New York-based lender Abacus Finance has arranged $18.5 million in senior secured credit facilities to support private equity firm Culbro’s investment in respiratory services provider Med Emporium. Abacus, which backs private equity-sponsored lower-middle market companies, acted as the administrative agent and sole lead arranger in the transaction, Abacus announced yesterday (25 February).
Med Emporium issued a statement earlier this month saying that Culbro would be acquiring a minority stake in the company, which is based in Charlotte, North Carolina and provides ventilators for home-based patient care.
This deal is the first time Abacus is working with sponsor Culbro. “We were attracted to Abacus because of their healthcare industry experience and in particular their knowledge of medical equipment distribution. We were quickly impressed by their flexibility in structuring the transaction and the excellent relationship they established from the outset with us and Med Emporium’s management team,” David Danziger, Culbro managing member, said in a statement.
“We were pleased to support a highly attractive niche company with an impressive track record and tremendous potential for future growth,” Tim Clifford, president and chief executive of Abacus Finance, also commented.
Timothy Wong and Rafal Rydzewski at Abacus helped originate the deal. Legal counsel was provided to Abacus by Goulston & Storrs.
Abacus Finance provides senior financing to private equity-sponsored, lower-middle market companies in North America. The firm targets debt financing of up to $50 million with a typical hold size ranging from $10 million to $30 million. It finances companies with EBITDA of $3-$15 million.
New York-based Culbro specialises in mid-market consumer products and services businesses. The firm targets specialty food, pet products, education, catalogue and internet sales, and business services companies. It typically invests $10-$15 million, primarily in the United States.