SJ Partners acquires middle market consumer and services companies.
We are distinguished by our operating expertise, in particular our operating partners who are typically former Fortune 500 divisional CEOs.
How We Work
Read our interview With Randy Schwimmer of On the Left
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Portfolio News
Audio Messaging Solutions:
About
Summary
Established in 2001, SJ Partners LLC (SJP) acquires middle market consumer and services companies.
The firm is distinguished by its operating perspective. We are proud of our roster of operating partners who are generally former Fortune 500 divisional CEOs; Bob Phillips, our senior consumer operating partner, ran Unilever North America.
SJP targets companies with $2 - 10 million in EBITDA (and larger on occasion) that either are traditional growth situations or are under-managed companies where the experience of our operating partners can significantly accelerate growth.
SJP also excels at working with its portfolio companies to grow by acquisition. Our portfolio company Audio Messaging Solutions has completed over ten add-on acquisitions and has grown ten-fold.
SJP provides advisory services to its own portfolio companies (primarily buyside M&A) and also provides such services to select third party clients.
SJP is affiliated with the NPD Group Inc, one of the nations top consumer market research companies.
Advisory Services
SJ Partners provides select advisory services to third party clients who are not portfolio companies.
Primary services include mergers and acquisition advisory services and debt capital raising. SJP has a particularly strong track record in advising companies on growth by acquisition strategies; SJP's portfolio company AMS has grown ten-fold, driven by over ten add-ons acquisitions where SJP served as the company's exclusive financial advisor.
SJP has completed over 15 transactions.
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Transactions
Team
Scott Johnson
Founder and CEO
Scott is the founder and CEO of SJ Partners, LLC, a middle market merchant bank that specializes in the consumer and services sectors.
He was trained as a securities analyst and has been a Wall Street equity research analyst. Scott's mentor was Jim Rogers , George Soros' original partner. Scott was a member of Institutional Investor rated teams at both Salomon Smith Barney and Merrill Lynch (Merrill team rated #2 on Wall Street, according to Institutional Investor). Transactions of note that he worked on included the landmark $89 billion acquisition of Warner Lambert, the $3 billion purchase of Saks Fifth Avenue by Saks Incorporated , and equity offerings by Estée Lauder and Gillette . Scott complements his financial orientation with operating experience, having served as CFO of an early stage in-store services company.
Scott completed his undergraduate and graduate studies at Columbia University . He received an MBA in finance and MIA (Masters of International Affairs). He also holds a BA from Columbia where he was a Martin Fischbein Fellow. He has also taught at Columbia Business School.
He is the author of " Leveraged Buyouts: What, Why, When and How, " a chapter in " Q-Finance: The Ultimate Business Resource. " He is a co-author of the Atlantic Council Roundtable Study, " The Transatlantic Economy in 2020: A Partnership for the Future? " . He is listed in the Marquis Who's Who of America and is a member of the Association for Corporate Growth , Business Executives for National Security and the Wings Club .
Scott regularly speaks to groups on private equity and the acquisition of private businesses. He chaired a conference for the Capital Roundtable in 2011 and has spoken at a variety of events, including events run by the Association for Corporate Growth; the SBIC association, Nasbic; the GPSEG executive network; the International Executive Resources Group; and the Capital Roundtable.
He is an instrument rated commercial pilot, enjoys running, and particularly enjoys running and cross country skiing with his dogs. He speaks fluent French.
To contact Scott, scott_sjpartners.com
Robert M. Phillips
Consumer Products Operating Partner
Bob Phillips is an SJ Partners consumer products operating partner and currently serves on the board of directors of SJ Partners portfolio company European Soaps LLC where he is also an investor.
Bob is a Managing Director of The Clarecastle Group, a marketing company which specializes in consumer and personal care products. He has also served a Senior Advisor to Peter J. Solomon Company .
From 1988 to 2000, Mr. Phillips was with Unilever PLC and Unilever NV where he served as the North American Business Group President and Global Coordinator of Personal Products. During his tenure at Unilever, he also served as Chief Executive Officer of Elizabeth Arden Company Worldwide and Chairman of Unilever Prestige Personal Products. In addition, Mr. Phillips was a director of Unilever from 1994 to 2000.
Prior to joining Unilever, Mr. Phillips held a number of senior brand management, marketing and executive positions at Chesebrough-Ponds, Inc., including President and Chief Operating Officer. Upon the acquisition of Chesebrough-Ponds, Inc. by Unilever in 1988, he was named President and CEO of the Chesebrough unit, holding that office until 1992. From 1979 to 1981, Mr. Phillips launched General Entertainment Corp., a unit of Nabisco, and also served as President of the Clairol division of Bristol Myers. In addition, Mr. Phillips is a non-executive director of Cosmolab Inc, Cosmetico LLC, European Soaps LLC, and JWL Partners Acquisition.
