Huron Capital Scores Successful Exit
Detroit-based Huron Capital announced Tuesday that it has sold its portfolio company, Ross Education, in a transaction that produced 18.7 times its original investment and a 76 percent internal rate of return.
Based in St. Clair, Ross Education operates a group of 17 postsecondary schools that offer career-oriented training in allied health fields. BMO Capital Markets and Goldberg Kohn served as Ross Education's investment bankers and legal counsel, respectively.
Huron originally acquired the business in March 2005 in partnership with CEO Paul Mitchell. Under their ownership, Ross implemented a strategic plan designed to revitalize the company. Key initiatives included adding numerous new programs, opening seven new branch locations, completing a strategic add-on acquisition and making substantial investments in people, facilities and systems. These investments translated into a significantly enhanced student experience, solid student outcomes, and excellent growth for the company.
In recognition of the company's tremendous growth, in 2010 Ross Education was the recipient of the "Best Expansion" award by Crain's Detroit Business and the Association for Corporate Growth.
"The Ross transaction is a tremendous milestone for the company and for our investors," said Huron partner John Higgins. "We are thrilled to have had the opportunity to work closely with Paul and his team to shape Ross into one of the most unique and successful businesses in the sector."
Huron Capital is a private equity firm investing in lower middle-market companies. The firm typically invests between $10 million and $70 million in equity to sponsor buyouts, growth initiatives, corporate spin-offs and recapitalizations of growth-oriented niche manufacturing, specialty service, and value-added distribution companies having revenues up to $300 million.
The Huron principals are seasoned investors with a strong 15-year track record of creating value in the education sector. Through platform companies Ross Education, Delta Education, and Career Education Corp. (investment made prior to Huron; Nasdaq: CECO), the principals have acquired ten post-secondary schools, generating a cumulative annualized return exceeding 75 percent for their investors.
Since its founding in 1999, Huron has acquired or invested in 46 companies with aggregate revenues approaching $1 billion. Investments have been made in the U.S. and Canada in a variety of sectors, including print and document management, education, health care products and services, specialty chemicals, specialty packaging, consumer products, home decor, passenger transportation services, building products, office furniture components and laboratory testing.
Huron Capital currently manages over $600 million in committed equity through three private equity funds and has offices based in Detroit, Pittsburgh and Toronto. The firm has consistently generated top-quartile returns for its limited partners.
More at www.huroncapital.com.
