Cleveland, OH – The Horsburgh & Scott Co. (“H&S” or the “Company”), a portfolio company of GenNx360 Capital Partners (“GenNx360”), has successfully recapitalized its business with Callidus Capital Corporation (“Callidus”). FocalPoint Securities, LLC (“FocalPoint”) served as exclusive investment banker to the Company.
Founded in 1886, H&S is a leading producer of custom-engineered, large-diameter gears and high-torque gearboxes that are used to drive heavy industrial machinery ranging from steel mills and manufacturing plants, to mining and energy related applications. The Company has an established reputation as an industry leader resulting from its highly-specialized manufacturing facility and its unique ability to draw upon decades of design and application engineering expertise to provide innovative solutions for its customers’ mission-critical power transmission applications.
“The FocalPoint team provided important capital markets perspective, as we needed to consider a wide range of options to meet our and our owners’ objectives,” said Terry Ryan, Chief Executive Officer of H&S. “FocalPoint efficiently and expeditiously executed on the strategy we set and was an extremely important component to the process while our management team continued to run the business.”
Michael Fixler, Managing Director at FocalPoint, commented, “We are proud to have had the opportunity to work with the H&S and GenNx360 teams on this transaction. The recapitalization by Callidus will provide one of the preeminent companies in this sector with a revitalized balance sheet as it continues to build on its 131-year legacy. We are confident that Callidus will be a strong financial partner for H&S over the coming years and are very pleased with the results we achieved for our client.”
Monty Yort, Managing Partner at GenNx360, noted, “Working with the FocalPoint team provided the Company and the Board with a wide range of financing solutions to evaluate and ultimately, we selected Callidus to complete this important recapitalization transaction for the Company.”
For more than 130 years, H&S has been a trusted partner to its industrial customer base, supplying mission-critical gears and gearboxes for a diverse range of industrial end markets and applications. The Company manufactures, repairs, and services gears and gearbox components ranging from 40 inches up to 40 feet in diameter that are used to power heavy industrial equipment across the world.
GenNx360 Capital Partners is a private equity firm focused on acquiring middle market industrial and business services companies. Supported by a team of operational and investment management experts that are able to operationally guide and support portfolio company senior management as partners, the firm leverages its global network of relationships to open doors, uncover new opportunities, and drive growth and value creation. GenNx360 was founded in 2006 and is headquartered in New York City.
Callidus Capital Corporation, based in Toronto, ON with offices in the U.S., is a publicly traded commercial finance company specializing in innovative and creative financing solutions for middle market businesses across the United States and Canada.
FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements, financial restructurings and special situation transactions. With offices in Los Angeles and Chicago, the firm serves middle market clients throughout the U.S. and has a dedicated focus on the industrials sector. During the past 15 years, FocalPoint has completed more than $6 billion in total transactions. For more information about FocalPoint Partners, visit focalpointllc.com.
Please contact Michael Fixler, Managing Director, at (312) 508-5780 or Thomas Mills, Managing Director, at (312) 508-5777, or Michael Del Pero, Managing Director, at (310) 405-7005 with questions about this transaction.