Merit Capital Partners
INVESTMENT FOCUS
INVESTMENT CRITERIA
TRANSACTION TYPES
TRANSACTION SPECIALTIES    Divestures
Ruud Lighting, Inc.

   ESOPs
   Fundless Sponsors
   Direct With Management

Ruud Lighting, Inc.
Racine, WI
Ruud Lighting (“Ruud” or the “Company”), a manufacturer and worldwide direct marketer of industrial, commercial and residential lighting fixtures, was founded by Alan Ruud in 1982. Over the next fifteen years under Alan’s management, the Company experienced consistent growth and became one of the industry’s largest fixture providers.

In early 1998, Ruud was sold to a public entity as a key component of a vertical integration in the lighting industry. The majority of synergies anticipated never materialized and in 2001 the public entity decided to sell Ruud in order to generate cash to reinvest in some of its core businesses.

Alan Ruud found himself presented with the opportunity to reacquire the company that he had started nearly 20 years ago. Upon securing a letter of intent to purchase the Company, Alan was introduced to Merit Capital Partners. Alan and management were interested in finding financing that would enable them to maintain ownership as well as all operating control in the Company.

Merit completed all due diligence and legal documentation and was in a position to close the transaction within six weeks of being selected as Alan’s partner. Through Merit’s structuring flexibility, the transaction was completed with a capital structure consisting solely of senior bank debt and Merit’s mezzanine investment, no equity “sponsor” was required.

Merit was able to invest in a company with an excellent historical track record and bright future, while Alan and the management team were able to retain ownership as well as all operating control in the Company. Merit is not involved in the day-to-day operation of the Company, but does support Ruud as a member of the Company’s Board of Directors.