Lincolnshire spin-out closes first two deals

Corinthian Capital’s partners have settled their lawsuit with Lincolnshire head TJ Maloney and made their first two acquisitions.

Corinthian Capital, founded last year after an acrimonious split between Lincolnshire Management’s founders and its current president, TJ Maloney, has made its first two acquisitions.

Earlier this month the firm closed on a deal to acquire Disc Makers, producer and marketer of CDs and DVDs, from the family of the company’s founder. The deal is valued at around $50 million. The company offers replication, graphic design, packaging, and marketing solutions to independent artists and small organizations looking to produce CDs or DVDs in mass quantities. Founded in 1946 as the Ballen Record Company, their core product today is a package of 1,000 CDs for $1,000, which includes production, design and packaging. The company has five sales offices around the country.

“These are artists who might play at Joe’s Smokey Bar on a Friday night, and the girlfriend is selling CDs for $10 at the front door,” said Corinthian principal Peter Van Raalte. “The way they distribute and monetise their passion is by selling a CD.”

Corinthian made their second acquisition May 16 when the firm acquired wireless tower company Sabre Communications Corp. from its founder and majority shareholder, S. Bailey Aalfs, for around $60 million. The Sioux City, Iowa-based company manufactures metal communications towers and generates about $120 million in annual sales.

Van Raalte also said today that the lawsuit between Corinthian’s founders and the president of Lincolnshire has settled out of court. Corinthian principal Steven Kumble, who had been the last original founder to occupy a Lincolnshire office, left the firm last year to form Corinthian and brought longtime Lincolnshire executives Van Raalte and Kenneth Clay with him. After departing the three filed a lawsuit against Lincolnshire’s current president, TJ Maloney, claiming Maloney breached a transition agreement when he assumed leadership of the firm and created a hostile work environment for Kumble and the two other Lincolnshire founders. Maloney then filed a countersuit.

“We are pleased we’ve been able to resolve our past differences,” said Van Raalte. “This dispute was characterised by harsh words, but both parties have agreed to settle this whole dispute and move forward with their business.”