|FOR IMMEDIATE RELEASE
PROSPECT PARTNERS, LLC, AND CAFFERY CAPITAL PARTNERS, LLC ACQUIRE
CoAMS HOLDINGS, INC. WITH MANAGEMENT
Acquisition of Leading Business Process Outsourcing Firm
Paves Way for Future Growth
CHICAGO, Ill.—July 19, 2002 : Together with management, Prospect
Partners, LLC of Chicago, Illinois and Caffery Capital Partners, LLC
of Winnetka, Illinois are proud to announce the acquisition of CoAMS Holdings, Inc. (“CoAMS”) of Chicago, Illinois.
CoAMS is a marketing services company specializing in the outsourced
management, administration, and design of cooperative advertising
and trade promotion programs for leading consumer product manufacturers
and their retailer networks, and to leading technology manufacturers
and their distributor/dealer organizations. For nearly six years,
CoAMS has had an Internet-based application system that has transformed
the company into a leading business solutions provider by delivering
all critical services over the Internet, such as a private client
web site and database operations.
CoAMS is the second largest company in its industry, processing
nearly one million claims annually for clients that include some
of the largest and most respected manufacturers in the United States
across a variety of industries, including: hardware and building
materials, computers and software, telecommunications, pharmaceuticals,
packaged and household goods, appliances and electronics, insurance,
CoAMS’ Founder and President Jerry Shaffer will lead the
transition, aided by Nick James, CoAMS’ Senior Vice President,
Ken Nairne, CoAMS’ Vice President of Sales, and Michael Edwards,
Vice President of Client Services.
“CoAMS is a recognized leader in this industry with potential
to grow through added services and new clients, as well as through
acquisition of complementary businesses,” explains Erik E.
Maurer, a Principal of Prospect Partners. “We are very impressed
with the management and industry expertise of Jerry Shaffer, Ken
Nairne, and Nick James, and are looking forward to working with
the team in growing the business.”
“We identified CoAMS as an ideal candidate for growth,”
explains Tom Caffery of Caffery Capital Partners. “A twenty-year
foundation and strong client base, coupled by its ongoing technological
sophistication and integration of service offerings, has set CoAMS
apart as a leader in its niche industry and as a company well-positioned
for a growing role in the larger business process outsourcing arena.”
Founded in 1982 by twenty-five year advertising industry veteran
Jerry Shaffer, CoAMS’ core business began in processing claims,
and has since expanded into a full-service marketing services firm
providing deduction management, market research, consulting, tearsheet
collection, competitive advertising tracking, retail merchandising,
rebate processing, sales commissions processing, lead tracking and
fulfillment and media buying, as well as the creative and production
services of a full-service advertising agency. Most recently, CoAMS’
backend analysis capabilities have distinguished the company by
providing the information its clients need when developing and reconciling
marketing expenditures, including: industry and channel comparisons,
Return on Investment (ROI)analyses, and forecasting.
“Over the past six years, CoAMS has been delivering backend
information through an Internet-based application system accessible
to clients our on-line,” explains Shaffer. “We’ve
become the industry’s technology leader by transforming the
company from a traditional service bureau to a leading Business
Solutions Provider, and now we’re ready to take it to the
next level. Our team looks forward to working with Prospect and
Tom Caffery to grow the business I started twenty years ago. Our
goal is to be number one in our industry. With Prospect and Tom
Caffery as our partners, we will reach this goal much more quickly.”
For Prospect Partners, the acquisition is a promising new platform.
CoAMS will benefit from Prospect Partners’ successful, long-term
experience in building lower middle market companies. Together with
Caffery Capital Partners, Prospect Partners and CoAMS will seek
to acquire other business process outsourcing or marketing services
Prospect Partners, LLC of Chicago, Illinois is a $105 million private
equity fund focused on management-led leveraged acquisitions of
lower middle market companies with niche strategies.
Caffery Capital Partners, LLC is a private equity firm focused
on acquiring middle market companies in partnership with proven
entrepreneurs and management teams.
For more information on CoAMS, visit www.coams.com.