MCG Capital Provides $14.9 Million in Financing to support Hammond's Candies Since 1920 II, LLC's acquisition of The Virginia Food Group, Inc.
ARLINGTON, Va.--(BUSINESS WIRE)-- MCG Capital Corporation (NAS: MCGC) ("MCG") today announced the closing of a $14.9 million investment in Hammond's Candies Since 1920 II, LLC ("Hammond's"). MCG's investment consists of a subordinated term loan, and a senior secured term loan and revolving credit facility. Cambridge Information Group invested equity in the transaction.
Hammond's is a niche manufacturer and marketer of premium branded candies, sold through various retail channels. MCG's investment was made in conjunction with Hammond's acquisition of The Virginia Food Group, Inc., d/b/a Old Dominion Peanut Company ("ODP"). ODP is a leading manufacturer and marketer of value branded seasonal peanut brittle and peanut candy, sold through value-oriented retailers throughout the United States.
"We are thrilled to have led the debt financing to support Hammond's acquisition of ODP," said Peter Malekian, Executive Vice President and Managing Director of MCG. "Both Companies' management teams have demonstrated their respective abilities to grow in their segments. We believe this business combination will create a dynamic niche manufacturer of seasonal and everyday candy products with enhanced capabilities to serve a broad customer base. This transaction underscores our commitment to provide flexible and creative financing solutions to growing niche middle-market businesses."
Of the funding, Andrew Schuman, CEO of Hammond's, said, "MCG was instrumental in helping design the framework and capital structure that best fit the transaction for Hammond's. Their input was invaluable and they certainly did their homework on us and the target."
About MCG Capital Corporation
MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital. For more information, please visit www.mcgcapital.com.
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws.Forward-looking statements can be identified by terminology such as "anticipate," "believe," "could," "could increase the likelihood," "estimate," "expect," "intend," "is planned," "may," "should," "will," "will enable," "would be expected," "look forward," "may provide," "would" or similar terms, variations of such terms or the negative of those terms.Such forward-looking statements involve known and unknown risks, uncertainties and other factors including management's belief that the business combination of Hammond's and ODP will create a dynamic niche manufacturer of seasonal and everyday candy products as well as those risks, uncertainties and factors referred to in MCG's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 filed with the Securities and Exchange Commission under the section "Risk Factors," as well as other documents that may be filed by MCG from time to time with the Securities and Exchange Commission.As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein.MCG is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
MCG Capital Corporation
Keith Kennedy, 703-247-7513
KEYWORDS: United States North America Virginia
The article MCG Capital Provides $14.9 Million in Financing to support Hammond's Candies Since 1920 II, LLC's acquisition of The Virginia Food Group, Inc. originally appeared on Fool.com.
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