Victory Park Capital has provided Katy Industries with a $24 million term loan to fund the acquisition of the plastic shelving and cabinet business unit of Centrex Plastics.
Katy (OTC: KATY) is a manufacturer, importer and distributor of commercial cleaning and consumer storage products. Katy markets its products under the Continental, Contico, Wilen and Fort Wayne Plastics brands. The company is headquartered outside of St. Louis in Bridgeton, MO (www.katyindustries.com).
As part of the transaction with Centrex Plastics, Katy will assume the lease at Centrex’s 100,000 sq. ft. manufacturing facility in Tiffin, OH and will collaborate with Centrex on manufacturing processes, resin procurement, product development, as well as various sales and marketing initiatives. Centrex will continue to manufacture its remaining injection-molded plastic products for consumer and commercial applications out of its facility in Findlay, OH (www. centrexplastics.com).
“Katy has a strong platform that is well positioned to execute on numerous value creation initiatives. The Centrex acquisition provides an opportunity to rapidly expand its presence in the home storage market and to enhance its product offering with its existing customer base,” said Matthew Ray, senior partner at VPC. “We are pleased to have provided the acquisition financing and are excited to partner with management as the company enters this transformational period.”
“We are excited about the growth opportunity with Centrex and could not have closed the acquisition without the new credit facility and the speed by which VPC was able to provide us with the necessary capital,” said David Feldman, president and CEO of Katy. “The acquisition brings Katy a state-of-the-art manufacturing operation, a growing line of home storage products, and a mutually beneficial partnership with an innovative and technically proficient company. I look forward to working closely with the Centrex team and growing our businesses together.”
Victory Park Capital invests from $10 million to $50 million per transaction in small cap public companies and middle market private companies that typically generate less than $150 million in revenue and less than $30 million of EBITDA. The firm focuses on complex situations and seeks to build long term sustainable value in its companies. Victory Park was founded in 2007 and is based in Chicago with additional offices in Boston, Los Angeles, New York and San Francisco (www.victoryparkcapital.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-13-15
