Yukon Partners has invested subordinated debt and equity in One Rock Capital Partners’ investment in Airxcel, Inc., which makes climate control products, including air conditioners, heat pumps, cooking appliances and furnaces. Along with Yukon, subordinated debt was provided by Freedom 3 Capital and Babson Capital Management. Senior financing was provided by GE Antares Capital and Citizens Financial Group. Specific terms of the deal were not disclosed.
Yukon Partners (“Yukon”), a provider of mezzanine financing for middle market private equity transactions, is pleased to announce its subordinated debt and equity investment in Airxcel, Inc., (“Airxcel” or the “Company”). Airxcel, headquartered in Wichita, Kansas, manufactures a broad range of climate control solutions.
One Rock Capital Partners (“One Rock”) sponsored the transaction. Subordinated debt financing was provided by Yukon, Freedom 3 Capital, and Babson Capital Management. Senior financing for the transaction was led by GE Antares Capital and Citizens Financial Group. The specific terms of the transaction were not disclosed.
Management will own a meaningful interest in Airxcel and will continue to operate the business on a day-to-day basis. One Rock will complement the Airxcel management team’s vision with strategic guidance and financial expertise to accelerate growth while continuing to leverage the Company’s entrenched partnerships with its blue-chip customer base.
Airxcel manufactures a broad range of climate control solutions and related products, including air-conditioners, heat-pumps, cooking appliances, furnaces, powered vents, and water heaters. Airxcel’s products are sold into various end-markets including recreation vehicles, school classrooms, multi-family living, industrial/commercial applications, and telecommunication enclosures. The Company markets its products under the highly-respected brand names Coleman-Mach, Suburban, Maxxair, and Marvair.
One Rock Managing Partner Scott Spielvogel commented, “Yukon has a strong record of partnering with private equity firms and management teams to support their efforts to drive growth and create value. The One Rock organization looks forward to strengthening our relationship with Yukon through our investment in Airxcel.”
Mike Hall, Managing Partner of Yukon added, “We are excited to partner with management and One Rock to support the acquisition of Airxcel. The Company has established itself as a key manufacturer of climate control and other similar products for the broad array of industries it serves. Yukon is fortunate to provide capital to and partner with Airxcel as the Company continues to execute its growth strategy. We also look forward to benefiting from One Rock’s investment stewardship.”
About Airxcel, Inc.
Airxcel, headquartered in Wichita, Kansas, manufactures a variety of specialty air conditioning, heating, ventilating and related appliances for recreation vehicles, telecommunications enclosures, school classrooms, modular structures, assisted living, multi-family housing and other industrial/commercial applications. The combined resources of the Company’s business units represent more than 750 employees at three manufacturing locations in Kansas, Georgia, and Tennessee. The Company’s heritage matured from a long held division of The Coleman Company, Inc., to Recreation Vehicle Products, Inc., in 1991 and later renamed Airxcel in 1997 when Suburban and Marvair were added to the Company’s holdings.
About Yukon Partners
Yukon Partners is an independent and unaffiliated mezzanine finance firm primarily serving middle market private equity sponsored business transactions with a typical investment range of $10 to $40 million in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, public-to-private buyouts, and refinancings. Yukon Partners is based in Minneapolis, Minnesota. For more information, please visit www.yukonpartners.com.
About One Rock Capital Partners
One Rock makes controlling investments in companies with potential for growth and operational improvement using a rigorous approach that utilizes highly experienced Operating Partners to identify, acquire, and enhance businesses in select industries. The involvement of these Operating Partners affords One Rock the ability to conduct due diligence and consummate acquisitions and investments in all types of situations, regardless of complexity. One Rock works collaboratively with company management and its Operating Partners to develop a comprehensive business plan focused on growing the enterprise and enhancing its profitability to enhance long-term value. One Rock also has a unique strategic relationship with Mitsubishi Corporation, which can provide strategic resources to One Rock and its portfolio companies, including access to potential new business partners, market intelligence, and low-cost sourcing through increased purchasing power globally. For more information, visit www.onerockcapital.com.