DETROIT, June 2, 2014 /PRNewswire/ -- Rockbridge Growth Equity, LLC, a Detroit-based private equity firm, today announced that it has signed a purchase agreement to partner with management in acquiring Gas Station TV (GSTV), one of the fastest-growing media networks for reaching on-the-go consumers.
Founded in 2006 and located in Birmingham, Michigan, GSTV is America's No. 1 video network at the pump with 50 million monthly viewers. GSTV engages, influences and drives consumers to action with exclusive content from ESPN, CNN's Headline News and Buzz Today, Bloomberg TV, and AccuWeather at fuel retailers across the country. Its growing viewership continues to solidify video at the pump as an exemplary platform to reach a captivated, real-time audience.
Rockbridge Growth Equity is leading the transaction. Other investors include Falcon Investments and Michigan Growth Capital Partners, co-managed by Grosvenor Capital Management and Beringea. The deal is expected to close in the coming weeks pending regulatory approval.
Rockbridge was founded in 2007 by partners Brian Hermelin, Kevin Prokop and Dan Gilbert, who is also founder and chairman of Rock Ventures LLC and Quicken Loans Inc. The firm invests in companies that specialize in financial and technology services, as well as digital media and consumer-direct marketing.
"Investing in an industry-leading and growing company like GSTV is a natural fit for Rockbridge," said Prokop, who also serves as managing director. "GSTV's management team have proven video at the pump to be a successful media growth category, and GSTV has emerged as the clear leader in the space."
GSTV has grown its gas station network from a five-station pilot in Dallas to more than 2,600 stations in 42 states. The company has increased its revenues 35 percent annually since 2009. In addition, GSTV has tripled its advertiser base and counts numerous Fortune 500 companies in the automotive, retail, consumer packaged goods, and personal finance industries among its clients. The partnership will leverage the Rock Ventures Family of Companies' expertise in technology, marketing services and digital media to further accelerate growth.
"Partnering with Rockbridge empowers us to build upon our leadership position in the industry and bring a GSTV screen to every community in the country," said David Leider, GSTV CEO. "Together with Rockbridge we'll continue to drive strong return on investment for our advertisers and gas station retailers, while providing an exceptional content experience for our viewers." David Leider leads GSTV along with the management team of Stephen Kuehn, CFO and COO, and Mo Alcaptan, Executive Vice President.
"We were happy to help support Rockbridge Growth Equity in their acquisition of Gas Station TV. The transaction represents an important milestone for another rapidly growing Michigan firm," said Beringea senior managing director and co-founder Charles Rothstein. "With its expanding network of locations and advertisers, GSTV presents an exciting investment opportunity."
Barclays PLC served as the exclusive financial advisor to GSTV. RBS Citizens arranged the senior debt facilities in partnership with First Merit and Flagstar Bank.
About Rockbridge Growth Equity, LLC
Rockbridge Growth Equity, LLC is a Detroit, Michigan-based private equity firm that invests in financial and business services, consumer-direct marketing, and sports, media & entertainment industries. Rockbridge owns equity stakes in Triad Retail Media, RapidAdvance, Purchasing Power, Connect America, Account Now, Protect America, Northcentral University and One on One Marketing, and is affiliated with other leading businesses in its target sectors including Quicken Loans, the Cleveland Cavaliers, Title Source and Fathead. For more information on Rockbridge Growth Equity, visit www.rbequity.com.
Gas Station TV (GSTV), a Destination Media, Inc. company, is America's #1 video network at the pump, delivering an industry-leading experience to more than 50 million monthly viewers nationwide. Exclusive content from ESPN, CNN's Headline News and Buzz Today, Bloomberg TV and AccuWeather engages consumers and drives them to action on behalf of advertisers and gas retailers. For more information, please visit GSTV.com or engage with us on Twitter @GasStationTV, Facebook.com/GasStationTV or LinkedIn.com/company/Gas-Station-TV.
About Falcon Investment Advisors
With offices in Boston and New York, Falcon provides innovative capital solutions in amounts of $10 million to $75 million to middle market companies throughout North America. Since its founding in 2000, Falcon has invested in over 50 companies in a broad range of industries to support acquisitions, recapitalizations, buyouts and organic growth. Falcon is currently investing out of Falcon Strategic Partners IV, LP, a $910 million vehicle.
About GCM Grosvenor
GCM Grosvenor is one of the world's largest and most diversified independent alternative asset management firms, with approximately $45 billion in assets under management. The firm offers comprehensive public and private markets solutions, providing clients with a broad suite of investment and advisory choices that span hedge funds, private equity, infrastructure and real estate.
GCM specializes in developing customized investment programs tailored to each client's specific investment goals. Their global client base includes public and private pensions, sovereign wealth entities, banks, corporations, insurance companies, charitable organizations, endowments and high net worth individuals.
Beringea co-manages Michigan Growth Capital Partners with Grosvenor Capital Management and provides equity and/or mezzanine debt to small- and-middle market companies. The Firm, which includes Michigan-based Beringea, LLC and its London, UK office Beringea LLP, invests in portfolio companies operating in a range of sectors, including health care, information technology, advanced manufacturing, media, and specialized consumer products. For more information, visit www.beringea.com.
SOURCE Rockbridge Growth Equity; Gas Station TV