Chevy Chase, Md. – Farragut Capital Partners, LLC (“Farragut”) is pleased to announce the closing of an investment in Source Technologies, Inc. (“Source” or “the Company”). Founded in 1986 and based in Charlotte, N.C., Source is the leading provider of specialized magnetic ink character recognition (“MICR”) printers to the financial services industry. In partnership with Lexmark, the Company offers a complete secure check-printing solution used in over 17,000 bank branches nationwide. Source is a portfolio company of StoneCalibre, LLC (“StoneCalibre”), a California-based private investment firm specializing in the acquisition of lower middle-market companies. Founded by Brian Wall, previously a long-term Partner at Platinum Equity, StoneCalibre is focused on making investments in both special situations and quality long-term capital investment opportunities.
Farragut invested subordinated debt to refinance an acquisition facility and provide the Company with additional working capital. “We at StoneCalibre were very pleased to have partnered with Farragut on the refinancing of Source Technologies. Farragut offered a comprehensive and flexible recapitalization for Source Technologies and delivered on their promises with an appropriate and manageable capital structure at closing,” said Jim McCloskey of StoneCalibre. “Source Technologies is the dominant player in the MICR printing space, and we are excited to partner with StoneCalibre on this investment,” added Phil McNeill, Managing Partner of Farragut. “The Company is committed to offering the best check printing solution on the market, and with StoneCalibre’s guidance we’re confident they’ll continue to deliver on that vision.” Source (http://www.sourcetech.com/) is the seventh investment of the team’s third fund, Farragut Mezzanine Partners III, LP.
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 buyouts, generational transfers, growth capital financings, and recapitalizations. Its latest investment vehicle, Farragut Mezzanine Partners III, LP, held its final close in July 2013. Farragut seeks to invest up to $10 million in established middle-market companies with proven business models and consistent 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 private equity groups, independent sponsors, senior lenders, and directly with owners and management teams to create and build value in its portfolio companies over time.