Babson Capital Management provided $12 million in mezzanine debt to support Drew Marine LLC’s acquisition of the Chemring Marine Group’s Rescue Division, the firm announced Wednesday. The add-on investment brings Babson Capital’s total subordinated debt investment in Drew Marine to more than $30 million including an initial investment of $20 million to support J.F. Lehman & Company’s 2009 acquisition. Babson Capital also made an equity co-investment at the time of the 2009 acquisition, the firm said.
Babson Capital Management LLC, a global investment manager with $149 billion in assets under management and operations on four continents, today announced it provided $12 million in mezzanine debt to support Drew Marine LLC’s acquisition of the Chemring Marine Group’s Rescue Division.
The add-on investment brings Babson Capital’s total subordinated debt investment in Drew Marine to more than $30 million including an initial investment of $20 million to support J.F. Lehman & Company’s 2009 acquisition. Babson Capital also made an equity co-investment at the time of the 2009 acquisition.
Under Drew Marine’s ownership, Chemring’s Rescue Division will be renamed Drew Marine Signal and Safety. Drew Marine Signal and Safety is the world’s leading supplier of marine distress signals to the commercial shipping and leisure markets. The Company’s products are marketed under established brand names including Pains Wessex, Comet, Aurora and Oroquieta.
“We were pleased to partner with the Babson Capital team on Drew Marine’s Chemring acquisition, which marks the fourteenth co-investment by Babson Capital in a J.F. Lehman portfolio company since 1992,” said Louis Mintz, Managing Partner of J.F. Lehman & Company. “The team’s deep experience in middle-market financing, responsiveness and partnership approach made Babson Capital a valuable asset on this transaction.”
“Babson Capital appreciates the opportunity to expand our relationship with Drew Marine through this add-on investment, and we are excited about the growth opportunities presented by the acquisition,” said Mike Klofas, Managing Director and head of the Mezzanine & Private Equity Group for Babson Capital. “We are extremely proud of our successful 20-year partnership with J.F. Lehman, and look forward to working together again soon.”
About J.F. Lehman & Co.
J.F. Lehman & Company is a leading middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm has offices in New York and Washington, D.C. For more information about J.F. Lehman & Company, please visit www.jflpartners.com.
About Babson Capital Management LLC
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $149 billion in assets under management as of June 30, 2012. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Headquartered in Boston, the firm’s subsidiaries include Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn.