BRS Completes Refinancing and Equity Investment in Airxcel, Inc.
March 2, 2011
NEW YORK, March 2, 2011 — Bruckmann, Rosser, Sherrill & Co. (BRS), a New York-based private equity firm, announced today that it has completed the refinancing of Airxcel, Inc. (“Airxcel” or the “Company”). In conjunction with the refinancing, BRS’s third institutional fund (“BRS Fund III”) also made an equity investment in the Company. The transaction closed on February 23, 2011.
Airxcel, headquartered in Wichita, Kansas, is the leading designer, manufacturer and marketer of air conditioners, furnaces, water heaters and cooking appliances for the North American recreational vehicle industry. The Company also serves the telecom, school and marine markets through its Marvair division.
BRS acquired Airxcel in 2005 through its second institutional fund (“BRS Fund II”). In November 2009, BRS Fund II made a follow-on investment to support the Company during the RV market downturn. With Airxcel’s performance having since rebounded, BRS was able to refinance Airxcel and make a significant equity distribution to BRS Fund II. Funds for the refinancing were provided by a Senior Secured Credit Facility led by GE Antares, and the equity investment from BRS Fund III.
“We are pleased to have completed this transaction, which provides Airxcel with a flexible, low-cost capital structure and offers BRS Fund III an attractive structured equity return” said Nicholas Sheppard, a Managing Director of BRS. “Airxcel has rebounded from the industry downturn much more quickly than we expected and is well-positioned for continued success.”
“I am delighted that BRS has shown such faith in Airxcel with its latest investment” commented Mel Adams, CEO of Airxcel. “BRS’s unwavering confidence in us throughout the downturn is now being rewarded as we continue to increase our market share in all segments of our RV business.”
BRS is a New York based private equity firm with $1.4 billion of committed capital under management in three investment partnerships, focused on investing in middle market consumer goods and services businesses. Since 1996, BRS has purchased over 40 portfolio companies for aggregate consideration of over $6.4 billion. In addition, BRS portfolio companies have completed approximately $1.9 billion of add-on acquisitions. Prior to forming the firm, the founders of BRS were in the financial acquisition business at Citicorp Venture Capital where they closed 25 transactions with aggregate transaction values totaling $5.8 billion.
For additional information contact:
Kekst and Company
Ruth Pachman or Mark Semer