Daily News: January 14, 2013

MCG Capital Finances, Matrix Advises Hammond’s Acquisition


MCG Capital announced that it closed a $14.9 million investment in Hammond’s Candies. MCG’s investment consists of a subordinated term loan, a senior secured term loan and revolving credit facility. Cambridge Information Group invested equity in the transaction.

Separately, Matrix Capital Markets Group announced that it served as the exclusive financial advisor to ODP and its shareholders.

Hammond’s is a niche manufacturer and marketer of premium branded candies, sold through various retail channels. MCG’s investment was made in conjunction with Hammond’s acquisition of The Virginia Food Group, (d/b/a) Old Dominion Peanut Company (ODP). ODP is a manufacturer and marketer of value branded seasonal peanut brittle and peanut candy.

“We are thrilled to have led the debt financing to support Hammond’s acquisition of ODP,” said Peter Malekian, executive vice president and managing director of MCG. “Both companies’ management teams have demonstrated their respective abilities to grow in their segments. We believe this business combination will create a dynamic niche manufacturer of seasonal and everyday candy products with enhanced capabilities to serve a broad customer base. This transaction underscores our commitment to provide flexible and creative financing solutions to growing niche middle-market businesses.”

Andrew Schuman, CEO of Hammond’s, said, “MCG was instrumental in helping design the framework and capital structure that best fit the transaction for Hammond’s. Their input was invaluable and they certainly did their homework on us and the target.”

MCG Capital is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the U.S.

Matrix is a middle-market investment bank that focuses on providing merger & acquisition and financial advisory services for privately-held and private-equity owned companies