Gibraltar Business Capital provided $20 million in acquisition financing to support CriticalPoint Capital’s acquisition of substantially all of the assets of the farm supply distribution division from Southern States Cooperative, a farm supply retail and services cooperative. CriticalPoint Capital, which is a Los Angeles-based private equity firm, rebranded the newly acquired division Agway Farm & Home.
Agway Farm & Home will continue to operate a farm supply wholesale distribution business that serves a network of approximately 1,250 private dealers and retailers throughout the East Coast. The company will continue to supply this network with seasonal farm and home products, including home and hardware, lawn and garden, farm, pet and other seasonal supplies.
In this transaction, Gibraltar Business Capital dug into the new company’s accounts receivable and provided flexibility in the inventory valuation requirements in structuring the borrowing base. In addition, Gibraltar Business Capital provided financial covenant flexibility to support the transaction.
“GBC’s innovative team allowed for a creative collateral structuring that resulted in them being selected as our preferred financing partner. We sought a quick process to close the transaction, and GBC delivered their end of the deal by swiftly moving the deal to completion,” Brad Holtmeier, partner at CriticalPoint Capital, said.
