The New Release

The nation's largest owner/operator of DVD rental kiosks strategically located in grocery stores.  TNR was founded in late 2003 and had 215 deployed kiosks as of October 2005.

Engagement Goals

Brookwood Associates advised TNR, including its majority owner, Celerity Partners, on the placement of $10 million in growth financing to support its plan to rollout an additional 2,000 kiosks over the next 24 months.

Engagement Process and Outcomes

Need for Capital – Although TNR had secured contracts with many of the nation’s leading grocery store chains, their inability to meet the overwhelming demand for kiosks was significantly hindering growth. In order for TNR to meet its contractual agreements and maintain favorable relationships with its grocery partners, it was Brookwood’s challenge to run a very thorough yet efficient and extremely fast-paced process.

Thorough, Effective Process – Brookwood drafted a comprehensive information memorandum and management presentation that effectively positioned the business by highlighting the compelling unit economics, emphasizing TNR’s leadership in operations and management, and explaining the sustainability of the DVD rental industry.  Additionally, Brookwood effectively marketed the opportunity to a large potential investor base.

Excellent Results – The expedited process generated numerous interested investors.  In a very short period of time, TNR received the capital infusion needed to rapidly expand the business and grow its leadership position in the grocery channel.  Through a non-control sale of stock, TNR's shareholders received an attractive valuation, a favorable transaction structure and a capital partner with additional resources to support future growth capital needs.