Main Street Capital completed three new follow-on investments totaling $15.8 million in two existing portfolio companies, Direct Marketing Solutions and Nebraska Vet AcquireCo (which does business as Heritage Vet Partners).
Main Street Capital originally invested in Direct Marketing Solutions in February 2018 in partnership with the company’s management team to facilitate the management led buyout of the company. Main Street Capital, along with a co-investor, provided a portion of the financing necessary to facilitate the transaction, with Main Street Capital funding $27.2 million in a combination of first-lien senior secured term debt and a direct equity investment.
Main Street Capital’s follow-on investment in Direct Marketing Solutions supported the acquisition of the assets of the Freedom, PA, direct mail production plant from Mailing Services of Pittsburgh, a direct mail marketing company, with the acquisition expanding Direct Marketing Solutions’ reach to the eastern part of the United States. The follow-on investment consisted of an additional first lien senior secured term loan of $9.5 million.
Founded in 1982 and headquartered in Portland, OR, Direct Marketing Solutions is a provider of omnichannel direct marketing services, including strategy, creative design, direct mail production and digital marketing to various end markets, including the financial technology, banking, telecom and technology industries.
Main Street Capital originally invested in Heritage Vet Partners in December 2020 in partnership with the company’s existing owners and senior management team to facilitate a minority recapitalization of the company and provide growth capital, with Main Street Capital funding $17 million in a combination of first-lien senior secured term debt and a minority direct equity investment. Main Street Capital also provided Heritage Vet Partners with a revolving line of credit to support its future growth initiatives and working capital needs and a delayed draw term loan to help facilitate the company’s acquisition growth strategy in the mixed-animal veterinary space.
Main Street Capital’s follow-on investments in Heritage Vet Partners supported the acquisitions of Ironsides Animal Health and St. Anna Veterinary Clinic, two mixed-animal practices that provide veterinary services and products. The follow-on investments consisted of additional first lien senior secured term loans totaling $6.3 million.
Founded in 1985 and headquartered in West Point, NE, Heritage Vet Partners is a provider of mixed-animal and large animal veterinary services and products to livestock producers and companion animal owners.
