COMPTON, CA – UMA Enterprises, Inc. (“UMA”), a privately-held importer and wholesaler of home décor accessories, has been acquired by Long Point Capital. UMA has a broad product portfolio consisting of over 8,000 SKUs and an extensive category offering, including home décor, wall décor, floral accessories and accent furniture. FocalPoint Partners served as the exclusive financial advisor to UMA. Terms of the transaction were not disclosed.
Having established the critical mass necessary to offer a compelling value proposition to its customers, UMA’s management had growth plans in place to continue its rapid expansion. The shareholders sought an equity partner to sponsor a leveraged recapitalization in order to gain liquidity and fund the growth plan. Given the recent slump in the housing market and its potential impact on décor retailers, as well as the tightening of the credit markets, FocalPoint ran a targeted process to find the right sponsor who not only understood the dynamics of the home décor industry, but could also contribute a significant amount of equity to the transaction.
“Although the credit markets tightened during this transaction, FocalPoint was able to maintain momentum and keep the deal on track,” said Nick Desai, managing director at FocalPoint. “Despite a difficult environment in the deal business, we kept the acquirer focused and successfully closed the transaction within 90 days at a compelling valuation for UMA’s shareholders.”
About Long Point Capital
Long Point Capital is a private investment firm based in Michigan and New York that invests in outstanding businesses where the owner or management team wants to continue to manage the business and profit from the growth of the business after their investment. Long Point Capital manages approximately $315 million of capital and focuses on investments in manufacturing, distribution, or industrial service companies, with revenues between $30 million to $200 million.
FocalPoint is a leading independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), and financial restructurings/distressed M&A. The firm’s primary focus is on middle-market companies with revenues between $20 million and $500 million in the business services, consumer, healthcare, industrial and technology sectors.