The mezzanine and private equity group of the Hartford Investment Management Company (HIMCO) has provided subordinated debt and made an equity co-investment totaling $7.5 million to support the November 2013 acquisition of Hubbardton Forge by Bunker Hill Capital.
Hubbardton Forge is a designer and manufacturer of hand-forged residential and commercial lighting products. The company was founded in 1974 and is based in Castleton, VT (www.hubbardtonforge.com).
HIMCO’s mezzanine and private equity group (the “Group”) is led by William Holm, Jr., Executive Vice President, and provides mezzanine financing of $5 million to $30 million and equity financing up to $10 million. The Group’s target investments will have an EBITDA of at least $5 million and will be located in the US or Canada. The Group invests in a range of industries but has specific interest in building products; business services; consumer products; distribution; food products; healthcare; manufacturing; media & communications; power, energy and infrastructure; restaurants; retail; and specialty chemicals.
In addition to its direct investment activities, the Group will also invest from $15 million to $30 million in select middle market private equity and mezzanine funds that can provide a source of co-investment opportunities.
At year-end 2013, HIMCO managed approximately $1.7 billion in mezzanine and private equity assets and commitments. HIMCO is a wholly-owned subsidiary of The Hartford Financial Services Group and is headquartered in Hartford, CT (www.himco.com).
Other lenders that supported the acquisition of Hubbardton Forge by Bunker Hill included Brookside Mezzanine Partners (www.brooksidemezzanine.com), which participated with HIMCO on the subordinated debt and equity co-investment. Abacus Finance Group (www.abacusfinance.com) and Crescent Capital (www.crescentcap.com) provided the senior debt.
Bunker Hill makes control investments in lower middle market companies with revenues up to $300 million, EBITDAs between $5 million and $35 million, and enterprise values typically between $30 million and $150 million. Sectors of interest include industrial products, business services, specialty retail, and consumer products. The firm has offices in Boston and San Diego (www.bunkerhillcapital.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-30-14
