SOURCE: Tennessee Valley Ventures

March 08, 2010 09:00 ET

Tennessee Valley Ventures Sells Two Investments, Realizes 14x Multiple on Invested Capital

Private Equity Firm's Patient Investment Approach Delivers Substantial Value to Limited Partners

NASHVILLE, TN--(Marketwire - March 8, 2010) -  Tennessee Valley Ventures ("TVV"), a Southeast-based lower middle-market private equity firm, announced today it has sold two of its food processing investments -- Albertville Quality Foods and Southern Quality Meats -- to an affiliate of H.I.G. Capital, LLC, a global private equity firm based in Miami, Florida. The sale of both companies allowed TVV to realize a 14x multiple on invested capital over the life of the investment, including proceeds received from prior transactions.

In 2000, TVV invested in Albertville Quality Foods, Inc. ("Albertville"), an Alabama-based processor of breaded and marinated chicken products that serves a group of leading national restaurant and foodservice customers. In 2002, TVV acquired Southern Quality Meats ("Southern"), a Mississippi-based producer of country-style pork sausage products, as an add-on investment to provide a complementary protein source for its foodservice customer base.

Between 2000 and 2009, TVV and management significantly grew revenues, primarily through organic growth initiatives that included capital investments in capacity expansions, production automation projects, and information system upgrades. Over that period, the combined entities added many valuable new customers including, Applebee's, Sonic, Chili's, Shoney's, and Wal-Mart.

"TVV's strategic sourcing advantage and patient investment approach have paid off with superior returns to our investors in an otherwise difficult investing environment," said Andrew W. Byrd, TVV President. "Our objective is to identify and acquire well-managed, consistently profitable companies in attractive niches and then partner with founding teams and stakeholders to achieve operational excellence, strong customer growth and market expansion. Our goal is to both grow and build highly attractive businesses and then apply a well-executed marketing and sales process to generate superior returns."

"Andrew and his team were integral in positioning Albertville and Southern to maximize profit and growth," said Don Haynie, President of AQF and SQM. "From the beginning, TVV understood the market forces in play. They worked closely with our senior management team supporting the strategic hires, R&D and infrastructure investments that ultimately drove customer acquisitions and led to the successful recapitalization of both companies."

Brookwood Associates LLC served as financial advisor and Proskauer Rose LLP served as legal counsel to Albertville and Southern in the transaction.

About Tennessee Valley Ventures
Founded in 1997, Tennessee Valley Ventures ("TVV") is an established lower middle-market private equity firm based in Nashville, TN. Investing primarily in the Southeastern U.S., TVV focuses on attractive opportunities within the niche manufacturing, food processing, energy equipment, and industrial service sectors. With two funds currently under management, TVV targets companies with $10 million to $100 million in revenues and strong operating margins to facilitate management led buyouts, recapitalizations, and family succession transactions. For more information, please visit www.tvvcapital.com.

About Albertville and Southern
 
Albertville Quality Foods, headquartered in Albertville, AL, and Southern Quality Meats, headquartered in Pontotoc, MS, have provided further processing services for foodservice, restaurant and retail customers since 1962. Products such as breaded chicken tenders, boneless wings, sausage patties, and many others, are custom produced for hundreds of customers at two state of the art facilities. For more information, please visit the Albertville website at www.albertvillequalityfoods.com.

About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, New York, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. For more information, please refer to the H.I.G. website at www.higcapital.com.

Contact Information

  • For further information, contact:

    Andrew W. Byrd
    President
    Tennessee Valley Ventures
    Email Contact
    (615) 256-8061

    For media inquiries, contact:

    Lisa Black
    Email Contact
    (781) 405-8289