Babson Capital Management provided subordinated debt and made an equity co-investment to support River Associates Investments‘ investment in Rose City Printing & Packaging Inc. Based in East Vancouver, Wash., Rose City is a manufacturer of printed folding cartons.
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 subordinated debt and made an equity co-investment to support River Associates Investments’ investment in Rose City Printing & Packaging Inc.
Babson Capital was the sole provider of subordinated debt on the transaction.
Founded in 1945 and based in East Vancouver, Wash., Rose City is one of the largest and fastest-growing independent folding carton manufacturers on the West Coast. With state-of-the-art manufacturing facilities in East Vancouver and Gresham, Ore., and a reputation for unmatched customer service, Rose City is a premier supplier of printed folding cartons to West Coast food and beverage manufacturers.
“River Associates is pleased to work with Babson Capital on the Rose City investment,” said Craig Baker, Partner for River Associates. “Their access to a substantial capital base will be very helpful as we seek to grow Rose City through strategic add-on acquisitions of similar industry participants.”
“Babson Capital is excited to partner again with River Associates on the Rose City transaction,” said Mike Klofas, Managing Director and head of Babson Capital’s Mezzanine & Private Equity Group. “With its excellent service and manufacturing capabilities and the substantial resources provided through this investment, Rose City is well-positioned for aggressive growth in existing and new markets, and we look forward to participating in its success.”
About River Associates Investments, LLC
Founded in 1989, River Associates is a Chattanooga, Tenn.-based private equity partner for management teams in change-in-control transactions of lower middle market companies. Target businesses can be privately held, private equity-backed, or divestitures from larger companies. River Associates is opportunistic as to industry and has invested in numerous manufacturers, high margin distributors, industrial service, business service, and select non-faddish retail. The firm is currently investing its sixth committed fund and seeks to make investments in companies with $30 million to $150 million in revenues throughout the United States and Canada. River Associates has completed over 70 transactions in its 23 year history, and its partners have collectively worked together for over 75 years. www.riverassociatesllc.com
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. The firm’s subsidiaries include Cornerstone Real Estate Advisers LLC and Wood Creek Capital Management, LLC.