Case | HBS Case Collection | March 2013 (Revised March 2014)

Brazos Partners and the Tri-Northern Exit

by Matthew Rhodes-Kropf and Nathaniel Burbank

Abstract

Randall Fojtasek, a partner at the Dallas-based Brazos Private Equity Partners, must decide whether now is the time to sell his firm's investment in Tri-Northern Distribution. Brazos, a middle-market leveraged buyout group, created the company two years earlier through the acquisition of two electronic security distribution companies: Tri-Ed Distribution and Northern Video Systems. Twenty-four months after successfully integrating the two companies, Brazos has received two attractive offers for the combined distributor. With the company's management projecting double-digit growth for 2012, however, it is far from clear that now is the optimal time to exit from the firm's third fund.

Keywords: Private Equity Exit; LBO; Leveraged Buyout Transaction; Texas; Distribution; Security; Brazos; Tri-Northern; Tri-Ed; Northern Video; private equity; Private Equity; Partners and Partnerships; Distribution; Leveraged Buyouts; Decision Choices and Conditions; Investment Funds; Financial Services Industry; Distribution Industry; Texas;

Citation:

Rhodes-Kropf, Matthew, and Nathaniel Burbank. "Brazos Partners and the Tri-Northern Exit." Harvard Business School Case 813-157, March 2013. (Revised March 2014.)