Babson Capital Management has provided subordinated debt and made an equity co-investment to support Main Street Capital Holdings’ acquisition of the Hi-Rel Group. Babson Capital was the sole provider of subordinated debt on the transaction.
“Main Street is pleased to have the support of our valued longtime partner Babson Capital on our investment in the Hi-Rel Group,” said Dennis Prado, a Principal at Main Street. “Babson Capital’s experience and expertise in the middle market combined with its reliability and flexibility has been a huge asset to Main Street on several platform investments over more than a decade, and we look forward to working with the Babson Capital team on this and future transactions.”
Hi-Rel Group is a manufacturer of specialized metal components for the microelectronic packaging industry. The company’s core products include lids, ring frames and related products that are used to hermetically seal electronic components for use in the aerospace, defense, telecom and medical industries. The Hi-Rel Group includes the following affiliates: Hi-Rel Products (Essex, CT), Hi-Rel Lids (Harleston, UK) and Hi-Rel Alloys (Fort Erie, Canada). Hi-Rel was founded in 1976 and is headquartered in Essex, CT (www.hirel.co.uk).
“Babson Capital is excited about the opportunity to have a supporting role in Main Street’s investment in the Hi-Rel Group,” said Michael Klofas, Managing Director and Head of the U.S. Mezzanine & Private Equity Group. “We look forward to participating in Hi-Rel’s future growth as Main Street works with the management team to extend Hi-Rel’s market leadership through the addition of new products and expansion of the company’s geographic footprint.”
Main Street Capital Holdings invests from $3 million to $25 million in companies with EBITDAs of at least $2 million and enterprise values of $10 million to $125 million. Sectors of interest include electronic manufacturing services, food, homeland security, metallic alloy parts, specialty or niche manufacturing, and value added distribution. The firm was founded in 1994 and is based in Pittsburgh (www.mainstcap.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 • 6-18-13
