Business Description:
Pennysaver, LLC currently owns the majority of the stock in Pennysaver, Inc.

Pennysaver, Inc., based in Hanover, MD, is a direct mail shopper with weekly circulation of approximately 1 million. It delivers classified ads, coupons, and other advertisements through 65 books to the mailboxes of consumers in 165 Maryland zip codes. According to Media Audit, Pennysaver, Inc. has the fourth highest readership rate or any shopper in the U.S.

Transaction Background:
Pennysaver Group, Inc. (“PGI”) was founded in 1979 and was purchased by SV Investment Partners in 2006 with financing from GE Capital and M&T Bank. PGI subsequently defaulted on its debt and Pennysaver, Inc. was able to purchase the assets of PGI in a UCC Article IX asset sale.

Investment Thesis:
Pennysaver has spent over 30 years developing a strong and well-read brand. Additionally, advertising spend is at a cyclical low-point and should come back as the economy returns. By focusing on improving selling efforts and driving printing efficiency through outsourcing, Pennysaver, Inc. will be well positioned for growth and profitability as advertising spending returns.