Spring Capital Closes New Investment in Palmetto Adhesives
SPRING CAPITAL PARTNERS IV, L.P.
is pleased to announce the closing of an investment in
Palmetto Adhesives, LLC
$3.9 Million of Subordinated Debt and $1.35 Million of Equity
Spring Capital Partners IV, L.P. (“SCP IV”) is a Small Business Investment Company (“SBIC”) as licensed by the United States Small Business Administration in accordance with the Small Business Investment Act of 1958, as amended.
Transaction Overview
Spring Capital Partners IV, L.P. (www.springcap.com) invested $3.9 million of subordinated debt and $1.35 million of preferred equity to support Sidereal Capital Group’s acquisition of Palmetto Adhesives Company, LLC (the “Company”). SCP IV partnered with Parkway Capital, Route 2 Capital Partners, and MPowered Capital in financing the transaction.
About Palmetto Adhesives
Founded in 1995, Palmetto is a manufacturer and distributor of hot melt and water-based adhesives. Palmetto’s adhesives are primarily used in the packaging, paper converting, product assembly and general purpose industries. The Company is headquartered in Greenville, SC and has a second manufacturing and distribution facility in Bridgeton, NJ.
About Spring Capital Partners
Spring Capital Partners was founded in 1999 to provide mezzanine capital to growing small and medium sized businesses. The firm has managed over $600 million of capital and is currently investing out of its fourth fund, Spring Capital Partners IV, a $250 million SBIC. Investments are made in the form of subordinated debt and minority equity, typically in the range of $2 million to $20 million per investment. In addition to investing in change of control/buyout transactions with committed private equity funds and independent sponsors, Spring Capital also provides capital to privately held businesses to support acquisitions, growth, and minority recapitalizations.