Investment advisory firm Littlejohn & Co. LLC has purchased Tidel, a manufacturer of cash management systems and smart safes for the retail industry, for an undisclosed amount. The buyer

Tidel makes storages machines for clients to manage their daily cash flow operations, reduce the risk of theft, and increase profits. The Carrolton, Texas-based target was founded in 1998 to help quick-service businesses automate and streamline cash handling. Tidel’s products are used by convenience stores, grocers, money service businesses, healthcare providers, and general retailers.

“Smart safes offer compelling economics for all participants in the cash management ecosystem, including retailers, armored carriers and financial institutions,” states Littlejohn managing director Tony Miranda. “As such, the industry is poised for rapid growth in adoption.”

Littlejohn is an investment advisory firm that backs middle-market companies seeking a change in capital structure, strategy, operations or growth. Gibson, Dunn & Crutcher, LLP provided legal counsel to Littlejohn on the Tidel deal. The Greenwich, Connecticut-based firm is currently investing from Littlejohn Fund V, the firm's fifth fund with nearly $2 billion in capital commitments. The firm recently acquired patio furniture manufacturer Brown Jordan International in January 2017, and raised a $406 million collateralized loan obligation fund (CLO), called Wellfleet CLO 2016-2 in November 2016. In 2015, Littlejohn launched a credit management business, called Wellfleet Capital Partners, and now has more than $4 billion in assets under management.

The Tidel deal comes as many financial technology commentators predict that new technologies will lead to the downfall of cash. The theory isn't far fetched, even for plastic cards, with the emergence of Apple Pay, Google Wallet, Samsung Pay and PayPal.

Tidel

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Kamaron Leach

Kamaron Leach

Kamaron Leach joined SourceMedia in 2016, serving as Reporter of Mergers & Acquisitions. Kamaron writes the Finance Finesse column about investment banking and lending, and also covers the media and entertainment sector.