Mr. Phillips received a B.A. from Dartmouth College, an M.B.A. from Columbia Graduate School of Business and an M.A. from the Columbia Graduate School of Arts and Sciences.
To contact Bob, bob_sjpartners.com
Marc Bromberg
Operating Partner
Marc enjoyed a 28 year career with Young & Rubicam in roles of increasing complexity and responsibility, including the role of President and COO for Y&R Europe, building revenues by 200%, doubling margins and increasing profits six fold over a five year period, through leadership of a team of strong country managers as well as hands on control of acquisitions in key markets across Europe. Marc developed expertise in problem solving and restructuring in both Y&R's larger agencies in France, Italy, Germany Spain and the UK, as well as smaller operations in Scandinavia, Belgium and Eastern Europe. Also, in the course of Marc's career development at Y&R (starting as an accounting clerk) he was responsible for the acquisition, financial management and general management of some of Y&R's U.S. regional agencies. This included roles in Denver and Houston, where Marc was COO of the Denver Company and CEO of the Houston operation. He has a strong systems and operational background, having had direct responsibility for the design and implementation of a number of accounting and control systems for various entities, as well as for the worldwide design and implementation of backroom consolidations for Y&R.
He spent three years as Worldwide CFO for Burson Marsteller through a key period in its growth, completely restructuring its P&L management from geography to practice areas.
More recently Marc was responsible for Corporate Development at McCann Worldgroup, where he stewarded worldwide capital spending and real estate in addition to M&A activities. He was also acting CFO for Asia Pacific for McCann (Singapore-based) while handling his other Corporate Development responsibilities. During Marc's tenure at McCann he has worked with many of their smaller and midsized companies and joint ventures, and has been responsible for the solution to a significant number of structural and P&L oriented problems confronting these entities.
Ed Merry
Distribution Operating Partner
Ed Merry is a career food service distribution executive. Having spent 8 years as the President of the Sysco Corporation's Philadelphia division , he has extensive general management, sales, and turnaround experience. More recently, Ed has run an independent food distributor as well as a bakery.
From 1995 to 2003 Ed led a turnaround of the Philadelphia division of Sysco. During his tenure, he doubled sales to over $300 million and took the operation from an operating loss to a profit of over $10 million. While overseeing over 500 employees and an operating budget of nearly $300 million, he integrated a merger; restructured the sales organization, generating a 50%+ improvement in retention and 49% increase in average order; reduced operational shrink by over 70%; and reduced accounts receivable write-offs by 49%.
His previous experience includes a turnaround of an $80 million division of Kraft Food Service where he increased sales by 32% in one year and improved profitability by over $1 million. From 1980 to 1989 he worked in sales at Gordon Food Services where he became a manager with full sales and profit responsibility for a group producing $50 million per year. From 1974 to 1980 he was a sales representative at Quality Food Services.
To contact Ed, ed_sjpartners.com
Scott. S. Johnson
Strategy
Financial
EBITDA:
$2 - $10m
(will consider larger)
Revenue:
$10 - $200m
Margins:
Preference for higher margins
Industry
Consumer:
Services:
Transaction Profile
Under-Managed Company
-or-
Traditional Growth Situation
Company Characteristics
v
SJ Partners seeks to acquire consumer and services companies where its sector and operating expertise can add value, generating growth and shareholder value.
Critical to SJ Partners is the perspective, expertise, and skills of its operating partners. SJP operating partners generally have either run an independent company or a Fortune 500 division. These individuals posses great knowledge of their industry and enjoy acting as entrepreneurs in a smaller, middle market setting.
SJP acquires either traditional growing companies or under-managed companies. For traditional growers, SJP can provide strategic insight and help drive a growth by acquisition process where it has a good track record. Its portfolio company Audio Messaging Solutions has grown ten-fold, driven by over ten add-on acquisitions.
SJP likes under-managed situations where it can particularly leverage its operating partners.
Principles
Below are some investment principles that we strive to adhere to. We hope you enjoy them.
Analysis:
Stick to your knitting and know when you don't know.
Avoid the Treadmill. Non recurring revenue businesses are like treadmills, you run a lot but don't get very far. While contractual recurring revenue models are the most explicitly recurring ones, many consumer entities, primarily those selling consumables, have a recurring nature to them too.
