Abacus Finance Group was administrative agent and sole lead arranger for $16.5 million in debt financing used to support the spinout of Kova International from Hycor Biomedical. One Rock Capital Partners, Laurel Crown Partners, and StoneCreek Capital led the spinout. Garden Grove, Calif.-based Kova is a developer, manufacturer, and marketer of in-vitro diagnostic products for the urinalysis market.
Abacus Finance Group, LLC (Abacus), a New York-based specialty finance company, announced today that it served as Administrative Agent and Sole Lead Arranger for $16.5 million in senior secured credit facilities to support the divisional spin out of Kova International (Kova) from Hycor Biomedical, Inc. by an investor group consisting of One Rock Capital Partners, LLC (One Rock), Laurel Crown Partners, StoneCreek Capital and management. Abacus focuses exclusively on providing cash-flow financing for private equity-sponsored, lower-middle market companies.
Based in Garden Grove, CA, Kova is the leading developer, manufacturer, and marketer of in-vitro diagnostic products for the global urinalysis market. One Rock, based in New York City, is a private investment company that provides equity capital for high-potential small and middle-market businesses.
“We chose to partner with Abacus for this investment because of their expertise in financing healthcare companies and their ability to assure a certainty of close early on,” said One Rock Partner Kimberly D. Reed. “Abacus was highly recommended to us. They were easy to work with and flexible in structuring the transaction, which gives us the foundation to pursue our growth strategy.”
“One Rock, a new relationship for us, is a great fit for our firm given their investment strategy and their sector focus,” said Tim Clifford, President and CEO of Abacus. “They were terrific to work with, and we were impressed by the thoroughness of their due diligence. As in other transactions, the critical success factors came down to our flexibility and our ability to provide certainty of close – both important aspects of what we call our Total Partnership ApproachTM.”
Other Abacus team members involved in the transaction included Mindy Naylor and Song Pettus. Goulston & Storrs, LLP provided legal counsel to Abacus.
About Kova International
Founded in 1981 and based in Garden Grove, CA, Kova is the leading developer, manufacturer, and marketer of in-vitro diagnostic products for the global urinalysis market. Kova is recognized as a premier brand in urinalysis with exceptional product recognition among clinicians and lab technicians. Its products are entrenched in all segments of urinalysis testing, and for over 20 years Kova has maintained a leading market position in disposable microscopy urinalysis products. For more information, visit kova.com.
About One Rock Capital Partners, LLC
One Rock Capital Partners is a private investment company that provides equity capital for high-potential middle-market businesses. One Rock enhances the value of its portfolio companies by bringing world-class operational, strategic, and financial resources to help company management achieve its goals. Its resources include a group of hands-on, highly accomplished, industry-specific Operating Partners and a strategic partnership with Mitsubishi Corporation. For more information, visit onerockcapital.com.
About Abacus Finance Group, LLC
Abacus Finance, headquartered in New York, is a lower-middle market specialty finance company, focused on providing senior cash-flow financing to private equity-sponsored companies nationwide. Formed in June 2011, Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million, and the companies it finances generally have EBITDA between $3 million and $15 million. Abacus is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, which was founded in 1850 and is the largest family-owned bank in America.
Abacus is headquartered at 6 East 43rd Street, 20th Floor, New York, NY 10017. All inquiries and new investment opportunities should be directed to Tim Clifford at 212-850-4620 or to [email protected] Visit abacusfinance.com for more information.