September 14, 2009
MSouth Closes the Acquisition of EmployBridge Holding Company
Atlanta, GA (September 14, 2009) – MSouth Equity Partners, an Atlanta-based private equity firm, announced the closing of its newest investment. In partnership with company management and select other prior stakeholders, MSouth completed the acquisition of EmployBridge Holding Company.
EmployBridge (www.employbridge.com), headquartered in Atlanta, GA, is a specialty staffing company with 145 branches in 28 states. EmployBridge is a holding company of seven specialty staffing services including three primary industry verticals: logistics, manufacturing and transportation. Along with many of the current senior officers, CGW Southeast Partners, the predecessor firm to MSouth, owned EmployBridge from 2000 through 2006. This successful partnership, during which MSouth principals developed a long-standing relationship with management, ultimately led to the current opportunity. MSouth has partnered with management, J.W. Childs (the prior equity owner) and one of the existing lenders to purchase EmployBridge in an all equity transaction.
The recapitalization of the company removed all debt and provided EmployBridge with significant operating liquidity. This strong balance sheet and improving performance trends will allow the company to grow and expand. Tom Bickes, the CEO of EmployBridge, noted, “We plan to use our new structure to our advantage in the marketplace. This increased stability provides us with the ability to bolster existing operations and pursue new opportunities.” Pointing to the debt-free nature of the transaction, Shawn Poole, the CFO of EmployBridge, said, “Our improved balance sheet will allow us to prosper in any economic environment.”
Mike Long, an MSouth Partner, said, “We are very excited to partner again with a management team we have known for over ten years. We had significant success investing alongside them in the past and believe we have an excellent opportunity to do it again. Having capitalized the Company with all equity, we believe we can focus on growing the business in difficult times without the added burden of debt.”
MSouth Equity Partners is a private equity investment firm that provides equity capital and expertise to support management teams in acquisitions and recapitalizations of lower middle market companies typically valued $25 – $125 million. Based in Atlanta, Georgia, MSouth invests primarily in the South with a consistent focus on management buyouts of business services, distribution and specialty manufacturing companies. MSouth is a successor to Cravey, Green & Wahlen, Inc. which was founded in 1984. Total capital under management exceeds $1.0 billion.