Industry Analysis:
Moderate tailwinds are nice but watch out for tailwinds that shear to headwinds. If just betting on the overall industry, why bother with private companies? Isn't it easier to just buy the public stocks? We believe it's best to be in control of one's destiny by controlling and improving internal elements as opposed to needing the industry -- which is out of your control -- to behave correctly.
Management:
PE is the team owner, not the coach and certainly not the player.
The stakeholders, especially management, should think of the investment as theirs. It's critical that management thinks and acts just like owners.
Be passionate but not emotional. Passion drives implementation but investment decisions need to be made without emotion, be particularly careful about escalation of commitment clouding good judgment.
Exit:
Pigs get slaughtered. Strive to exit when all is well and upside continues to exist.
Portfolio Companies
Add-On Acquisitions & Financings
Audio Messaging Solutions (AMS) is one of the nation's top five providers of telephone messaging on hold services and the most acquisitive company in the industry.
Profits are up ten-fold driven by over 10 add-on acquisitions.
Click here for transactions completed for AMS.
European Soaps LLC is the nation's largest wholesaler of soaps made in Europe to independent gift stores.
The Company primarily sells products under its Pré de Provence brand.
House of Sports is an innovative fitness operator with a spa/gym and women's only concept.
SJ Partners exited this investment in 2010.
Media
News
Articles & Interviews
Speaking Engagements
New York, NY July 11, 2011
Audio Messaging Solutions Merges with Impressions on Hold, Dow Jones LBO Wire
Tampa, Florida, July 8, 2011
Tampa Bay Business Journal Article on IOHI Transaction
Audio Messaging Solutions Merges with IOHI; AMS has grown tenfold; $10m Acquisition Line Announced
Oldsmar, Florida, September 30, 2010
Audio Messaging Solutions Completes 2nd 2010 Add-on Acquisition
New York, New York, April 26, 2010
Interview with Scott Johnson, CEO of SJ Partners LLC
Oldsmar, Florida April 5, 2010
Audio Messaging Solutions Completes Tenth Add-On Acquisition
Tampa, Florida March 5, 2010
"On Hold Leads to No Holds Barred Growth:" Tampa Bay Business Journal
New York, New York, January 15, 2010
SJ Partners Advises Oak Investment Partners Portfolio Company Knowledge Networks
London, United Kingdom, October 15, 2009
SJ Partners CEO Scott Johnson Writes on Leveraged Buyouts
Philadelphia, Pennslyvania, May 29, 2009
Philadelphia Business Journal Article on Audio Messaging Solutions
Tampa, Florida, May 26, 2009
Tampa Bay Business Journal Article on Audio Messaging Solutions
Oldsmar, Florida, May 20, 2009
Audio Messaging Solutions Acquires Audiomax and Receives Financing and Acquisition Line
Main Street Capital, Deerpath finance Audio Messaging Solutions
Tampa, Florida, May 3, 2007
On-hold messaging firm raises $6 million with new partner
New York, New York, February 5, 2008
SJ Partners Acquires European Soaps, Ltd.
Oldsmar, Florida, November 1, 2007
Audio Messaging Solutions LLC acquires Audio Marketing Services, Inc.
Oldsmar, Florida, May 2, 2007
Audio Messaging Solutions Completes Seventh Add-On Acquisition; Closes on $6,000,000 Senior Credit Facility
Oldsmar, Florida, September 6, 2006
Audio Messaging Solutions Refinances Debt;
Acquires Spanish language Messaging On Hold Concern; Receives additional SJ Partners Equity Investment
Eckental, Germany, February 30, 2006
House of Sports, an SJ Partners Portfolio Company, Announces Joint Venture and Continued Expansion Success
Sacramento, California. February 10, 2006
Audio Messaging Solutions acquires Performance Audio Marketing
New York, New York, October 15, 2005
Scott Johnson to Address the Small Investor Forum at the Turnaround Management Association's Annual Convention
Clearwater, Florida, May 30, 2005
Audio Messaging Solutions (AMS) Acquires the Ad-Tel Group, LLC
Clearwater, Florida, May 15, 2005
SJ Partners, LLC Acquires Equity Stake in Audio Messaging Solutions (AMS); AMS closes on Subordinated Debt Facility
New York, New York, June 1, 2004
SJ Partners, LLC Partners with former SYSCO Corporation Divisional CEO Ed Merry
Eckental, Germany, July 27, 2004
SJ Partners, LLC Acquires Interest in House of Sports, GMBH
New York, New York, August 31, 2004
Scott Johnson Addresses The Lower Middle Market Buyout Opportunity
"On the Left" Interview with Scott Johnson:
Why You May (or May Not) Want to Consider a (Lower Middle Market) LBO: Perspectives From the Front-Line
Leverage Buyouts: What, Why, When and How
Deal of the Month:
Scott Johnson has spoken extensively on leveraged buyouts and consumer private equity investing. He is available to speak to groups and inquiries should be made to info_sjpartners.com .
