Exits: Hampshire Sells Streater Inc. –

New York-based Hampshire Equity Partners this month sold its stakes in Streater, Inc., a wholly owned subsidiary of portfolio company Spectrum International, to L.A. Darling Company. Terms of the transaction were undisclosed. Houlihan Lokey Howard & Zukin served as financial advisor to Streater.

Hampshire Equity acquired Streater in late 1997 for an undisclosed amount and then acquired an add-on company called Rapid Rack, which was also put under the Spectrum International umbrella. Partners at Hampshire Equity decided to put their efforts towards growing Rapid Rack, which made backroom shelving products and, as a result, made the decision to divest itself of Streater and hired Houlihan Lokey to manage the deal through an auction process.

“Hampshire Equity did not have a desire to sell Streater one way or another,” said Lyndsey Alley, senior vice president of M&A at Houlihan Lokey. “But the fit with L.A. Darling was a very good one because both companies complement each other in products and their customer base. It was a successful transaction for all sides.”

Albert Lea, Minn.-based Streater is a manufacturer of high-end custom and standard retail store fixtures and permanent point-of-purchase (POP) displays in the U.S. and had annual revenue of approximately $70 million last year. Streater’s store fixture products consist of shelving, cabinets and displays that are primarily made of metal. L.A. Darling is a provider of customized display services for international retail customers and had annual revenue of $150 million in 1999.

Hampshire Equity in January also led the recapitalization of Industrial Powder Coatings Inc., which provides powder coating and electro-deposition coating (e-coating) and other services to automotive suppliers and appliance manufacturers in the U.S. and Latin America, in the amount of $21.5 million (BUYOUTS Feb. 21, p. 23).