New York-based buyout house Branford Castle Partners has dipped into its recently-closed investment fund to acquire Surface Preparation Technologies.
The deal for the Pennsylvania-based company, which installs rumble strips for roadway safety, is part of a co-investment alongside Abacus Finance Group and Brookside Mezzanine Partners.
Branford, which said it closed Branford Castle Fund last October, pulled in at least $116.9m of capital for the vehicle according to documents it filed with the US SEC.
It recently made its debut investment with the acquisition of Earthlite Massage Tables.
Branford managing director Eric Korsten said “SPT has established itself as the national leader in the rumble-strip market, with a reputation among its customers for outstanding service and reliability.
“We are especially excited to work on this investment with Abacus Finance Group, which is providing senior debt financing, and Brookside Mezzanine Partners, which is providing mezzanine debt financing.”
The firm, which has a 30-plus-year history, focuses on companies with an EBITDA of lower than $15m in a niche industry.
It says that two of its portfolio companies recently generated 30x to 45x returns on their overall investment during the Branford ownership period.
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