WhiteHorse Capital Provides $185MM Credit Facility to Support Vessco Holdings’ Continued Growth Strategy
CHICAGO – June 12, 2020 – WhiteHorse Capital, the direct lending affiliate of H.I.G. Capital, a leading global private equity and alternative assets investment firm with $37 billion of equity capital under management, announced today that it has provided an incremental first-lien term loan to Vessco Holdings, LLC (“Vessco” or the “Company”). Proceeds of the transaction were used to support Vessco’s investment in Kennedy Industries, Inc. (or “Kennedy”). Founded in 1959 in Wixom, Michigan, Kennedy is a leader in distributing, repairing, and servicing specialized equipment for fluid solutions across municipal, commercial, and industrial applications.
Founded in 1978 in Minnesota, Vessco and its subsidiaries serve as manufacturers’ sales reps within exclusive territories for water treatment equipment OEMs. The investment in Kennedy will further expand the Company’s product capabilities and strengthen its geographic presence in the Midwest.
“We are excited to have found such a great strategic partner in WhiteHorse and look forward to working with them to support our continued growth at Vessco,” said Pat Corden, Partner at O2 Investment Partners, the Company’s private equity sponsor.
John Yeager, Managing Director at WhiteHorse Capital, stated, “We are excited to continue our partnership with Vessco, and we look forward to further supporting the Company and management team as they execute on their strategic growth initiatives. The WhiteHorse Deal Team worked diligently with the management of Vessco to fund this mission critical transaction in this difficult and uncertain COVID-19 environment.”
About Vessco Holdings, LLC
Based in Minneapolis, the Company serves as a manufacturer’s sales representative within exclusive territories for water and wastewater treatment equipment OEMs. Vessco’s customer base primarily consists of municipalities and industrial companies that operate water and wastewater treatment facilities and the general contractors, engineering firms and consultants that advise end users on the construction and operation of the treatment facilities. Vessco sells a variety of water and wastewater treatment products and related services including pre-treatment equipment, pumps, tanks, mixers, chemical feed equipment, valves, actuators, water softening equipment, biological treatment equipment, sludge treatment equipment and biogas treatment equipment. Vessco received an investment in 2018 from O2 Investment Partners, a Detroit-based private equity firm who has now completed five investments as part of a larger growth strategy.
About WhiteHorse Capital
WhiteHorse is the direct lending affiliate of H.I.G. Capital, a leading global private equity and alternative assets investment firm with $37 billion of equity capital under management.* WhiteHorse provides debt financing to middle market companies across a broad range of industries, including business services, manufacturing, healthcare, retail, food/agriculture, and specialty finance. WhiteHorse has a broad investment mandate and provides senior and subordinated debt for refinancings, growth capital, acquisitions, buyouts, and balance sheet recapitalizations. WhiteHorse professionals, across the U.S. and Europe, have extensive experience and a proven track record of providing creative financing structures and employing a long-term, relationship-oriented, portfolio management philosophy.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.