O2 Sponsor Finance provides $12 Million in Senior Secured Credit Facilities to Support Soundcore Capital Partners’ Acquisitions of Top Notch Dock & Door, Top Notch Garage Door and Premier Overhead Doors
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Insights
The provision of a $12 million senior secured credit facility by O2 Sponsor Finance to support the formation of Door & Dock Holdings by Soundcore Capital Partners is a strategic move that signals potential growth and consolidation in the commercial overhead garage door and dock leveler services industry. This investment is aimed at creating a platform for future acquisitions, indicating an aggressive growth strategy by Soundcore Capital Partners.
From a financial perspective, the involvement of senior secured credit suggests a lower risk profile for the lender due to the collateralization of assets. Investors should note that the success of this strategy hinges on the effective integration of Top Notch and Premier, as well as the execution of subsequent acquisitions. This consolidation could potentially lead to economies of scale, improved bargaining power with suppliers and an expanded customer base, which may translate into increased revenue and market share.
However, the debt financing also implies an increase in leverage for Door & Dock Holdings, which could raise the financial risk if the cash flows generated by the consolidated entity are insufficient to cover the debt service. Stakeholders should monitor the company's financial performance closely, particularly its ability to generate free cash flow and maintain debt covenants.
The commercial overhead garage door and dock leveler services industry is characterized by its regional focus, as evidenced by Top Notch and Premier's strong presence in the Atlanta metro and Interstate 85 corridors. The investment by Soundcore Capital Partners into these companies suggests a recognition of the growth potential in this particular geographic area, which is likely driven by increased commercial and industrial activity.
An analysis of market trends indicates that businesses in this sector benefit from the ongoing need for maintenance and repair services, which provides a steady revenue stream. Additionally, the mention of services to the single-family rental market by Top Notch reflects a diversification strategy that could mitigate the risk associated with reliance on a single customer segment.
Considering the strategic location of both Top Notch and Premier, their combined capabilities could position Door & Dock Holdings as a dominant service provider in the region. The potential for future acquisitions suggests an ambition to expand beyond the current market, which could disrupt the regional competitive landscape. Competitors should take note of this development and may need to consider strategic responses, such as partnerships or enhancing their service offerings.
CHICAGO, IL / ACCESSWIRE / January 3, 2024 / O2 Sponsor Finance, a division of Old Second National Bank, today announced that it provided
Both Top Notch and Premier are located in Oakwood, GA, and serve customers in the growing Atlanta metro and Interstate 85 corridors. Top Notch was founded nearly 15 years ago by Derek Baker and Premier was founded nearly five years ago by Brandon Blum. Both Derek and Brandon, as well as all of their employees, will remain with the business post investment.
Top Notch and Premier are leading providers of commercial overhead garage door, dock leveler, and access control installation, repair, and maintenance services. Top Notch also provides installation, repair, and maintenance services to select residential customers and institutional investors within the single-family rental market.
"We are excited to support Soundcore Capital Partners on another platform investment. Top Notch and Premier are regional market leaders with long successful operating histories. Door & Dock Holdings provides a strong foundation for future acquisitions," said Nick O'Brien, Vice President, O2 Sponsor Finance.
About Door & Dock Holdings: Door & Dock Holdings was created in 2023 as a platform to invest initially in Top Notch and Premier. Top Notch and Premier are leading providers of overhead door, dock leveler, and access control installation, repair, and maintenance services for both commercial and residential customers. Door & Dock Holdings is focused on high growth MSA's across the Southeast and broader United States, with an initial focus in Georgia. For more information, please visit: www.topnotchgaragedoor.com, www.topnotchdockanddoor.com, and www.premierohd.com
About Soundcore Capital Partners: Soundcore Capital Partners was founded in 2015 by Jarrett Turner and is based in New York, NY. Soundcore is a thesis-driven private equity firm that specializes in buy-and-build investments in the lower middle-market that are headquartered in the United States and Canada. Soundcore has completed 86 acquisitions across eleven platforms and focuses primarily on business & outsourced services, industrial services, specialty manufacturing and value-added distribution sectors. For more information, please visit: www.soundcorecap.com
About O2 Sponsor Finance: O2 Sponsor Finance is a national provider of cash flow-based loans to lower middle market businesses with typically
About Old Second Bancorp, Inc.: Old Second Bancorp, Inc., headquartered in Aurora, Illinois, is the bank holding company for Old Second National Bank, which celebrated 150 years of operation in 2021. Old Second's common stock trades on The NASDAQ Stock Market under the symbol "OSBC". More information about Old Second is available by visiting the "Investor Relations" section of its website www.oldsecond.com.
Old Second National Bank, Member FDIC, was recently named number one among "Best Bank in Illinois 2021." This was the second straight year the bank was selected by customers for the award. Awards are determined based on a survey of over 25,000 U.S. customers who rate banks on overall satisfaction as well as trust, terms and conditions, branch services, digital services and financial advice.
As of September 30, 2023, Old Second has approximately
Contact:
Brad Adams
630-906-5484
SOURCE: Old Second Bancorp Inc.
View the original press release on accesswire.com
FAQ
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