Generational Capital Markets Advises Norris Training Systems in Recapitalization by Surge Private Equity LLC

By Capital Markets

01/09/2020

Generational Capital Markets, Member FINRA/SIPC and a leading mergers and acquisitions advisor for privately held businesses, is pleased to announce the recapitalization of its client, Norris Training Systems Inc. (“Norris”), by Surge Private Equity LLC (“Surge”). The transaction closed January 3, 2020 and details were not disclosed.

Operating for 30+ years, Norris provides training hosting services to over 2,500 clients across its five facilities in Houston, Austin, San Antonio, and a newly launched Dallas location. Norris has consistently dominated the Texas market through its exceptional focus on quality customer experience, boasting a 10% top-line CAGR over the past 14 years. The deal closed with financing from Modern Bank, N.A. (“Modern”). Primary sellers David and Linda Norris retained a minority share and will remain on in their current capacity as operators.

Surge is a Dallas-based private equity firm that typically seeks majority investments in growing businesses with $2-7.5MM of EBITDA. Together with its lending partners, Surge provides entrepreneurs with liquidity and investors with higher yields and greater accessibility through lower investment minimums. Surge primarily invests in companies where the seller will remain on board in an ongoing capacity.

With the addition of Norris, Surge now operates five platform investments with three add-on acquisitions. Thiago Farias is being hired to head up portfolio operations – traveling from company to company in an operationally-focused capacity to assist in the growth and development of Surge’s holdings.

Modern is a privately owned, entrepreneurial bank that provides flexible, competitive and reliable senior debt financing solutions to commercial companies. Their experienced bankers specialize in working with lower middle market companies and their owners to provide low-cost cash flow-based financing solutions. Whether expanding a business, acquiring a company, or financing a new product, clients have come to rely on their deep credit market and industry knowledge, and the ability to provide tailored solutions for a variety of credit-related needs.

Chris Heckert, Managing Director Mergers & Acquisitions, with support from Senior Vice President Julio Dominguez, successfully completed the recapitalization. Executive Managing Director Bill Kushnir established the initial relationship with Norris.

"Norris is a great company with fantastic leadership. The opportunities for growth with a partner like Surge are incredibly exciting,” said Heckert.

About Generational Capital, LLC

Generational Capital, LLC, is a Dallas, Texas-based merger and acquisition advisory firm. Generational Capital wholly owns Generational Capital Markets, Inc., Member FINRA/SIPC. More information can be found at www.gencm.com.

Generational Capital and Generational Capital Markets are part of the Generational Group and are affiliated with Generational Equity, LLC, which The M&A Advisor named Investment Banking Firm of the Year in 2016, 2017, and 2018.

GCM's most recent awards include The M&A Advisor's 2019 M&A Deal of the Year Award (50M-75M) and the Corporate/Strategic Deal of the Year (25M-50M).