Brook redeems 57% of shares held in Affordable during a leveraged recap
BOSTON, MA – Brook Venture Partners (“Brook”) announces today that its portfolio company, Affordable Interior Systems, Inc. (“AIS,” “Company”), a leading national manufacturer of office systems furniture, has completed a leveraged recapitalization resulting in a redemption of 57.5% of the shares held by Brook’s first fund, Brook Venture Fund I, and its co-investors. Simultaneously, a third party investor has completed a minority investment in AIS.
“Since founding AIS 15 years ago, we’ve grown from a regional remanufacturer of office systems to a $51 million per year manufacturer of new office systems,” says Arthur Maxwell, Chairman of AIS. “That growth and success couldn’t have occurred without the outstanding efforts of our management team.”
“Recently, AIS achieved record sales and earnings, though not surprisingly as the Company has always operated profitably,” says Andrew Clapp, Partner, Brook Venture Partners. “Watching AIS grow and prosper confirms that manufacturing in Massachusetts is far from dead.”
“We are pleased to welcome a new minority investor who we’ve known for some time and who we believe will add value at the board level,” says Bruce Platzman, President of AIS. “We’re also pleased that through the recapitalization, the Company will retain the same supportive investor base while providing them with some liquidity.”
Brook assisted AIS structure and execute the recapitalization of the Company. “The alternative of an outright sale was considered, however, management wanted to continue to operate the business and preferred to retain a significant degree of ownership and control,” says Clapp. “Through the recapitalization, AIS achieved this objective while providing the investors with significant liquidity and an attractive return.”
About Affordable Interior Systems, Inc.
Founded in 1990, AIS is a leading manufacturer of office systems and workstations. In 2003 AIS was awarded the prestigious Shingo Prize for Excellence in Manufacturing. It was the only small business among the 14 award recipients that year, and AIS is the only manufacturer of its kind in the furniture industry to receive the Shingo Prize, which is award annually to companies that deliver world-class performance through leading principles and techniques in core manufacturing and business processes. Based in Hudson, MA, the Company occupies more than 200,000 square feet of manufacturing and office space, has 650 dealers and ships to 44 states, and the Caribbean. In 2002, within only weeks of the 9/11 tragedy, AIS was able to ship replacement workstations to the Pentagon which had been seriously damaged by one of the terrorist-controlled planes. For more information, call 800-434-7400 or visit www.ais-inc.com.
About Brook Venture Partners
Brook Venture Partners, currently investing from its second fund, Brook Venture Fund II, provides expansion capital to growth stage companies in the information technology industry (with a focus on data, marketing, publishing, and related areas) and in the medical technology field (devices, software and services.) which are based in the Northeastern United States. Brook Venture Partners is located in Wakefield, Massachusetts. For more information, call 781-295-4000 or visit www.brookventure.com.