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South Franklin Street Partners Provides Mezzanine Financing to Hedwin Corporation
Cleveland, Ohio (February 4, 2004) -- South Franklin Street Partners’ (previously Candlewood Partners’) ESOP mezzanine fund (ACP-I) closed its second investment, providing mezzanine capital to Hedwin Corporation, ("Hedwin") headquartered in Baltimore, Maryland, to support the purchase of 100% of Hedwin’s stock from its parent company, Belgium based Solvay, SA.
Hedwin is a $45 million designer, manufacturer and marketer of high performance, specialty industrial containers and liner products sold to the chemical, medical products, institutional food, agricultural, photochemical and sanitary industries. Hedwin's used a newly formed ESOP owned 100% by an S-Corporation to acquire the company’s stock. This structure provides Hedwin with significant tax savings, increased cash flow as well as an attractive stock incentive plan for Hedwin’s senior management.
Hedwin contacted South Franklin Street Partners because of its expertise in financing ESOP transactions. South Franklin Street Partners invested $3.0 million in subordinated debt with warrants to support the transaction. In addition to South Franklin Street Partners’ investment, senior debt for the transaction was provided by LaSalle Bank's ESOP Financial Services Group, LaSalle Business Credit and the State of Maryland.
About South Franklin Street Partners
South Franklin Street Partners, through its mezzanine fund, ACP-I, L.P., is in the business of investing junior capital in middle market companies with annual revenues between $10 million to $150 million. ACP-I utilizes its capital to fund buyouts of minority or majority shareholders, ESOPs, non control recapitalizations, generational transfers, acquisitions, or to facilitate the growth of profitable middle market businesses. ACP-I's target investment size is $2 million to $10 million but can provide additional capital in conjunction with affiliated investors. ACP-I normally invests subordinated debt with warrants or preferred stock with an equity participation feature. Other structures will be considered, where appropriate.
South Franklin Street Partners provides Senior Subordinated Debt to Gateway Distribution, Inc.
South Franklin Street Partners Provides Subordinated Debt to Great Western Products Company.
South Franklin Street Partners Provides Subordinated Debt and Equity to Swiss-Tech, LLC.
South Franklin Street Partners Provides Senior Subordinated Debt to Precision Technology, Inc.
South Franklin Street Partners Provides Senior Subordinated Debt and Preferred Stock to Support Buyout of Brantley Trucking
South Franklin Street Partners Provides Senior Subordinated Debt and Preferred Stock to Support Buyout of National Mobile Television
South Franklin Street Partners Provides Mezzanine Financing to National Archive Publishing Company
South Franklin Street Partners Provides Senior Subordinated Debt to Rutland Plastics, Inc.
South Franklin Street Partners Provides Senior Subordinated Debt to Gerli & Co., Inc.
South Franklin Street Partners Provides Senior Subordinated Debt to Continental Holdings, Inc.
South Franklin Street Partners Provides Mezzanine Financing To Wessels Company
South Franklin Street Partners Provides Mezzanine Financing to Hedwin Corporation
South Franklin Street Partners Provides Senior Subordinated Debt to MC Assembly, Inc.
South Franklin Street Partners Announces Final Closing Of Its Mezzanine Fund
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