Graham Partners has acquired Ground Effects, Ltd.
Lincoln International, a leading global investment bank focused on the mid-market, has announced the successful completion of the financing of Graham Partners’ (“Graham”) acquisition of Ground Effects, Ltd. (“GFX”), which will be combined with another one of Graham’s portfolio companies, LINE-X Acquisition LLC (“LINE-X”). LINE-X, through its network of over 425 domestic and Canadian franchisees, is the leading marketer of spray-on coatings for use in a variety of automotive, commercial and security & defense applications. GFX is a leading provider of automotive accessories and upfit services for OEMs and dealerships in the United States and Canada.
Lincoln International acted as exclusive financial advisor to Graham and completed the placement of $55.0 million in senior secured credit facilities, consisting of a $20.0 million revolver and a $35.0 million term loan. Proceeds from the transaction were used to finance a portion of the acquisition price and provide for LINE-X’s and GFX’s ongoing working capital needs. The credit facilities were provided by a consortium of lenders led by Cerberus Business Finance, LLC.
As Graham’s exclusive financial advisor, Lincoln International worked closely with the firm on all aspects of the transaction, helping to structure, arrange and negotiate the financing. Josh Wilson, a Managing Principal at Graham, stated, “Lincoln efficiently and effectively conducted a robust financing process, approached a broad base of likely capital sources and pursued multiple structural alternatives, ensuring that we received the best financing package available in the market. In addition, the Lincoln team leveraged its significant experience in the automotive industry to prepare compelling offering materials that favorably positioned LINE-X and GFX and also highlighted the exciting synergies Graham expects to realize from the combination of these two businesses. It was a pleasure to work alongside Lincoln on this important transaction for Graham Partners.”
About LINE-X Acquisition LLC
Headquartered in Huntsville, Alabama, LINE-X is a global developer and distributor of “Protective Coating Solutions” used in branded spray-on pick-up truck bedliners, as well as other commercial and industrial coatings. LINE-X is a market leader in the spray-on bedliner category and also operates an industrial coatings division that offers anti-corrosion and protection for industrial customers and force mitigation for government agencies. More information on LINE-X can be obtained at www.linex.com.
About Ground Effects, Ltd.
Ground Effects, Ltd., based in Windsor, Ontario, is a leading designer and manufacturer of interior and exterior automotive accessories and provider of upfit services to automotive OEMs and dealerships in the United States and Canada. GFX’s products are utilized on over 40 vehicle platforms. More information on GFX can be obtained at www.gfxltd.com.
About Graham Partners
Graham Partners is a private investment firm focused on investing in companies with proprietary technologies, advanced manufacturing know-how, innovative product development capabilities, and exceptional growth potential. Graham Partners targets businesses with revenues between $30 million and $500 million, and will invest in smaller companies to the extent they complement one or more of its other holdings. Since the firm’s founding in 1988, Graham Partners has closed over sixty acquisitions, joint ventures, financings and divestitures. Today, the committed capital of the Graham Partners funds and Graham led co-investments totals approximately $1.6 billion. Investors include university endowments, charitable foundations, financial institutions and private investors. Based in suburban Philadelphia, the firm has access to extensive operating resources and industrial expertise as a member of The Graham Group, an alliance of independently owned and operated industrial and investment management businesses that share in the common legacy of entrepreneur Donald C. Graham. More information on Graham Partners can be obtained at www.grahampartners.net.
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