Babson Capital Management announced Tuesday that it provided $15 million in subordinated debt and made an $3 million equity co-investment to support Blue Point Capital Partners’ acquisition of Smith Cooper International. Blue Point Capital is a middle-market-focused private equity firm. Smith Cooper is a distributor of branded pipes, valves and fittings.
Babson Capital Management LLC, a global investment management firm with more than $154 billion in assets under management and operations on four continents, today announced it provided $15 million in subordinated debt and made an equity co-investment of $3 million to support Blue Point Capital Partners’ acquisition of Smith Cooper International LLC.
The investment is Babson Capital’s first direct platform investment with Blue Point Capital, a middle-market-focused private equity firm with offices in Charlotte, Cleveland, Seattle and Shanghai.
Smith Cooper, based in Los Angeles, is a leading value-added master distributor of branded pipes, valves and fittings to diversified end markets, including industrial maintenance, repair and operations, energy, waterworks and the heating/ventilation/air conditioning industry.
“Blue Point Capital Partners is delighted to partner on this investment with Babson Capital’s Mezzanine & Private Equity Group, whose impeccable credentials and expertise in the lower middle- market are known worldwide,” said Juli Marley, a partner with Blue Point. “We look forward to working with the Babson Capital team on the Smith Cooper investment and hope to partner again on future investments.”
“Babson Capital is excited to join with Blue Point Capital Partners, a sponsor with a solid track record spanning more than two decades and a strategic focus that is very complementary to our own,” said Mike Klofas, Managing Director and head of Babson Capital’s Mezzanine & Private Equity Group. “Blue Point’s unique capabilities in China, a market of significant importance to Smith Cooper, and Smith Cooper’s well-established brand and position as a global leader in its industry make for a compelling growth story.”
About Blue Point Capital Partners
Blue Point Capital Partners (www.bluepointcapital.com) is an established private equity firm managing over $800 million in committed capital. Leveraging fully staffed offices in Charlotte, Cleveland, Seattle and Shanghai, Blue Point’s entrenched regional presence affords it the opportunity to establish relationships on a local and regional basis with entrepreneurs and their trusted advisors, while simultaneously providing the resources of a large, international firm. Blue Point has a 22-year track record of partnering with companies in the lower middle market where it can bring about accelerated growth and transformative change in partnership with its companies, their management teams and Blue Point’s network of operating resources. Blue Point is one of only a few middle-market private equity firms with a presence in the economies of both the United States and China, and the firm’s experience with cross-border management and value drivers has provided a distinct advantage for its portfolio businesses. Blue Point invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue
About Babson Capital
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have over $154 billion in assets under management as of September 30, 2012. Through proprietary research and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in global corporate debt markets, structured products, debt and equity financing for commercial real estate, and alternatives. Headquartered in Boston, the firm’s subsidiaries include Cornerstone Real Estate Advisers LLC and Wood Creek Capital Management, LLC.