A locally based private equity fund invested in its fifth portfolio company.
CGCF provided mezzanine debt in support of the recapitalization. Birmingham-based Colfax Creek is the lead investor in the transaction. Colfax Creek with Mike Ryan — PEP president and CEO — formed PEP in January 2019 to recapitalize Appalachian Cast Products (ACP) and integrate Premier Die Casting’s production into its facility in Abingdon, Virginia.
CGCF invests up to $5 million of mezzanine debt and/or equity capital into lower middle-market companies. The fund supports companies that are seeking funding for growth, succession or recapitalization. While the fund typically focuses on Great Lakes-based companies, the team’s existing relationship with Colfax Creek led to its investment in the Virginia-based company.
“We’re delighted to partner with Colfax Creek for a second time as we continue to grow our portfolio,” said Hector Bultynck, managing director of CGCF. “Premier Engineered Products has a reputation for producing superior products with exceptional quality backed by excellent customer service. The company is poised for significant growth and is an excellent addition to our portfolio.”
Ryan said PEP “has weathered the current economic situation and has significant growth opportunities due to continued industry consolidation.”
“We have launched more value-added services and are focused on further expanding the production capabilities that have propelled us into new consumer and industrial markets,” he said.
Jason Duzan, Colfax Creek founder and partner, said the CGCF team was “a pleasure to work with” and “digs into a business to understand the value creation opportunity.”
“CGCF’s investment will be instrumental in providing the working capital and capital expenditures to execute on PEP’s growth opportunities,” Duzan said.
Charter Capital Partners/CGCF
Established in 2019, CGCF is managed by principals of Charter Capital Partners, an investment banking firm in Grand Rapids. Charter offers a comprehensive range of financial advisory services, including buy-side and sell-side M&A, succession planning, business valuation and capital raise. Charter Private Capital Management is a registered investment adviser (RIA) that manages numerous private capital funds, including Charter Growth Capital Fund.
Colfax Creek Capital
Founded in 2017, Colfax Creek is a private investment firm that takes a long-term approach to investing in smaller middle-market companies in the consumer product, service and industrial sectors in the Great Lakes Region.
Premier Engineered Products
Premier Engineered Products through its operating subsidiary, Appalachian Cast Products, produces die cast parts and tooling, along with metal finishing and CNC machining, specializing in aluminum and zinc alloys.