The Dallas-based company’s management team will keep a “significant” equity position and continue to lead the business following Warburg’s investment.
Crossmark, which was founded in 1905, provides sales, marketing and merchandising services to manufacturers and retailers.
Company CEO John Thompson said the investment would allow Crossmark to achieve its growth objectives faster than it could on its own.
Warburg managing director Jim Neary, said, “Crossmark operates in an industry where the demand for outsourced services among manufacturers and retailers continues to increase, along with dynamics favorable to the continued growth of in-store marketing services.”
Managing director Rob Feuer added, “Building on Crossmark’s industry leadership – combined with its diverse network of key retailers, talented workforce and unique approach – we believe the company is well positioned for sustained growth and success.”
Bank of America Merrill Lynch acted as the financial advisor to Crossmark, Sawaya Segalas & Co acted as Warburg’s financial advisor to Warburg, while Cleary Gottlieb Steen & Hamilton served as legal advisor.
Warburg is currently attempting to raise a $12bn-targeting buyout fund, which was understood to have beaten the $5bn mark in May.
The firm has reportedly negotiated a tough fundraising environment by offering investors a 1.4 per cent management fee while taking 20 per cent carried interest.
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