"We buy something broken, and we try to get it fixed," said Greg Segall, managing partner of Philadelphia-based Versa Capital.
Versa stops the bleeding by getting rid of overhead, marginal markets, and other costs that don't bring profits. That may sound simple; it's not easy.
"Nine times out of 10, a company can tell you what the trouble is. They just can't stop it," Segall told members of the Association for Corporate Growth, an investment bankers' group, in Gladwyne on Thursday.
Versa agreed to take over Shapes/Arch L.L.C., a Pennsauken maker of aluminum truck parts, vinyl siding and outdoor pools with $274 million in annual sales by investing up to $25 million, Shapes said, in its bankruptcy plan.
Shapes, with 1,000 workers in Delair and Bensalem, joins garage operator Central Parking, garment-maker Polartec LLC (the former Malden Mills, in Massachusetts), wireless-phone servicer Simplexity (formerly InPhonic, which Versa moved to Reston, Va. from Washington’s high-rent Georgetown neighborhood), and nine other companies in Versa's first $300 million investment fund.
Versa is raising a $600 million second fund, with help from Pennsylvania's state workers' and state teachers' pension funds, SERS and PSERS.
If you price deals right, "I don't believe this is a high-risk investment strategy. We're coming in after the fire," Segall said. "Deep value resides in unlikely places."
Versa stops the bleeding by getting rid of overhead, marginal markets, and other costs that don't bring profits. That may sound simple; it's not easy.
"Nine times out of 10, a company can tell you what the trouble is. They just can't stop it," Segall told members of the Association for Corporate Growth, an investment bankers' group, in Gladwyne on Thursday.
Versa agreed to take over Shapes/Arch L.L.C., a Pennsauken maker of aluminum truck parts, vinyl siding and outdoor pools with $274 million in annual sales by investing up to $25 million, Shapes said, in its bankruptcy plan.
Shapes, with 1,000 workers in Delair and Bensalem, joins garage operator Central Parking, garment-maker Polartec LLC (the former Malden Mills, in Massachusetts), wireless-phone servicer Simplexity (formerly InPhonic, which Versa moved to Reston, Va. from Washington’s high-rent Georgetown neighborhood), and nine other companies in Versa's first $300 million investment fund.
Versa is raising a $600 million second fund, with help from Pennsylvania's state workers' and state teachers' pension funds, SERS and PSERS.
If you price deals right, "I don't believe this is a high-risk investment strategy. We're coming in after the fire," Segall said. "Deep value resides in unlikely places."
About Joseph N. DiStefano
- Bloomberg News
- New York Times Dealbook
- Washington Post Economy Watch
- U.S. propaganda
- Dealbreaker
- Edgar SEC Filings
- Emma Bond Filings
- ACG Philadelphia Deals and Dealmakers
- Seeking Alpha CEO call transcripts
- FCC Documents on Comcast-NBC Universal merger
- Jones Philadelphia Skyline Report
- Grubb Business Real Estate
- Studley Business Real Estate
- Plan Philly
- Penn Praxis
- Technically Philly
- Llenrock real estate blog
- Pennsylvania state budget
- New Jersey state budget
- Philadelphia city budgets
- Delaware 2010 budget
- U.S. budget
- Pennsylvania State Employees Retirement System
Blog Roll
- February
- January
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
Archives
Get it now
Philly.com Promotions
- News | Sports | Business | What's Happening | Restaurants & Food | Entertainment | Living | Marketplace | Jobs
Site Services:
Classifieds:
Partners:
Local Services:
