Investment firm Babson Capital Management said Thursday that it has provided subordinated debt and equity to support High Road Capital Partners’ buy of SMB Machinery Systems. No financial terms were disclosed. Based in Ball Ground, Georgia, SMB Machinery Systems is a provider of used packaging and process equipment to the food and beverage industries.
SPRINGFIELD, Mass.–(BUSINESS WIRE)–Babson Capital Management, a global investment management firm with more than $188 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 High Road Capital Partners’ acquisition of SMB Machinery Systems LLC. Babson Capital was the sole provider of subordinated debt for the transaction.
Founded in 1993 and based in Ball Ground, Georgia, SMB Machinery Systems is a leading provider of used packaging and process equipment to the food and beverage industries. SMB offers a comprehensive suite of services, including equipment decommissioning, reconfiguration and installation, and its extensive inventory and database of installed equipment enable it to meet the needs of its customers in a timely and cost-effective manner.
“High Road Capital Partners is pleased to work with Babson Capital’s Mezzanine & Private Equity Group on our investment in SMB Machinery Systems,” said Benjamin Schnakenberg, High Road Principal. “Babson Capital’s deep experience and expertise in the middle market, combined with the familiarity we share from collaborating on many previous investments, made for a smooth and efficient process leading to a successful and timely close.”
“Babson Capital deeply values the relationship we enjoy with High Road, and we appreciate the trust and confidence that High Road’s principals have placed in us over the past two decades,” said Michael L. Klofas, Managing Director and Head of the U.S. Mezzanine & Private Equity Group. “With its exceptional management team, differentiating suite of services and leadership position in many of the markets it serves, SMB is well positioned to take advantage of High Road’s financial and operational support to pursue new growth opportunities, and we look forward to participating in the company’s success.”
About High Road Capital Partners
High Road Capital Partners is a private equity firm focused on smaller middle market transactions. High Road was formed in 2007 and currently manages over $450 million of committed capital. High Road focuses on niche-leading companies with revenues of $10 million to $100 million and EBITDA of $3 million to $10 million. Once acquired, High Road works in partnership with management to take the companies to the next level through a combination of organic growth initiatives and add-on acquisitions. More information on High Road may be found on its website, www.highroadcap.com.
About Babson Capital Management LLC
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have more than $188 billion in assets under management as of September 30, 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, Babson Capital Finance, 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.