O2 Sponsor Finance, a division of Old Second National Bank, has provided senior secured credit facilities to back the buy of Dakotaland Autoglass by West Edge Partners.
Dakotaland Autoglass (DAG) is a distributor of aftermarket automotive replacement glass, and paint & body equipment to autobody shops and glass installation businesses. The company’s inventory includes over 50,000 auto glass parts. In addition to its distribution activities, DAG also provides a range of services including windshield replacement, back and side window replacement, and minor chip repair.
DAG operates 12 locations across North Dakota, South Dakota, Minnesota and Iowa, with its main distribution center and headquarters (68,000 sq. ft.) in Sioux Falls, South Dakota. DAG was founded by Daryl Anderson in 1978. McGowan Capital, a private equity firm also based in Sioux Falls, invested in DAG in 2012.
O2 Sponsor Finance provided just more than $13 million to back West Edge’s acquisition of DAG. “We are excited that West Edge selected O2 Sponsor Finance as senior lender to support their acquisition of Dakotaland Autoglass. We look forward to supporting DAG’s ongoing growth,” said Thom Karle, a senior vice president at O2 Sponsor Finance.
O2 Sponsor Finance is a national provider of cash flow-based loans to lower middle market businesses with $10 million to $100 million in revenue and $2 million to $10 million in EBITDA. Typical investment sizes range from $5 million to $25 million with syndication capabilities up to $60 million. The firm focuses on supporting private equity sponsors, independent sponsors and family offices in their acquisition or recapitalization of lower middle market companies.
O2 Sponsor Finance was formed by Old Second Bancorp in January 2022 and is led by President Joe Gaffigan, the former president and co-founder of TCF Capital Funding. Mr. Gaffigan led TCF Capital Funding from 2012 to 2021 until TCF Bank was acquired by Huntington National Bank in June 2021. He remained with Huntington as the president of its sponsor finance unit until spinning out to join Old Second to form O2 Sponsor Finance.
Old Second Bancorp has more than $6 billion in assets and is headquartered near Chicago in Aurora, Illinois. O2 Sponsor Finance is headquartered in Chicago. Mr. Gaffigan can be reached via email at jgaffigan@oldsecond.com and Mr. Karle can be reached at tkarle@oldsecond.com.
In addition to the support from O2 Sponsor Finance, Omaha-based First Capital Partners provided subordinated debt financing and an equity co-investment.
West Edge Partners invests in companies that have more than $5 million in revenue and less than $15 million in EBITDA. Sectors of interest include business and consumer services, distribution, and light manufacturing businesses. West Edge is headquartered in Los Angeles with an additional office in Philadelphia.
© 2022 Private Equity Professional | November 29, 2022
