Public Press Release
Insight Equity Announces Investment in and Recapitalization of Sportexe Holdings and affiliates
SOUTHLAKE, Texas, and FONTHILL, Ontario, Nov. 12, 2007 – Insight Equity I L.P. (“Insight Equity”), the Dallas, Texas-area private equity firm, announced the close of its investment of $14 million into preferred and common stock of Sportexe Holdings LLC (“Sportexe” or the “Company”). Sportexe is one of the nation’s leading developers, suppliers and installers of synthetic turf systems for athletic field, aviation and landscape applications. In conjunction with its investment, Insight now holds a controlling interest in Sportexe, and Modell Enterprises LLC and its affiliates have agreed to recapitalize all existing secured loans to Sportexe affiliates into equity stakes of the Company. This recapitalization leaves Sportexe with a strong balance sheet with significant working capital and no secured lines of credit.
Ted Beneski, Managing Partner and CEO of Insight said, “We are excited to add Sportexe to the Insight Equity portfolio. Our vision for the future is to continue supporting the best-in-class service, technology and quality offerings that have built Sportexe into a premier supplier of synthetic turf systems in North America.”
Sportexe is a leading developer, supplier and installer of indoor and outdoor synthetic turf systems for use in a variety of sporting applications, including football, baseball, soccer, field hockey, rugby and lacrosse. In addition, through its AvTurf subsidiary, Sportexe is a leading supplier and installer of synthetic turf systems for use in aviation applications, with installations at many of the nation’s largest airports including JFK and Boston Logan. From its new world headquarters in Irving, TX, Sportexe serves hundreds of customers through the industry’s largest direct sales force and largest in-house installation team.
Insight Equity Vice President Robert Strauss noted, “The significant equity capital provided by Insight Equity gives Sportexe access to a wealth of financial resources and the wherewithal needed to thrive in this rapidly-growing and seasonal business. This transaction is a testament to Insight Equity’s ability to solve difficult balance sheet issues while also providing growth capital and operational assistance to middle-market manufacturing and distribution businesses.”
Sportexe is the fifth of eight acquisitions that have been made to-date in Insight Equity’s current fund, which closed in July 2005. Insight’s total portfolio of firms now encompasses over $1.4 billion in revenue, in sectors as diverse as medium-technology manufacturing, distribution, oil refining, and steel construction.