Babson Capital Management has provided subordinated debt and made an equity co-investment to support High Road Capital Partners’ acquisition of SMB Machinery Systems. Babson Capital was the sole provider of subordinated debt for the transaction.
“High Road Capital Partners is pleased to work with Babson Capital’s Mezzanine & Private Equity Group on our investment in SMB Machinery Systems,” said Benjamin Schnakenberg, High Road Principal. “Babson Capital’s deep experience and expertise in the middle market, combined with the familiarity we share from collaborating on many previous investments, made for a smooth and efficient process leading to a successful and timely close.”
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).
“Babson Capital deeply values the relationship we enjoy with High Road, and we appreciate the trust and confidence that High Road’s principals have placed in us over the past two decades,” said Michael Klofas, Managing Director and Head of the US Mezzanine & Private Equity Group.
Babson Capital has $188 billion in assets under management and is a member of the MassMutual Financial Group. The firm has offices in Boston and Springfield, MA; New York, Chicago, Charlotte and Los Angeles, and nine other offices in Europe, Asia and Australia (www.BabsonCapital.com).
“With its exceptional management team, differentiating suite of services and leadership position in many of the markets it serves, SMB is well positioned to take advantage of High Road’s financial and operational support to pursue new growth opportunities, and we look forward to participating in the company’s success,” said Mr. Klofas.
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).
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-1-13
