Amalgamated Capital, the leveraged finance unit of Amalgamated Bank, provided financing for Cortec Group’s buy of Franklin Energy Services. Cortec is a New York PE firm. Franklin, of Port Washington, Wis., works on energy efficiency programs for utilities and government agencies.
Amalgamated Capital (AmalCap), the New York-based leveraged finance division of Amalgamated Bank, announced today that it served as Lead Arranger and Administrative Agent in support of the acquisition of Franklin Energy Services, LLC by Cortec Group Fund IV, L.P. AmalCap provides cash flow-based senior financing to support investments made by private equity sponsors in high quality, lower middle- market companies. The amount of the transaction was not disclosed.
Based in Port Washington, Wisconsin, Franklin Energy specializes in the implementation of energy efficiency programs on behalf of utilities, states and municipalities. Cortec Group Fund IV, L.P. is an affiliate of Cortec Group, a New York-based private equity firm which invests in middle-market manufacturing, distribution, healthcare, and proprietary services businesses.
“This was our second transaction with Cortec Group and an opportunity that was a great fit with our business model,” said Timothy Clifford, Executive Vice President and Head of Amalgamated Capital. “Franklin Energy is a high quality, lower middle-market company with strong historical cash flow. It had financing needs that fell directly within our target financing range and was backed by a leading private equity firm.”
“We were very happy with the work of the AmalCap team on the transaction we completed with them last November,” commented Jonathan Stein, Senior Managing Director of Cortec Group, “which is why we wanted to work with them again. They are responsive, enthusiastic and decisive. When AmalCap committed, they delivered on time and as promised.”
About Amalgamated Capital
Amalgamated Capital (AmalCap), headquartered in New York, is the leveraged finance division of Amalgamated Bank, a privately-owned commercial bank with nearly $5 billion in assets. AmalCap, launched in September 2009, is focused exclusively on partnering with private equity sponsors and providing delivering cash flow-based senior financing for investments in the lower middle-market nationwide. Its borrowers operate in a diverse array of industry sectors and generally have annual revenue ranging from $15 million to $150 million and EBITDA of $3 million to $15 million. Visit AmalCap online at www.amalcap.com.
About Amalgamated Bank
Amalgamated Bank, established in 1923 by the Amalgamated Clothing Workers of America, continues the progressive traditions of its founders as the only union-owned bank in the United States. Chartered by New York State, Amalgamated Bank is an FDIC insured commercial bank. The Bank’s corporate divisions – in addition to Amalgamated Capital – include Retail Banking, Institutional Asset Management and Custody, Commercial Banking, and Real Estate Finance. The Bank’s website is www.amalgamatedbank.com.
About Cortec Group
Cortec Group acquires high value-added, middle-market manufacturing, service, healthcare and distribution businesses with leadership positions in their market niches. Cortec Fund IV has more than $410 million of committed capital used to acquire platform companies with enterprise values of $30 million to $250 million and smaller follow-on acquisitions. For additional information, visit www.cortecgroup.com.
About Franklin Energy
Founded in 1994, Franklin Energy specializes in the implementation of energy efficiency programs on behalf of utilities, states and municipalities. Headquartered in Port Washington, the firm has six additional Wisconsin locations as well as offices in Colorado, Michigan, and Minnesota. For additional information, visit www.franklinenergy.com.