Denver-based private equity firm Lion Equity Partners relies on speed and certainty of closing when pursuing corporate carve-outs. For this reason, Gibraltar Business Capital was the ideal financing partner for its recent acquisition of Country Life, a health products division of Kikkoman Corporation that operates a portfolio of brands in the natural supplements, sports nutrition and personal care markets.

To consummate the acquisition, Lion Equity needed Gibraltar to close the financing quickly, and Gibraltar delivered, providing a term sheet soon after initial contact. Such expediency, paired with Gibraltar’s longstanding relationship with Lion Equity, was critical to the consummation of both the financing and the acquisition. In addition, using its experience in M&A and carve-outs, Lion Equity articulated the pitfalls and opportunities of the deal to Gibraltar.

“The ebbs and flows of this deal progressed how we and Lion Equity would expect for an acquisition opportunity,” Robin Oertel, senior vice president and business development officer at Gibraltar, says of Gibraltar and Lion Equity’s aligned vision for executing the acquisition strategy.

The final deal from Gibraltar was a $26.4 million senior credit facility with a full product suite, including accounts receivables, inventory, machinery and equipment, and real estate, in addition to an over-advance to unlock additional liquidity to facilitate the acquisition. The inclusion of real estate in the borrowing base and the incorporation of the over-advance demonstrated Gibraltar’s ability to maximize liquidity.

“[This deal] allowed us to flex all the different opportunities that we can bring to the table [and] all the different tools that we have in our toolbox, from the receivables pool through inventory, equipment, real estate and stretch capabilities, to get the necessary capital deployed to help Lion Equity acquire the company,” Oertel says.

All deals have “expected and unexpected” items, according to Oertel. Still, this deal was straightforward and went according to plan due to Lion Equity’s sophistication and transparency during the diligence process. “That was even more attractive at the end – it ended up a pretty smooth process,” Oertel says.

This was the third opportunity Gibraltar has worked on with Lion Equity, a testament to the strength of the firms’ two-way partnership, which began back in 2013. Gibraltar’s growth over the past decade has allowed it to bring more enhancements to the table, as evidenced by its work on the Country Life transaction.

Further strengthening the bond between Gibraltar and Lion Equity, Scott Winicour, CEO of Gibraltar, and Jim Levitas, co-founder, and partner at Lion Equity, are longtime acquaintances. This relationship helped lead to the first funded deal between the two firms. In addition, one of Gibraltar’s current relationship managers is based in Boulder, CO, putting them close to Lion Equity and providing another convenient touchpoint between the companies.

All told, Gibraltar’s understanding of and trust in Lion Equity assisted in the smooth deal process from opening to close.

“We appreciate the longevity of the relationship with them because there’s a lot of transparency, which helps in these types of complex transactions,” Oertel says.