Abacus Finance Group, a provider of cash-flow financing for private equity-sponsored, lower-middle market companies, served as Administrative Agent and Sole Lead Arranger for $16.5 million in senior secured credit facilities to support the divisional spin out of Kova International from Hycor Biomedical. Kova International was acquired by an investor group consisting of One Rock Capital Partners, Laurel Crown Partners, StoneCreek Capital and management.
“We chose to partner with Abacus for this investment because of their expertise in financing healthcare companies and their ability to assure a certainty of close early on,” said One Rock Partner Kimberly Reed. “Abacus was highly recommended to us. They were easy to work with and flexible in structuring the transaction, which gives us the foundation to pursue our growth strategy.”
Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million, and the companies it finances generally have an EBITDA between $3 million and $15 million. Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $10 billion in assets. Abacus is based in New York (www.abacusfinance.com).
“One Rock, a new relationship for us, is a great fit for our firm given their investment strategy and their sector focus,” said Tim Clifford, President and CEO of Abacus. “They were terrific to work with, and we were impressed by the thoroughness of their due diligence. As in other transactions, the critical success factors came down to our flexibility and our ability to provide certainty of close – both important aspects of what we call our Total Partnership Approach.”
Other Abacus team members involved in the transaction included Senior Vice President Mindy Naylor and Associate Song Pettus.
The acquired urinalysis business will be named Kova International and will continue to operate out of its Garden Grove, CA manufacturing facility. The transaction includes the transfer of urinalysis assets and employees. Kova International will be led by Vance Mitchell, who has more than 25 years of experience with the Kova urinalysis business (no website is available yet for Kova International).
HYCOR Biomedical is a manufacturer and marketer of in vitro diagnostics products. Since its founding, HYCOR has expanded its presence in allergy and autoimmune products used in clinical laboratories, hospitals and doctors’ offices worldwide. Brand names include HYTEC™ and AUTOSTAT™. HYCOR was founded in 1981 and is based in Garden Grove, CA (www.hycorbiomedical.com).
One Rock makes equity investments of $10 million to $50 million in companies operating in the chemicals, industrial and consumer durables, business services, environmental services, healthcare products, and automotive retail sectors. The firm is based in New York (www.onerockcapital.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 2-27-13