Neptune is the largest water meter and meter reading systems manufacturer in North America. Neptune maintains a 35% market share in its base meter business in an attractive, oligopolistic industry in which three companies have over 90% market share. Neptune has a 30 year history of generating consistent revenue growth and free cash flow.
Investcorp, SA (“Investcorp”) acquired Neptune from Schlumberger in 2001, and Neptune continued its strong performance in 2002 and 2003.
Investcorp wanted to recapitalize the business, which required a refinancing of the senior debt and a new $100MM mezzanine facility.
York Street and Teachers’ Private Capital jointly bid on the entire $100MM facility. Ultimately, Investcorp teamed York Street and Teachers’ Private Capital with CSFB’s Mezzanine group.
York Street and Teachers’ Private Capital provided $44MM of the facility, with each party holding $22MM.
The transaction was structured as senior subordinated debt and convertible preferred equity with a liquidation preference.
York Street successfully realized upon its investment with Roper Industries’ (NYSE: ROP) acquisition of Neptune in December 2003.
InvestCorp: http://www.investcorp.com
Home | About York Street | Working With York Street | Investment Portfolio | Our Capital Sponsor | The York Street Team | Media | Contact Us | Directions | Site Map
©2008 York Street Capital Partners | Site Developed by Galvanek & Wahl Advertising Agency