Babson Capital Management LLC said on Monday that it has provided subordinated debt and made an equity co-investment in Main Street Capital Holdings’ acquisition of the Hi-Rel Group LLC. No financial terms were disclosed. Based in Essex, Conn., the Hi-Rel Group is a provider of components for the microelectronic packaging sector.
SPRINGFIELD, Mass.–(BUSINESS WIRE)–Babson Capital Management LLC, a global investment management firm with more than $180 billion in assets under management and operations on four continents, today announced that it provided subordinated debt and made an equity co-investment to support Main Street Capital Holdings’ acquisition of the Hi-Rel Group LLC.
Babson Capital was the sole provider of subordinated debt on the transaction.
Founded in 1976 and headquartered in Essex, Conn., the Hi-Rel Group is a leading manufacturer of highly specialized metal components for the microelectronic packaging industry. With affiliates based in the U.S., United Kingdom and Canada, Hi-Rel’s core products include lids, ring frames and related products that are used to hermetically seal electronic components for use in the aerospace, defense, telecom and medical industries.
“Main Street Capital Holdings is pleased to have the support of our valued longtime partner Babson Capital on our investment in the Hi-Rel Group,” said Dennis G. Prado, a Principal at Main Street Capital Holdings. “Babson Capital’s experience and expertise in the middle market combined with its reliability and flexibility has been a huge asset to Main Street on several platform investments over more than a decade, and we look forward to working with the Babson Capital team on this and future transactions.”
“Babson Capital is excited about the opportunity to have a supporting role in Main Street’s investment in the Hi-Rel Group,” said Michael L. Klofas, Managing Director and Head of the U.S. Mezzanine & Private Equity Group. “We look forward to participating in Hi-Rel’s future growth as Main Street works with the management team to extend Hi-Rel’s market leadership through the addition of new products and expansion of the company’s geographic footprint.”
About Main Street Capital Holdings, LLC
Founded in 1994, Main Street Capital Holdings, LLC is a Pittsburgh-based private equity firm that acquires companies in a broad range of industries at the lower end of the middle market. Main Street acquires control positions in companies with enterprise values ranging from $10 million to $125 million. A key to Main Street’s success is its strong partnerships with existing management teams and proven operators. For more information, please visit www.mainstcap.com.
About Babson Capital Management LLC
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $181 billion in assets under management as of March 31, 2013. Through proprietary research, analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad expertise in fixed income, equities, alternatives, 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. Babson Capital is a member of the MassMutual Financial Group.