Ironwood Capital has made a subordinated debt and preferred equity investment in Merrill Industries, a designer and maker of customized packaging. This investment and an earlier one made in 2012 were funded through Ironwood Capital Connecticut, a unit of Ironwood Capital.
Merrill Industries focuses on the design and manufacture of containers from corrugated sheets. The company’s customers include Fortune 500, regional and local companies that are active in the consumer products, water filtration, defense, financial services, metals, specialty printing, medical instrumentation and scientific sectors. Merrill was founded in 1973 and operates an 82,000 sq. ft. facility and headquarters northeast of Hartford in Ellington, CT (www.merrillind.com).
“Since 2012 we have worked with management to increase capacity and expand the company’s customer base,” said Ironwood Capital Managing Director Alex Levental. “Merrill’s commitment to quality and excellent customer service has led to increased demand from existing customers and attracted new clients, resulting in continual topline growth and EBITDA expansion.”
The new investment of both subordinated debt and preferred equity by Ironwood was made to facilitate a majority recapitalization of the business led by existing shareholder Tim Ryan of the Shoreham Group (www.shorehamgroupllc.com). “Ironwood Capital has provided valued business advice and strategic guidance over the past four years. I look forward to building our relationship as we position Merrill as a leading regional designer and manufacturer of customized packaging products,” said Mr. Ryan.
Ironwood Capital provides non-control growth capital to middle market companies. Investments take the form of subordinated debt and preferred stock in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts. Ironwood Capital Connecticut works exclusively with Connecticut-based companies seeking capital from equity through senior debt. Ironwood Capital has more than 20 professionals and is headquartered in Avon, CT (www.ironwoodcap.com).
© 2017 Private Equity Professional | January 23, 2017
