M&A as a tool for turnaround
Capstone Headwaters advised Olympia Chimney Supply, a portfolio company of Argosy Private Equity, on the placement of a new senior secured credit facility, the proceeds of which were used to facilitate the acquisition of Copperfield Chimney Supply. Capstone Headwaters served as the sole financial advisor on the placement of the new loan with Deerpath Capital Management, a direct lending firm that provides flexible financing solutions to middle-market companies. The transaction closed on January 3, 2019, and the terms of the acquisition and related financing were not disclosed.
Founded in 1999 and headquartered in Scranton, Pennsylvania, Olympia Chimney Supply is a leading designer and manufacturer of chimney venting systems, liners and accessories, with additional operations in North Carolina, Indiana, Oregon and New Hampshire. Copperfield Chimney Supply was founded in 1978 and is a leading national distributor of chimney supplies and accessories, serving contractors and retailers of hearth and chimney systems. Copperfield Chimney Supply is headquartered in Fairfield, Iowa, with additional operations in California, North Carolina, Ohio, Massachusetts, and New Jersey.
Argosy Private Equity was founded in 1990 to invest in lower middle market companies that have the potential to substantially grow revenues and profits. Headquartered in Wayne, Pennsylvania, Argosy Private Equity’s investment focus covers a range of industry segments including engineered materials, industrial electronics, industrial manufacturing, industrial services, aviation services, business franchising, general manufacturing, and general services
Deerpath Capital Management focuses on providing flexible financing solutions to middle-market companies, generally in the form of senior secured loans, unitranche capital, and equity co-investments. The firm lends to sponsored and non-sponsored companies with revenues greater than $10 million, typically in support of refinancing, growth capital, acquisitions, buyouts, and recapitalizations.
Kent Brown, Managing Director at Capstone Headwaters in their Debt Advisory Group, said
“Olympia received significant interest from prospective lenders in the market who were generally attracted to the clear strategic rationale for the acquisition, the many synergies that will be realized, and the leadership position that Olympia will assume within the industry. The Deerpath Capital loan will help take the combined business to the next level and we are delighted to have played a role in helping Argosy Private Equity set Olympia up for its next chapter of success.”
M&A as a tool for turnaround
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