New York-based mid-market firm Fenway Partners will sell commemorative product manufacturer American Achievement to KKR- and DLJ Merchant Banking-backed Vistant for $486 million.
American Achievement makes commemorative products such as class rings, yearbooks and graduation products. Fenway declined to disclose a return multiple for the deal, but a source familiar with the situation said the exit generates a 2.4x return multiple.
Fenway acquired the company from Castle Harlan in 2004, making the investment from its $1 billion Fund II, a 1998 vintage. The fund was generating a net IRR of 6 percent and a 1.3x multiple as of 30 June, according to documents from the Oregon Public Employees’ Retirement System.
Other limited partners in Fund II include the California Public Employees’ Retirement System and the Rhode Island State Treasury, according to Private Equity International’s Research and Analytics division.
The sale marks Fenway’s first full exit of 2013. The firm partially exited transportation and logistics services company Fastfrate Holdings in March. Fenway currently has investments in six portfolio companies, according to its website.
The firm focuses on the branded consumer product industry and invests in companies worth between $100 million and $600 million in enterprise value.
Founded in 1994, Fenway makes control investments of between $50 million and $75 million in US-based companies.