Main Street Announces Follow-On Investment

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) announced a follow-on investment of $16.4 million in Hawk Ridge Systems, LLC, aimed at supporting the acquisition of a complementary value-added reseller of SolidWorks and Markforged 3D printing solutions. The investment enhances Hawk Ridge's geographical reach and strengthens its product offerings, benefiting over 30,000 customers across North America. This strategic move follows Main Street's initial investment in Hawk Ridge in December 2016, indicating continued growth and expansion within the market.

Positive

• Follow-on investment of $16.4 million enhances Hawk Ridge's financing capabilities.
• Strengthened geographical presence allows for nationwide coverage and improved customer support.
• Acquisition expands product offerings and increases market competitiveness.

Negative

• None.

HOUSTON, Dec. 15, 2021 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a follow-on investment in an existing portfolio company. Main Street, along with its co-investor, made the follow-on investment in Hawk Ridge Systems, LLC ("Hawk Ridge" or the "Company") to support the Company's acquisition of a complimentary leading value-added reseller of SolidWorks software solutions and Markforged 3D printing solutions in a new geographic area that is highly complementary to Hawk Ridge's existing geographies ("Acquired Company"), and to provide financing for the Company's continued internal growth initiatives. Main Street's portion of the follow-on investment consists of an additional $16.4 million first lien, senior secured term debt investment.

Headquartered in Mountain View, California, and founded in 1996, Hawk Ridge (www.hawkridgesys.com) is one of the largest and most respected value-added resellers of SolidWork's various software solutions and Hewlett-Packard's and Markforged's 3D printing solutions, in addition to a variety of other engineering software solutions and 3D printing, scanning and post-processing technologies. The Company serves over 30,000 customers from its 26 office locations spanning the West Coast and Midwest United States and Canada. This acquisition provides Hawk Ridge with significant incremental geographical reach, allowing Hawk Ridge to cover the United States and Canada coast-to-coast, as well as the acquisition of leading sales and technical resources to bolster Hawk Ridge's existing team and better service both companies' customers. Since Main Street's initial investment in Hawk Ridge in December 2016, the Company has strategically expanded its geographical coverage, bolstered its product offering and completed ten acquisitions to complement the Company's strong organic growth.

The Acquired Company is also a leading value-added reseller of engineering design and manufacturing solutions, specifically SolidWorks software solutions and Markforged's 3D printing solutions with a highly complementary geography. The Acquired Company's long-established presence in its geography and strong existing customer relationships provide Hawk Ridge with the optimal entry to this new geography and a coast-to-coast presence. The combined platform will offer existing customers with a bolstered product offering, nationwide support and a deeper bench of technical resources.

ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.  Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors.  Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market investment strategy.  Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million.  Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.

Main Street, through its wholly owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Jesse E. Morris, CFO & COO, jmorris@mainstcapital.com
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com
713-529-6600

View original content:https://www.prnewswire.com/news-releases/main-street-announces-follow-on-investment-301444991.html

SOURCE Main Street Capital Corporation

FAQ

What is the recent investment made by Main Street Capital?

Main Street Capital recently completed a follow-on investment of $16.4 million in Hawk Ridge Systems.

What is the purpose of the investment in Hawk Ridge?

The investment supports Hawk Ridge's acquisition of a complementary value-added reseller and finances internal growth initiatives.

How does the investment affect Hawk Ridge's market presence?

The investment enhances Hawk Ridge's geographical reach, allowing it to serve customers coast-to-coast in the U.S. and Canada.

When did Main Street Capital first invest in Hawk Ridge?

Main Street Capital made its initial investment in Hawk Ridge in December 2016.