Detroit-based private equity firm Rockbridge Growth Equity today announced the sale of Atlanta-based Purchasing Power, a specialty e-retailer that offers a voluntary benefit to companies and membership organizations across the country. Flexpoint Ford, a private equity firm focused on the financial services and healthcare sectors, acquired the company. Terms of the deal were not disclosed.
Since partnering in 2011, Purchasing Power, which offers an employee-purchasing program for name brand consumer product and services through payroll deductions, has used Rockbridge’s investment to focus on the continued development of its technology platform, optimizing customer experiences, and increasing its product offering from 400 stock keeping units to more than 50,000 today.
Company officials say the initiatives helped to more than double Purchasing Power’s revenue, while triple earnings before interest, tax, depreciation, and amortization during the partnership tripled.
“Purchasing Power’s focus on providing voluntary purchase programs to a wide customer base is unmatched in its industry and the management team has exceeded our expectations,” says Kevin Prokop, managing partner of Rockbridge Growth Equity. “We have enjoyed working with the team and look forward to watching the company continue to grow.”
Lazard Middle Market acted as the lead financial advisor and Jefferies LLC also served as a financial advisor to Purchasing Power. Honigman Miller, a large law firm in downtown Detroit, provided legal counsel.
Boston-based Falcon Investment Advisors partnered with Rockbridge Growth Equity on the initial acquisition of Purchasing Power.
Founded in 2007 by Brian Hermelin, Kevin Prokop, and Quicken Loans and Rock Ventures Founder and Chairman Dan Gilbert, Rockbridge Growth Equity has invested more than $500 million of equity in its portfolio of companies.
Rockbridge owns equity stakes in Northcentral University, Protect America, Connect America, Rapid Advance, Gas Station TV, ABUV Media and Robb Report, and is affiliated with other leading businesses in its target sectors including Quicken Loans, the Cleveland Cavaliers, Title Source, and Fathead.