Monomoy Capital Partners Portfolio Company Katun Corporation Completes Successful Recapitalization
By Business Wire News
By Business Wire News
Monomoy Capital Partners, a private equity firm focused on deep value investing and operational improvement in the lower middle market, announced today that its portfolio company, Katun Corporation (“Katun”), completed a successful $52 million recapitalization with HSBC and Comvest Capital. The proceeds of the recapitalization were used to repay Katun’s existing debt and to pay a substantial dividend to Katun’s shareholders.
Katun is one of the world’s leading providers of OEM-compatible imaging supplies, toner, photoreceptors, and parts for copiers, printers, and other imaging equipment. Today’s dividend returns all of Monomoy’s investment plus a substantial profit for Katun’s shareholders. Following the recapitalization, Katun remains conservatively capitalized with the continued support of Monomoy, a private equity firm with over $1 billion of assets under management. Monomoy will continue to own 95% of the business following the recapitalization.
“Katun has been able to generate meaningful cash flow and earnings growth over the past 24 months, despite the substantial headwinds created by the strengthening US dollar,” said Sebastian Bretschneider, the Interim Chief Executive Officer of Katun. “Together with the Monomoy team, Katun has executed a disciplined business improvement program focused on providing our customers with high-quality products and an unmatched value proposition in imaging compatibles space. Today’s recapitalization validates Katun’s significant progress under the Monomoy value creation plan, and we are pleased to mark that transformation with a return of cash to our shareholders. Equally important, our conservative capital structure will allow us to grow with our customers and suppliers as the imaging market continues to evolve.”
Monomoy owns Katun through its first fund vehicle, Monomoy Capital Partners, L.P. HSBC Bank USA, National Association and Comvest Capital III, L.P. provided Katun with financing for the recapitalization. Lampert Debt Advisors advised the company and Monomoy on the recapitalization. Kirkland & Ellis, LLP served as legal counsel to Katun in the transaction.
About Monomoy Capital Partners
Monomoy Capital Partners is a private equity firm with over $1 billion in committed capital that makes controlling investments in lower middle market businesses in the manufacturing, distribution, consumer products and foodservice sectors. Over the past ten years, Monomoy has closed over 40 middle market acquisitions, and its companies have produced over $2.5 billion in combined sales and employed more than 5,000 associates across four continents. Monomoy implements customized business improvement programs at its investments that reduce operating expenses, increase profitability and encourage growth. To learn more about Monomoy and its portfolio, please visit the firm’s website at www.mcpfunds.com.
Since forming the firm in 2005, Monomoy has grown its staff from three founders to a firm of 27 world-class investment and operating professionals. A 2015 study by Preqin, the leading source of data on the alternative assets industry, named Monomoy Capital Partners II, L.P. the best performing distressed private equity fund raised between 2006 and 2012 and the second best performing distressed private equity fund raised since 1990. Access the 2015 Preqin Alternative Assets Performance Monitor at www.preqin.com.
About Katun Corporation
Katun is a leading, worldwide supplier of compatible imaging supplies, photoreceptors, parts and accessories for copiers, multifunctional devices and printers. The Company is headquartered in Minneapolis, Minnesota; operates distribution facilities in the United States and Europe; additional warehouses in Mexico and Singapore; and 16 sales/customer service offices throughout the world. Katun serves 12,600 customers with 5,300 products in over 130 countries throughout the world. Please visit www.katun.com for a detailed description of Katun and its product line.
Sloane & Company
Erica Bartsch, 212-446-1875