High Road Acquires SMB Machinery Systems

High Road Acquires SMB Machinery Systems

SMB NFHigh Road Capital Partners has completed the acquisition of SMB Machinery Systems, a provider of used packaging and process equipment.

“SMB has grown to become the leading provider of used food and beverage equipment due to the company’s deep product knowledge, comprehensive service offering, and broad inventory,” said Benjamin Schnakenberg, High Road Principal. “The company is well positioned to capitalize on the proliferation of specialty beverages in both the United States and emerging markets, and bring its know-how and reputation for reliability to new verticals. We look forward to working with SMB’s exceptional management team to continue to grow the company.”

SMB Machinery Systems is a provider of used packaging and process equipment to the food and beverage industries. The company offers a suite of related services including removal, installation, storage, relocation and demolition. SMB was founded in 1993 and is based in Ball Ground, GA (www.smbsales.com).

Tom Ewing, President of SMB, will continue to lead the company post-closing. Mr. Ewing and other members of SMB’s management team invested in the transaction alongside High Road.
“We are excited to partner with High Road,” said Mr. Ewing. “With their financial and operational support, we are poised to further expand our comprehensive service offerings, which include equipment decommissioning, reconfiguration and installation, and to broaden the equipment solutions we offer our customers.”

High Road Capital Partners invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. High Road was formed in 2007 and currently manages over $450 million of committed capital. High Road has completed 26 transactions, comprising 24 acquisitions – 11 platform investments, 13 add-on acquisitions – and two exits since its founding in 2007. The firm is based in New York (www.highroadcap.com).

Benjamin Schnakenberg, Principal, led the transaction for High Road. Also working on the transaction from High Road were Jerome Anderson, Partner, and Paul Langley, Senior Associate.

Financing for the transaction was provided by US Bank and Babson Capital Management. Babson Capital also invested equity alongside High Road.

BB&T Capital Markets provided financial advice to SMB Machinery Systems.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-22-13

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