NCK and Graycliff Acquire Graybill

NCK Capital has acquired Graybill Processing, a food by-product recycling company. NCK Capital completed this transaction in partnership with Graycliff Partners which invested both subordinated debt and equity.

Graybill provides collection services, by-product handling, and 24/7 regional logistics support to food waste streams. Through a proprietary process, Graybill converts candy, bakery and other hard-to-handle food waste into a value-added animal feed used by dairy, beef, swine, and poultry farmers. In addition to its core business, the company also provides logistics and hauling, paper and cardboard recycling, and mulch production.

Graybill, led by CEO Matt Petersen and Director of Operations Natalie Petersen, is headquartered in a 50,000 square foot facility in Elizabethtown, PA (www.graybillprocessing.com).

“Graybill is a great example of how ingenuity can be used to not only build a great business but also to drive a very important social mission as well,” said Michael Kornman, Managing Partner at NCK Capital. “Over the last 20 years, this company has found a productive use for an unfathomable amount of organic waste that otherwise would have filled up the precious space we have in landfills.”

NCK Capital makes control investments in lower-middle market companies that have EBITDA of $2 million to $8 million. Sectors of interest include business services, healthcare services, niche manufacturing, specialty distribution, food manufacturing, and for-profit education. The firm is headquartered in Dallas (www.nckcapital.com).

“We are very excited to join the Graybill family,” said Grant Kornman, Managing Partner at NCK Capital. “Matt and Natalie Petersen have built a fantastic operation. The company has an impressive, dedicated team that delivers unrivaled service to their clients and we could not be more elated about our investment.”

“Graybill has carved a unique niche in the animal feed market, providing value to both its suppliers by handling challenging food by-products and waste and its customers by offering a low cost yet nutrient dense livestock feed supplement,” said Duke Punhong, Managing Director, Graycliff Partners. “We look forward to working with our partners at NCK Capital and the team at Graybill to execute the strategic initiatives we have identified and position the company for future growth.”

Graycliff invests from $5 million to $40 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution.  Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital.  Graycliff is headquartered in New York (www.graycliffpartners.com).

SC&H Capital (www.schgroup.com) was the financial advisor to Graybill on this transaction. “The team at SC&H did a fantastic job. They helped us identify the right capital partner that understood our business and corporate culture,” said Mr. Petersen. “We definitely found the right financial partner to help us grow our business without losing our deep commitment to our clients and suppliers.”

© 2018 Private Equity Professional | September 17, 2018

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