Janco To Fund 17th Street Capital Partners –

Newly formed 17th Street Capital Partners has found a friend in Janco. The Colorado-based investment-banking firm has agreed to allow 17th Street access to their capital reserves, in the range of $3 million to $5 million per deal, effective immediately.

The LBO firm, incorporated in 2001, will target packaging companies, from CPG to generic pharmaceutical firms, and any business related to the packaging process.

“Janco is not bound to any specific deal, but has the right of first refusal to anything we put on their plate,” said Kenneth Greenberg, managing director at 17th Street.

Agreeing to terms with 17th Street came at the end of a four-year search for the right LBO, according to Stanley DiCicco, partner and CFO at Janco. He said Janco has experienced investor reluctance toward public companies, making the private companies they plan to target a way to get the highest return, stating that any private companies bought and sold by 17th Street will sell for their actual worth, “instead of a deflated amount chosen by the market makers.”

The LBO firm will focus on businesses that manufacture reusable and disposable items in various industries. “We are looking for acquisitions between $10 million and $50 million, manufacturing or distribution companies, and other protected niche companies with barriers to entry or territorial ownership,” said Greenberg.

Also in the works is an LBO fund, created by Janco to be used by 17th Street. Both sides stated the fund is almost a year away from becoming a reality, but should be in the $30 million to $60 million range, and will include up to 50 investors.

Within 18 months of their 1995 acquisition of U.S. Electronics Corporation, a $7.70 increase in share price upon divestiture of the cable equipment manufacturer was shown.