Director of Marketing
FMI International & KRG Capital Partners Enter Into Recapitalization Agreement
Company’s management team maintains significant ownership and willcontinue in their current roles with the Company.
Carteret, NJ, (Thursday, May 01, 2003) FMI International, LLC (www.fmiint.com) a recognized leader in integrated logistics services to the footwear, apparel and retail industry, today announced that they have entered into a recapitalization agreement with KRG Capital Partners, the largest equity investment firm headquartered in Denver, CO. FMI is the third portfolio company for the KRG Fund II, and will serve as the platform for a consolidation in the logistics industry. KRG invested a total of $22 million in FMI, and has committed significant additional equity capital to enhance the growth of FMI. The Company's management team maintained a significant ownership interest, and will also continue to serve in their current roles with the Company. American Capital Strategies and Credit Agricole Indosuez provided additional financing for the transaction.
FMI is uniquely positioned to capitalize on the increased penetration of imported apparel into the United States through its fully integrated line of apparel import logistics services, including freight forwarding, transloading, deconsolidation, warehousing, distribution, and local and long distance ground transportation. "The FMI management team proactively addressed the needs of its customers by incorporating the services and capabilities necessary to seamlessly move product from international ports to its customers' distribution centers in the U.S.," said Charlie Gwirtsman, Managing Director of KRG. "This full range of capabilities places FMI in the strategic position of becoming a one-stop provider to many of its customers." FMI's customers in turn receive greater visibility of their shipments along the entire transport route, enabling them to locate their merchandise at any point in the supply chain. This visibility is made possible through FMI's comprehensive inventory tracking system that in most cases is integrated with the individual customer's MIS systems.
FMI is also one of the few companies in the industry with expertise in garment-onhanger shipping, a shipping method in which delicate apparel remains hung on slick rails throughout its transport, avoiding the weight and pressure of other garments that could adversely affect their appearance. FMI counts as its customers leading U.S. designers, manufacturers and retailers such as Jones Apparel Group, Inc., Liz Claiborne, Inc., Polo Ralph Lauren Corp., and Federated Department Stores.
FMI was represented by BB & T Capital in the transaction, and received substantial interest from both strategic and financial buyers. "From our very first meeting with KRG, we sensed a certain chemistry with the organization that we had not experienced with any other private equity group," said Gregory DeSaye, Chief Executive Officer of FMI. "They rapidly grasped the complexities of our business model, understood our growth potential, and shared the excitement of our enterprise in a real entrepreneurial fashion. We are excited about working with KRG and look forward to continued success with our new partners."
About KRG Capital Partners
Founded in 1996, KRG is the largest Denver based private equity investment firm and currently manages over $860 million of committed equity capital and equity coinvestments. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. The firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. Since inception, KRG has invested in 14 "platform companies" and has completed 42 add-on acquisitions for those platforms. For more information on KRG Capital Partners, please visit www.krgcapital.com.
About FMI International, LLC
FMI International, headquartered in Carteret, NJ, was founded in 1979 as an international freight forwarder. The company has grown into a leading provider of integrated logistics services with over 600 employees and operations in the three largest U.S. gateways (NY/NJ, Miami and Southern California). The company’s strategic locations and expertise in handling footwear, apparel, garments-on-hangers and general department store merchandise has gained them the reputation has a high quality service provider for more than twenty years. Some of the world’s leading manufacturers and retailers turn to FMI for unsurpassed logistics service. FMI is a portfolio company of KRG Capital Partners, a buyout firm located in Denver, CO. For more information on FMI, please visit our website, www.fmiint.com, or call (732) 750-9000