Growth Debt Financing
Corcentric completed a $200 million debt recapitalization by significantly increasing its revolving credit facility and introducing a term loan which involves a delayed draw provision to fund acquisitions. The financing was led by the Debt Capital Markets group of Stephens and MidMarket provided advisory support. Corcentric provides technology-enabled business-to-business solutions in accounts receivable workflow, procurement processes and accounts payable automation to a range of businesses across various industries.
STG has finalized its $62 million purchase of Thompson and Co., a Tampa-based cigar retailer. Thompson is one of the industry’s oldest and largest retailers. Founded in 1915, Thompson was a pioneer in the cigar industry, becoming the first postal permit holder in the city of Tampa. Today, the business includes a mail-order catalog, an online website and a retail storefront. Its annual revenue is $100 million, making it one of the five largest cigar retailers. Thompson was also one of the last major retailers not owned by a cigar company.
JDB is a marketer and licensor of premium spirits. It recently launched initial alcoholic beverage products in select states. Midmarket assisted JDB in forming the business and raising equity capital from a prominent family office in conjunction with a strategic corporate relationship. MidMarket is a shareholder and serves on the board of the company.
Lamark provides performance-based marketing and advertising programs that facilitate brand and product awareness, consumer engagement and accelerated customer acquisition. MidMarket represented a family office in the purchase of outstanding equity interests.
Corecentric is a provider of cloud-based financial process automation solutions. It recently acquired InfoAccess which provides cloud-based e-invoicing services for Fortune 500 customers and brings a greater breadth of e-invoicing capabilities to Corecentric’s Accounts Payable invoice automation solution. MidMarket assisted Corecentric and its parent company AmeriQuest in developing the acquisition structure and negotiating the transaction.
PJW Restaurant Group’s portfolio of 18 locations in Pennsylvania and New Jersey includes the four mostly casual dining concepts – P.J. Whelihan’s, The Pour House and Treno as well as the exclusive favorite The Chop House. The increased credit facility from Sun National with the participation of National Penn provides additional expansion financing as well as a liquidity component for ownership. MidMarket assisted in developing the financing structure and in negotiation of the credit facility.
Sale to Strategic Acquirer
Drew Estate is one of the fastest growing tobacco companies in the world. Under its mantra “The Rebirth of Cigars”™, Drew Estate has led the “boutique cigar” movement by innovating new elements to the tobacco industry with unique tobaccos and blending styles that have attracted new and old cigar enthusiasts. MidMarket assisted with strategic growth over seven years including an operating executive role and serving as corporate financial advisor in the sale of the business.
Sale to Strategic Acquirer
Welex Corporation, the global standard in high performance sheet extrusion machinery world-wide, was implementing a revitalization strategy designed to increase its competitiveness in emerging markets. It asked MidMarket to find an investor or strategic partner to assist in carrying this out.
We initiated discussions with a select number of domestic and Taiwanese companies. It became clear very early that a transaction with Graham Engineering Corporation (GEC), which operated in complementary segments of the market and had expertise in the type of
re-alignment Welex had undertaken, would be
ideal for both companies.
The transaction was to trigger the consolidation of GEC’s existing businesses and entailed plans to combine manufacturing, right-size staffing and to modularize the Welex product line. These synergies are creating a powerful factor in the market.
AmeriQuest Business Services has engaged MidMarket on several assignments over an extended period. In this situation the company needed a substantially larger credit facility to accommodate new business. We assisted in the selection of lender, structuring and completion of a $100 million asset based five year revolving credit facility.
AmeriQuest is a business process outsourcing firm serving multiple industries in supply management, managed services and financial process automation. It is privately held and has locations throughout the United States.
MidMarket assisted in identifying alternative lenders and a competitive process leading to the selection of Bank of America and worked very closely with management and the lenders to completion of the transaction.
MidMarket worked with management on the formulation and format of business unit financial data and structuring of the credit facility and negotiating the loan documentation.