Hoak Capital Makes Marketing Services LBO –

Through its holding company, Heritage Marketing Corp., Hoak Capital Corp. last month purchased Advertising Display Corp., a display consulting and manufacturing company located in Lyndhurst, N.J.

Although Hoak Capital Principal and Vice Chairman Fred Pickering declined to disclose a purchase price, he said his firm contributed $30 million in equity and Fleet Bank led a bank syndicate for the acquisition. Advertising Display Corp. had approximately $100 million in 1998 revenue, he said.

Hoak Capital, along with Wayne LoCurto, in 1998 founded Heritage Marketing with capital from Hoak Communications Partners, L.P.-Hoak Capital’s $175 million debut fund that closed in 1997 (BUYOUTS May 26, 1997, p. 10). LoCurto is president and chief executive officer for Heritage Marketing. He formerly was president and CEO of ACTMEDIA, a subsidiary of the original Heritage company, called Heritage Media Corp.

According to Pickering, the latest investment represents one out of six sectors of marketing services in which Heritage Marketing makes acquisitions-display, sampling, market research, in-store advertising, couponing and direct marketing. Advertising Display Corp. falls into the display sector. The company also owns Color Prelude, a color cosmetics sampler, which falls into the sampling sector.

Advertising Display Corp. provides its retail customers with a range of services from consulting and display creation to manufacturing, assembly and shipping.

Pickering said the entire management team will stay in place except for the two former owners who will be exiting the company.