Sigma Capital Group, a boutique investment bank with extensive experience in telecom, information technology, real estate and aerospace, has acquired The Riverhorse Investment Company.
“This drives us deeper into the aerospace business,” says Bruce Woodry, chairman and chief executive officer of Sigma Capital. “This also broadens and deepens our capacity.”
Terms of the acquisition were not announced.
Kimberly Keller, president of Riverhorse, will remain with the combined company as vice president. Riverhorse is based in Cleveland.
“They are in some of the same spaces we are, especially real estate and aerospace,” Woodry tells Local Tech Wire. “This also gets us additional regional access with a Midwest presence.”
Sigma offers placement and refinance of credit facilities with an emphasis on transactions between $5 million and $50 million.
Principals at Sigma have been involved in some $3 billion worth of deals, Woodry says. Riverhorse also has a track record of $3 billion in business. Clients include businesses in 16 countries and such big names as Heinz Foods, Korea Airlines and The Limited.
Woodry says he is positioning Sigma Capital for a surge in demand and growth once the economy rebounds.
“Most of the deals being done right now are re-ups,” he says, citing as the recent $62.5 million investment made in NewSouth Communications by recent investors. “There are a lot of cram-downs,” he adds, noting investments made at reduced valuations.
But the deal environment should get better as Wall Street recovers, Woodry believes.
“This is a great time for companies to get ready for when the markets turn,” he explains. “Doing things now gives you a greater probability to succeed.
“If there’s going to be a stampede, you want to be at the front.”
How many employees at Riverhorse will join Sigma Capital has not yet been resolved, he adds. But Woodry says the additions will help Sigma offer expertise in more areas.
“We offer two skill sets to our clients,” Woodry says. “We’re deal guys. Second, we’re senior operational managers. We have partners who have run $300 million to $500 million companies.
“Our ability to add a lot of connectivity (in the financial community) is important, but so is our business judgment. We review business plans in great detail It may be painful for the entrepreneur, but they get a lot better business plan as a result.”
Woodry, who founded two companies and is a former executive at General Electric, was a founding member of the North Carolina Electronics and Information Technology Association. He also has been active in the Council for Entrepreneurial Development and the North Carolina Technological Development Authority.
Sigma Capital: www.sigmacapital.net