News

March 3, 2010

Norwest Mezzanine Partners Invests $17.5 Million in Diversified Maintenance Systems

Transaction Marks First Investment Partnership for NMP and Frontenac Company

Minneapolis, Minnesota – Norwest Mezzanine Partners (NMP), a leading middle market mezzanine investor, today announced that it has invested $17.5 million in subordinated debt and equity to support Frontenac Company’s acquisition ofDiversified Maintenance Systems, LLC (“Diversified”), a leading provider of outsourced janitorial and facility maintenance services to retail stores and distribution centers.

Founded in 1996 and headquartered in Tampa, Florida, Diversified provides a variety of janitorial services, including janitorial housekeeping, floor care, external building maintenance, and specialized emergency maintenance to retail, commercial/industrial, educational and healthcare facilities at thousands of locations across the United States, Puerto Rico and Canada.

Investing in support of transactions initiated by private equity firms has been the focus of NMP’s investment strategy since its inception nearly 10 years ago. “We are excited to have the opportunity to invest in Diversified and to be in a position to support its continued growth.  Frontenac is a highly regarded, long-standing institution and we are very pleased to establish this new relationship” stated Carter Balfour, NMP Partner.

“Frontenac and the Diversified management team are thrilled to have NMP as our partner in this investment, and we look forward to continuing our successful relationship,” stated Andrew Seger, Frontenac Vice President.

Founded in 1971, Frontenac Company is a Chicago-based private investment firm currently investing capital from its ninth equity fund. For more information, please visit www.frontenac.com.

Norwest Equity Partners (NEP) is a leading middle market investment focused on partnering with business owners and building companies into industry leaders. With a reputation for quality investments and exceptional financial returns since 1961, NEP manages nearly $5 billion of capital through a series of equity and mezzanine funds. Offering creative and flexible transaction solutions through management buyouts, recapitalizations and growth financings, NEP seeks $30-$150 million equity investment opportunities for growing and profitable companies within the agriculture, applied technology, business services, consumer products and services, distribution, healthcare and industrial industry sectors. NEP is headquartered in Minneapolis, Minnesota; please visit nep.com for more information.