TCF Backs Cathay’s IOP Add-On

Innovative Office Products, a portfolio company of Cathay Capital Private Equity, has acquired SiS Ergo with backing from TCF Capital Funding. TCF provided just over $80 million of secured financing and was the sole lead arranger and administrative agent.

Innovative Office Products (IOP) is a designer and manufacturer of ergonomic products including monitor, tablet, sit-stand mounting systems, and height-adjustable desks that are used in office, healthcare, and other specialty workspaces.

IOP was acquired by Cathay in January 2018. In June 2018, IOP acquired San Jose, California-based HAT Contract, a designer, contract manufacturer and distributor of open space office products including height-adjustable tables, power and data beams, drawer pedestals, dividers and electrical components for benching and bases.

The buy of SiS Ergo adds a new brand to IOP’s other company-owned brands including Innovative, HAT Contract, Ergotech, and CompuCaddy.

IOP, founded in 1986, and has over 200 employees working in the US with a headquarters located 77 miles north of Philadelphia in Easton, Pennsylvania.

SiS Ergo is a manufacturer of electric and non-electric height-adjustable tables with Danish-inspired modern and minimalistic aesthetics. The company was founded in 1966 and introduced the first height adjustable desk in 1970. SiS Ergo is headquartered in Rudkøbing, Denmark and has an additional facility in Londonderry, New Hampshire.

“Innovative, HAT, and SiS Ergo have built strong brands by providing quality ergonomic solutions across many markets,” said Kevin Nowak, senior vice president at TCF Capital Funding. “We are excited to provide additional financing to support Cathay Capital’s and Innovative’s strategic plan through the acquisition of Sis Ergo. SiS Ergo’s customized product solutions enhances Innovative’s suite of product solutions and we believe this partnership will result in the company’s accelerated global expansion.”

TCF Capital Funding is a provider of cash flow-based loans to lower middle-market businesses that have from $10 million to $150 million in revenue and from $2 million and $15 million in EBITDA. TCF Capital Funding actively supports private equity sponsors and family offices in their acquisition or recapitalization of these lower middle-market companies.

In addition to Cathay Capital, the shareholders of IOP include members of its senior management team, Norwest Mezzanine Partners, and ORIX Private Equity.

Cathay Capital was founded in 2007 and has completed over 140 buyouts, growth and venture capital investments and manages more than $3.8 billion of assets. The firm invests from $25 million to $75 million in control and minority positions. Sectors of interest include consumer products and services, business and digital services, healthcare, and advanced manufacturing sectors.

In May 2020, Cathay Capital closed its latest fund, Cathay Capital Midcap II LP, with $850 million of capital. Midcap II is the firm’s largest fund to date and an increase of $325 million over its Midcap I fund, which closed in 2014.

Cathay Capital has more than 100 employees with offices in Paris, Shanghai, Beijing, New York, San Francisco, Munich, Tel Aviv, and Singapore.

Private Equity Professional | August 21, 2020

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