Babson Backs Buy of Crown Group

Babson Capital Management has provided subordinated debt and made an equity co-investment to support the acquisition of The Crown Group by High Road Capital Partners and Charter Oak Equity. The sellers of Crown were members of the Baer family which founded the company in 1950.

The Crown Group provides coatings for electrocoat, powder coat, and liquid applications to the automotive, agricultural, heavy truck and other industrial end markets. The company also provides assembly, warehousing, and sequencing services, as well as component finishing operations and inventory management. The Crown Group has seven manufacturing facilities in Shelby, Detroit, and Livonia, MI; Fort Wayne, IN.; Portland, TN; Greenville, SC; and Waterloo, IA. The company is headquartered in Warren, MI (www.thecrowngrp.com).

“Babson Capital deeply values our 20-year relationship with High Road Capital’s principals, including Bob Fitzsimmons and Bill Connell, and we are delighted to have the opportunity to invest alongside them once again,” said Michael Klofas, Managing Director and Head of the U.S. Mezzanine & Private Equity Group. “The Crown Group has carved out a strong market position by offering top-quality coating services and integrating itself into customers’ supply chains with value-added services such as direct shipping, inventory management, bar coding and packaging services. With new capital and operating support, we believe The Crown Group is well positioned to take advantage of the favorable trend in vehicle sales in the North American market, and we look forward to participating in their success.”

High Road Capital Partners invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. High Road was formed in 2007 and currently manages over $335 million of committed capital. The firm is based in New York (www.highroadcap.com).

“High Road Capital Partners and Babson Capital have enjoyed a long and successful collaboration, and we are pleased to work with the Mezzanine & Private Equity Group on our investment in The Crown Group,” said William Connell, Partner at High Road Capital Partners. “As one of the leading providers of mezzanine debt to the lower end of the middle market, Babson Capital has the experience, expertise, responsiveness and reliability that sponsors need to bring transactions to a successful close.”

Charter Oak Equity invests in niche manufacturing, packaging, medical products & services, specialty chemicals, consumer products and financial services companies ranging in size from start up to $150 million of enterprise value. Since founding in 1992, the firm has invested over $500 million in 27 portfolio companies and completed more than 50 acquisitions. Charter Oak is based in Westport, CT (www.charteroak-equity.com).

Babson Capital has $181 billion in assets under management and is a member of the MassMutual Financial Group. The firm has offices in Boston and Springfield, MA; New York, Chicago, Charlotte and Los Angeles, and nine other offices in Europe, Asia and Australia (www.BabsonCapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-19-13