Babson Capital Management has provided mezzanine debt and equity to support Huntsman Gay Global Capital’s acquisition of Citadel Plastics Holdings Inc., the firm announced Wednesday. Citadel Plastics, based in West Chicago, Ill., is a compounder of thermoset and thermoplastic resins.
Babson Capital Management LLC (Babson Capital), an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., today announced it provided mezzanine debt and equity to support Huntsman Gay Global Capital’s (Huntsman Gay) acquisition of Citadel Plastics Holdings Inc. The transaction marks Babson Capital’s second investment made in partnership with Huntsman Gay.
Citadel Plastics, based in West Chicago, Ill., is a leading global compounder of thermoset and thermoplastic resins with more than 600 employees and 14 locations in seven countries. Citadel operates two primary divisions, West Chicago-based Bulk Molding Compounds Inc. (BMCI), the world’s No. 1 supplier of high-quality thermoset compounds, and Evansville, Ind.-based The Matrixx Group Inc., a manufacturer of specialty thermoplastic compounds used to produce plastic components for a variety of industries including health care, automotive, electrical and construction.
“We’re very excited to build upon our strong relationship with Babson Capital’s Middle Market Finance Group. Given the size and strategic importance of the Citadel Plastics investment, selecting the right financing partners was critical to our success. The Babson Capital team was the ideal partner due to its strong middle market background and depth of investment experience,” said David Topham, Principal at Huntsman Gay. “We look forward to shared success as we work together to help Citadel achieve its growth objectives.”
“Babson Capital is pleased to partner with Huntsman Gay on this important transaction. Huntsman Gay’s proven track record and strong industry expertise in plastics and chemicals positions them well to bring value to the underlying business and creates a unique investment opportunity for us,” said Michael Klofas, Managing Director at Babson Capital. “We look forward to further building our relationship with Huntsman Gay.”
About Huntsman Gay Global Capital
Huntsman Gay Global Capital is a private equity firm that brings unrivaled experience to the middle market—offering all the advantages of both a strategic and a financial buyer in one firm. Co-founded by Jon M. Huntsman, one of the world’s leading industrialists, and Robert C. Gay, a former managing director of Bain Capital, the firm focuses on middle market leveraged buyouts and growth equity investments.
About Babson Capital Management LLC
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $139 billion in assets under management as of Dec. 31, 2011. 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. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn.