Patriot Capital Supports Maysteel’s Merger with Porter’s Group

Patriot Capital Group is pleased to announce an add-on subordinated debt investment to support the merger of its existing portfolio company, Maysteel Industries, LLC (“Maysteel” or the “Company”) with Porter’s Group (“Porter’s”). Patriot originally invested subordinated debt and equity in Maysteel in 2017 in support of Littlejohn Capital, LLC and the Company’s acquisition of DAMAC Products, LLC.

Maysteel specializes in designing, engineering and manufacturing custom sheet metal enclosures, cabinets, kiosks and racks for specific industry solutions from its locations in Wisconsin, California and Monterrey, Mexico. Porter’s Group, founded in 1964, is a custom metal fabricator serving 20 diverse industries from its three manufacturing locations in Lynchburg, Virginia, Sumter, South Carolina and Garland, Texas. Porter’s is the largest metal fabricator of sheet metal and safes for the North American banking industry. The combined company, which will continue to operate under the Maysteel brand, will have over 1,000 employees with six manufacturing locations covering the U.S. and Mexico, and manufacturing partner locations in Europe. Guy Roberts, formerly CEO of Porter’s Group, will now serve as the Chief Operating Officer of Maysteel.

The merger of the two businesses creates a leading custom sheet metal fabricator serving a number of industries. With greater scale, improved market leadership, increased engineering expertise, complementary strengths and geographic reach, Maysteel now has a broader product base to offer its customers from locations needed by its customers.

For more information on this transaction, please contact Stacey Wittelsberger or Tom Holland.

Patriot Capital Supports Coltala Holdings, LLC’s Acquisition of Trudela Holdings, LLC

Patriot Capital is pleased to announce a new subordinated debt and equity co-investment alongside Coltala Holdings, LLC (“Coltala”) in Trüdela Holdings, LLC (“Trüdela” or “the Company”). Patriot’s investment supported Trüdela’s acquisition of two companies, including Air Care Metro Energy Savers, Inc. (“Metro”) and Walker Air Conditioning & Heating, Inc. (“Walker”).

Located in the Dallas-Fort Worth metroplex, Metro and Walker are each full-service heating, ventilation and air conditioning (“HVAC”) companies specializing in the replacement, repair and maintenance of HVAC equipment. End markets include single-family homes, multi-family apartment complexes and commercial businesses. Metro and Walker have each existed for more than 30 years and have developed strong brand recognition throughout the Dallas-Fort Worth area. Coltala originally partnered with the management team at Trüdela in 2018 with the strategy of building a leading HVAC platform through strategic acquisitions. The Trüdela management team collectively possesses more than 85 years of experience in the HVAC industry and is led by CEO, Paul Adams and COO, Eric Shaw.

For more information on this transaction or to discuss a potential add-on acquisition candidate, please contact Charles McCusker, Patrick Hamner or Aaron Katzman.

Patriot Capital Supports PlayMonster and Audax Private Equity’s Acquisition of Kahootz Toys

Patriot Capital is pleased to announce a new subordinated debt and equity co-investment alongside Audax Private Equity (“Audax”) in PlayMonster LLC.  Patriot’s investment supported PlayMonster’s acquisition of Kahootz, LLC.

Headquartered in Beloit, Wisconsin, PlayMonster is a designer, manufacturer and marketer of games and toys. The Company’s portfolio of games and toys for children and adults features brands such as Yeti in My Spaghetti, 5 Second Rule, My Fairy Garden, and Relative Insanity. PlayMonster products are distributed through mass, e-commerce, and specialty retailer channels across the U.S. and U.K. The addition of Kahootz expands the PlayMonster product portfolio with classic brands such as Spirograph, in addition to innovative products like Y’Art, Colorforms and Fashion Plates. Audax originally partnered with the PlayMonster team led by CEO, Bob Wann, in November 2018 with the strategy of building a leading platform through organic growth and add-on acquisitions.

