Abacus Finance Group was the Administrative Agent and Sole Lender in support of the acquisition of Cutting Edge Services (CES) by In-Place Machining Company, a portfolio company of Platte River Equity since November 2016.
CES is a provider of outsourced industrial services specializing in diamond wire sawing, drilling and removal services. The company provides its services both on land and undersea and serves the nuclear, hydro, locks and dams, heavy industrial, decommissioning, bridge construction and undersea pipes and platforms sectors.
CES also offers robotic demolition, hydraulic splitting, diamond blade sawing and super-abrasive steel cutting. The company is headquartered east of Cincinnati in Batavia, OH (www.cuttingedgeservices.com).
In-Place Machining (IPM) provides on-site machining and measurement services to customers in the power generation, metal production, infrastructure, marine and defense industries. The company’s services include field machining; diamond wire cutting; alignment and measurement; crankshaft repair and machining; line boring; cast iron repair; and on-site welding. IPM, led by CEO Dean Flint, has more than 100 employees and is headquartered in Milwaukee with an additional facility in Chesapeake, VA (www.inplace.com).
“Once again, Abacus Finance proved to be a very flexible and reliable partner,” said Mark Brown, a managing director of Platte River. “We were given certainty of closure early in the process, the turnaround was quick and the execution seamless. They’re really just great Americans.”
“We have a longstanding relationship with Platte River Equity, which we strongly value, just as they value our Total Partnership Approach™,” said Tim Clifford, president and CEO of Abacus. The firm’s Total Partnership Approach refers to its cash-flow financing expertise and deep industry knowledge, as well as its focus on exceptional client service over the lifecycle of each investment.
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 $75 million with a typical hold size ranging from $10 million to $40 million. Since its inception in June 2011, Abacus has closed over $2 billion in financings.
Platte River makes equity investments of $20 million to $100 million in lower middle-market companies with enterprise values between $40 million and $250 million. The firm focuses on investing in the aerospace and transportation; energy and infrastructure; agriculture and chemicals; and metals and minerals. Platte River is based in Denver (www.platteriverequity.com).
“Platte River knows the industrial products and services space well, which made the underwriting process go smoothly,” added Eric Petersen, a senior vice president at Abacus.
Abacus is headquartered in New York and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).
© 2019 Private Equity Professional | January 17, 2019