Riverlake Partners has made a majority equity investment in Guerdon Enterprises, a producer of large multi-unit modular buildings. Riverlake was joined in its investment by Main Street Capital Corporation which provided a $11.2 million first lien, senior secured term loan and a $2.4 million equity investment.
Guerdon Enterprises is one of the largest off-site producers of large modular commercial and multi-family construction projects in the Western United States and Canada. Guerdon’s portfolio consists of large apartment, condominium, hotel, office, and workforce housing buildings. The company provides a range of services including design, engineering, manufacturing, transportation and on-site installation. Guerdon has more than 300 employees and annual revenues over $80 million. The company is headquartered in Boise, ID (www.guerdon.com).
“From the beginning, we were impressed with CEO Lad Dawson, his management team and the company as a whole,” said Erik Krieger, partner at Riverlake Partners. “Guerdon is the type of high quality organization we strive to partner with and we’re looking forward to helping achieve the company’s future objectives.”
Riverlake Partners invests in U.S. and Canadian Pacific Northwest-based companies that have cash flows between $2 million and $10 million and enterprise values of $20 to $75 million. Sectors of interest include consumer and industrial products, manufacturing, and business services. The firm was founded in 2003 and is headquartered in Portland (www.riverlakepartners.com).
Main Street Capital Corporation is a principal investment firm providing long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. The firm invests in a wide variety of sectors. Main Street’s lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street’s middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies. Main Street Capital is headquartered in Houston (www.mainstcapital.com).
“We’ve enjoyed strong growth during the past several years and we look forward to working with a new equity partner offering expanded opportunities to support our future growth plans and strategies,” said Laurence “Lad” Dawson, managing member, founder and CEO of Guerdon. Mr. Dawson will continue as CEO and remain a substantial shareholder as he and other key managers continue to lead the company through its next phase of growth and development.
Guerdon was advised in the transaction by Chicago-based investment bank Building Industry Advisors (www.buildingia.com).
2014 PEPD • Private Equity’s Leading News Magazine • 8-19-14
