Cyprium Partners has made a new subordinated debt investment in Hobbico. The capital was used to refinance the company’s existing indebtedness and to fund its ongoing growth. This was Cyprium’s second investment in Hobbico since 2010 and was made out of the firm’s fourth fund.
Hobbico is a distributor of radio-control models and general hobby products. The company sells more than 60,000 products through three divisions targeting retail, wholesale and mass market channels. Since Cyprium’s original 2010 investment in Hobbico, the company has completed several add-on acquisition including Revell Germany, Axial and ARRMA Durango. Hobbico was founded in 1971 and is headquartered in Champaign, IL (www.hobbico.com).
“We at Cyprium are excited to continue our long-standing relationship with Hobbico,” said Cindy Babitt, a Managing Partner at Cyprium Partners. “This second investment in the company is representative of the type of patient capital Cyprium deploys in best of breed businesses. We are pleased to have the opportunity to continue to support management and the other employee shareholders of this 100% employee-owned company as it continues to grow.”
Cyprium provides capital for acquisitions, growth, shareholder or partnership buyouts, refinancings and dividend distributions, without requiring majority control. The firm provides capital via subordinated debt, preferred stock and/or common stock. Cyprium invests from $10 million to $60 million per transaction in companies with more than $10 million of EBITDA that are based in the US or Canada. The firm has offices in Cleveland, New York, and Chicago (www.cyprium.com).
2014 PEPD • Private Equity’s Leading News Magazine • 10-14-14