Avista Capital Partners has sold California-based commercial manufacturing business Anthony International for $603 million.
Avista declined to comment on the transaction, but a source with knowledge of the deal said the exit generated a 2.1x return multiple for the firm. Anthony manufactures glass doors and other products for the commercial refrigeration market. Avista purchased the business in June of 2011, investing from the firm’s second fund that collected $1.8 billion in 2010.
“[Anthony’s] competitive position in the attractive and growing commercial refrigeration industry provided a solid foundation for growth,” Avista partner David Durkin said in a statement.
During the roughly 17-month holding period, Avista helped grow the business through improved sourcing and pricing initiatives, and also by expanding into international markets “and capitalizing on industry dynamics associated with energy efficiency and mounting regulatory requirements”, Avista industry executive Allen Yurko said in the statement.
The firm also made one add-on acquisition for the company, acquiring Georgia-based installation services provider BiG Services.
Anthony represents Avista’s third full exit of 2012 and fifth realisation. The firm fully exited biopharmaceutical testing company BioReliance, purchased for $210 million in 2007 and sold for $310 million, and skincare business Fougera Pharmaceuticals for $1.5 billion alongside Nordic Capital and DLJ Merchant Banking. Avista also partially exited medical device company Navilyst Medical for $372 million and energy business Hi-Crush, via a $225 million initial public offering.
The sale of Anthony comes as Avista seeks $2 billion for its third fund. As of July, the firm had collected about $554 million, according to documents filed with the US Securities and Exchange Commission. Fund III includes a distribution model that pays back limited partners all contributed capital for realized investments, including permanent write-downs, and all fund expenses, plus an 8 percent preferred return, before the general partner starts to collect carried interest.