BIRMINGHAM, AL, June 19, 2012 – Founders Investment Banking (“Founders”) is pleased to announce that Net Direct Merchants (“NDM”) has received an investment from The Mustang Group, a Boston-based private equity firm that invests in innovative middle market companies throughout North America. Net Direct Merchants, headquartered in Florence, Alabama, is a leading online retailer in the home furnishings industry and ranks among the top 500 Internet retailers in the country. Through its industry-leading websites, NDM has established a strong and defensible position at the top of its growing market segments. The company has earned a spot in the Inc. 5000 each of the last 5 years and joins other successful online retail and consumer companies within The Mustang Group’s portfolio, including the Vermont Teddy Bear Companies and SOG Specialty Knives & Tools.
“Our initial work with Founders was focused on exploring the options available to a privately-owned company of our size and growth profile,” stated Rick Morse, Founder and CEO of NDM. “As I understood more of the potential structures available in the broader market, partnering with a sophisticated, value-added investor seemed very appealing, as it would allow me to continue growing the business while also leveraging additional resources and multi-channel marketing experience. Our objective was to find a partner who shared our vision and could help maximize our growth potential. Founders took the time to understand our personal and corporate goals, and through a thorough and competitive process, we found an ideal partner in The Mustang Group. This partnership brings NDM relationships, resources, and capital to expedite our growth organically and through opportunistic acquisitions. Our team here at NDM looks forward to an exciting future alongside The Mustang Group.”
“We are thrilled to partner with Net Direct Merchants to support its continued growth,” commented Carson Biederman, Managing Partner of The Mustang Group. “NDM is led by an outstanding team, with unmatched customer service, deep partnerships, and a formidable position within its core markets. We see great potential for NDM to continue to target niche product categories that require significant customer education, deep product expertise and inventory breadth to effectively serve the needs of the customer. Along with our co-investors in the transaction, Brook Private Equity Associates, Bush O’Donnell Capital Partners and Pine Street Capital Partners, we look forward to a long and fruitful relationship with NDM.”
The Principals of Founders Investment Banking acted as the exclusive advisor to NDM’s shareholders and worked with Burch & Company, Inc. to structure the transaction. “This investment demonstrates NDM’s accomplishments and expanding influence in the online home furnishings space,” indicated Zane Tarence, Managing Director of Founders’ Internet and Digital Media Practice. “The guidance and value-added support from The Mustang Group will allow Rick and his team to act on several initiatives that leverage more than a decade of experience and a proven, content-driven strategy. It’s always a great pleasure to work with industry-leading companies in the online retail sector, and our team looks forward to watching NDM’s continued growth and success.”
Net Direct Merchants is an online retailer specializing in niche consumer markets and ranks among the top 500 Internet retailers. The company is focused on marketing high quality products to consumers and professionals through its specialized and sophisticated web properties. For more information, please visitwww.NetDirectMerchants.com.
The Mustang Group is a Boston-based private equity firm founded in 2003 that invests in innovative middle market companies throughout North America. The Mustang Group provides a variety of capital and liquidity options to company owners ranging from growth capital to full liquidity. For more information, please visitwww.MustangGroup.com.
Founders Investment Banking is a corporate finance advisory firm that serves a variety of industries in the Deep South as well as Internet and digital media companies across the United States. They facilitate merger and acquisition transactions to achieve outcomes that deliver value, liquidity and growth. For more information on the firm, visit www.foundersib.com, call 205-949-2043, or write Founders Investment Banking, LLC, 2204 Lakeshore Drive, Suite 425, Birmingham, Alabama, 35209. In order to assist Founders Investment Banking with securities related transactions, including this transaction, its Principals are registered investment banking agents of Burch & Company, Inc., member FINRA/SiPC. Burch and Founders are not affiliated entities. The testimonial presented herein does not guarantee future performance or success.