take advantage of the opportunities ahead. Over the past year, we have made solid progress in repositioning GPX for improved performance and long-term growth. We are experiencing strong sales of existing products and are enthusiastic about the introduction of our new 2004 product line. Our in-house design team has developed an entirely new product line that dramatically differentiates GPX from our competitors. In addition, we are seeing significant benefits from the relocation of our headquarters and distribution center to our new state-of-the-art, 330,000 square foot facility in St. Louis, through improved efficiencies and customer service.”
Gary A. Nacht, Principal of Synergy Enterprises, added,“GPX is an industry leader with strong brands and a proven, 30-year track record in delivering innovative, high quality products of exceptional value. Bill Fetter and his team have made significant strides over the past year in improving results, and we look forward to partnering with them to build on this momentum.”
Based in Naarden, the Netherlands, Hagemeyer is a worldwide business to business distribution services group with annual revenues of more than 6.3 billion euros. It trades under the symbol“HGM” on the Euronext stock exchange in Amsterdam.
In business for over 30 years, GPX offers one of the most comprehensive consumer audio and video electronic product portfolios available on the market, including home music systems, portable CD and MP3 players, DVD systems, direct view and LCD televisions, AM/FM radios, digital audio devices and a comprehensive line of Karaoke Party Machines®, all marketed under the GPX®, YORX® and Bantam Interactive® brands. By leading the industry in product quality, reliability and value pricing, GPX’s customers have grown to include the nation’s leading mass merchants, specialty retail stores, variety and drug chains, distributors and home shopping networks, as well as direct mail and premium
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. In the fall of 2013, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
-New CEO Appointed-
NEW YORK, NY, September 28, 2001–FootLocker (formerly Venator Group, Inc.) (NYSE:Z), the New York-based specialty athletic retailer today announced that it has completed the sale of its Canadian-based Northern Group today to Northern Group Acquisition Corp (NGAC).
NGAC made the purchase for approximately $50 million (Cdn.) and, as part of the initial capitalization of the business, it has secured a $60 million (Cdn.) revolving line of credit from Congress Financial Corp. (Canada). In addition, Foot Locker is providing financial support to Northern in the form of acquisition financing. Foot Locker also will continue to provide Northern with data management and purchasing support services.
“We are committed to building on the strength of the Northern brands… offering exclusive and distinct apparel,” said Alan Dumain, who, with more than 30 years of experience in retail management, played a key role in the recent revitalization of the brand in Canada.”Through this acquisition, active family members of all ages can continue to count on Northern’s promise of comfortable, lifestyle-oriented, casual apparel at affordable prices.”
Venator Group’s President and Chief Executive Officer, Matthew D. Serra said “The sale is part of the strategic decision to focus Venator Group’s full resources on our very successful athletic footwear and apparel businesses and we appreciate the years of support we have received from our Canadian customers, vendors, landlords and associates.”
In business since 1985, Northern Group is a leading, Canadian specialty apparel retailer operating in 353 prime locations across Canada under the Northern Reflections, Northern Traditions, Northern Getaway and Northern Elements banners.
Venator Group is primarily a mall-based athletic specialty retailer that operates approximately 3,600 athletic retail stores in 14 countries in North America, Europe and Australia. Through its Foot Locker, Lady Foot Locker, Kids Foot Locker and Champs Sports retail stores, as well as its direct-to-customer channel Footlocker.com/Eastbay, the Company is the leading provider of athletic footwear and apparel.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
Clifton, NJ– July 12, 2001– Gemini Industries, Inc. today announced that it has completed its previously announced acquisition of the assets of Zenith Electronics Corporation’s consumer electronics accessories business. Gemini also entered into a long-term brand licensing relationship under the agreement. Terms were not disclosed.Following the transaction, Gemini will offer an even more extensive range of product solutions and sales opportunities to our consumers and retail partners.”
Among the more exciting of these immediate product opportunities are:
The Company expects that additional innovative product solutions will result from this transaction in the coming weeks and months.
This transaction is part of Gemini’s long-term strategy to increase its presence in the consumer electronics industry through both internal growth and selective acquisition. Gary A. Nacht, Vice Chairman of Gemini Industries, said,“This transaction fits the profile of the strategic opportunities Gemini seeks. Zenith has a strong brand name, complements the current Gemini product profile and significantly expands Gemini’s customer base.”
