Yukon Partners, a provider of mezzanine capital for middle market private equity transactions, has partnered with Grey Mountain Partners to recapitalize Binswanger Enterprises. The company has acquired a minority equity interest in the Memphis, Tenn.-based full service glass provider.
“Mezzanine financing is a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies,” according to Investopedia. “Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.”
Yukon typically invests $10 to $40 million per transaction in subordinated debt and minority equity, according to a 2015 report from the company.
In addition to automotive, the company has experience in consumer products, industrial manufacturing, food and beverage and specialty manufacturing, among others.
Binswanger Glass, offers AGRR services, as well as flat glass services, via 66 retail locations throughout 15 states.
“Binswanger is very excited to partner with Yukon Partners as the company continues to profitability grow its architectural glazing and auto glass business across our semi-national footprint,” says Tim Curran, Binswanger CEO.
“Following strong organic profitable growth and two successful growth acquisitions in 2015, this recapitalization with Yukon Partners is an important next step for Binswanger, adds Will Pucillo, vice president of Grey Mountain Partners.
Grey Mountain Partners acquired Binswanger in January 2012.
“We are thrilled to be partnering with management and the principals of Grey Mountain Partners on this exciting next phase of growth at Binswanger,” says Aaron Arnett, director of Yukon.