Willis Stein purchases payroll co

The Chicago private equity firm is now the majority owner of CompuPay, the largest privately held outsourced payroll company in the US.

Chicago-based private equity firm Willis Stein & Partners has acquired a majority interested in CompuPay.


Terms of the deal were not disclosed, according to a press statement.


CompuPay provides outsourced payroll processing services to small businesses. The company also provides services that include payroll tax payments, employee benefit services and workers’ compensation premium billing.


In the statement, Willis Stein managing director Dan Gill said that the firm will work with the current management to provide capital for making “significant investments in product development, sales and marketing, and acquisitions of complementary companies and product lines.”


This deal will be Willis Stein’s second investment in the outsourced payroll services industry. In September 2002, the firm sold their 64 percent stake in Advantage Payroll Services, bought in 1998, to Paychex for $315 million, netting the firm a $135 million profit.


Willis Stein & Partners manages approximately $3 billion in equity capital. The firm closed its third fund in June 2001 on $1.8 billion and invests primarily in consumer products and services, media, telecommunications, business services and healthcare companies.