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NEWPORT BEACH, CA - June 2005 - The Courtney Group, Incorporated announced the acquisition of Borga, Inc. with management and an investor group. Borga is a leader in pre-engineered metal buildings and components. Borga metal buildings range from 1,200 square feet to about 100,000 square feet, considered the small and medium size segment of the market, and are used in commercial and industrial applications such as factory and warehouse buildings, agricultural buildings such as dairy barns and egg-layer houses, and such specialized uses such as indoor riding arenas.
The investment group that acquired Borga includes The Courtney Group, Hancock Park Associates, Pegasus Management LP, and Mr. Johan Gidstedt, Borga's President, who has been with Borga since 1996.
"We plan to work closely with management and our co-investors to continue to grow and build Borga," said Tom Courtney, President, The Courtney Group. "In February 2005 Borga completed a substantial expansion of its manufacturing capacity and is well positioned to continue its rapid growth. One of the areas that we are examining is the possibility of acquisitions to accelerate Borga's growth in related markets, technologies, or distribution channels."
"With the completion of this transaction, we will be able to expand our horizon further, and still maintain the strong relationships we have built with customers and vendors over the past 20 years," said Johan Gidstedt, President, Borga, Inc. "Our recently completed expansion of the manufacturing facility in Fowler, CA makes this the perfect time to begin a relationship with our new partners, and continue to develop our company while keeping our commitment to customer service and satisfaction."
Terms of the transaction were not disclosed.
About the Deal
The majority owner of Borga, Mats Andersson, founded the company in 1984. He lives in Sweden, has not been active in Borga for some time, and sought a sale as part of his retirement planning. Meanwhile Johan Gidstedt, Borga's president, who has led the company for about 8 years, was looking for a partner to work with him to help continue to grow and build Borga. He invested in the transaction alongside The Courtney Group, Hancock Park and Pegasus Management. The buyer began talks with Borga about a year earlier.
About Borga
Borga is a leading manufacturer of pre-engineered metal buildings and metal building components for agricultural, industrial, commercial and residential building markets. The company is a regional market leader. For more information please visit www.borga.net.
About The Courtney Group
The Courtney Group was formed in 1995 and works with companies both as principal, investing for its own account, and as advisor, representing clients in capital raising, divestitures and acquisitions. As a principal investor, The Courtney Group seeks to invest in companies with strong market position, good profit margins, and substantial growth opportunities in niche manufacturing and service industries. The Courtney Group is flexible in its approach and will back management teams in buyouts (as was the case with Borga), will structure recapitalizations in which some shareholders sell their holdings while other shareholders remain as owners and operators, or will bring in a new team of executives from The Courtney Group's deep team of operating partners. For further information on the firm please visit
www.thecourtneygroup.com.
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