TORONTO, March 1, 2007 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a $4.5 million investment in Ultramatic Sleep of Canada ("Ultramatic"). The financing was led by the VenGrowth Traditional Industries Group.
The VenGrowth Traditional Industries Fund Inc., The VenGrowth III Investment Fund Inc., and VG Mezzanine I Limited Partnership provided a subordinated loan to facilitate the acquisition of control of Ultramatic by the principals behind Genesis Capital Corporation ("Genesis Capital"). The VenGrowth investment includes an equity position in Ultramatic. Financing was also provided by Royal Bank of Canada.
Ultramatic distributes electric adjustable beds and accessories such as headboards, sheets and bed rails. Ultramatic's beds include luxury features such as built-in heat systems and massage capabilities, all geared to comfort-seeking consumers.
Ultramatic was purchased from the husband and wife team of Ron and Donna Peterson, who founded the company nearly 25 years ago. The deal highlights VenGrowth's ability to support entrepreneurs towards a well thought-out succession plan leading to a rewarding exit of the business.
Paul Massara, President of Genesis Capital and Martin Philp, Managing Partner of Genesis Capital, led the transaction to acquire Ultramatic. Mr. Philp will become interim President & CEO of Ultramatic, with Genesis Capital continuing to provide managerial expertise to Ultramatic.
"The Genesis Capital management team possesses a wealth of experience in growing businesses and driving profits," said Graham McBride, Managing General Partner, VenGrowth. "Ultramatic has established a market niche in supplying electric adjustable beds across North America, and will continue to thrive with Marty and Paul's guidance."
"VenGrowth was a key partner in the Ultramatic acquisition, providing us not only with financing, but also with expertise," said Martin Philp, interim President & CEO of Ultramatic. "We structured the transaction together, and will continue to work together with the mutual goal of building on Ultramatic's reputation as a world-class provider of electric adjustable beds."
Ultramatic's target market of customers 50 years or older, is supported by aging demographics in North America. Trends also suggest consumers are shifting to specialty products offering health benefits, like Ultramatic's leading sleep systems.
About VenGrowth Traditional Industries Group
VenGrowth Traditional Industries Group specializes in financing solutions for mid-market
Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. The Group primarily invests using debt instruments with the objective of generating interest and dividend income to participating VenGrowth Funds. In addition, the Funds will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. Formed in 2003, the Group had invested over $117 million into 16 companies as at January 31, 2007. The Group is led by Graham McBride, a highly regarded mezzanine financing expert with over 19 years of experience.
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in over 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.
About Genesis Capital
Toronto-based Genesis Capital is a private equity company focusing on the acquisition of traditional industrial businesses. By forging strong partnerships, Genesis provides both capital and hand-on operational management. For more information, please visit www.genesiscapitalcorp.com
About Ultramatic
Based in Burlington, Ontario, Ultramatic supplies high quality electric adjustable beds directly to consumers. With over 130 employees it has numerous locations across Canada as well as in the US. Backed by impressive warranties, the company's beds have luxury features such as remote controls to move the head and foot sections, as well as incorporated massage and heat systems. For more information, please visit
www.ultramaticsleep.com
For further information:
Angus Fisher
Manager, Media & Communications
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
