Farragut Capital Partners Announces Investment in Industrial Services Group, Inc.
CHEVY CHASE, Md. – Farragut Capital Partners, LLC ("Farragut"), a Chevy Chase-based mezzanine investment firm offering customized financing solutions to lower middle market private companies, is pleased to announce the closing of an investment in Industrial Services Group, Inc. (“ISG” or “the Company”). ISG (www.isginc.us) represents the firm’s fourth investment out of the team’s third fund, Farragut Mezzanine Partners III, LP, which received its license to operate as a Small Business Investment Company (“SBIC”) from the Small Business Administration in July of this year.
Based in Sumter, SC, ISG is a leading industrial services company specializing in the application of high performance protective coatings and linings in process equipment. Its corrosion control services are primarily used by the power generation, pulp and paper, and chemical industries to protect against erosion, corrosion, abrasion, and chemical attack. The transaction allows the Company to refinance existing debt and fund future growth. Farragut partnered with Salem Investment Partners on the $5.5 million senior subordinated loan.
“We’re delighted to be partnering with Joe (Vandiver, President) and Tripp Waynick, ( Executive Vice-President) on this investment. They have done an outstanding job of growing and continuing to diversify their business in what has been a relatively difficult environment over the past five years,” said Javier Aguirre, Partner at Farragut Capital Partners. “We look forward to working with them as they expand the range of engineering and design services they offer their customers. We believe ISG’s business has a powerful regulatory tailwind behind it as its customer base accelerates its efforts to stay ahead of environmental regulatory requirements.”
About Farragut Capital Partners
Founded in 2011, Farragut Capital Partners, LLC is a private investment management firm providing mezzanine debt and equity capital to finance leveraged and management buy-outs, generational transfers, growth capital financings, and recapitalizations. The firm is actively investing out of its latest investment vehicle, Farragut Mezzanine Partners III, LP. Farragut seeks to invest up to $10 million in established small and middle market companies with proven business models and stable cash flows. The firm targets companies with strong, committed management teams and the potential for significant growth in equity value.
Farragut specializes in asset-light businesses with unique and defensible market positions, stable business models, and reasonable capital expenditure and working capital needs. The firm works with owners (family businesses, equity sponsors, and fundless sponsors), senior lenders, and directly with management teams to create and build value in its portfolio companies over time.