Abacus Finance Group was the Administrative Agent and Lead Arranger for $22 million in senior secured credit facilities to support the recent acquisition of GAHH, a portfolio company of Argenta Partners, by River Associates Investments.
GAHH is a designer, manufacturer, and marketer of aftermarket convertible tops, Jeep tops, and other vehicle interiors including seats, carpeting, and door panels. The company’s portfolio of brands includes GAHH, Robbins, and E-Z ON. GAHH’s parts are designed for use on Mercedes, Porsche, Jaguar, BMW, Rolls Royce, Lexus and a range of other automotive brands.
GAHH, led by CEO Rodney Wells, was founded in 1979 is headquartered in North Hollywood, CA (www.gahh.com).
“We chose once again to partner with the Abacus team because of their expertise in financing companies in niche industry sectors and their ability to assure certainty of close early on,” said Mike Brookshire, Co-Managing Partner of River Associates.
River Associates invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services. The firm is investing out of its seventh fund which closed in June 2017 with commitments of $285 million. River Associates was founded in 1989 and is based in Chattanooga, TN (www.riverassociatesllc.com).
“Over the years River Associates has been terrific to work with and have proved to be a great fit for us given their investment strategy and lower-middle market focus,” said Tim Clifford, President and CEO of Abacus Finance.
Abacus provides cash flow-based 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. New York-based Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).
“River’s due diligence preparation was very thorough, and their team meshed smoothly with ours,” said Abacus Senior Vice President Eric Petersen. “As in other transactions, the critical success factors came down to our flexibility and our ability to provide certainty of close – both important aspects of what we call our Total Partnership Approach™.”
“Working with Abacus, the transaction process is quick and streamlined from due diligence to close,” said River Associates Vice President Blake Lewis. “They make it look easy, and they are simply great to work with.”
© 2018 Private Equity Professional | May 24, 2018