M&A Deal Summary

NewCastle Partners, Farragut Capital Partners and Route 2 Capital Partners Acquire SPG

On October 14, 2024, private equity firm NewCastle Partners, mezzanine finance firm Farragut Capital Partners and mezzanine finance firm Route 2 Capital Partners acquired manufacturer SPG

Acquisition Highlights
  • This is NewCastle Partners’ 4th, Farragut Capital Partners’ 8th and Route 2 Capital Partners’ 1st transaction in the Manufacturing sector.
  • This is NewCastle Partners’ 13th, Farragut Capital Partners’ 94th and Route 2 Capital Partners’ 8th transaction in the United States.
  • This is NewCastle Partners’ 1st, Farragut Capital Partners’ 6th and Route 2 Capital Partners’ 1st transaction in Georgia.

M&A Deal Summary

Date 2024-10-14
Target SPG
Sector Manufacturing
Buyer(s) NewCastle Partners
Farragut Capital Partners
Route 2 Capital Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

SPG

Atlanta, Georgia, United States
SPG manufactures and supplies commercial-grade, steel, stainless steel, and aluminum materials handling and storage products used in a variety of end-markets including industrial distribution, food service, and grocery and convenience stores. It primarily sells to the domestic locations of leading industrial distributors, quick-service restaurant brands and franchisees, big box retailers, and convenience stores, working directly with customers to engineer custom storage and material handling solutions. SPG was founded in 2010 and is based in Atlanta, Georgia.

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Buyer(S) 3

Buyer

NewCastle Partners

Greenwich, Connecticut, United States

Investor


Category Private Equity Firm
Founded 2001
Size Small
Type Sector Focused
DESCRIPTION

NewCastle Partners is an independent investment firm focused on acquiring smaller middle-market companies in partnership with management. The Firm targets profitable, US-based businesses with defensible market positions. Prospective companies generally have at least $2 million in EBITDA and generate sales of $10 to $50 million. Sectors of interest include niche manufacturing and specialty distribution. Target transactions include recapitalizations, buyouts, growth capital financings, and consolidations. NewCastle was formed in 2001 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 13 of 13
Sector (Manufacturing) 4 of 4
Type (Buyout (LBO, MBO, MBI)) 7 of 7
State (Georgia) 1 of 1
Country (United States) 13 of 13
Year (2024) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-09-09 Amglo Kemlite Laboratories

Bensenville, Illinois, United States

Amglo Kemlite Laboratories is a manufacturer of specialty xenon and halogen lamps used in a range of niche applications, including aircraft runway lamps, aircraft-mounted navigation lights, railroad headlamps, emergency vehicle lamps, obstruction warning lamps, and other medical and industrial lamps. Amglo Kemlite Laboratories was founded in 1935 and is based in Bensenville, Illinois.

Buy -
Buyer

Farragut Capital Partners

Chevy Chase, Maryland, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2011
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Farragut Capital Partners LLC is a private investment firm that provides mezzanine and equity capital to help finance buyouts, generational transfers, growth capital financings, and recapitalizations. The Firm prefers asset-light businesses with unique and defensible market positions, stable business models, and reasonable capital expenditure and working capital needs. Sectors of interest include light and niche manufacturing, business services, distribution & logistics, and media. Farragut's target investment size is $2 to $10 million. Farragut Capital Partners was formed in 2011 and is based in Washington, District of Columbia.


DEAL STATS #
Overall 94 of 94
Sector (Manufacturing) 8 of 8
Type (Buyout (LBO, MBO, MBI)) 40 of 40
State (Georgia) 6 of 6
Country (United States) 94 of 94
Year (2024) 6 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-10-10 Burnyzz

Ocala, Florida, United States

Burnyzz is a specialized automotive services business focused on the restoration/build, sale, and service of classic and iconic cars, as well as heavy-duty trucks and trailers. It offers fully custom restoration and modernization services, in which the Company takes the body of a classic car and outfits the vehicle with entirely new parts providing modernized comfort and capabilities. Burnyzz was founded in 2010 and is based in Ocala, Florida.

Buy -
Buyer
DESCRIPTION

Route 2 Capital Partners is a private investment firm that provides flexible financing solutions in the form of equity and mezzanine capital. The Firm looks to commit $3 to $20 million per transaction to support acquisitions, buyouts, growth capital, recapitalizations, and shareholder liquidity needs. Route 2 prefers investing in profitable companies (> $2 million of EBITDA) located in the Southern US. Sectors of interest include business services, healthcare services, niche manufacturing, and specialty distribution. Route 2 Capital Partners was formed in 2016 and is headquartered in Charleston, South Carolina.


DEAL STATS #
Overall 8 of 8
Sector (Manufacturing) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 4 of 4
State (Georgia) 1 of 1
Country (United States) 8 of 8
Year (2024) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-08-03 Intrepid Solutions and Services

Herndon, Virginia, United States

Intrepid Solutions and Services is a provider of enterprise IT, data analysis, and operational training services exclusively to customers in the U.S. Intrepid Solutions and Services was founded in 2008 and is based in Herndon, Virginia.

Sell -