National sales and marketing firm Crossmark has been acquired by an affiliate of global private equity firm Warburg Pincus. Officials from the Plano, Texas-based Crossmark said its present management owners “will maintain a significant equity position and continue to actively lead the company after the transaction closes,” terms of which were not disclosed.
Crossmark CEO John Thompson said the investment will allow the national sales and marketing firm to achieve its growth objectives faster than it could do on its own. “The Warburg Pincus partnership will provide growth capital that will allow Crossmark to make acquisitions, expand our service offerings, and further enhance our capabilities to deliver even better service to our clients and customers,” Thompson said. “We are pleased to have a partner with a common vision and a track record of backing management with resources, expertise and relationships.”
A leading solution provider for some of the most powerful brands in the world, Crossmark helps its manufacturer partners achieve business objectives across a wide range of retail channels. The company’s expertise in sales, merchandising and in-store marketing spans the grocery, mass, club, drug, dollar, convenience store, consumer electronics and specialty channels and creates value for retailers, from profitable sales growth and improved ROI to in-store brand-equity building and shopper loyalty.
Jim Neary, managing director, Warburg Pincus said the deal will enable the New York-based equity firm “to partner with a management team and company with proven success in providing innovative solutions for its world-class client base. Crossmark operates in an industry where the demand for outsourced services among manufacturers and retailers continues to increase, along with dynamics favorable to the continued growth of in-store marketing services.”
Added Rob Feuer, Warburg Pincus managing director: “Building on Crossmark’s industry leadership – combined with its diverse network of key retailers, talented workforce and unique approach – we believe the company is well positioned for sustained growth and success."
BofA Merrill Lynch acted as exclusive financial advisor to Crossmark; Sawaya Segalas & Co., LLC acted as financial advisor to Warburg Pincus. Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Warburg Pincus.
Crossmark employs more than 34,000 associates worldwide with 47 offices throughout the U.S., Canada, Mexico, Australia and New Zealand.
With more than $30 billion in assets under management, Warburg Pincus has an active portfolio of more than 125 diversified companies and 13 private equity funds that have invested more than $40 billion in over 650 companies in more than 30 countries.