03/16/2018

Tecum Capital Announces Investment in Connecticut Electric

Tecum Provides Subordinated Debt and Equity to Support Onward Capital's Acquisition of CE from Thompson Street Capital Partners

Pittsburgh, Pennsylvania - Tecum Capital Partners (“Tecum”) is pleased to announce its new investment in Connecticut Electric, Inc. (“CE” or the “Company”). Tecum partnered with Midwest Mezzanine Funds (“MMF”) to provide subordinated debt and equity to support Onward Capital’s (“Onward”) acquisition of CE from Thompson Street Capital Partners. Byline Sponsor Finance Group, the cash flow lending division of Byline Bank, provided senior debt financing in support of the recapitalization. Terms of the transaction were not disclosed.

Stephen Gurgovits, Jr., Managing Partner of Tecum, stated “The Company has a strong market position as the sole source provider for their high-quality product set.  We are excited to partner with Onward, MMF, and CE’s Management Team as they maintain their core business and grow their product offerings.” Matt Harnett, Partner of Tecum added “Expanding Connecticut Electric’s product offerings and seeking relevant add-on acquisitions are integral to our investment thesis.”

Headquartered in Anderson, Indiana (www.connecticut-electric.com), Connecticut Electric is an innovative company committed to product leadership, customer service and operational excellence.  The Company designs, manufactures, and markets electrical products such as replacement circuit breakers, manual transfer switches, power outlets and accessories.  Connecticut Electric partners with leading electrical distributors, wholesalers, home improvement retailers, hardware stores, and e-commerce e-tailers to serve electricians and end-users throughout North America. Connecticut Electric has earned a reputation for outstanding customer service with exceptional shipping times.

Marcus George, Partner of Onward Capital, said, “Connecticut Electric has a unique position in the electrical products category with an outstanding reputation for innovative solutions, manufacturing excellence and customer service. We are excited to partner with Management, Tecum and MMF in this transaction.”  Laura Lester, Onward Capital Partner, added, “We look forward to working with the management team, Tecum and MMF to enter new market segments, develop new products and build upon the Company’s success.”

Jeff Jensen, CEO of Connecticut Electric, commented, “We are thrilled to be partnering with Tecum, Onward and MMF in the Company’s next stage of growth.   Together we will form a synergistic partnership to help our customers power their homes with innovative products.  Onward, Tecum and MMF will provide us with strategic and financial resources to achieve our shared passion for growth.”   

About Tecum Capital
Tecum Capital is a Pittsburgh-based private investment firm with over $450 million of committed capital under management providing mezzanine debt, subordinated notes and private equity for middle market businesses.  Tecum has invested more than $250 million in over 50 companies over the past 10 years throughout the Midwest, Mid-Atlantic, Northeast, and Southeast.  Tecum generally invests amounts ranging from $5 million to $15 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions, and buyouts.  For more information, please visit www.tecum.com.
 
About Onward Capital LLC
Onward Capital is a Chicago-based private equity firm focused on investing in and growing lower middle-market industrial businesses.  The Onward Partners have completed over 120 private equity transactions and invested $1 billion dollars of capital in the sector.  Onward targets manufacturing and value-added distribution companies, typically with revenues between $15 million and $100 million.  For more information on Onward Capital, please visit www.onwardcapllc.com.   

About Midwest Mezzanine Funds
Since its founding in 1992, Midwest Mezzanine Funds has partnered with private equity firms, independent sponsors, family offices and management teams to provide over $750 million of junior capital to more than 100 privately-owned, lower middle-market companies throughout the United States. MMF continues to provide customized and flexible financing solutions as it currently invests from its $270 million fifth family of funds which includes MMF V and MMF V SBIC.  For more information, visit www.mmfcapital.com.

About Byline Sponsor Finance Group
Byline Sponsor Finance Group, headquartered in Chicago, IL, provides senior secured cash flow loans to private equity backed lower middle market companies throughout the United States.  BSFG focuses on companies that generate EBITDA between $2 million and $10 million with products that support the acquisition, recapitalization and growth investment efforts of private equity firms operating in the lower middle market.  For more information visit:  www.bylinebank.com/sponsor-finance.

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