PNC Equity Partners has completed a dividend recapitalization of portfolio company Griffith Energy Inc., a New York-based propane and heating oil distributer. The deal realized a return of 1.5x on the firm’s invested equity; Manufacturers and Traders Trust Company, JPMorgan, HSBC and TriState Capital provided debt financing.
PNC Equity Partners announced today the recapitalization of Griffith Energy, Inc., a Rochester, N.Y.-based distributor of propane and heating oil to over 100,000 residential customers in New York. In addition, the company distributes gasoline, diesel and other power fuels to commercial customers and independent gas stations.
The recapitalization resulted in the payment of a dividend to all shareholders of the company. With the closing of this transaction, PNC Equity Partners has achieved a realized return in excess of 1.5 X its initial investment and continues to own a majority interest in the company. The senior debt facility was led by Manufacturers and Traders Trust Company.
“Griffith Energy has market leading density in the majority of its 27 markets and a highly diversified customer base, making it a good fit for us,” said Jack Glover, partner of PNC Equity Partners. “Although the primary use of proceeds in this transaction was to provide liquidity to shareholders, the company has a strong balance sheet which will allow management to continue its acquisition strategy.”
“Griffith’s performance since we acquired the business continues to exceed our expectations. The fact that Griffith was able to complete this transaction in a difficult credit environment was a testimony to the confidence that its lenders have in the company and management team,” said Justin Bertram, vice president of PNC Equity Partners.
PNC Equity Partners is represented on the Board of Directors by Glover, Bertram and Peter Del Presto, partner of PNC Equity Partners.
PNC Equity Partners (www.pncequity.com) invests in companies operating in micro-marketsTM, making private equity investments of $10 million to $30 million in leveraged buyouts, recapitalizations and large minority financings of middle market companies with enterprise values between $25 million and $150 million across a variety of industry sectors. Investments for PNC Equity Partners are currently being made by PNC Equity Partners II, L.P., a private equity firm managed by an affiliate of The PNC Financial Services Group, Inc.
The PNC Financial Services Group, Inc., (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.