At a time when deal flow is lagging, little-known Chicago-based private equity firm Glencoe Capital last month acquired three businesses from ProQuest Co. for $123 million in equity and $22 million in debt financing, for a total of $145 million.
The assets acquired from ProQuest include Bell & Howell North American Mail & Messaging Technologies; Bell & Howell Scanners, which is a manufacturer of document scanners and Bell & Howell Financial Services, an equipment leasing concern. The deal is expected to close this fall.
“The divestiture of these businesses represents the final component in Proquest Co.’s restructuring strategy. We are pleased that this transition is now complete, and our company is fully focused on becoming the world’s premier provider of value-added content to the markets we serve,” said Chairman and CEO James Roemer, in a statement.
Ann Arbor, Mich.-based ProQuest Co. and its subsidiaries are information solutions and service providers. The company currently has revenue of $196.6 million.
“These are fundamentally sound businesses that offer excellent opportunities for revitalization and new products and services,” said David Evans, chairman and managing director at Glencoe Capital. “In recent years, ProQuest Co. has sought to reposition itself and has directed its resources toward its core businesses. We are confident that with renewed focus and dedicated resources, Bell & Howell will not only continue to achieve strong results, but will expand its market share and extend its suite of software applications to become the dominant provider of mail processing and document finishing solutions.”
The management team is expected to make a powerful contribution to the success of the business, said William McGrath, a managing director of Glencoe Capital.