SPRINGFIELD, Mass.--(BUSINESS WIRE)--Babson Capital Management LLC, a global investment management firm with more than $154 billion in assets under management and operations on four continents, today announced it provided subordinated debt and equity to support H-D Advanced Manufacturing’s investment in Overton Chicago Gear Corporation.
Babson Capital’s Mezzanine & Private Equity Group was the lead provider of subordinated debt on the transaction. H-D Advanced Manufacturing is a holding company formed to acquire heavy-duty, precision-engineered components manufacturing businesses and Overton is its first such investment. The holding company was formed by three leading private equity groups, The Riverside Company, Hicks Equity Partners and Weinberg Capital Partners.
With roots dating to 1888, Addison, Illinois-based Overton designs and manufactures large, custom gearing products for a number of critical customer applications in industries including oil and gas, minerals and mining, rail, renewable energy, power generation and infrastructure. Overton manufactures a wide range of gears and gearboxes, many of which are based on proprietary designs and all featuring high-precision parts durable and reliable enough to withstand harsh operating environments.
“The expertise, flexibility and responsiveness of the Mezzanine & Private Equity Group have made Babson Capital a valued partner for The Riverside Company on investments spanning more than two decades,” said Riverside Partner Tim Gosline. “We are pleased to join with Babson Capital on the investment in H-D Advanced Manufacturing and look forward to working together on future transactions.”
“Babson Capital is excited about participating with Riverside, Hicks and Weinberg on their investment in H-D Advanced Manufacturing,” said Mike Klofas, Managing Director and head of Babson Capital’s Mezzanine & Private Equity Group. “The acquisition of Overton is a great first step toward achieving H-D Advanced Manufacturing’s strategy of becoming a strategic supplier of heavy-duty, precision-engineered components to the world’s leading industrial companies, and we are excited about the growth potential.”
About The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $200 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 300 transactions. The firm’s international portfolio includes more than 70 companies. www.riversidecompany.com.
About Hicks Equity Partners
Hicks Equity Partners (HEP) is the private equity arm for Hicks Holdings LLC, a holding company for the Thomas O. Hicks family's assets. With 35 years of private equity experience, Mr. Hicks pioneered the "buy and build" strategy of investing and founded Hicks Muse Tate & Furst, which raised more than $12 billion of private equity across six funds and completed over $50 billion of leveraged acquisitions. HEP looks for established companies with proven track records, strong free cash flow characteristics, a strong competitive industry position and an experienced management team looking to partner with long-term capital.
About Weinberg Capital Group
Weinberg Capital Group is a Cleveland, Ohio-based family office that specializes in acquiring well-positioned middle-market companies. The group has an established track record of success in the ownership and growth of global manufacturing enterprises.
About Babson Capital
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have over $154 billion in assets under management as of September 30, 2012. Through proprietary research and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in global corporate debt markets, structured products, debt and equity financing for commercial real estate, and alternatives. The firm’s subsidiaries include Cornerstone Real Estate Advisers LLC and Wood Creek Capital Management, LLC. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com.