Groups Scott has spoken to include:
Info
Form
Telephone
1.212.362.1530
Media Home
TAMPA, Fla., July 8, 2011 -- Joining forces to form one of the top providers in the audio-video marketing industry, SJ Partners portfolio company Audio Messaging Solutions, LLC (AMS) today announced that it has merged with IOHI (Impressions On Hold), creating one of the nation's leading companies in the telephone on-hold messaging business. AMS has grown tenfold in the past six years. AMS has also received a $10 million acquisition line to facilitate further add-on acquisitions.
The new company combines the audio marketing skills of AMS with the expertise of IOHI, which delivers solutions for on-hold messaging, IVR prompts, overhead music and digital signage. AMS has now evolved from primarily producing and recording on-hold phone messages to having the ability to create and deliver multimedia marketing solutions that cover all client touch points.
"We are pleased to combine our talents and strengths, which we expect will continue a record of growth that has defied the economy," said Aaron Kleinhandler, Chief Executive Officer of AMS. Under his leadership, AMS has grown its revenues tenfold in a six-year period, fueled by 11 acquisitions.
Some of the most notable additions to AMS' product line include expanded audio services for phone systems, such as IVR prompts and automated attendant greetings; digital signage solutions for waiting areas, retail spaces and interactive kiosk applications; public space music and location-specific "storecast" messaging; multimedia enhancements for the web; and custom video applications.
The new company, which will announce a new name and brand this fall, combines a high level of personal service with the proficiency that comes with providing multimedia branding for national companies like Pep Boys, LabCorp, Regions Bank, Goodyear, Terminix, Raymond James Financial and Papa John's Pizza. A major competitive advantage is the company's in-house production and service capabilities, which provide outstanding products, turn-key implementation and exceptional value.
Combined, the new company has solutions in approximately 40,000 U.S. office and retail locations, from on-hold phone messaging to programming for in-store audio and digital signage. The merger of the two privately held companies, finalized in late June, creates an organization with 72 employees and approximately $17 million of annual revenues, 80% of which is recurring in nature. Financial terms of the deal were not disclosed.
Current management of IOHI will become significant shareholders of AMS and serve in senior management positions in the combined company. Corporate headquarters are in Tampa, while creative and customer operations remain in Tulsa, Okla. And thanks to support from its lenders, which includes a $10 million acquisition line, AMS is already making plans for future growth.
"Our combined expertise will be a powerful resource for our customers," said Marissa Allen, a co-founder of IOHI. "We have the resources and skills to help a wide range of customers, from local to national in size."
For more information on the new company, please see AMS's website, http://www.onholdbusiness.com , or IOHI's website, http://www.iohi.com .
About The New Company:
Headquartered in Tampa, Fla., with creative and customer operations in Tulsa, Okla., the new company provides audio, graphic and video marketing solutions to help clients deliver effective marketing messaging for customers. The combined company has annual revenues of approximately $17 million and 72 employees, and with audio and/or video marketing solutions in place in approximately 40,000 U.S. locations, it is among the top five providers in the telephone on-hold messaging industry.
For more information:
SJ Partners, LLC
scott_sjpartners.com
212-362-1530
Tampa FL, Austin TX - Two leaders in the audio marketing and on-hold messaging industry have joined forces to offer even more to clients. SJ Partners portfolio company Audio Messaging Solutions, based in Tampa, FL, and Broadcast Marketing & Entertainment (BME), based in Austin, TX, will become one of the largest on-hold marketing companies in the country.
On-hold marketing messages have always been a successful sales and marketing tool because of the low cost and great return on investment. BME Founder and President, Tama Williamson, believed that her clients needed a strong presence and a clear message during these tough times and because of this BME continued to grow as other companies contracted during the recent downturn. It was because of this growth and its strong marketing presence that BME became an ideal partner for AMS.
Audio Messaging Solutions, LLC (AMS) is a national provider of on-hold messaging services with customers such as The United States Postal Service, Regions Bank and Goodyear Tire and Rubber Company. The new merger with Broadcast Marketing and Entertainment, LLC, the 11th acquisition for AMS in 9 years, will grow the company's revenue base by 20%.
