Magnablend Recapitalized In Support Of Continued Growth
Waxahachie, Texas - June 1, 2011 - Magnablend, Inc. is pleased to announce a recapitalization of the Company in partnership with an investor group consisting of TGF Management Corp., Austin Ventures, and Cotton Creek Capital. The recapitalization will provide liquidity for Magnablend’s founding shareholders, David and Darlene Pendery, while providing the Company with substantial capital to support its continued growth and geographic expansion. Headquartered in Waxahachie, Texas, Magnablend is a leading provider of custom chemical manufacturing, blending, packaging and technical formulations, primarily serving the oil and gas, agricultural, and water treatment industries. With eight facilities in the United States, Magnablend has the breadth of product and geographic coverage to service large customers in its target markets.
Magnablend will continue to be led by its Chief Executive Officer, Scott Pendery, who, in conjunction with the rest of the Company’s management team, has been responsible for the Company’s exceptional growth over the past 15+ years. Additionally, Mr. Pendery will remain a significant shareholder in the Company.
“Magnablend has been built around our “can do” attitude and customer service excellence. We have an outstanding reputation in the industry as a dependable provider of custom chemistries in a variety of end market applications. Over three decades of taking care of its customers, the Company’s customers have taken care of Magnablend. We are excited to be partnering with experienced investors such as TGFM, AV, and Cotton Creek” said Pendery. “With the capital and resources of our new partnership, we will be able to continue to expand our capabilities and geographic presence, including internationally, to further support our customer base. Our partnership with these leading investors evidences our commitment to our customers and employees to invest and grow our business.”
The transaction closed on May 31, 2011. Financial terms were not disclosed.
About Magnablend, Inc.
Magnablend was founded in 1979 by David and Darlene Pendery. Current CEO, Scott Pendery joined the Company in 1993 and has overseen the expansion of the business from a single facility in Waxahachie to operations in Texas, Pennsylvania, Wyoming, and North Dakota. Magnablend has established itself as a leading powder and liquid blender for the oil field service and agricultural markets and has become the blender of choice for its quality and dependability manufacturing technically advanced formulas. For more information, visit Magnablend’s website at www.magnablend.com.
About TGF Management Corp.
Austin, Texas-based, TGF Management Corp. is one of the oldest and most active private equity firms in the Southwest, focusing on partnering with management teams and operational executives in the acquisition of middle market companies. Since 1992, TGFM has invested in over 40 companies with combined revenue in excess of $4 billion. TGFM currently manages in excess of $700 million on behalf of the Texas Growth Fund, and its latest private equity fund, Southwest Opportunity Partners, L.P. For further information, visit TGFM’s website at www.tgfmanagement.com.
About Austin Ventures
Austin Ventures (“AV”) has worked with talented entrepreneurs to build valuable companies for over twenty-five years. With $3.9 billion under management, AV is the most active venture capital and growth equity firm in Texas and one of the most established in the nation. With an investment focus on business services and supply chain, financial services, new media, Internet and information services, software, and Texas special situations, AV invests at all stages of company development, from $100,000 in “planned experiments” in early stage ideas to $100+ million investments in expansion rounds, minority recapitalizations, and buyouts of lower middle market growth companies. AV’s strategy is to partner with talented executives and entrepreneurs through its CEO-in-Residence and Entrepreneur-in-Residence programs. Visit www.austinventures.com for more information.
About Cotton Creek Capital
Cotton Creek Capital is a Dallas-based private equity firm focused on investing in and growing established lower middle market companies in manufacturing, value-added distribution, industrial services, energy, business services, healthcare services and consumer staples. The firm invests in companies with enterprise values between $15 million and $200 million through transactions raging from buyouts, recapitalizations, buy-and-builds, and corporate divestitures to selected minority investments. Cotton Creek Capital is affiliated with Brownlie & Braden, LLC, a provider of financial advisory services to high net worth families for over 20 years. For further information, visit Cotton Creek’s website at www.cottoncreekcapital.com.