Abacus Finance Group was the administrative agent and sole lender for senior secured credit facilities that backed the recent buy of Kason Corporation by May River Capital.
To complete the buy of Kason, May River formed Advanced Material Processing, a new platform company that combines Kason with May River’s existing portfolio company, Marion Process Solutions.
Kason manufactures equipment used to separate materials from solids and slurries including circular vibratory screeners and centrifugal screeners. The company also makes a line of fluid-bed processors that are used for the drying, cooling, or moisturizing of bulk solids.
Kason’s products are used in a range of industries including food, pharmaceutical, chemical, plastic, energy, minerals, aerospace and defense. The company, led by CEO Henry Alamzad, was founded in 1967 and is headquartered in Milburn, NJ with additional offices in Canada and the UK.
Marion manufactures food, chemical, plastic, and mineral mixers and blenders, as well as microwave vacuum drying systems that are used in the food, nutraceutical, mineral, plastic, chemical, and biomass industries. The company, led by CEO Lee Eilers, was founded in 1938 and is headquartered in Marion, IA.
“The transaction was handled smoothly and rapidly from the outset,” said Chip Grace, a partner at May River. “We were impressed that the Abacus team knew both the material processing sector and the company. They were responsive, efficient, easy to work, and delivered on time as promised.”
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 $50 million with a typical hold size ranging from $10 million to $40 million.
“This was our first transaction with May River,” said Tim Clifford, president and CEO of Abacus, “and we were pleased that they worked so well with us during what was a very smooth due diligence process.”
“They were an excellent team to work with,” added Eric Petersen, a director with Abacus, “and made our underwriting and documentation easy. Therefore, we were able to move quickly – an important aspect of Making Life Easier™ through our Total Partnership Approach™.” The firm’s Total Partnership Approach refers its focus on relationships not just transactions and includes its cash-flow financing expertise, deep industry knowledge, and a commitment to exceptional client service, including swift response times, over the lifecycle of each investment.
Other Abacus team members involved in this transaction were Senior Associate Joe Lee and Analyst Austin Rendell. Since its inception in June 2011, Abacus has closed over $2 billion in financings. Abacus is headquartered in New York and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).
Chicago-based May River invests from $15 million to $40 million of equity in companies with enterprise values of $15 million to $75 million. Sectors of interest include precision manufacturing, engineered products, specialized industrial services, and value-added industrial distribution. May River was founded in February 2012 and closed its inaugural fund, May River Fund I LP, in March 2017 with total commitments of $170 million.
© 2019 Private Equity Professional | September 10, 2019