- ModusLink Global Solutions (MLNK +46.3%) and Steel Partners Holdings (SPLP +0.3%) announced that ModusLink has completed the acquisition of privately-held IWCO Direct, a leading provider of data-driven direct marketing solutions, for $476M in cash. IWCO Direct becomes a wholly-owned subsidiary of ModusLink Global Solutions.
- IWCO Direct had net revenue of $470.6M, net income of $18.9M and EBITDA of $82.2M (Last 12 months through Oct. 2017).
- The acquisition was funded through cash and debt financing provided by Cerberus Business Finance as the administrative agent and collateral agent, and consists of a term loan in the principal amount of $393.0M and a borrowing in the amount of up to $25.0M under a revolving credit facility.
- Additionally, it was announced today that Steel Partners Holdings increased its investment in ModusLink through its affiliate SPH Group Holdings, LLC, with a $35.0M convertible preferred stock investment, which together with its affiliates, brings its beneficial ownership in ModusLink to ~52%.
- Warren Lichtenstein, Executive Chairman of ModusLink, said, "We have been looking to acquire a profitable business with attractive operations and financials, and with a strong management team in order to leverage our ~$2.1B in net operating loss carryforwards (NOLs) and cash. We found a great fit in IWCO Direct. We essentially double the size of our Company and add significant earnings and free cash flow. We add a market leader with industry-leading solutions, a client base consisting of Fortune 500 companies, and significant opportunities to drive both top- and bottom-line results. We intend to aggressively grow IWCO Direct, organically and through acquisitions, and will look to leverage Steel Partners' vast relationships and resources to drive operational excellence and enhance stakeholder value."
- Now read: Steel Partners Holdings From The Perspective Of A Preferred Investor
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