KLH Capital Completes Recapitalization of BMI Merchandise

KLH Capital is pleased to announce it has partnered with the founders of Bonita Marie International (“BMI Merchandise” or the “Company”) to complete a recapitalization of the company.  Based in Lakewood, New Jersey, BMI Merchandise is a leading distributor of merchandise used in redemption centers, direct-pay games, tickets or points-to-prizes games, and prize hubs located in family entertainment centers (“FEC”), amusement arcades, bowling centers, restaurants, cruise ships, movie theaters, theme parks, skating centers and sports complexes.  BMI Merchandise’s proprietary information technology infrastructure allows customers to monitor and manage store inventory, automate merchandise restocking, and collect data required for ongoing merchandising decisions.

BMI Merchandise also developed a patented “Ticket to Prize” redemption technology, which is a method of attaching a ticket to a prize so it can be correctly dispensed from automated redemption machines at customer locations. “The Company’s innovations have set it apart as a leading distributor within the redemption games sector of the FEC industry,” explained James Darnell, Partner at KLH Capital.   “Management has done an impressive job establishing a successful business that is highly respected within its industry, and we are excited to support BMI Merchandise as partners in its next stage of development.”

“There are numerous growth opportunities for our company, and I am confident we are better positioned to capitalize on them with an experienced partner by our side,” said owner, David Katz.  “KLH Capital shares our vision and passion for our business and has the experience to guide us as we expand.”  KLH Capital financed the transaction in partnership with Plexus Capital and HSBC.


KLH Capital is a fully capitalized SBIC private equity fund managing $300 million across three funds with a focus on value added distribution, specialty service and niche manufacturing companies based in the U.S. with $10 to $100 million of revenue and at least $2 million of EBITDA.  During our nearly 30-year business tenure, we have completed more than 130 transactions giving us the experience and background to successfully nurture growing companies and create value for owners.

For more information about this transaction, please contact James Darnell (jdarnell@klhcapital.com).