How Reginald Lewis Changed Business Forever

Adds Frank Savage, who at the time ran Equico Capital Corp., one of the most prominent MESBICs, and hired Lewis’s firm to handle legal work, “He became well-known in the MESBIC community as the go-to lawyer because of his knowledge of securities law and investments. It was obvious he was going to go far.”

Lewis began to master the art of the deal as he expanded his network. “Reggie never passed up an opportunity to build and develop relationships,” says JoAnn Price, co-founder of Fairview Capital Partners Inc. (No. 3 on the BE Private Equity firms list with $3.3 billion in capital under management). “He was constantly in the mix, with his ear to the ground. He had technical skills and he was comfortable in the boardroom, so he had both qualitative and quantitative attributes in his toolkit.”

The ambitious entrepreneur eventually wanted to use his toolkit to capture bigger game. In a conversation over dinner with his old friend, Cleveland Christophe, a Citibank executive at the time, Lewis said he wanted to transition from doing other people’s deals to structuring his own. “Although I’m doing well with the law firm, I get paid by the hour and I’m still tied to the clock,” Lewis told Christophe. “I want to do something that makes me money in my sleep.”

Searching for the Big Deal
Lewis started pursuing opportunities to acquire existing companies. He made a run at Parks Sausage Co., a legendary BE 100s company in his hometown. But initial talks stalled. He then bought a Caribbean-based radio station that ended up a financial failure. Most disappointing was his attempt to purchase Almet, a manufacturer of beach umbrellas and chairs. After an 18-month chase, the deal fell through at the last minute.

Then, in 1983, Lewis got word that the McCall Pattern Co. was for sale. Its specialization, home sewing patterns, was viewed as a declining industry. Lewis, however, thought the company had enormous potential even if he didn’t have personal experience with the product. “Reg didn’t sew,” his wife, Loida, recalls with a laugh. “He was attracted to it because it was in play. It was a pure business decision.”

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