Daily News: February 18, 2015

Canal Holdings Provides Lakewood Acquisition Financing

Lakewood Capital announced that a group of investors led by Lakewood Capital and including existing management has acquired Vacuum Systems International through a newly formed entity, VSI International. VSI is a provider of cost saving and sustainable equipment re-manufacturing and fleet rotational programs utilized by large multi-location concerns.

Twinsburg, OH-based Canal Holdings provided approximately $3 million of senior subordinated debt to support the transaction.

Diana Richards, founder of Vacuum Systems, stated, “Partnering with Lakewood will provide our management and employees with the resources not only to meet existing customers’ needs, but also to enable us to broaden our reach significantly. Additional equipment platforms and services tailored to particular industry segments have been developed and our new partners are critical to our efforts to bring each of these new initiatives to market.”

Roger Knight, founding partner of Lakewood Capital, added, “We are particularly excited about joining with such a strong group of investment partners on VSI, many of whom have built their own successful private equity firms. Lakewood formed an investment vehicle, Spartacus Partners, to enable high net worth individuals to invest alongside Lakewood on promising lower middle market transactions. VSI is a perfect example of a smaller company that has developed a unique product/service and is well positioned to grow significantly with the benefit of our financial and strategic support.”

VSI’s programs promote the use of reusable equipment and parts and target the elimination of waste by preventing equipment from being disposed in landfills.