Selected Investments
Marshaling a broad array of analytical skills, financial and operational expertise, and crisis management experience, Synergy Enterprises, its principals and advisors have a strong track record of working with companies to build significant value. Our investment activities primarily focus on the retail and consumer products industries, where we have acquired diverse companies, ranging in size from $100 million to $1 billion in annual revenue.
GPX, Inc.
In April 2004, Synergy acquired GPX, Inc. (2003 sales: $150 million) from Hagemeyer N.V., one of the world's leading trading companies. Headquartered in St. Louis, MO since its founding over 30 years ago, GPX offers one of the most comprehensive consumer audio and video electronic product portfolios available on the market, including home music systems, portable CD and MP3 players, DVD systems, direct view and LCD televisions, AM/FM radios and digital audio devices, all marketed under the GPX® brand, and has recently added the XM® and Alienware® brands. Since the acquisition, Synergy has worked with management to refocus the company’s sales, marketing and product development initiatives, implement productivity improvements and better integrate its U.S. and overseas operations in Hong Kong, Buji and Zhong Shan. As a result of these actions, the company has posted solid sales and profit growth and is continuing to expand its customer base, which now includes the nation's leading mass merchants, specialty retail stores, variety and drug chains, distributors and home shopping networks, as well as direct mail and premium accounts. (www.gpx.com)
The Northern Group
In September 2001, Mr. Nacht was a lead principal in acquiring The Northern Group (estimated FY03 sales: $230 million) from Foot Locker, Inc. (NYSE: Z). In business since 1985, Northern is a leading specialty apparel retailer currently operating in 285 prime locations across Canada under the Northern Reflections, Northern Traditions and Northern Getaway banners. The Company’s 350,000 square-foot owned distribution center also services all of Foot Locker’s Canadian retail stores (Foot Locker and Champs), and operates a foreign purchasing office in Tapei. After the acquisition, the company achieved a highly successful closure of its unprofitable 60+ store menswear chain which operated under the Northern Elements banner, realizing a net gain on liquidation. Due to its achievements in utilizing technology to maximize store-level profitability, Northern Group was one of five companies named in Business Week’s November 2003 “WebSmart 50” issue (along with BMW, Harrah’s, Stop and Shop and Wells Fargo).
The Northern Group is headquartered in Toronto, Ontario. (www.northernreflections.com)
Gemini Industries, Inc.
In June 2000, Mr. Nacht was a lead principal in the acquisition of Gemini Industries (estimated FY03 sales: $200 million) from Merrill Lynch Capital Partners. Headquartered in Clifton, NJ since its founding in 1964, Gemini is a leading retail distributor of electronic accessory products that connect and integrate consumer electronics and communications components/devices. Gemini sells over 1,800 products comprising a full assortment of consumer electronics accessories including headphones, antennas, audio/video cables, surge protectors, telephone accessories and CD media under several prominent brand names including Philips®, Magnavox®, Zenith®, Southwestern Bell® and Wiley Publishing’s “- for Dummies®” brand. Gemini’s primary customers include mass merchant, discount and specialty retailers such as Wal-Mart, Kmart, Target, Sears, Best Buy, Circuit City, Menards, Lowes, TruServ and CVS. Most recently, the enterprise expanded its global reach to the U.K. In September 2004, Gemini was acquired by Royal Philips Electronics (Amsterdam, The Netherlands). (www.gemini-usa.com)
Strauss Discount Auto
In May 1998, Mr. Nacht was a lead principal in the acquisition of Strauss Discount Auto chain from Merrill Lynch Capital Partners (1998 sales: $175 million). Following a strategic bankruptcy filing in June 1998, the company’s operations were significantly improved, including double digit comp-store growth, creating substantial value and permitting the company to be sold to a strategic buyer and emerge from bankruptcy in April 2000.
Kmart Canada
In June 1997, Mr. Nacht was a lead principal in an investor group including Koch Industries (the second largest privately-owned company in the U.S.) and Caisse de Depot et Placement de Quebec (the leading public fund manager in Canada) in the acquisition of Ontario-based Kmart Canada. In 1997, Kmart’s Canadian portfolio of 122 owned and leased stores, shopping centers and distribution centers generated sales of C$1.2 billion. The company was subsequently sold to Hudson’s Bay, generating a gain in excess of $100 million and a 450% return to the investors.
Consolidated Freightways
From February to July 1996, Mr. Nacht led an evaluation of this company’s $2.1 billion unionized motor freight division, including financing, insurance and strategic business planning. In August, 1996, the company completed a highly successful spin-off of this subsidiary to its shareholders.
