Daily News: December 18, 2017

Cerberus Supports ModusLink $476MM Acquisition of IWCO Direct

ModusLink Global Solutions completed the acquisition of privately-held IWCO Direct, a provider of data-driven direct marketing solutions, for $476 million in cash.

Warren Lichtenstein, executive chairman of ModusLink, said, “We have been looking to acquire a profitable business with attractive operations and financials, and with a strong management team in order to leverage our approximately $2.1 billion in net operating loss carryforwards (NOLs) and cash. We found a great fit in IWCO Direct. We essentially double the size of our company and add significant earnings and free cash flow.”

With this transaction completed, IWCO Direct becomes a wholly-owned subsidiary of ModusLink Global Solutions. IWCO Direct will continue to be run by Jim Andersen, who has been CEO since 1999. ModusLink, the company’s digital and physical supply chain business, will continue to be run by Henderson.

Funding for the acquisition of IWCO Direct was provided through cash and debt financing provided by Cerberus Business Finance as the administrative agent and collateral agent and consists of a term loan in the principal amount of $393 million and a borrowing in the amount of up to $25 million under a revolving credit facility.

ModusLink’s advisors on the transactions included the law firms of Ice Miller, Littman Krooks and Olshan Frome Wolosky while Stout Advisory served as financial advisor.