Graycliff Partners has completed a subordinated debt and equity financing in Fairway Building Products to support the purchase of a controlling stake in the company by Argosy Private Equity.
Fairway Building Products is a manufacturer of vinyl, aluminum and composite railing systems and a distributor of ancillary building products. The company’s products are used primarily for residential decks. The company’s customers include homebuilders and commercial contractors. Fairway sells its products through both wholesale distributors and direct building material distributors. The company was founded in 1997 and is headquartered near Harrisburg in Mount Joy, PA. Fairway has an additional manufacturing facility located southwest of Omaha in York, NE (www.fairwayvinyl.com).
“We were impressed by Fairway’s leading market position and reputation for excellence, “ said Andrew Trigg, Managing Director, Graycliff Partners. “Argosy Private Equity has a long track record of success and we look forward to partnering with them and the company’s co-founders, Dale Adams and Dennis Hazenstab, to support Fairway’s future growth.”
Graycliff’s investment in Fairway marks the fifth investment for Graycliff Mezzanine II LP, a fund with over $250 million in commitments.
Graycliff Partners invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution. Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital. Graycliff Partners is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).
Argosy Private Equity invests from $4 million to $10 million in lower middle market companies with revenues of $15 million to $100 million and EBITDAs of $3 million to $9 million. Sectors of interest include manufacturing, business services, value-added distribution and franchising. The firm is headquartered near Philadelphia in Wayne, PA (www.argosycapital.com).
2014 PEPD • Private Equity’s Leading News Magazine • 8-12-14
