“LASER LIKE FOCUS, QUICK UNDERSTANDING OF THE BUSINESS MODEL, NO LOSS LEADERS AND MOST IMPORTANTLY, DELIVERED THE DESIRED RESULT ON TIME. THE PERFECT COMBINATION! WOULD NOT HESITATE TO RECOMMEND TO OTHER DECISION MAKERS AND BANKERS.”
Alan Langer, Chairman of the Board, GRO-WELL Brands, Inc.
Since 1855, the GRO-WELL® name has been trusted by homeowners and gardeners for the finest in all-natural and organic lawn and garden products. As the largest green, wood and food waste recycler in the Southwestern U.S., GRO-WELL uses its proprietary composting process to make a full complement of organic products from waste by-product that would otherwise end up in landfills. The Company processes and manufacturers residential and commercial organic material in excess of 200,000 tons annually by converting yard wood and food waste streams into branded and private label products. In recent years GRO-WELL invested significantly, expanding both its manufacturing capabilities and its product offering. The result has been an expansion of GRO-WELL’s footprint accompanied by increased working capital needs.
THE CAPX APPROACH AND SOLUTION
GRO-WELL sought a mezzanine debt capital provider that could help their senior bank lender replenish their revolving line of credit and support the Company’s next revenue growth initiative. CapX designed a $5.5 million second lien mezzanine debt solution to address immediate capital needs of the company that was non-dilutive to ownership and acceptable to GRO-WELL’s senior lender. In addition, CapX looked to deliver future value by assisting GRO-WELL with its 2015 capital expenditure financing – a financing combination not often found in middle market lending.
"CapX appreciates the Gro-Well platform created by their ownership and management. The company's competitive advantages in sourcing, trusted brands, and strong retailer relationships convinced CapX to invest in Grow-Well's next growth phase. We look forward to being part of Gro-Well's continued success." — Jeffry S. Pfeffer, Managing Partner, CapX Partners