CapitalSouth SBIC Fund IV, L.P. (the “CapitalSouth Growth Fund”) announced today that it recently invested $10.0 million in Stride Tool Holdings, LLC in connection with a recapitalization of Stride Tool, Inc. in a combination of senior debt and equity. CapitalSouth Growth Fund invested alongside Medallion Capital, Inc., which also provided a combination of senior debt and equity, as well as 4C Capital, LLC.
Headquartered in Glenwillow, Ohio, Stride Tool designs and manufactures specialty hand tools including retaining ring pliers, wire twisters, manifolds, hand benders, tube cutters and electrical tools. Stride Tool primarily operates through two divisions: (i) Private Label Lines, which manufactures products for other tool brands and (ii) Imperial Tools, the company’s in-house brand which sells through both distributors and other manufacturers. Stride Tool’s products are primarily used by professional tradesmen and technicians in a broad range of end markets including industrial maintenance, HVAC repair, automotive and aviation.
CapitalSouth Growth Fund’s investment will help the Company’s next phase of growth.
K&L Gates LLP acted as legal counsel to CapitalSouth Growth Fund. Gray Plant Mooty acted as legal counsel to Stride Tool, Inc. and Craig-Hallum Capital Group LLC acted as financial advisor.
About CapitalSouth Growth Fund
CapitalSouth Growth Fund and its CapitalSouth Partners predecessors were founded as early as 1998 to provide financial solutions to lower middle-market companies. The CapitalSouth Growth Fund invests in mature companies, making debt and equity investments typically between $2 million and $10 million and invests in a variety of industries throughout the United States. To learn more about CapitalSouth Growth Fund, please visit www.CapitalSouthPartners.com
About Capitala Group
Capitala Group is a leading provider of capital to lower and traditional middle-market companies, through its family of credit focused funds. Since 1998, Capitala Group's managed funds have participated in over 125 transactions, representing approximately $1 billion of investments in a variety of industries throughout North America. Capitala Group manages both public capital (Capitala Finance Corp. (Nasdaq:CPTA)) and private capital (including but not limited to the CapitalSouth Growth Fund) for its investors and seeks to partner with strong management teams to create value and serve as long term partners.