Action Target, a portfolio company of Dubin Clark since 2008, has been recapitalized with the backing of its senior lender Zions Bank, Praesidian Capital and Kemper Corporation. Praesidian and Kemper provided a senior mezzanine debt facility.
Action Target designs, engineers, manufactures and installs shooting range equipment primarily for law enforcement, military and, to a smaller extent, commercial ranges around the world. Products include steel targets, bullet traps, shoothouses, turning targets, reactive steel targets, moving targets, and line-of-fire instant shooting ranges. The company has over 4,000 SKUs and holds 40 patents for the systems it designs and manufactures. According to Dubin Clark, ATI is the largest independent shooting range equipment provider in the United States with a market share in excess of 50% of the commercial and law enforcement ranges. Action Target was founded in 1986 and is headquartered in Provo (www.actiontarget.com).
“ATI has been fortunate to have the support and guidance of Dubin Clark over the past seven years,” said Action Target CEO Michael Birch. “The participation of Praesidian on our balance sheet strengthens our financial foundation as we explore new business opportunities.”
“This senior mezzanine debt facility is an opportunity for us to invest in a market leader with a well-established business model and strong record of growth,” said Praesidian Partner Jon Mansfield.
Praesidian provides senior and mezzanine capital to small and mid-sized businesses that have revenues of $15 million to $200 million and EBITDA of $5 million to $20 million. The firm typically invests in connection with a management/leveraged buyout, recapitalization or refinancing. Types of facilities offered include one-stop financing, senior secured debt, junior secured debt, preferred stock, and common equity in connection with a mezzanine investment. Praesidian is based in New York with an additional office in London and manages nearly $1 billion in committed capital (www.praesidian.com).
Zions Bank is a subsidiary of Zions Bancorporation (NASDAQ: ZION) and is Utah’s oldest financial institution (www.zionsbank.com).
Dubin Clark invests in companies that have from $10 million to $100 million in sales and at least $2 million of EBITDA. Sectors of interest include manufacturing, value-added distribution, and services. The firm was founded in 1984 and has offices in Boston, MA; Ponte Vedra Beach, FL; and Greenwich, CT (www.dubinclark.com).
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-14-16
