Edgewater Growth Capital Partners II, L.P. is pleased to announce the recent sale of our portfolio company BarrierSafe Solutions International Inc. (“BarrierSafe”). BarrierSafe is a leader in the Personal Protective Equipment industry. The Company designs, develops and markets disposable gloves and related food and health safety products. It sells over six billion single-use gloves annually. BarrierSafe was acquired in November 2007 and its recent sale produced a highly attractive return. Edgewater and Linden Capital Partners were the majority equity owners of the Company and partnered with management who were minority investors.
Since acquiring the company in 2007, BarrierSafe’s revenue and EBITDA has increased significantly. Edgewater helped lead the integration of Microflex Corp. and FoodHandler, Inc. which formed BarrierSafe. We also recruited new leadership, streamlined operations and worked closely with management on organic growth and add-on acquisitions. BarrierSafe’s results reflect Edgewater’s investment strategy of low acquisition prices and conservative use of debt.
Edgewater Growth Capital Partners, L.P. is pleased to announce the recent sale of our portfolio company Dantom Systems, Inc. (“Dantom”). Dantom is a leading provider of business process solutions servicing the accounts receivable management and revenue cycle management industries. During the period of Edgewater’s ownership, Dantom expanded rapidly through organic growth and acquisitions. Since 2007, the Company’s revenue has grown at an annual rate of 31% while EBITDA grew annually in excess of 60%. Edgewater also helped lead four strategic acquisitions which were highly accretive through plant consolidations and expanded the Company’s customer base into the health care industry. The Dantom investment earned a return of nearly 4X the Fund’s invested capital.
Dantom has been an excellent example of Edgewater’s investment strategy. The Company was acquired through a direct introduction to the Founders at an attractive valuation and capital structure. Edgewater appointed the Company’s Chairman from our Advisory Board and recruited an experienced new CEO and CFO. This team led Dantom through a period of rapid growth and an 80/20 profit improvement process, increasing EBITDA margins from 15% to 30% over a two year time period.