Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
The direct marketer plans to use the capital to fund growth and pay off debt.
FirstStreet for Boomers & Beyond Inc. has raised $5.7 million in new capital, including $4.2 million through a group of investors led by Jefferson Capital Partners Ltd.
The direct marketer of housewares and daily living accessories for older consumers also received a $1.5 million line of credit from First Tennessee Bank. The proceeds of both new sources of investment money will be used to retire existing debt and fund continuing expansion into its target marketplace.
“The fresh capital allows us to accomplish a number of important objectives including the repayment and refinancing of higher-cost debt on our balance sheet and the creation of incremental liquidity that will allow us to fund the continuing expansion of our product line and our distribution channels,” says Mark R. Gordon, FirstStreet’s president and CEO. “We are in the process of closing the best year in FirstStreet’s history and we look forward to continued growth in 2011.”
FirstStreet declined to disclose 2010 sales.
FirstStreet, No. 477 in the Internet Retailer Top 500 Guide, sells through catalogs, direct mail and on the Internet at FirstStreetOnline.com. The company notes it has more than 2.5 million customers and its web site attracts more than 1.5 million visitors annually.
Jefferson Capital Partners Ltd. is a private equity firm located in Richmond, VA.