Sverica, Housatonic Delve Into Records Management

Target: Oasis Records Management LLC

Price: Undisclosed

Sponsor: Sverica International LLC, Housatonic Partners

Seller: Management

Sverica International LLC has teamed up with Housatonic Partners for its first investment in the records storage industry. On May 22, the pair acquired Oasis Records Management LLC, a Dublin, Ireland-based company that stores records for companies.

Sverica Managing Director Sandro Mina said the firm was interested in the sector because of its recurring revenue and relatively simple business—the bread-and-butter of traditional leveraged buyout firms. Mina and other executives have been familiar with the Housatonic team for years and had long talked of teaming up on a deal, Mina said.

Oasis Records Management, which generates nearly $20 million in annual revenue, provides offsite records storage for companies in the financial, healthcare, government and financial industries. The company offers a variety of archiving services and handles storage of hard copies of documents, as well as computer tape, film and sound media, creating a bar-code index and database of the materials.

The investment for Boston-based Sverica comes out of Sverica International III LP, a $265 million fund the firm closed in November 2008. The mid-market firm typically spends $5 million to $20 million to purchase control stakes in companies across a variety of industries. Its current portfolio includes companies in the education, security, and publishing sectors.

For Housatonic, which is headquartered in San Francisco, Oasis Records Management represents its fourth investment in the records management market. The deal came via an introduction from an executive at a Housatonic portfolio company to management at Oasis Records Management, who are rolling over equity for a minority stake. The firm typically cuts equity checks for $3 million to $12 million in its deals. Sectors of interest include business services, media and communications. It targets companies with EBITDA margins of 20 percent or greater. Officials from the firm did not return a request for comment.

Although financial terms of the deal weren’t disclosed, Sverica and Housatonic now hold an equal stake in Oasis Records Management. Bank of Ireland, Oasis Record Management’s existing lender, provided senior and junior debt in the transaction.

Going forward, executives at the buyout firms plan to expand Oasis Records Management via add-on acquisitions in Ireland and England, where most of its customers currently do business, Mina said.