UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
THE UNION CORPORATION
(NAME OF ISSUER)
COMMON STOCK, $0.50 PAR VALUE PER SHARE
(TITLE OF CLASS OF SECURITIES)
906072103
(CUSIP NUMBER)
DAVID E. KING WITH COPY TO:
MCCOWN DE LEEUW & CO. FRANK L. SCHIFF, ESQ.
101 EAST 52ND STREET WHITE & CASE
NEW YORK, NY 10022 1155 AVENUE OF THE AMERICAS
212-270-6266 NEW YORK, NY 10036
212-819-8200
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED TO
RECEIVE NOTICES AND COMMUNICATIONS)
JANUARY 26, 1998
------------------------------------------------------------
(DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box / /.
------------
Check the following box if a fee is being paid with this statement / /.
<PAGE>
SCHEDULE 13D
- ----------------------------------
CUSIP NO. 906072103
- ----------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MCCOWN DE LEEUW & CO. III, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A)
(B) X
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
4 SOURCE OF FUNDS
SC, BK
- -------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) / /
- -------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
STATE OF CALIFORNIA
- -------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY 0*
EACH REPORTING PERSON
WITH
------------------------------------------
8 SHARED VOTING POWER
0
------------------------------------------
9 SOLE DISPOSITIVE POWER
0*
------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,610,729*
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
APPROXIMATELY 77.82% OF THE SHARES ISSUED AND OUTSTANDING AS OF
JANUARY 23, 1998
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
* SEE ITEMS 5(A) AND 5(B).
<PAGE>
SCHEDULE 13D
- ----------------------------------
CUSIP NO. 906072103
- ----------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MCCOWN DE LEEUW & CO. III (EUROPE), L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A)
(B) X
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
SC, BK
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY 0*
EACH REPORTING PERSON
WITH
-------------------------------------------
8 SHARED VOTING POWER
0
-------------------------------------------
9 SOLE DISPOSITIVE POWER
0*
-------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,610,729*
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
APPROXIMATELY 77.82% OF THE SHARES ISSUED AND OUTSTANDING AS OF
JANUARY 23, 1998
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
* SEE ITEMS 5(A) AND 5(B).
<PAGE>
SCHEDULE 13D
- ----------------------------------
CUSIP NO. 906072103
- ----------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MCCOWN DE LEEUW & CO. III (ASIA), L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A)
(B) X
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
SC, BK
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY 0*
EACH REPORTING PERSON
WITH
-------------------------------------------
8 SHARED VOTING POWER
0
-------------------------------------------
9 SOLE DISPOSITIVE POWER
0*
-------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,610,729*
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
APPROXIMATELY 77.82% OF THE SHARES ISSUED AND OUTSTANDING AS OF
JANUARY 23, 1998
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
* SEE ITEMS 5(A) AND 5(B).
<PAGE>
SCHEDULE 13D
- ----------------------------------
CUSIP NO. 906072103
- ----------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
GAMMA FUND LLC
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A)
(B) X
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
SC, BK
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
STATE OF CALIFORNIA
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY 0*
EACH REPORTING PERSON
WITH
-------------------------------------------
8 SHARED VOTING POWER
0
-------------------------------------------
9 SOLE DISPOSITIVE POWER
0*
-------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,610,729*
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
APPROXIMATELY 77.82% OF THE SHARES ISSUED AND OUTSTANDING AS OF
JANUARY 23, 1998
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO**
- --------------------------------------------------------------------------------
* SEE ITEMS 5(A) AND 5(B).
** GAMMA FUND LLC IS A CALIFORNIA LIMITED LIABILITY COMPANY.
<PAGE>
SCHEDULE 13D
- ----------------------------------
CUSIP NO. 906072103
- ----------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MDC MANAGEMENT COMPANY III, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A)
(B) X
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
SC, BK
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
STATE OF CALIFORNIA
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY 0*
EACH REPORTING PERSON
WITH
-------------------------------------------
8 SHARED VOTING POWER
0
-------------------------------------------
9 SOLE DISPOSITIVE POWER
0*
-------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,610,729*
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
APPROXIMATELY 77.82% OF THE SHARES ISSUED AND OUTSTANDING AS OF
JANUARY 23, 1998
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
* SEE ITEMS 5(A) AND 5(B).