For more information on this transaction or to discuss a potential add-on acquisition candidate, please contact Stacey WittelsbergerCharles Bryan or Aaron Katzman.

Patriot Capital Supports Insight Equity’s Acquisition of Eddy

Patriot Capital is pleased to announce a new subordinated debt and equity co-investment in Eddy Packing Company (“Eddy” or “the Company”). Patriot’s investment supported Insight Equity’s acquisition of Eddy, in partnership with incumbent management and industry veteran Jim Reed, who will serve as CEO of the Company.

Headquartered in Yoakum, Texas, Eddy is a value-added processor of smoked, cooked, and fresh pork, beef and poultry products. The Company’s products are available in refrigerated and frozen formats and are found under brands such as Eddy, Carl’s, Morales, and James’ Smoked Sausage as well as a variety of private label brands. Eddy serves a balanced mix of foodservice, contract packing, and retail customers and its products can be found in regional and national grocers, wholesale clubs, and restaurants across the United States.

For more information on this transaction or to discuss a potential add-on acquisition candidate, please contact Patrick Hamner, Jonathon Cope or Sean Bilbrough.

Patriot Capital Supports Union Corrugating’s Investment in Reed’s Metals

Patriot Capital Group is pleased to announce an investment in Reed’s Metals (Reed’s) thorough its existing portfolio company Union Corrugating Company (“Union” or the “Company”). Patriot originally invested in Union in 2016 in support of Industrial Opportunity Partners’ (“IOP”) acquisition of the Company. Union is a manufacturer of metal roofing systems and roofing components based in Fayetteville, N.C. With eleven manufacturing facilities located throughout the Southeastern and Midwestern U.S. Union has approximately 300 employees spanning its eleven locations. Union’s products are used in residential, commercial, and post frame/agricultural applications. The Company serves customers in over 30 states through a broad range of channels, including home centers, lumber retailers, wholesalers, and contractors.

Headquartered in Brookhaven, MS, Reed’s manufacturers and distributes metal roofing systems and pre-engineered metal buildings through seven manufacturing facilities and one sales office across the Southeastern U.S. Reed’s has approximately 245 employees spanning eight locations.

IOP and Patriot are partnering in the investment with Bernie Reed, Reed’s President, Chief Executive Officer, and Founder, as well as the Company’s management team, all of whom have ownership interests and will remain in their current leadership roles. IOP Operating Principal Dave Mackin will remain as Chairman of Union, overseeing both Union and Reed’s. Mr. Mackin is a member of IOP’s Board of Operating Principals, which is comprised of experienced executives who provide leadership to the businesses in which IOP invests.

Mr. Mackin noted, “We believe Reed’s has an established brand known for excellent customer service, delivery and quality, which is a testament to what Bernie and his partners have built over the years.”

Union, President and Chief Executive Officer, Keith Medick noted, “We were drawn to Reed’s due to the complimentary attributes we believe it has with Union. Going forward, the two companies will operate as distinct business units in the marketplace while being collaborative in leveraging the supply base in order to provide value for our customers.”

Mr. Reed commented, “My team and I are extremely excited to partner with Union, IOP and Patriot. Our partnership was formed in order to increase the product offering for our respective customers and that will be our focus going forward.”

In addition to its equity investment, Patriot provided debt financing along with Regions Bank.

For more information on this transaction, please contact Tom Holland, Tom Kurtz or Jonathon Cope.

Patriot Capital Supports Thermal Process Holdings’ Acquisition of Hudapack Metal Treating, Inc.

Patriot Capital Group is pleased to announce a new senior debt and equity investment in Thermal Process Holdings, Inc. (TPH). Patriot’s investment supported TPH’s acquisition of Hudapack Metal Treating, Inc. (“Hudapack”), which owns and operates heat treat facilities in Elkhorn and Franklin Wisconsin and P & L Heat Treating (“P&L”), a heat treater based in Youngstown, Ohio.

