Northstar Capital has made an investment in Automated Handling Solutions, a portfolio company of May River Capital. Northstar provided mezzanine debt and made an equity co-investment.
Northstar invests from $5 million to $30 million of subordinated debt and/or up to $15 million of equity as a co-investment in sponsored transactions of North American-based companies with EBITDA of at least $3 million. The firm’s sectors of interest include healthcare, industrials, consumer, business services, food and agriculture, outsourcing, and distribution.
Automated Handling Solutions (AHS) was formed by May River in April 2022 through the combination of Cablevey Conveyors, an Iowa-based manufacturer of tubular drag and disc conveying systems; and Spiroflow, a North Carolina-based manufacturer of material handling equipment including flexible screw, aero, cable, and chain drag conveyor systems. Spiroflow also provides control systems integration services. Cablevey Conveyors was acquired by May River in January 2022, and Spiroflow was acquired simultaneously in April 2022 with the formation of AHS.
Northstar’s investment in AHS is the twenty-third platform investment for the firm’s $500 million seventh fund, which consists of Northstar Mezzanine Partners VII LP and Northstar Mezzanine Partners SBIC LP. These parallel funds closed in January 2021. Since its founding in 1993, Minneapolis-headquartered Northstar has partnered with more than 155 companies and raised nearly $2 billion in capital.
Earlier this week, PEP reported that Abacus Finance was the sole lender and administrative agent on the senior debt that was used in the formation of AHS. Abacus also made an equity co-investment.
© 2022 Private Equity Professional | October 5, 2022