<PAGE>
SCHEDULE 13D
- ----------------------------------
CUSIP NO. 906072103
- ----------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MDC MANAGEMENT COMPANY IIIA, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A)
(B) X
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
SC, BK
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
- --------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED BY 0*
EACH REPORTING PERSON
WITH
-------------------------------------------
8 SHARED VOTING POWER
0
-------------------------------------------
9 SOLE DISPOSITIVE POWER
0*
-------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,610,729*
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
APPROXIMATELY 77.82% OF THE SHARES ISSUED AND OUTSTANDING AS OF
JANUARY 23, 1998
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
* SEE ITEMS 5(A) AND 5(B).
<PAGE>
ITEM 1. SECURITY AND ISSUER
Common Stock, par value $0.50 per share.
The Union Corporation
211 King Street, Suite 100
Charleston, South Carolina 29401
ITEM 2. IDENTITY AND BACKGROUND
McCown De Leeuw & Co. III, L.P., an investment partnership located at 3000
Sand Hill Road, Building 3, Suite 290, Menlo Park, California 94025, is a
California limited partnership. During the past five years, it has not been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) and it has not been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
McCown De Leeuw & Co. III (Europe), L.P., an investment partnership located
at 3000 Sand Hill Road, Building 3, Suite 290, Menlo Park, California 94025, is
a Bermuda limited partnership. During the past five years, it has not been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) and it has not been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
McCown De Leeuw & Co. III (Asia), L.P., an investment partnership located
at 3000 Sand Hill Road, Building 3, Suite 290, Menlo Park, California 94025, is
a Bermuda limited partnership. During the past five years, it has not been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) and it has not been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
Gamma Fund LLC, an investment limited liability company located at 3000
Sand Hill Road, Building 3, Suite 290, Menlo Park, California 94025, is a
California limited liability company. During the past five years, it has not
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) and it has not been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
MDC Management Company III, L.P., an investment partnership located at 3000
Sand Hill Road, Building 3, Suite 290, Menlo Park, California 94025, is a
California limited partnership. During the past five years, it has not been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) and it has not been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
MDC Management Company IIIA, L.P., an investment partnership located at
3000 Sand Hill Road, Building 3, Suite 290, Menlo Park, California 94025, is a
Bermuda limited partnership. During the past five years, it has not been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) and it has not been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Not applicable. The undersigned reporting persons have filed this Schedule
13D solely due to their ownership in Outsourcing Solutions Inc. ("OSI"), which
owns 100% of Sherman Acquisition Corporation ("Sherman"). See Items 5(a), 5(b)
and 5(c). The undersigned reporting persons have been informed that each of OSI
and Sherman have already filed a Schedule 13D.
ITEM 4. PURPOSE OF TRANSACTION
The purpose of Sherman's purchase (the "Share Purchase") of 4,610,729
shares of The Union Corporation ("Union") common stock (the "Common Stock")
through the December 24, 1997 offer by Sherman to purchase all the outstanding
shares of Common Stock (the "Offer") was to enable OSI to acquire control of the
Board of Directors of Union and the entire equity interest in Union. Upon
consummation of a merger of Sherman with and into Union (the "Merger"), Union
will become a wholly-owned subsidiary of OSI, and its securities will be
delisted from the New York Stock Exchange. The Share Purchase, the Offer and the
Merger are made pursuant to a Share Purchase Agreement and Plan of Merger, dated
as of December 22, 1997 between OSI, Sherman and Union.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) Includes 4,610,729 shares of Common Stock, or 77.82% of the issued and
outstanding Common Stock, owned by Sherman. As of January 23, 1998 there were
(a) 5,924,655 shares of Common Stock issued and outstanding, and (b) outstanding
stock options to purchase an aggregate of 603,534 shares of Common Stock. OSI
owns 100% of Sherman and Sherman owns approximately 77.82% of the issued and
outstanding shares of Common Stock (approximately 77.78% on a fully diluted
basis). Pursuant to the Share Purchase Agreement and Plan of Merger dated
December 22, 1997 by and among OSI, Sherman and Union, outstanding stock options
to purchase an aggregate of 600,034 shares of Common Stock were cancelled
immediately upon the consummation of the Offer, and each holder thereof, in
cancellation and settlement therefor, became entitled to payments in cash equal
to the difference between the exercise price of such options and $31.50. Any
shares of Common Stock not purchased in the Offer will be cancelled and become
the right to receive $31.50 per share of Common Stock when the merger of Sherman
with and into Union is completed.