Thermal Process Holdings was formed by Calvert Street Capital Partners and John Hubbard (former CEO of Bodycote, PLC) to pursue a buy-and-build strategy in the thermal processing industry. TPH also owns and operates Diamond Heat Treat, based in Rockford, IL and Certified Heat Treating, based in Springfield, OH. TPH is actively seeking other add-on acquisition opportunities.

For more information on this transaction, please contact Adam Kelly, Sean Billbrough or Tom Holland.

Patriot Capital Supports HCI Equity Partners’ Acquisition of Express Packaging

Patriot Capital Group is pleased to announce a new subordinated debt and equity investment in Express Packaging (“Express” or “the Company”). Patriot’s investment supported HCI Equity Partners’ acquisition of Express in partnership with the Company’s management team.

Headquartered in Newcomerstown, OH, Express is a provider of outsourced contract packaging and contract manufacturing services to global consumer brands. With three SQF Level 3 certified facilities in West Chicago, IL, Columbus, OH, and Newcomerstown, OH, Express has both primary and secondary manufacturing capabilities across a broad range of product types including food, candy, and pet food.

For more information on this transaction or to discuss a potential add-on acquisition candidate, please contact Jonathon Cope or Tom Holland.

Patriot Capital Invests in Smith Transportation Services

Patriot Capital Supports Post Capital Partners’ Acquisition of Smith Transportation Services with a One-Stop Financing Solution

Patriot Capital Group is pleased to announce a new unitranche debt and equity co-investment in Smith Transportation Services (together with its affiliates, including Smith-Cargo and Cargo-West, “Smith Transportation” or the “Company”), made in support of Post Capital Partners’ acquisition of the Company.

Founded in 2001, Smith Transportation is a national full-service third-party logistics & asset-light transportation services provider, with a leading presence in the Florida market. The Company’s comprehensive brokerage servicing offering spans nationwide, across multiple modes of transportation, including Load-to-Ride (“LTR”), Less-than-Truckload (“LTL”), truckload and rail/intermodal brokerage. For more information, please visit the Smith Transportation Services website at www.smith-cargo.com.

For more information on this transaction, please contact Charles McCusker, Charles Bryan or Adam Kelly.

Patriot Capital Supports L2 Capital Partners and Lakewood Capital’s Acquisition of Orion ICS, LLC

Patriot Capital Group is pleased to announce a new subordinated debt and equity investment in Orion ICS, LLC (“Orion Talent”) and its wholly owned subsidiary Novotus, LLC (“Orion Novotus” and with Orion Talent, collectively, “Orion” or the “Company”). Patriot’s investment supported L2 Capital Partners, L.P. (“L2” or “L2 Capital”) and Lakewood Capital, LLC (“Lakewood”) acquisition of Orion.

Founded in 1991, Orion Talent (www.oriontalent.com) has found careers for over 43,000 veterans and operates from offices located throughout the nation. In 2016, the Company expanded its service offerings by acquiring Novotus, now Orion Novotus (www.orion-novotus.com), a full-service Recruitment Process Outsourcing (“RPO”) provider. The acquisition combined one of the largest military talent placement firms in the country with an award-winning RPO capability. In turn, the consolidated enterprise created a platform for evolution into a global full-service enterprise talent management and recruiting firm.

For more information on this transaction please contact Dan Yardley or Jonathon Cope.

Patriot Capital Group and Guardian Capital Partner with Management to Recapitalize Direct Line

Patriot Capital is pleased to announce a new senior subordinated debt and equity investment in SMG Extol, LLC (d/b/a Direct Line), made in support of Guardian Capital Partners’ investment in the company.

Direct Line is a provider of infrastructure development and support services to customers in the data center and information technology sectors. Through its involvement in the formative years of the data center industry, the company developed expertise in managing the customized data and fiber optic cabling requirements involved in the design, installation, and maintenance of data centers and is recognized today as a leading provider of solutions to customers around the world.