Prophet Equity Announces Sale of CID Resources, Inc.
Successful partnership with industry veterans yields 5x invested capital
May 3, 2018 -Southlake, TX – Prophet Equity (“Prophet”), a Southlake, TX-based private equity firm, completed the sale of its portfolio company, CID Resources, Inc. (“CID” or the “Company”) to Superior Uniform Group, Inc. (NASDAQ: SGC) for approximately $88.4 million in consideration, inclusive of approximately 150,000 shares of Superior common stock.
In June 2010, Prophet partnered with industry executive, H.P. Park, to establish CID, an industry-leading designer and provider of medical uniforms to specialty uniform stores and online medical uniform retailers. Since its founding, CID has built its WonderWink® brand into one of the leading medical uniform brands. CID also has licensed and built well-known brands Carhartt® and Vera Bradley® into successful medical uniform brands by creating innovative products targeting specific market segments.
Charles Collie, Managing Director at Prophet Equity commented, “We have thoroughly enjoyed our partnership with the CID team over the past eight years. CID’s focused product strategy, elite global sourcing, and customer-centric approach resulted in impressive annual sales and EBITDA growth rates of 71% and 60%, respectively. CID’s emergence as an industry leader is a reflection of the dedication of CID’s President, H.P. Park, and his outstanding executive team.”
“When we joined forces with Prophet Equity in 2010, we were convinced that the partnership would generate unique results, and we were right,” said H.P. Park. “Prophet Equity consistently provided the right level of strategic direction and support our team needed as we grew our business. I’m proud of what we and the Prophet Equity team have built, and I’m excited about our next phase of growth.”
“CID is another special situation investment success story for Prophet Equity,” added Ross Gatlin, Prophet’s CEO and Managing Partner. “Working collaboratively with the CID team to deploy our Holistic Value Creation™ (HVC™) process, the combined teams drove extraordinary operational and financial results while generating a uniquely positive outcome for our investors and all stakeholders. We thank H.P. and his team for their unwavering commitment and dedication to maximizing value, and we wish them all the very best.”
Piper Jaffray served as financial advisor and Jackson Walker as legal counsel to CID and Prophet Equity.
ABOUT PROPHET EQUITY
Prophet Equity is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.
Over the last nineteen years, Prophet Equity’s Principals have invested in and managed over $2.5 billion of value creation across entities with over $6 billion in revenue. Our control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at +1.817.898.1500.
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