Lake Capital, Stephens pick up signage firm(2)

Private equity firms Lake Capital and Stephens Group have purchased a majority stake in specialised marketing firm Vestcom from Cornerstone Equity Solutions and Vestcom’s management.

Lake Capital Partners and The Stephens Group have teamed up to acquire Little Rock, Arkansas-based Vestcom, a marketing firm focused on ads and signage for the shelves of grocery, drug, and retail chain stores.

The two private equity firms purchased a majority interest for an undisclosed amount from Vestcom’s management and Cornerstone Equity Investors.

Under terms of the agreement, Vestcom’s existing management team will remain in place and is “reinvesting a significant portion of its ownership in partnership with The Stephens Group and Lake Capital”, the company said.

In 2002, Vestcom was taken private by New York-based Cornerstone Equity (formerly Prudential Equity Investors).

The marketing firm has 500 associates and nine production facilities throughout the US. Vestcom “provides data-driven, shelf-edge marketing solutions that deliver proven results and influence behavior at the point-of-decision”, according to a statement.

Chicago-based Lake Capital focuses on investments in service-based enterprises, and typically commits $50 million to $75 million per investment. The firm is currently managing more than $1.3 billion in equity.

Little Rock, Arkansas-based The Stephens Group is a family-owned firm that invests in private and public companies. It typically provides equity capital of $5 million to $75 million dollars per transaction, investing $100 million to $200 million annually.