Nexos’ Management Team has diverse investment and operating experience in terms of sector, geographical focus and investment size. The Nexos Team has invested in, started-up, arranged financings for and operated companies in both the United States and Latin America.
Nexos’ private equity experience in consolidations ( or “roll-ups”) and growth capital investments in smaller U.S. companies is directly applicable to the opportunities that currently exist in our target business sectors. The Nexos Principals who founded a prior private equity firm, WestSphere Capital LLC, invested in the middle market and growth companies in the U.S. and Latin America between 1989 and 2004 and generated superior returns to market. In terms of size of companies targeted and industry sectors, this investment experience is directly comparable to the strategies currently employed by Nexos.
CURRENT INVESTMENTS INCLUDE:
Bractlet is an energy solutions company providing electricity monitoring and analytics for efficient energy management through an integrated hardware/software platform. Bractlet offers data acquisition, analytics and software tools to assist energy service providers with sales, reporting, portfolio management and measurement and verification.
The ATLX Channel is a new 24/7 television network focused on training, performance, athletic competition, and the lifestyles of all those out there getting after it and aspiring to live a more fit & athletic lifestyle. ATLX serves everyone from beginners to recreational enthusiasts to weekend warriors to elite athletes and everyone in between.
ATLX will launch its television network in 2014 with an extensive slate of original entertainment & informational programming – – reality, news & talk, biography, documentary, performance cooking, and more. Featuring the compelling story lines of personal and team transformation, incredible challenges overcome by everyday athletes doing extraordinary things, dramatic athletic pursuits, and inspirational triumphs.
ATLX is re-defining what it means to be an athlete, working across all sports and recreational activities to deliver original content for those at all levels of athletic ability. With behind-the-scenes access to elite athletes, top coaches and the best sports docs and experts from all over, ATLX will spotlight sport-specific training, strength & conditioning, the latest in the world of sports medicine, injury prevention, the science of performance, coaching motivation and methods at all levels, power cooking & nutrition, the hottest gear, feature events, fitness modeling, celebrity competitions and more.
Nexos Resource Partners, LLC is an efficiency and energy/water resource project developer and financier. The Company focuses on the geographic regions of the Northeast, Texas, the Southwest and the West Coast with industry specialties in the distribution, supermarket, commercial office buildings and energy/water resource project finance sectors.
PRIOR INVESTMENT AND OPERATING EXPERIENCE INCLUDE:
Nexos Capital Partners acquired a minority interest in a Texas based retailer Super S markets in 2009. Super S stores were located in isolated, rural niche markets with high Latino demographics, where it could have become the dominant food retailer. Nexos sold its interest in the stores in 2011.
Mr. Justo Frias was COO of Grupo Gigante‘s $3 billion revenue retail operation, which consisted of 110 supermarkets with $2 billion of revenues, and Staples locations with $1 billion of revenue.Mr. Frias successfully operated the stores, improving expenses and profitability for the family owner and CEO.He later moved to California where he founded Gigante U.S.A. Planned growth of the U.S. operation was curtailed when resources were redirected back to Mexico to meet Walmart’s entry into the market.Gigante was sold in 2007 for approximately $1.25 billion (USD), which represented a substantial gain for Grupo Gigante’s family owners.
Formatos Eficientes S.A. (“Eki” or the “Company”) is one of the leading operators of soft discount mini-supermarkets located throughout Buenos Aires, Argentina.This concept, which has been highly successful in Europe, is based on offering competitive pricing and convenience in stores of less than 200 square meters located in densely populated residential neighborhoods.The pricing, store hours and product variety (with less SKU’s) is comparable to large format food retailers, but was far superior to the 30,000 “mom and pop” neighborhood grocery stores.Based on experiences in Spain and Germany, the Eki store concept had the potential to account for more than 10% of the $15 billion food retail industry in the Buenos Aires metropolitan area.As a result of our investment, Eki grew from 22 stores at the time of the initial investment, to approximately 100 stores at the end of 2000. Its annualized revenues grew from $12 million to $110 million during that time.
Medical Laboratory Network, Inc – Ventura, CA
The Mayo Foundation purchased MLNs predecessor in 1983. Mayo’s investment proved to be profitable, but not exceptional, and subsequent growth of the Ventura, California-based laboratory met resistance from managers within the Mayo Foundation, who wanted the Foundation to focus on their core business of clinics and reference testing. The MLN business was an attractive investment for the Management Team because of the laboratory’s dominant share of several secondary markets and its reputation for quality. Furthermore, the California clinical laboratory market had over 200 small clinical laboratories that could be acquired at favorable prices in what was a consolidating industry. After a period of consolidation within the region between Los Angeles and San Francisco, the company was sold to a large publicly traded West Coast laboratory.
Quimica Estrella S.A. – Buenos Aires, Argentina
Quimica Estrella S.A., now part of Molinos Río de la Plata S.A, is a food distribution company that produces and distributes cotton hygienic products and consumer food products. The Company holds significant Argentine market share in absorbent cotton; instant coffee; powdered chocolate; soluble malt; mate and Italian Christmas cakes. The Nexos predecessor fund sponsor investment was made alongside of a direct investment by Credit Suisse First Boston.
Tendtudo Materiais Para Construção Ltda. – São Paulo, Brazil
The Tend Tudo retail home improvement chain was started in 1987 by Alcoa Aluminio S.A. (a Brazilian subsidiary of Alcoa, Inc.). The Company operates stores under the “Tend Tudo” trade name in the Brazilian cities of Fortaleza, Recife, Salvador, Brasilia, Londrina, Goiania, Campo Grande, São José do Rio Preto, Sorocaba, and Ribeirão Preto, where it enjoys high brand recognition.
Drogueria Monroe S.A. – Buenos Aires, Argentina
Drogueria Monroe (“DM” and now Moroe Americana) was the second largest pharmaceutical distributor in Argentina at the time of investment. The industry was highly fragmented and through consolidation with other pharmaceutical distributors, DM grew to become the largest distributor in Argentina controlling almost one-third of the market. The Nexos predecessor sponsor fund investment was made alongside and investment by Bank of America’s direct investment group.
National Security Service, Inc. (“NSS”) – Automatic Detection Systems, Inc. (“ADSI”) – Birmingham, Alabama and the Southeast
Security: Alarm Monitoring. The Nexos predecessor fund sponsor began to pursue acquisitions in the residential and commercial alarm monitoring industry. The industry was characterized by high fragmentation (13,000 companies) and relatively high growth (projected 8%), as well as very stable, high margin revenue streams from monitoring contracts. ADSI acquired the stock of National Security Consultants, Inc. (“NSC”), a Montgomery, Alabama based Security Company. A year later, the Nexos predecessor sponsor closed the acquisition of National Security Service, Inc. (“NSS”), the largest independent alarm company in North Carolina, and the combined entity ranked among the top 20 security monitoring companies in the United States. Shortly thereafter, the investment was exited through sale to Entergy, a large Southeast based utility company. Entergy later sold this company to ADT.