Babson Capital Management has provided subordinated debt and made an equity co-investment to support Mill City Capital’s purchase of JMH International, a developer and manufacturer of soup bases and other food related products. Babson Capital served as the lead provider of subordinated debt on the transaction.
“Mill City Capital is very pleased to have Babson Capital as a partner on our investment in JMH International,” said Darren Acheson, a Managing Director at Mill City. “We value the responsiveness, flexibility and partnership approach that Babson Capital brings to every transaction, and we look forward to working with them on this and future investments.” Mill City makes control investments in industrial and consumer businesses which have EBITDAs of $7.5 million to $25 million and are located in the five Upper Midwestern states of Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. The firm is based in Minneapolis (millcitycapital.com).
JMH International develops and manufactures a range of soup bases, sweet and savory flavor bases, stock concentrates, sauces, gravy mixes, dessert preparations, seasoning blends, powdered drink mixes, and dry complete meals. The company provides custom formulations to its customers in the foodservice, ingredient, specialty retail, and co-manufacturing channels. JMH International is based in Salt Lake City (www.jmhpremium.com).
“Babson Capital appreciates the opportunity to invest once again alongside a private equity sponsor of Mill City’s caliber and track record,” said Mike Klofas, Managing Director and head of Babson Capital’s Mezzanine & Private Equity Group. “We see exciting growth opportunities ahead for JMH as its outstanding management team will have the opportunity to benefit from Mill City’s expertise in the food industry.”
Babson Capital had $154 billion in assets under management as of September 30, 2012 and is a member of the MassMutual Financial Group. The firm is based in Boston and Springfield, MA and Charlotte, NC and has six additional offices in the US and one in Sydney, Australia, with subsidiaries in London and Tokyo (www.BabsonCapital.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 12-18-12