M&A Deal Summary

HCAP Partners and Arborview Capital Acquire Paragon Airheater Technologies

On June 4, 2010, growth capital firms HCAP Partners and Arborview Capital acquired manufacturer Paragon Airheater Technologies

Acquisition Highlights
  • This is HCAP Partners’ 4th and Arborview Capital’s 1st transaction in the Manufacturing sector.
  • This is HCAP Partners’ 18th and Arborview Capital’s 2nd transaction in the United States.
  • This is HCAP Partners’ 1st and Arborview Capital’s 1st transaction in Florida.

M&A Deal Summary

Date 2010-06-04
Target Paragon Airheater Technologies
Sector Manufacturing
Buyer(s) HCAP Partners
Arborview Capital
Deal Type Recapitalization
Advisor(s) Gripen Capital Advisors, Inc.
Pharus Advisors Holdings LLC (Financial)

Target

Paragon Airheater Technologies

Mexico Beach, Florida, United States
Paragon Airheater Technologies is a manufacturer of seals and related parts for rotary, regenerative air heaters to improve the fuel efficiency of fossil fuel-fired power generation plants. Paragon Airheater Technologies was founded in 1967 and is based in Mexico Beach, Florida.

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Buyer(S) 2

Buyer

HCAP Partners

La Jolla, California, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 2000
PE ASSETS 320M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Huntington Capital is a mezzanine finance firm that provides both debt and equity financing to established, lower middle-market companies throughout California and the Southwest US. The Firm targets growth companies with positive cash flow, diversified customers, defensible market positions, and experienced management. The Firm looks to invest $2 to $15 million in companies generating revenues of $10 to $100 million. Areas of interest include manufacturing, services, healthcare, software, homeland security, retail, and information technology. Prospective transaction situations include buyouts, acquisitions, recapitalizations, and growth capital financings. Huntington Capital was formed in 2000 and is based in San Diego, California.


DEAL STATS #
Overall 18 of 64
Sector (Manufacturing) 4 of 6
Type (Recapitalization) 1 of 5
State (Florida) 1 of 1
Country (United States) 18 of 63
Year (2010) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-06-02 Pet DRx

Brentwood, Tennessee, United States

Pet DRx Corp. is a provider of primary and specialty veterinary care services to companion animals through a network of veterinary hospitals.

Sell $41M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-14 Anabi Oil

Upland, California, United States

Anabi Oil Corporation and its affiliates operate as a diversified distributor, retailer, and owner of motor gasoline products and properties throughout California. Beginning in 1991 with a single property in Baldwin Park, CA, the Company now carries various interests in one hundred twenty (120) properties throughout California.

Buy $9M
Buyer

Arborview Capital

Chevy Chase, Maryland, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 2008
Size Small
Type Sector Focused
DESCRIPTION

Arborview Capital is a specialist investor in established, rapidly growing energy efficiency and clean energy businesses in North America. Arborview focuses on companies that provide improve energy efficiency (LED lighting, building controls, power plant efficiency), resource efficiency (emissions control, environmental services, water treatment), or renewable energy. Target companies are typically at or near profitability with $5 to $30 million in revenue. Arborview was formed in 2008 and is based in Chevy Chase, Maryland.


DEAL STATS #
Overall 2 of 13
Sector (Manufacturing) 1 of 1
Type (Recapitalization) 1 of 1
State (Florida) 1 of 1
Country (United States) 2 of 13
Year (2010) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-11-16 LRI Energy Solutions

Gambrills, Maryland, United States

LRI Energy Solutions LLC is a provider of lighting and water building efficiency services to government, institutional, and commercial customers. LRI Energy Solutions was founded in 1993 and is based in Gambrills, Maryland.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-02-22 Drexel Metals

Louisville, Kentucky, United States

Drexel Metals Inc. is a provider of standing seam metal roofing systems to roofing contractors and distributors. Drexel Metals is based in Louisville, Kentucky.

Buy -