Babson Capital Management has provided a combination of senior debt, subordinated debt and equity to support River Capital’s purchase of Blue Wave Products, a specialty distributor of swimming pools and pool-related products. Babson Capital served as the sole provider of senior and subordinated debt on the transaction.
“As a reliable partner on eight portfolio investments spanning more than 25 years, Babson Capital consistently provides River Capital with a combination of experience and service that is difficult to match,” said Jerry Wethington, Managing Principal of River Capital. “River Capital looks forward to working with the Babson Capital team on Blue Wave and other investment opportunities going forward.”
Blue Wave is a specialty distributor of recreational products, including swimming pools and pool-related products, serving the internet retail marketplace. The company’s customer base includes both large national retailers as well as internet retail dealers. Blue Wave functions as a one-stop shop for wholesale recreational products, offering more than 6,000 SKUs, including both national brands and Blue Wave branded products. Its primary products include above-ground pools, automatic cleaners, steps and ladders, winter products, games, and saunas. The company specializes in the inventory management of large, bulky products, direct-to-consumer fulfillment, product sourcing, and marketing services on behalf of its customers. The company is based in Saint Charles, IL (www.splashnetxpress.com).
“Babson Capital’s partnership-oriented approach to investing in the middle market is exemplified by our longstanding and valued relationship with River Capital,” said Mike Klofas, Managing Director and head of Babson Capital’s Mezzanine & Private Equity Group. “Blue Wave has built a leadership position in a niche market with its broad product offering, quick turnaround times, and strong customer service, and we are excited about its growth potential as it benefits from the operating experience of River Capital.”
Babson Capital had $154 billion in assets under management as of September 30, 2012 and is a member of the MassMutual Financial Group. The firm is based in Boston and Springfield, MA and Charlotte, NC and has six additional offices in the US and one in Sydney, Australia, with subsidiaries in London and Tokyo (www.BabsonCapital.com).
River Capital invests from $3 million to $7 million of equity in companies in the light manufacturing, distribution and service industries that have revenues of at least $10 million. Typical transactions sizes range from $10 million to $50 million. The firm is based in Atlanta, GA (www.river-capital.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 11-30-12
