Enhanced Capital Partners, through its SBIC fund, Enhanced Small Business Investment Company, LP (“ESBIC”), has invested $9 million in senior subordinated notes issued by Masthead Industries, a wholesale distributor of industrial and hydraulic hoses.
The investment by Enhanced Capital supports Masthead’s acquisition of Hosepower USA. Vulcan Capital, Paul G. Allen’s investment fund, also participated in the financing.
Masthead Industries is engaged in the wholesale distribution of industrial and hydraulic hoses and fittings, hose assembly systems, and mobile repair service carrying over 46,000 SKUs. Masthead offers Hose Boss™ mobile repair service, a concept pioneered by Masthead in the early 1990’s. HosePower®’s fleet of over 70 service trucks provide on-site hydraulic hose repair to construction, mining and manufacturing operations across North America. Masthead is also the master distributor of Flextral® products, which include hydraulic and industrial hose, fittings and a complete line of accessories. HosePower® offers custom OEM hose assemblies to manufacturers, turn-key hose distribution programs to industrial distributors as well as walk-in counter service. The company is based in Orange Park, FL (www.hoseboss.com).
Hosepower USA is a distributor of hydraulic & industrial hoses. The company has operations in Alabama, Florida, Georgia, Indiana, and Texas and is based in Orange Park, FL (www.hosepower.com).
“We are thrilled to be a part of this exciting growth story,” said Barry Osherow, Managing Director at Enhanced Capital. “We believe that Masthead has an excellent management team in place and is well positioned to continue to execute its growth plans.”
The Enhanced Small Business Investment Company is a SBIC fund set up by Enhanced Capital Partners for the purpose of providing debt and minority equity financing to U.S.-based lower middle market companies. The firm invests from $3 million to $20 million per transaction in companies with revenues of at least $10 million and EBITDAs of at least $2 million. Enhanced Capital Partners is based in New York (www.enhancedcapital.com).
Vulcan Capital is the investment arm of Vulcan Inc., the organization founded by Paul Allen in 1986 to manage his philanthropic and business endeavors. Vulcan Capital’s investment activities include direct investing in public and private securities as well as indirect investments in traditional and alternative asset classes. Vulcan Capital’s current portfolio spans a range of industry sectors, including media and communications, energy and natural resources, financial and information services, technology, and life sciences. The firm was founded in 2003 and is based in Seattle (www.vulcan.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-15-13