Capital Southwest Supports New Harbor Capital’s Majority Growth Equity Investment in FoodPharma
June 09 2021 - 4:01PM
Capital Southwest Corporation (“Capital Southwest”) (Nasdaq:CSWC),
an internally managed business development company focused on
providing flexible financing solutions to support the acquisition
and growth of middle market businesses, announced today that it
recently supported New Harbor Capital (“NHC”) in its majority
growth equity investment in Food Technology and Design, LLC dba
FoodPharma LLC (“FoodPharma” or the “Company”) with a revolving
credit facility, first lien term loan, delayed draw term loan and a
minority equity co-investment. Capital Southwest led the financing
and will act as the sole administrative agent.
“We are excited to partner with NHC on its
investment in FoodPharma,” said Josh Weinstein, Senior Managing
Director of Capital Southwest. “The Company has a demonstrated
track record of being a value-added manufacturer of functional
foods.” Grant Eason, Senior Vice President of Capital Southwest,
said “FoodPharma delivers sophisticated development capabilities to
its clients allowing them to develop products in the evolving
functional food category.”
Founded in 2000 and headquartered in Santa Fe
Springs, California, FoodPharma leverages a large portfolio of over
500 proprietary formulas and recipes, as well as in-house research,
development, and formulation capabilities, to deliver innovative,
functional food products to its customers. The Company has a
market-leading position in the soft chew category, specifically in
bariatric and weight-loss nutrition. FoodPharma serves a wide
variety of customers and channels, including leading CPG, private
label, and specialty brands. The Company currently employs over 90
individuals in two California facilities located in Santa Fe
Springs and Long Beach.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is
a Dallas, Texas-based, internally managed business development
company with approximately $336 million in net assets as of March
31, 2021. Capital Southwest is a middle market lending firm focused
on supporting the acquisition and growth of middle market
businesses with $5 million to $25 million investments across the
capital structure, including first lien, unitranche, second lien,
subordinated debt and non-control equity co-investments. As a
public company with a permanent capital base, Capital Southwest has
the flexibility to be creative in its financing solutions and to
invest to support the growth of its portfolio companies over long
periods of time.
About New Harbor Capital
New Harbor Capital is an experienced, lower
middle-market private equity firm that seeks to partner with
growth-minded, founder-owned companies. NHC seeks to partner with
business owners in industries tied to their expertise and focus in
education, healthcare and technology-enabled services. NHC targets
investments of $10-$40+ million, and encourages meaningful seller,
management, and co-investor participation. New Harbor Capital was
founded on the idea that focus, planning, collaboration and
experience can produce long-term, sustainable, and superior
results.
Forward-Looking Statements
This press release contains historical
information and forward-looking statements with respect to the
business and investments of Capital Southwest. Forward-looking
statements are statements that are not historical statements and
can often be identified by words such as “will,” “believe,”
“expect” and similar expressions and variations or negatives of
these words. These statements are based on management’s current
expectations, assumptions and beliefs. They are not guarantees of
future results and are subject to numerous risks, uncertainties and
assumptions that could cause actual results to differ materially
from those expressed in any forward-looking statement. These risks
include risks related to: changes in the markets in which Capital
Southwest invests; changes in the financial, capital, and lending
markets; regulatory changes; tax treatment and general economic and
business conditions; our ability to operate our wholly owned
subsidiary, SBIC I, as an SBIC; and uncertainties associated with
the impact from the COVID-19 pandemic, including its impact on the
global and U.S. capital markets and the global and U.S. economy,
the length and duration of the COVID-19 outbreak in the United
States as well as worldwide and the magnitude of the economic
impact of that outbreak; the effect of the COVID-19 pandemic on our
business prospects and the operational and financial performance of
our portfolio companies, including our ability and their ability to
achieve their respective objectives, and the effects of the
disruptions caused by the COVID-19 pandemic on our ability to
continue to effectively manage our business.
Readers should not place undue reliance on any
forward-looking statements and are encouraged to review Capital
Southwest's Annual Report on Form 10-K for the year ended March 31,
2021 and subsequent filings with the Securities and Exchange
Commission for a more complete discussion of the risks and other
factors that could affect any forward-looking statements. Except as
required by the federal securities laws, Capital Southwest does not
undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, changing circumstances or any other reason after the
date of this press release.
Investor Relations
Contact:Michael S. Sarner, Chief Financial
Officer214-884-3829
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