Stonebridge Partners has refinanced Safety Infrastructure Solutions. The infrastructure solutions company was set up less than ten years ago. Stonebridge recapitalized the business with sufficient equity capital to provide for new greenfield startups as well as additional niche acquisitions. The management team made a significant investment in the Stonebridge-led transaction.
Stonebridge Partners (“Stonebridge” or the “Firm”) is pleased to announce the recapitalization of Safety Infrastructure Solutions (“SIS” or the “Company”). With annual revenues approaching $50 million, SIS and its subsidiaries rent and sell infrastructure safety products to a broad group of industrial customers for applications in the highway construction and repair, pipeline construction and repair, industrial plant infrastructure, water works, airport infrastructure markets, and a host of other construction and repair applications. Products include safety signage and related products as well as water abatement systems.
The Company’s management team is comprised of an exceptional group of seasoned industry leaders who sought a financial partner that would enable them to execute a well-defined growth plan and continue the Company’s strong growth trajectory. SIS has grown from a start-up less than ten years ago to a highly diversified and significant industry participant strategically located in over a dozen geographic markets. Stonebridge recapitalized the business with sufficient equity capital to provide for new greenfield startups as well as additional niche acquisitions. The management team made a significant investment in the Stonebridge led transaction, demonstrating their continued commitment to the business with an increase in its already substantial ownership position.
Stonebridge believes the Company was a compelling acquisition for many reasons. First, the acquisition was originated on a direct basis with a buy-side intermediary that has partnered with Stonebridge on previous transactions. The Company was not represented by an investment banker, and there was no formal marketing process; management was simply looking for the right partner and a fair valuation. Second, the characteristics of the Company fit extremely well into the Firm’s ‘Infrastructure and Related Products’ investment initiative, a segment where Stonebridge has had strong investment performance with realizations on five transactions. The sizeable management reinvestment and a tiered performance-based equity incentive program are consistent with the Stonebridge investment philosophy. Finally, the Company has developed internal systems and controls that are specifically designed to accommodate additional add-on acquisitions. The Company has demonstrated a strong track record over many years, and Stonebridge believes the business will experience significant increases in sales and EBITDA in 2012 and beyond.
Stonebridge provided the majority of the equity capital in the transaction and welcomed in BB&T Capital Partners as well as Babson Capital for co-investment equity capital and mezzanine debt. The incumbent senior lender, Regions Financial, provided the senior debt on the transaction.