Graham Partners has acquired B&B Electronics Manufacturing Co., an Ottawa, Ill.-based maker of industrial Ethernet switches, from Fidelity Equity Partners. No financial terms were disclosed, except that Golub Capital provided $13.3 million in subordinated debt. Madison Capital led the senior debt tranche, while Lazard Middle Market advised B&B.
Golub Capital today announced that it has provided $13.3 million of subordinated debt and co-investment equity in support of Graham Partners' acquisition of B&B Electronics Manufacturing Company. Headquartered in Ottawa, IL, B&B is an engineering and manufacturing company, which produces devices to network machines in rigorous industrial and commercial environments. The Company's principal end customers are middle market manufacturers and utilities with industrial equipment that has not yet been networked or is operating on disparate technology, a market comprised of millions of machines.
B&B's networking products are designed specifically for rugged industrial environments, and allow multiple technology interfaces (Ethernet, USB, wireless, serial, etc.) to operate within a network. According to a market research firm engaged by Graham Partners in connection with the acquisition, B&B's addressable market within the industrial networking sector totals approximately $600 million, with the major product niches B&B serves projected to grow at compound annual rates over 20%.
“We are pleased to be partnering with Graham Partners on the B&B opportunity given their expertise and experience in middle market manufacturing,” said Golub Capital Managing Director Greg Cashman. “The growth potential in this market is large and with Graham as a partner, B&B has the opportunity to leverage its established brand and unique distribution model to achieve excellent returns.”
This is Golub Capital's fifth investment in a Graham Partners portfolio company.
“We are pleased to partner again with Golub Capital for financing on this transaction. They showed great reliability in this uncertain financing environment,” says Josh Wilson, a Principal at Graham Partners.
Madison Capital Funding LLC led the senior debt financing while Lazard Middle Market acted as B&B's financial advisor.
About Golub Capital
Golub Capital is an active provider of GOLD (Golub Capital's One-Loan Debt Facility), senior and subordinated debt, second lien debt, preferred stock, and co-investment equity to middle market companies. The firm is committed to being a value-added and user-friendly partner to owners, senior management and transaction sponsors. With a broad investment mandate and long-term time horizon, Golub Capital has a high level of flexibility in structuring investments. Typical investments ranging from $5 million to $75 million, with additional capital available for future growth. Golub Capital is a national firm with offices in Atlanta, Chicago, New York and San Francisco. For more information, please visit www.golubcapital.com.
About Graham Partners:
Graham Partners is a leading, lower middle market industrial private equity firm based in suburban Philadelphia with over $1.3 billion under management. Graham Partners is sponsored by the privately held Graham Group of York, Pennsylvania, an industrial and investment concern with global interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners seeks to acquire industrial companies with revenues between $30 million and $500 million that participate in manufacturing niches where it can leverage its unique combination of operating resources and financial expertise.