Franklin Square Capital Partners has provided a senior secured loan and equity co-investment to back the recent acquisition by Audax of Justrite Manufacturing. The company is a maker of safety products and has been a portfolio company of Baird Capital since July 2011. Baird will continue to be a minority investor in the company.
Justrite is a designer and manufacturer of safety products for the handling and storage of flammable and hazardous liquids. Products include safety cabinets, safety cans, environmental and spill containment systems, and outdoor safety storage buildings and lockers. The company was founded in 1906 and is led by Mark McElhinny, its President and CEO. Justrite is headquartered in the Chicago suburb of Des Plaines (www.justritemfg.com).
Franklin Square, headquartered in Philadelphia, is a manager of alternative investment funds. As of June 30, 2015, the firm managed approximately $16.8 billion in total assets, including $15.4 billion in BDC assets (www.franklinsquare.com).
“This transaction is indicative of our ability to provide customized financing solutions to leading middle market companies that also provide economic upside with credit protections to our investors. In addition, we are pleased to again partner with a proven sponsor like Audax,” said Michael Forman, Chairman and Chief Executive Officer of Franklin Square.
The financing was provided by various business development companies (BDCs) managed by Franklin Square and GSO Capital Partners.
GSO is one of the largest credit-oriented alternative asset managers in the world and a major participant in the leveraged finance marketplace. The firm is owned by Blackstone and is named for its three founding partners – Bennett Goodman, Tripp Smith and Doug Ostrover. GSO is headquartered in New York (GSO website).
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-19-15
