Target Information

Hammond, Kennedy, Whitney & Company, Inc. (HKW) has successfully acquired Allied Vision Group, Inc. (Allied) as of August 28, 2017. Allied, headquartered in Fort Lauderdale, Florida, is a prominent distributor specializing in contact lenses, optical products, and pet medication. The company has demonstrated robust growth, driven by its commitment to providing differentiated services and outstanding customer support.

Founded in 1989, Allied has built a diverse customer base that includes healthcare practitioners and retailers, positioning itself as a leader in its sector. With a strong focus on value-added services, Allied continues to enhance its market presence and customer loyalty through reliable and innovative solutions.

Industry Overview

The optical and pet medication industries in the United States are witnessing significant advancements and growth trends. Various demographic shifts, coupled with increasing consumer awareness about eye care and the health of pets, have fueled demand for optical products and medication. The emphasis on preventive healthcare has positively impacted the sales of quality products such as contact lenses and specialized pet medications.

Additionally, the industry's resilience through economic downturns has attracted numerous investors to explore opportunities in this sector. This has led to innovation, as companies aim to introduce new product offerings and improve customer experiences. The integration of technology within these industries further enhances efficiency and service delivery, marking a competitive edge over traditional practices.

In Florida, where Allied is based, the market dynamics reflect statewide healthcare initiatives that support accessibility and quality of care. The growing population and a trend toward higher spending on health and wellness are favorable conditions that current and prospective companies in this field can leverage.

As consumer preferences evolve, there is a greater emphasis on personalized services from distributors like Allied, expanding their potential market share beyond traditional boundaries. These trends underscore the promising growth outlook for the optical and pet medication sectors.

The Rationale Behind the Deal

HKW is drawn to the acquisition of Allied due to its robust growth trajectory and the experience of its management team. The firm views Allied's focus on value-added services as integral to maintaining its competitive advantage in a dynamic market. This strategic acquisition aligns with HKW's investment philosophy, emphasizing the potential for growth in a stable and recession-resistant industry.

Moreover, HKW believes that Allied's strong relationships with healthcare practitioners and retailers, along with its established market position, present numerous opportunities for further expansion and innovation. The firm is committed to enhancing these capabilities post-acquisition.

Investor Information

HKW, founded in 1903 and headquartered in Indianapolis, Indiana, is a well-regarded private equity firm that specializes in the lower middle-market segment. With extensive experience in sponsoring platform transactions, HKW has completed 54 platform investments and 61 add-on acquisitions since 1982. The firm prides itself on its industry knowledge, strategic vision, and reputation for fostering long-term partnerships.

Passionate about investing in businesses with quality management teams and growth potential, HKW has developed a portfolio that spans various sectors. The firm's focus on building sustainable value positions it as a trustworthy partner for companies aiming to scale and innovate in competitive markets.

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The acquisition of Allied by HKW appears to be a strategically sound investment. Allied’s established market position, combined with its experienced management team, bodes well for future growth. The optical and pet medication industries are not only resilient but are also evolving, presenting numerous avenues for expansion that HKW can exploit.

Moreover, the positive feedback from Allied’s management about HKW’s reputation and track record suggests a strong cultural fit, which is often crucial for successful integration post-acquisition. HKW's commitment to supporting Allied's growth aligns with the investor's history of nurturing portfolio companies.

Investors typically seek opportunities in sectors that promise stability and growth, which is precisely what Allied offers. The anticipated collaboration between HKW and Allied holds the potential for enhanced services and product innovation, allowing Allied to capitalize on emerging market trends.

In conclusion, while every investment carries inherent risks, the foundational qualities of Allied combined with HKW's expertise suggest that this acquisition is likely to yield positive results in the coming years.

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