Westhook Capital Partners has completed a refinancing of RainShadow Labs, a provider of private label manufacturing services to natural and organic personal care brands, with debt provided by Abacus Finance Group.
Abacus was the Administrative Agent and Lead Arranger for the senior secured credit facilities used to refinance RainShadow, which Westhook acquired in November 2020.
RainShadow’s services include product development and design, packaging and label procurement, contract filling, warehousing, shipping and logistics support for lotions, cremes, fragrances, balms, masks, eye creams, lip care, and shampoos.
The company’s customers include independent brands, entrepreneurs, and skincare professionals in the consumer, industrial, business services, and healthcare services sectors. The company was founded in 1983 and is headquartered 40 miles north of Portland in St. Helens, Oregon.
“In our first transaction with Westhook we were pleased to support a highly attractive niche company with an impressive track record and tremendous potential for future growth,” said Tim Clifford, the president and CEO of Abacus.
Abacus provides cash flow-based senior financing to private equity and family office-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $50 million. Since its founding in June 2011, Abacus has closed over $2 billion in financings.
“I am glad that we were able to close our first deal with Abacus,” said Wes Knuth, a partner at Westhook. “We found them easy to work with, and the transaction was handled smoothly and efficiently.”
“We enjoyed working with Wes and his team,” said Rafal Rydzewski, a vice president at Abacus. “We value their knowledge of the space and their transparency.”
Other Abacus team members involved in the transaction included Austin Rendell and Greg Scanlon.
Los Angeles-headquartered Westhook invests from $10 million to $50 million in US-based lower middle market companies that have revenues greater than $15 million and EBITDA greater than $3 million. Sectors of interest include consumer, industrial, business services and healthcare services. Westhook held a final closing of its inaugural fund, Westhook Capital Partners LP, with $140 million in capital commitments in September 2018.
Abacus is headquartered in New York and is an affiliate of New York Private Bank & Trust which was founded in 1850.
© 2021 Private Equity Professional | December 14, 2021