Lincoln International secures financing commitments in support of Nova Capital Management’s acquisition of the operating subsidiaries of Latshaw Enterprises, Inc.
Lincoln International, a leading global mid-market investment bank, announces the successful completion of a financing for the acquisition of five industrial businesses in the U.S. by Nova Capital Management (“Nova”), the specialist acquirer of corporate and private equity portfolios. The acquired businesses comprised all of the operating subsidiaries of Latshaw Enterprises, Inc. (collectively, “Latshaw” or the “Company”), a U.S.-based industrial group. The five acquired businesses have aggregate sales of approximately $90.0 million and employ more than 450 people in five operating facilities across the U.S. The businesses acquired are:
- Wescon Products Company, an OEM manufacturer of mechanical controls, cable assemblies and screw machined components primarily for the lawn & garden sector;
- Wescon Plastics LLC, a manufacturer of custom plastic injection molded parts using highly-engineered resins primarily for the battery and heavy duty truck industries;
- MC Electronics Inc., specializes in the assembly of custom electronic cables, harnesses, electro-mechanical assemblies and full system integration;
- Coast Wire & Plastic Tech Inc., a manufacturer of custom electronic wire and cable products, for the medical, instrumentation and commercial electronic industries; and
- Anderson & Forrester Inc., a manufacturer of orifices, fittings and gauging tools for the natural gas and propane industries.
Lincoln International acted as exclusive financial advisor to Nova and completed the placement of $53.0 million in senior secured credit facilities, consisting of a $20.0 million revolving credit facility and a $33.0 million unitranche term loan. Proceeds from the financing were used to finance a portion of the acquisition consideration, pay fees and expenses associated with the acquisition and provide for the Company’s ongoing working capital needs. The revolving credit facility was provided by PNC Business Credit and the unitranche term loan was provided by GSO Capital Partners.
As Nova’s exclusive financial advisor, Lincoln International worked closely with Nova and Latshaw’s senior management team on all aspects of the transaction, helping to structure, arrange and negotiate the financing. Tom Leader, Investment Partner at Nova, stated, “We are very pleased with the outcome of the Latshaw financing. Lincoln’s extensive knowledge of the local debt market and the breadth of its financing process allowed us to find the ideal lenders for this transaction and obtain a financing package that exceeded our expectations.”
Bob Horak, Managing Director and Co-Head of Lincoln’s Debt Advisory Group added, “The Latshaw transaction provides an excellent example of how business owners and financial sponsors headquartered outside of the U.S., such as Nova, can optimize the financing of U.S.-based companies by outsourcing with Lincoln. Moreover, for complex transactions such as Latshaw, Lincoln can help craft a clear and concise story for the lending community that results in a financing package tailored to the sponsor’s unique needs. We greatly enjoyed working alongside Nova on this exciting opportunity and look forward to continuing our long-standing relationship with Nova both in the U.S. and the U.K.”
About Latshaw Enterprises, Inc.
Latshaw is an industrial holding company comprised of five high-margin niche businesses, operating in a diverse set of medical and industrial sectors. The Company is headquartered in Wichita, Kansas and also has facilities in Hollister, California; Carson, California; and Wheat Ridge, Colorado. For more information, visit Wescon Products Company’s website at www.wesconproducts.com; MC Electronics Inc.’s website at www.mcelectronics.com; Coast Wire & Plastic Tech Inc.’s website at www.coastwire.com; and Anderson & Forrester Inc.’s website at www.andersonforrester.com.
About Nova Capital Management
Established in 2002 and headquartered in London, with a 20+ strong team based in offices in the U.K., Canada and the U.S., Nova has acquired or taken over the management of portfolios representing a total transactional value of over EUR 1.1 billion. Nova currently manages investments in over 25 businesses primarily operating in Western Europe and North America, across a broad range of sectors. For additional information on Nova Capital Management please go to www.nova-cap.com.
About Lincoln International
Lincoln International specializes in merger and acquisition advisory services, debt advisory services, private capital raising and restructuring advice on mid-market transactions. Lincoln International also provides fairness opinions, valuations and pension advisory services on a wide range of transaction sizes. With thirteen offices in the Americas, Asia and Europe, Lincoln International has strong local knowledge and contacts in key global economies. The firm provides clients with senior-level attention, in-depth industry expertise and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest. More information about Lincoln International can be obtained at www.lincolninternational.com
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