Transactions
Color Communications, Inc.
Chicago, Illinois
Color Card Manufacturing
and Specialty Printing
INVESTMENT AMOUNT: $
INVESTMENT DATE: March 2013
“Based on our initial dealings with CapX as a source of equipment financing, we were convinced their business approach was consistent with CCI’s and that they would be a valuable partner in our efforts to grow the Company. They are responsive to our needs and have an excellent understanding of our business.”
— Thomas Connerty, Chief Financial Officer
INVESTMENT SITUATION
Color Communications (CCI) is a producer of color cards, fan decks, color systems and automotive pigment sample sheets. Headquartered in Chicago since the early 1970s with manufacturing facilities in Chicago, Ireland and New Zealand, CCI is privately owned and operated by an experienced management team. CCI continues to innovate with new manufacturing techniques in the niche and seeks to gain more market share within the OEM and after-market paint manufacturers. CCI was experiencing strong revenue and EBITDA growth as their respective markets strengthen and conditions were favorable for expansion.
THE CAPX SOLUTION
CCI has invested significantly in recent years in order to modernize as well as expand its manufacturing capabilities and to diversify its product offering. The results have been an expansion of CCI’s customer base along with increased capital needs to support growth. CapX was initially introduced to Color in 2011 via a trusted advisor and committed a low seven figure lease line to fund its equipment purchase needs.
CCI and Feldman Advisors informed CapX of its plan to refinance its existing debt facilities whereby a larger mezzanine loan would both refinance an upcoming maturity and provide new liquidity for future growth opportunities. CapX partnered with one of its bank limited partners on the debt capitalization resulting in CapX providing a new mid seven figure subordinated junior secured loan. CapX welcomed the opportunity to expand its relationship with CCI and to assist the company with its goal to increase its market share and drive higher shareholder value.