Abacus Finance Group was the Administrative Agent and Sole Lead Arranger for senior secured credit facilities to back the recent acquisition of Surface Preparation Technologies by Branford Castle Partners. Abacus also made an equity co-investment in the company.
Surface Preparation Technologies (SPT) has installed more than 150,000 miles of rumble strips across 49 states. The company designs and manufactures its own fleet of rumble-strip machines, or “mills” which it believes run significantly faster and are more durable than competitors’ machines. The company’s mills can achieve speeds of up to 360 cuts per minute, or over 20 miles of asphalt rumble strips in a single eight hour shift. This is, according to the company, four times faster than its closest competitor. Faster cut times lead to less time lost for traffic control, more efficient road clean up, and can lead to early completion incentives. SPT also offers other roadway safety services such as brooming, oiling, grooving for recessed pavement markings, and roadway line removal services. SPT was founded in 1988 and is led by CEO Steve Burke. The company is based in Mechanicsburg, PA (www.rumblestrips.com).
“We are especially excited to have worked on this investment with Abacus Finance Group. They demonstrated flexibility and creativity during the execution and worked towards a successful close in a timely manner,” said Eric Korsten, Managing Director at Branford Castle.
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 was formed in June 2011 and 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).
“This was our first transaction with a firm that has been a leader in private equity investing since its beginnings under the guidance of John Castle. They were easy to work with and placed a high value on our flexibility and speed – key aspects of what we call our Total Partnership Approach™,” said Tim Clifford, President and CEO of Abacus. Other Abacus team members involved in the transaction included Director Aized Rabbani and Senior Associate Brian Green.
Branford Castle invests in companies that have enterprise values of up to $75 million and also have from $1.5 million to $15 million of EBITDA. Sectors of interest include consumer goods and services; industrial and manufacturing; value-added commercial distribution; business services; and marine products and services. Between its founding in 1986 to 2016, Branford Castle operated as a family office. In October 2016 the firm held a final close of its first fund that was open to outside investors. The buy of SPT is the second platform investment for this fund, following the July 2016 acquisition of Earthlite Massage Tables – a maker of spa, massage and other wellness equipment. Branford Castle is headquartered in New York (www.branfordcastle.com).
© 2017 Private Equity Professional | March 1, 2017
