We are very pleased with the efforts of Grandwood in initiating the transaction and executing the process in conjunction with Southern's other advisors. I feel they consistently worked extremely hard and went the extra step through difficult markets to achieve the best results for Southern and its owners.
New York, NY (PRWEB) August 15, 2008
Grandwood Securities LLC ("Grandwood") announces that it advised Southern Aggregates LLC ("Southern"), an important aggregate supplier to Baton Rouge and Lafayette, LA in a strategic sale to VantaCore Partners LP of New York ("VantaCore"). Grandwood initiated the transaction. Marc Dyess, who formed Southern in 2001 in conjunction with other members of Southern, following a 30-year career with Texas Industries, Inc. and Meridian Aggregates Company, will join VantaCore as Southern's General Manager.
"We are very happy about the transaction and we look forward to working together with the VantaCore team," said Marc Dyess. "We are very pleased with the efforts of Grandwood in initiating the transaction and executing the process in conjunction with Southern's other advisors. I feel they consistently worked extremely hard and went the extra step through difficult markets to achieve the best results for Southern and its owners."
We are excited about the acquisition of Southern for several reasons," said Colin Oerton, Chief Executive Officer of VantaCore. "Firstly, Southern has extensive reserves and is an important aggregate supplier to Baton Rouge and Lafayette, two of the largest cities in Louisiana. Second, Marc Dyess, with his extensive aggregate experience and Louisiana market knowledge will add significant depth to the VantaCore team. His strategy of finding, developing and marketing sand and gravel reserves has resulted in strong growth in sales and profits at Southern. Third, this acquisition extends VantaCore's geographic reach from our existing operations in Tennessee while continuing to validate our growth strategy."
$66.9 million in equity and debt financing was provided to partially finance the acquisition, to refinance existing debt at VantaCore and for general working capital purposes. $29.9 million in equity consisting of common units was provided by Kayne Anderson Energy Development Company (NYSE:KED) and Tortoise Capital Resource Corporation (NYSE:TTO). $37.0 million in first and second lien debt financing was provided by Wells Fargo Foothill, part of Wells Fargo & Company (NYSE:WFC), and Gladstone Capital Corporation (NASDAQ: GLAD).
About VantaCore Partners LP:
VantaCore is a non-traded, private limited partnership focused on acquiring competitively advantaged aggregate businesses in the domestic U.S. market. Its operations consist of an integrated limestone quarry (with permitted surface reserves in excess of 40 million tons) and dock facility, two asphalt plants and a commercial asphalt lay down business located in Clarksville, Tennessee. VantaCore's interest in retaining local company management, its financial structuring flexibility and seller sensitivity, facilitated the Partnership's ability to make this purchase and management expects that this will enable VantaCore to grow through acquisitions in the future.
About Grandwood Securities LLC:
Grandwood Securities LLC is an independent investment banking firm based in New York City serving the strategic needs of middle market companies. Visit Grandwood at http://www.grandwoodsecurities.com.
Grandwood Securities LLC
212-684-6300 ext 928