American Capital announced that it acted as lead agent and investor on a second lien financing to support the acquisition of Tectum Holdings (THI) by TA Associates. American Capital’s investment takes the form of a second lien facility and an equity co-investment.
Ann Arbor, MI-based THI is a manufacturer of pickup truck accessories, principally soft and hard truck bed covers, also known as tonneaus. THI’s products are sold under market leading brands, including Extang, Truxedo, Undercover Advantage, Retrax, BedRug and BAK Industries.
“We look forward to continuing to support THI as it grows through increased market penetration, new product introductions and expansion into favorable adjacent markets,” said Ryan Brauns, managing director and head of Sponsor Finance. “Our Sponsor Finance Group is solely focused on supporting top tier private equity firms by committing up to $150 million in capital to strong middle market companies.”
“We’re excited to partner with TA Associates and increase our investment in THI under their new ownership,” said Dan Cohn-Sfetcu, managing director, Sponsor Finance. “THI is the clear market leader in its categories, with well-established strong brands, a diverse line of superior products, and strong relationships with major aftermarket retailers, distributors and OEMs.”
American Capital first invested in THI in March 2014, providing $25 million in a second lien facility to support an add-on acquisition and dividend recapitalization of THI by its previous majority owner, Kinderhook Industries.