H&S is a portfolio company of GenNx360 Capital Partners. FocalPoint Securities served as the exclusive financial advisor to the Company.
H&S manufactures, repairs, and services gears and gearboxes for heavy machinery used by some of the world’s largest industrial corporations. Following a change to its executive team in 2017, the company experienced a significant improvement in revenue and profitability – the new management team implemented several initiatives that reinvigorated the business, diversified revenue, and eliminated operational inefficiencies that were burdening the organization. As a result, H&S significantly improved its profitability and credit profile and sought to refinance its existing debt facility in advance of the maturity date with more cost effective, flexible capital.
“We are more than pleased with the new facility, which reduces our cost of capital and will allow our team to continue fostering the rapid growth our organization has experienced over the past two years,” Randy Burdick, CEO of H&S, said. “The FocalPoint team presented a list of strong financing options and helped us choose the partner that fulfilled all our needs.”
“This is an outstanding outcome for a process that went to market at the onset of COVID-19. FocalPoint identified a diverse group of lenders, negotiated favorable terms for the company, and facilitated an expedited diligence process to ensure an on-time close,” Rishi Verma, vice president at GenNx360, said.
“This closing highlights our ability to alleviate the challenges associated with structuring and securing creative, affordable financing in the ever-changing COVID-19 capital markets landscape. The team worked around the clock to once again secure an exceptional result for a valued client in H&S,” Michael Fixler, managing director at FocalPoint, said.