Capstone Partners advised O2 Investment Partners on the closing of $128MM in senior debt, junior debt, and equity financing commitments for SIB Fixed Cost Reduction (SIB or the Company). The proceeds were used to refinance existing debt, fund the acquisition of Shipware, LLC, a freight expenses management company, fund future acquisitions, and to support ongoing working capital needs. The financing was led by Tree Line Capital, Stellus Capital, Capital Southwest, and LBC Small Cap.
The Capstone team was highly-professional and took a thoughtful approach to both the financing structure and marketing process. They took the time to fully understand the SIB business model along with our financing needs and provided us with strategic advice throughout the entire transaction process.
SIB, headquartered in Charleston, SC, is a leader in fixed cost reduction services providing invoice analysis, vendor negotiation and cost monitoring for customers across a variety of expense categories including telecom, utilities, and waste management. The Company has developed relationships with a growing list of Fortune 500 customers, including Lowe’s, Home Depot, Jiffy Lube, Burger King, Papa Johns, Sonic, Ace Hardware, Aaron’s, Walmart and Saks Fifth Avenue, among others. SIB is sponsored by O2 Investment Partners, a Detroit-based private equity fund, which, together with management, are executing a thoughtful acquisition strategy.
“SIB is a company poised for significant growth with deep customer relationships, a compelling value proposition, and a resilient business model, and we were honored to have advised the Company on this transaction,” said Kent Brown, Managing Director with Capstone’s Debt Advisory Group. “It was a pleasure working with both O2 and SIB and we are delighted to have played a part in supporting their continued success.”
O2 Investment Partners is a Midwestern based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select niche industrial companies.