The majority of the members of the Zenith Accessories business joined Gemini.
About Gemini Industries
Gemini Industries, Inc. is a leading manufacturer and distributor of consumer electronics accessories marketed under many of today’s prominent brand names, including Philips®, Philips Magnavox®, Magnavox®, Southwestern Bell Freedom Phone® and now Zenith®. Gemini’s customers include the nation’s leading home improvement stores and mass merchants, representing more than 20,000 retail locations.
Zenith is a registered trademark of Zenith Electronics Corporation. Play Station 2 is a trademark of SONY computer entertainment, Inc.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
– Banking Syndicate Supports Debt Restructuring, Providing
New Owners with Increased Liquidity –
FORT LAUDERDALE, FL — JUNE 2000 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, in partnership with Parthenon Capital, LLC of Boston, MA, has acquired Gemini Industries, Inc. from Merrill Lynch Capital Partners. Terms of the transaction were not disclosed.
Gemini Industries, Inc. is a leading manufacturer and distributor of consumer electronic accessories marketed under many of today’s prominent brand names, including Philips®, Magnavox® and Southwestern Bell®. With over 1,800 products including headphones, antennas, audio/video cables, surge protectors, telephone accessories and CD media products, Gemini’s primary customers include mass merchant, discount and specialty retailers such as Wal-Mart, Kmart, Target, Sears, Best Buy, Circuit City, Menards, Lowes, TruServ and CVS, representing more than 20,000 retail locations.
Gary Nacht, Chairman and CEO of Synergy Enterprises, said “We are very excited about working with the Gemini team. Our game plan, with the full support of our partner and the lending syndicate, is to leverage Gemini’s historic service strengths and introduce new merchandising strategies, brands and product offerings to expand the business, increase revenues and profitability.” Mr. Nacht said.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
FORT LAUDERDALE, FL — FEBRUARY 1998 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, along with its partners Capital D’Amerique CDPQ Inc. (a wholly-owned subsidiary of Caisse de depot et placement du Quebec) and Cherokee Ventures Canada Inc., has sold Kmart Canada Company to Canada’s Hudson’s Bay Company. Hudson’s Bay, Canada’s largest retailer, will merge its 298 Zellers discount stores with Kmart Canada’s 122 location. George Heller, formerly President and CEO of Kmart Canada, was appointed president and CEO of Zeller’s
Gary Nacht, Chairman and CEO of Synergy Enterprises, led the sale negotiations. “This acquisition eliminates Hudson’s Bay’s smaller discount rival while adding a presence in 17 new markets” Mr. Nacht stated. “It will serve an important strategic role in helping Hudson’s Bay compete with its primary competitor, Wal-Mart Stores. Inc.” he added.
As part of the negotiations, the investor group retained ownership of nearly one million square feet of office and warehouse space at Kmart Canada’s home office operations under a long-term lease with Hudson’s Bay.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.
– New President and CEO Appointed –
FORT LAUDERDALE, FL — JUNE 1997 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, in partnership with Capital D’Amerique CDPQ Inc. (a wholly-owned subsidiary of Caisse de depot et placement du Quebec) and Cherokee Ventures Canada Inc., has acquired Kmart Canada Company from Kmart Corporation. George Heller, former president of Bata Industries North America and Europe, was appointed president and CEO by the new owners.
Mr. Nacht, Chairman and CEO of Synergy Enterprises, led the negotiations and was instrumental in obtaining a new $135 million revolving line of credit from Congress Financial to support the business.
“We are committed to rebuilding Kmart Canada into a strong, national retail business,” said Heller, who brought to Kmart Canada more than 25 years of experience in retail management. “Our goal is to create a profitable business through customer service, the support of our associates, strengthened information and technology systems and investment in Kmart Canada’s presence and vitality,” Heller added.
Kmart Corporation Chairman, President and CEO Floyd Hall, said the sale “is in keeping with our commitment to focus on our core U.S.-based operations and continue improving our overall financial performance. We appreciate the support of our Canadian customers, vendors and associates, and believe that the investor group will create a strong Canadian-owned business that will be competitive and profitable.”
Kmart currently operates 123 stores across Canada and employs about 12,600 full- and part-time employees. With 1996 annual sales of more than $1.1 billion (Cdn.), it is the third largest discount retailer in Canada.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.