Babson Capital Management has provided $15 million in subordinated debt and made an equity co-investment of $3 million to support Blue Point Capital Partners’ acquisition of Smith Cooper International. The investment is Babson Capital’s first direct platform investment with Blue Point Capital.
“Blue Point Capital Partners is delighted to partner on this investment with Babson Capital’s Mezzanine & Private Equity Group, whose impeccable credentials and expertise in the lower middle market are known worldwide,” said Juli Marley, a partner with Blue Point. “We look forward to working with the Babson Capital team on the Smith Cooper investment and hope to partner again on future investments.”
Smith Cooper is a value-added master distributor of branded pipes, valves and fittings to the industrial maintenance, repair and operations, energy, waterworks and the heating/ventilation/air conditioning industries. Smith-Cooper offers over 22,000 SKUs and serves more than 2,500 customers globally. The company was formed in 1993 and is headquartered in Commerce, CA (www.smithcooper.com).
“Babson Capital is excited to join with Blue Point Capital Partners, a sponsor with a solid track record spanning more than two decades and a strategic focus that is very complementary to our own,” said Mike Klofas, Managing Director and head of Babson Capital’s Mezzanine & Private Equity Group. “Blue Point’s unique capabilities in China, a market of significant importance to Smith Cooper, and Smith Cooper’s well-established brand and position as a global leader in its industry make for a compelling growth story.”
Blue Point Capital Partners is a lower-middle-market private equity firm that invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has over $800 million in committed capital and has offices in Charlotte, NC; Cleveland, OH; Seattle, WA and Shanghai, China (www.bluepointcapital.com).
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).
© 2012 PEPD • Private Equity’s Leading News Magazine • 12-11-12