Babson Capital Management has provided USD12m in mezzanine debt to support Drew Marine’s acquisition of the Chemring Marine Group’s rescue division.
The add-on investment brings Babson Capital’s total subordinated debt investment in Drew Marine to more than USD30m including an initial investment of USD20m to support J.F. Lehman & Company’s 2009 acquisition. Babson Capital also made an equity co-investment at the time of the 2009 acquisition.
Under Drew Marine’s ownership, Chemring’s rescue division will be renamed Drew Marine Signal and Safety. Drew Marine Signal and Safety is a supplier of marine distress signals to the commercial shipping and leisure markets. The company’s products are marketed under established brand names including Pains Wessex, Comet, Aurora and Oroquieta.
“We were pleased to partner with the Babson Capital team on Drew Marine’s Chemring acquisition, which marks the 14th co-investment by Babson Capital in a J.F. Lehman portfolio company since 1992,” says Louis Mintz, managing partner of J.F. Lehman & Company. “The team’s deep experience in middle-market financing, responsiveness and partnership approach made Babson Capital a valuable asset on this transaction.”
“Babson Capital appreciates the opportunity to expand our relationship with Drew Marine through this add-on investment, and we are excited about the growth opportunities presented by the acquisition,” says Mike Klofas, managing director and head of the mezzanine and private equity group for Babson Capital. “We are extremely proud of our successful 20-year partnership with J.F. Lehman, and look forward to working together again soon.”
