Lincoln International has completed the financing of JPW Industries, a portfolio company of Tenex Capital Management. JPW Industries was formed by Tenex in November 2013 to acquire the machinery and tools business of Walter Meier AG.
JPW Industries designs, markets, and distributes a range of metalworking and woodworking machinery and shop tools under the JET, Powermatic, and Wilton brand names. The company sources approximately 4,000 SKUs from over 400 suppliers and sells through a network of approximately 3,000 national and independent distributors, wholesalers, dealers, and online/specialty retailers. The company is headquartered near Nashville in La Vergne, TN, with wholly owned operations in Switzerland, France, Hong Kong, and Taiwan, as well as joint ventures in Germany and Russia (www.jettools.com) (www.powermatic.com) (www.wiltontools.com).
Lincoln International acted as exclusive financial advisor to Tenex and completed the placement of a debt financing, which consisted of senior secured credit facilities and senior subordinated notes. Proceeds from the transaction were used to finance a portion of the acquisition price and provide for the company’s ongoing working capital and capital expenditure needs. The senior credit facilities were provided by NXT Capital (Sole Lead Arranger and Administrative Agent), Sumitomo Mitsui Banking Corporation (Syndication Agent) and ING Capital, and the subordinated notes were provided by Fifth Street Finance Corp.
Lincoln International specializes in merger and acquisition advisory services, debt advisory services, private capital raising and restructuring advice on mid-market transactions. The firm also provides fairness opinions, valuations and pension advisory services on a wide range of transaction sizes. Lincoln International has 15 offices in the Americas, Asia and Europe and is headquartered in Chicago (www.lincolninternational.com).
As Tenex’s exclusive financial advisor, Lincoln International worked with the Tenex on all aspects of the transaction, helping to structure, arrange and negotiate the financing. “Lincoln provided the Tenex team with a significant amount of leverage in a highly complex financing that involved significant cross-border and corporate carve-out considerations,” said Scott Galletti, a Managing Director at Tenex. “With Lincoln quarterbacking the financing process, we were able to focus our efforts on operational diligence and transaction structuring while obtaining a very attractive financing package.”
Tenex Capital Management is a private equity fund that invests up to $100 million in middle-market companies in the transportation, industrial, manufacturing, and health and business services sectors. The firm has $452 million of committed capital and is based in New York (www.tenexcm.com).
“We are very proud of this transaction as it highlights the value add Lincoln provides in a complex deal. JPW Industries continues our strong relationship with Tenex and marks our third acquisition-related financing placement for Tenex over the last twelve months,” said Bob Horak, Managing Director and Co-Head of Lincoln’s Debt Advisory Group. “We were thrilled to work alongside Tenex on this important transaction, and we continue to be impressed by Tenex’s highly detailed, thorough approach to due diligence.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 12-18-13