"Bringing BME into the AMS network of companies furthers our strategic vision to become the premier provider of on-hold messaging services nationwide," said Aaron Kleinhandler, CEO of AMS. "BME has an excellent reputation with more than 3000 customer locations and operations that spans over a decade. Their creative team is truly excellent and brings a unique style to this important branding service. They have a fervent commitment to customer service and retention, which will coincide very well with the AMS way of doing business. We are proud to bring them on board."
BME will maintain an office in Austin and President Tama Williamson will oversee AMS sales and marketing efforts in Texas and the West. "Branding is an essential part of the marketing mix of any company and the telephone is an important touch point in reinforcing your message. Combining BME's long history of providing reliable, customized on-hold programming with AMS's highly integrated infrastructure enables us to deliver the same high quality product with a more efficient delivery system, and provide even better customer service," said Williamson. "We are pleased to join the AMS network, and are confident we will continue to provide innovative solutions for the marketplace for years to come."
About AMS
Originally founded in 1986, Audio Messaging Solutions, LLC (AMS) is a Tampa Bay, Florida based multimedia firm, specializing in on-hold messaging and custom telephony recordings as well as overhead music services for more than 30,000 locations nationwide. Providing creative consulting, script development, voice talent selection and recording, AMS is a full service audio messaging source, working with clients such as The Goodyear Tire & Rubber Company, Regions Bank, Raymond James Financial, and The United States Postal Service. The company has been recognized by Inc. 5000 as one of the nation's fastest growing privately held companies and is a member of the On-Hold Messaging Association. For more information on AMS please visit http://onholdbusiness.com.
About BME
BME was launched in 2001 as OnHold Exchange Productions (OHEP) under company president Tama Adair-Williamson, who began in the industry in 1995. In 2005, the corporate identity was taken in a new direction given that its audio marketing services now included Radio Campaigns, InStore Messaging/Music, and Auto Attendant Services. This new identity led to the name Broadcast Marketing and Entertainment, LLC (BME). With an average growth rate of 27% over the last five years and an astounding 60% growth rate in 2009, Broadcast Marketing & Entertainment expanded to represent the entire United States including Hawaii, Alaska, Mexico and Canada, as well as Germany and the UK. For more information about BME please visit www.bmeaudio.com or call 866-312-4653.
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Audio Messaging Solutions (AMS) Acquires Sonic River Studios, AMS' Tenth Add-On Acquisition
(Oldsmar, Fla.) - SJ Partners LLC portfolio company Audio Messaging Solutions, LLC (AMS) - a national provider of telephone on-hold messaging services with clients such as The United States Postal Service and Goodyear Tire and Rubber Company - recently acquired Sonic River Studios, a full-service audio production company based in San Diego, California. This is the 10th business acquisition for AMS since 2002. Under this new venture, AMS - which has been recognized by Inc. 5000 as one of the fastest growing privately held companies - will add more than 1,000 locations to its network, making it one of the largest on-hold messaging companies in the nation.
"Bringing Sonic River Studios and its 'sound of success' into the AMS network furthers our strategic vision to become an innovative leader of on-hold messaging services nationwide," said Aaron Kleinhandler, CEO of AMS. "Their best-in-class production services, combined with professional talent and dedication to quality are a perfect match for AMS. We look forward to working with their strong management team and building on their impressive track record."
The Sonic River Studios location in San Diego services clients such as AAA, American Express Travel, Motor Works, Inc. and Pearle Vision as well as innovative programs with www.vacation.com , Travel Leaders and ASTA.
"Sonic River Studios is a pioneer in reliable, customized on-hold programming and service, and this new direction with AMS recognizes the accomplishments and success the company has achieved since launching operations just 15 years ago," said Michael Sakakeeny. "We are pleased to join the AMS network, and are confident we will continue to provide new solutions for the ever-changing marketplace."
For more information about using AMS for on hold marketing, auto attendant or overhead music needs, please call (800) 584-4653.
Originally founded in 1986, Audio Messaging Solutions, LLC (AMS) is a Tampa Bay, Florida-based multimedia firm, specializing in on-hold messaging and custom telephony recordings as well as overhead music services for more than 30,000 locations nationwide. Providing creative consulting, script development, voice talent selection and recording, AMS is a full-service audio messaging source, working with clients such as The Goodyear Tire & Rubber Company, Regions Bank, Raymond James Financial, and The United States Postal Service. The company has been recognized by Inc. 5000 as one of the nation's fastest growing privately held companies and is a member of the On-Hold Messaging Association. For more information on AMS, please visit http://www.onholdbusiness.com .
About Sonic River Studios
