Merit Seals Three Deals

Merit Capital Partners has announced three transactions, an investment in Engendren Corp, and the acquisition of Monarch Industries Limited and RSA Engineered Products. Merit has now made nine investments through Merit’s Fund V, which has $612.5 million of committed capital.

PRESS RELEASE

Merit Capital Partners is pleased to announce three transactions, an investment in Engendren Corp., and the acquisition of Monarch Industries Limited and RSA Engineered Products. Merit has now made nine investments through Merit’s Fund V, which has $612.5 million of committed capital. We continue to actively pursue new investment opportunities in partnership with business owners, management teams, ESOPs and independent sponsors.

MERIT INVESTS IN ENGENDREN CORPORATION

In the second quarter of 2012, Merit Capital Partners supported the management-led buy-out of IEA, Inc. by Engendren Corporation, a holding company wholly-owned by James A. Kettinger. Mr. Kettinger has served as IEA’s CEO for the preceding five years following four years as a consultant for the Company. Headquartered in Kenosha, Wisconsin, Engendren is a manufacturer of custom-designed cooling solutions to OEMs and end-users of large internal combustion engines. Additionally, Engendren designs and manufactures thermally managed enclosures for modular data centers as well as requisite power, humidity, security and fire control systems within those enclosures.

Merit provided subordinated debt in this investment. Please contact Tom Campion or Jeremy Stump for more details.

MERIT AND COMPANY MANAGEMENT
ACQUIRE MONARCH INDUSTRIES LIMITED

In the third quarter of 2012, Merit Capital partners completed an investment in Monarch Industries Limited in partnership with the company’s management team. Headquartered in Winnipeg, Manitoba, Monarch is an integrated manufacturer and distributor of hydraulic cylinders and custom iron castings. Monarch serves the mobile agricultural, construction and industrial equipment markets. The Company’s products are primarily sold in North America, with a portion of sales in emerging markets. Customers include the major industrial equipment manufacturers.

Merit invested both subordinated debt and equity in support of the acquisition. Please contact Dan Pansing or Ben Yarbrough for more details on the transaction.

MERIT, CORNERSTONE CAPITAL HOLDINGS,
AND COMPANY MANAGEMENT ACQUIRE
RSA ENGINEERED PRODUCTS

In the third quarter of 2012, Merit Capital Partners completed an investment in RSA Engineered Products, formerly a division of Meggitt PLC. Merit partnered with Cornerstone Capital Holdings, a private investment firm, and with the Company’s management team to complete the acquisition. RSA designs and manufactures a broad array of highly-engineered airflow control systems for use in commercial and military aircraft. The Company’s primary products include ducting, anti-icing and ozone products. RSA is headquartered in Simi Valley, California.

Merit invested both subordinated debt and equity in support of the acquisition, in partnership with Cornerstone, and several of the Company’s senior executives. Please contact Evan Gallinson or Tim MacKenzie for more details on the transaction.