Credit Suisse and Credit Suisse Loan Funding signed a debt commitment letter for a seven-year $350 million term loan to support Industrea Acquisition’s acquisition of Concrete Pumping Holdings (CPH).
According to an 8-K filing, CPH also signed a debt commitment letter with Wells Fargo for a five-year asset-based $60 million revolving credit facility to be made available at the close of the merger.
Upon consummation of the business combination, both CPH and Industrea will become wholly-owned subsidiaries of a newly formed holding company, Concrete Pumping Holdings, Inc. (Newco). CPH’s equity holders will continue to own significant minority equity interests in the public company as part of the business combination. CPH CEO Bruce Young, a 38-year veteran in the concrete pumping industry, will remain in the same position after the close.
“CPH is a leading player in every region it serves, and its scalable business platform has driven pricing optimization, cost efficiencies and strong fleet utilization,” said Industrea CEO Howard Morgan. “Combined with strong secular trends in concrete pumping and attractive industry dynamics, CPH is poised to enhance its growth and drive shareholder value. Our team looks forward to partnering with CPH’s senior management to enhance the company’s operational execution, accelerate its organic growth initiatives, and build on CPH’s extensive track record of more than 45 acquisitions since 1983.”
In addition to the Credit Suisse debt facility, Industrea has secured $25 million zero-dividend convertible perpetual preferred stock investment from Nuveen and a $71.9 million private investment in public equity investment from Argand Partners and another institutional investor to support the transaction.
Industrea was advised on the transaction by B. Riley FBR, Stifel, Headwall and XMS Capital Partners. B. Riley FBR also acted as sole placement agent for the PIPE investments. Winston & Strawn acted as Industrea’s legal counsel. CPH and Peninsula Pacific were advised by Baird with Latham & Watkins acting as legal counsel.
CPH leading provides concrete pumping services and concrete waste management services in the fragmented U.S. and U.K. markets, operating under the only established, national brands in both markets (Brundage-Bone and Camfaud, respectively).
Industrea Acquisition is a special purpose acquisition company formed by an affiliate of Argand Partners for the purpose of entering into a merger, stock purchase or similar business combination with one or more businesses in the industrial sector.
