Tecum Capital Backs NewGuard's Strategic Acquisition of Allegheny Card Solutions
Deal News | Nov 05, 2024 | Tecum Capital Partners
Tecum Capital Partners, a Pittsburgh-based private investment firm, has announced a strategic investment to support Daboosh Investments and NewGuard Plastic Cards in their acquisition of Allegheny Card Solutions. NewGuard, headquartered in Rocky Mount, Virginia, is a leading manufacturer of various card types, including plastic and technology cards. This acquisition combines NewGuard's advanced manufacturing capabilities with Allegheny's longstanding excellence in paper and plastic card production. The merger is expected to create a highly capable provider of total card solutions, leveraging in-house expertise in production, personalization, and fulfillment. Charles Williams, CEO of NewGuard, expressed enthusiasm for the integration, citing Allegheny's reputable service history as a strong fit with NewGuard's ethos. Tecum's role in supporting this acquisition is seen as a 'back-yard' deal, emphasizing regional collaboration with Pittsburgh and Cleveland-based firms, including Daboosh Investments. Tecum's investment is facilitated through a fund launched in 2021, demonstrating their ongoing commitment to supporting middle-market growth and innovation.
Sectors
- Financial Services
- Manufacturing
- Business Services
Geography
- United States – The article pertains to business activities taking place in the U.S., with Tecum Capital based in Pittsburgh, NewGuard in Virginia, and Allegheny in Pennsylvania.
- Pittsburgh, Pennsylvania – Tecum Capital and other partners like Dollar Bank and Metz Lewis are based in Pittsburgh, highlighting significant local involvement.
Industry
- Financial Services – Tecum Capital Partners is involved in providing investment and financial services as a private equity firm, focusing on funding businesses.
- Manufacturing – The article concerns the manufacturing of plastic and technology cards, involving companies like NewGuard and Allegheny.
- Business Services – The merger creates a comprehensive service offering encompassing card personalization, packaging, and fulfillment, key elements of business services.
Financials
- $305 million – Size of Tecum Capital Partners III, L.P fund launched in 2021.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tecum Capital Partners | Private Equity Firm/Investor | Company | Pittsburgh-based private investment firm facilitating investments in lower middle-market sectors. |
| NewGuard Plastic Cards, LLC | Target Company/Acquirer | Company | One of North America's largest manufacturers of various types of cards, acquiring Allegheny Card Solutions. |
| Daboosh Investments | Private Investor | Company | Cleveland-based partner aiding in the acquisition process alongside NewGuard. |
| Allegheny Card Solutions | Target Company/Seller | Company | Manufacturer of paper and plastic card products in Cranberry Township, Pennsylvania, acquired by NewGuard. |
| Dollar Bank | Senior Financing Provider | Company | Pittsburgh-based bank providing financial support for the transaction. |
| Metz Lewis | Legal Advisor | Company | Pittsburgh-based law firm providing legal services for the investor group. |