CHICAGO – APRIL 13, 2015 – Victory Park Capital (VPC), an asset management firm focused on middle market debt and equity investments, announced today that it has provided Katy Industries, Inc. (Katy) with a $24 million term loan to fund the acquisition of the plastic shelving and cabinet business unit of Centrex Plastics, LLC (Centrex). Katy, a manufacturer, importer and distributor of commercial cleaning and consumer storage products, will also assume the lease at Centrex’s 100,000 sq. ft. manufacturing facility in Tiffin, Ohio. Centrex manufactures specialized injection-molded plastic products for consumer and commercial applications, and will continue to operate the remaining business out of a facility in Findlay, Ohio.
“Katy has a strong platform that is well positioned to execute on numerous value creation initiatives. The Centrex acquisition provides an opportunity to rapidly expand its presence in the home storage market and to enhance its product offering with its existing customer base,” said Matthew Ray, senior partner at VPC. “We are pleased to have provided the acquisition financing and are excited to partner with management as the Company enters this transformational period.”
Based in Bridgeton, Mo. with manufacturing and distribution facilities across North America, Katy sells its products through several key distributors and retailers in the janitorial, sanitary, food services, industrial and home storage segments. In connection with the acquisition, Katy and Centrex plan to collaborate on manufacturing processes, resin procurement, product development, as well as sales and marketing initiatives.
“We are excited about the growth opportunity with Centrex and could not have closed the acquisition without the new credit facility and the speed by which VPC was able to provide us with the necessary capital,” said David Feldman, president and CEO of Katy. “The acquisition brings Katy a state-of-the-art manufacturing operation, a growing line of home storage products, and a mutually beneficial partnership with an innovative and technically proficient company. I look forward to working closely with the Centrex team and growing our businesses together.”
President of Centrex Terry Reinhart added, “We look forward to working with Katy and VPC on this transaction. The funding will help support the future growth of our businesses and continue to provide our customers with exceptional products and services.”