HGGC is a private equity firm that has a portfolio of companies that they would like to make better. The company has recently merged with Mi9 because they want to have a retail arm that can make their companies easier to shop with. Take a look at what you can be done with these companies working together, and learn how this will make My Web Grocer that much better.
- What Does HGGC Do?
HGGC does a lot of work in the private equity world as they try to give their customers a better return on their investment. They also use their cache to ensure that they can get their companies the best possible services and support. This is why they have merged with Mi9. The company wants to make sure that they can make their retail units stronger.
- What Does The Acquisition Mean?
HGGC has hired people to add to their staff so that they can begin to expand MWG and make it a much better place for people to shop. By doing this, the company has proven that they are very interested in what the customer needs. Because of this, they hope to have much higher sales in their first year. Their commitment to retail expansion means that they can also expand and buy other companies that could use Mi9’s services.
- How Does This Change Online Shopping?
Online shopping shifts every year with the advent of new technology and ideas. Mi9 will have more resources and time to figure out how they can make MWG better, and this very same company will have more people on their staff. This is a very powerful thing because it means that the company will be able to release new products and services faster.
There are a number of things that will happen when MWG is run by Mi9 and the HGGC team together. This company is going to make it easier for people to buy their groceries online, and this is a precursor to the company reaching out to other brands that will need help growing.
In the year 2007, a group of partners led by Robert Gay and Jon Huntsman came together. They established what is now one of the leading private equity firms in the globe. At the time, Gay was a well-connected managing director at Bain Capital, and Huntsman was the CEO-cum-founder of a manufacturing company named after him. Bringing together their know-how, they founded H&G Capital Partners.
The firm kicked off on a high note. The name, however, became an issue due to its similarity with that of another firm called HIG Capital. Following the filling of a lawsuit by HIG Capital, H&G Capital Partners had to change its title to Huntsman and Gay Global Capital in honor of its two senior most founding partners. This title was however short-lived as in the year 2013, following the departure of both of these partners; the firm adopted the title HGGC.
Its growth and operation
Over the years, the company has managed to acquire 4.3 billion dollars’ worth of cumulative capital. Additionally, the firm boasts of seventeen billion dollars’ worth of platform investments, acquisitions, liquidity and recapitalization endeavors, recapitalization transactions and leveraged buyouts.
HGGC is mainly invested in mid-cap and middle market companies that are both in the public and private sector. Furthermore, it has a keen interest in companies that are in the process of adapting to new technology. Such companies like car dealerships, insurance companies, and grocery stores are on a path to great expansion which will lead to more income. Additionally, HGGC invests in a number of industries including technology, healthcare, infrastructure, manufacturing, finance, chemicals, software and information service sectors among others.
A crucial requirement that HGGC has when it comes to companies it invests in is that they must have a hundred up to five hundred million dollars’ worth of enterprise value, annual revenue ranging between a hundred million and a billion dollars and an EBITDA of fifteen million up to seventy-five million dollars. The reason is that HGGC places investments of up to a hundred and twenty-five million dollars and not less than twenty-five million; hence the companies must match up to these amounts
HGGC is based in Palo Alto, CA and is the leader of middle-market private equity firms with continuously growing capital commitments of over $4.3 billion. They focus on the growth of capital investments as well as leveraged buyout transactions with other middle-market corporations. Their professional team has years of operational and collective deal experience. With this experience, their prestigious “Advantaged Investing” model was developed, and is unique in that the corporation has the ability to obtain and source businesses which can be scaled at appealing legions through partnerships with management teams, sponsors, and founders that continue to reinvest which makes for a strong interest partnership. It is important to the firm that all interests are aligned, so that when they succeed, their partners also succeed.
One example of their partnerships is RPX. HGGC fully acquired RPX, a company which provides patent risk management services and has invested nearly $2.5 billion for the purchase of over 23,000 patents since its launch in 2008. The sale to HGGC was announced by the corporation in May of 2018 for $10.50 cash value per share, which calculates out to around $555 million.
Investing in their partners is also key to their success. Leading global enterprise of Configure Price Quote solutions, FPX, made the announcement in September of 2017 that their funding partner HGGC, the number one private equity firm of the middle-market, invested an undisclosed amount in their corporation. FPX was acquired by HGGC in April of 2016; the additional sources of capital funding provided assures that FPX can continue its global expansion, improve strategic partnerships and communications, as well as increasing product development.
Throughout the course of its history, the firm has completed over 60 platform investments, liquidity events, add-on acquisitions, and re-capitalizations valued at over $15 billion. The private equity corporation has backed investments as well as exits in such well-known companies as Selligent, Hybris, and MyWebGrocer.