Abacus Finance Group was the Administrative Agent and Sole Lender for $14.5 million in senior secured credit facilities to support the leveraged buyout of Behrens Manufacturing by Mill City Capital.
Behrens Manufacturing is a manufacturer of branded metal containers used in consumer and professional applications such as the cleaning, lawn and garden, and automotive. The company’s products are sold through large retailers, wholesalers and distributors and include steel cans, tubs, ovals, pails and watering cans. According to Behrens, the company maintains a 60% market share in the branded metal container market segment. Behrens was founded in 1911 and is headquartered approximately 115 miles southeast of Minneapolis in Winona, MN (www.behrensmfg.com).
“We were very impressed with Mill City’s knowledge of the industry and how much value they can bring to the companies in which they invest,” said Tim Clifford, President and CEO of Abacus.
Mill City Capital invests from $10 million to $30 million of equity capital in companies with enterprise values of $30 million to $150 million and EBITDA of $5 million to $25 million. Sectors of interest include engineered industrial products; industrial services; transportation & distribution; agribusiness & food ingredients; food; and consumer products & services. Mill City focuses on companies headquartered in the Midwestern United States and western and central Canada, with a particular focus on companies located in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. The firm is based in Minneapolis (www.millcitycapital.com).
“It was our first time working with Abacus Finance,” said Lisa Kro, Managing Director of Mill City Capital, “and we were thrilled with the results.”
Abacus provides cash flow senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million. Abacus is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850. Abacus is based in New York (www.abacusfinance.com).
“Abacus provided seamless execution, flexibility, and we were able to close this transaction within a short timeframe,” said Mill City Capital Vice President Dianna Seltz.
“We were able to give certainty of closure early in the process,” explained Abacus Senior Vice President Timothy Wong. Lisa’s and Dianna’s colleagues quickly found that we are easy to work with – important aspects of what we call our Total Partnership Approach. We look forward to working with them in the future.”
© 2017 Private Equity Professional | January 10, 2017