Gamma Fund LLC ("Gamma"), together with McCown De Leeuw & Co. III, L.P.
("MDL III"), an investment partnership whose general partner is MDC Management
Company III, L.P. ("MDC III"), McCown De Leeuw & Co. III (Europe), L.P. ("MDL
Europe"), an investment partnership whose general partner is MDC III, and McCown
De Leeuw & Co. III (Asia), L.P. ("MDL Asia"), an investment partnership whose
general partner is MDC Management Company IIIA, L.P. ("MDC IIIA"), beneficially
own 1,897,793.01 shares, or 54.58%, of voting common stock of OSI. The voting
members of Gamma, a California limited liability company, are George E. McCown,
David De Leeuw, David E. King, Robert B. Hellman, Jr., Charles Ayres and Steven
Zuckerman, who are also the only general partners of MDC III and MDC IIIA.
Voting and dispositive decisions regarding the voting common stock of OSI owned
by MDL III, MDL Europe and MDL Asia are made by Mr. McCown and Mr. De Leeuw, as
Managing General Partners of each of MDC III and MDC IIIA, who together have
more than a two-thirds- in-interest vote of the Managing General Partners
necessary to effect such decision on behalf of any such entity. Voting and
dispositive decisions regarding the voting common stock of OSI owned by Gamma
are made by a vote of a majority in number of the voting members of Gamma.
Voting and dispositive decisions regarding the Common Stock owned by Sherman are
made by a majority of the directors of Sherman. No director is able to
individually direct the voting or disposition of Common Stock beneficially owned
by Sherman. Each of Gamma, MDL III, MDL Europe, MDL Asia, MDC III and MDC IIIA
has no direct ownership of any shares of Common Stock. Each of Gamma, MDL III,
MDL Europe, MDL Asia, MDC III and MDC IIIA may be deemed to beneficially own
shares of Common Stock. Each of Gamma, MDL III, MDL Europe, MDL Asia, MDC III
and MDC IIIA disclaims beneficial ownership of any shares of Common Stock.
(b) Each of Gamma, MDL III, MDL Europe, MDL Asia, MDC III and MDC IIIA has
no sole or shared power to vote or direct the vote of the Common Stock. Each of
Gamma, MDL III, MDL Europe, MDL Asia, MDC III and MDC IIIA has no sole or shared
power to dispose or direct the disposition of the Common Stock.
(c) See Items 4 and 5(a).
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
None.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
None.
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: February 4, 1998
McCOWN DE LEEUW & CO. III, L.P.
By: MDC Management Company III,
L.P., its general partner
By: /s/ David E. King
Name: David E. King
Title: General Partner
McCOWN DE LEEUW & CO. III (Europe),
L.P.
By: MDC Management Company IIIA,
L.P., its general partner
By: /s/ David E. King
Name: David E. King
Title: General Partner
McCOWN DE LEEUW & CO. III (Asia),
L.P.
By: MDC Management Company IIIA,
L.P., its general partner
By: /s/ David E. King
Name: David E. King
Title: General Partner
GAMMA FUND LLC
By: /s/ David E. King
Name: David E. King
Title: Member
MDC MANAGEMENT COMPANY III, L.P.
By: /s/ David E. King
Name: David E. King
Title: General Partner
MDC MANAGEMENT COMPANY IIIA, L.P.
By: /s/ David E. King
Name: David E. King
Title: General Partner
