MVC Capital, Inc. MVC
(the "Company"), a publicly traded business development company that makes
private debt and equity investments, announced today the signing of a
definitive agreement to sell one of its portfolio companies, Summit Research
Labs ("Summit"), a specialty chemical company that manufactures and markets
antiperspirant actives globally, to an affiliate of One Rock Capital Partners,
LLC, subject to regulatory approvals and the satisfaction of other customary
closing conditions, including an escrow.
Prior to the completion of the transaction, MVC and other existing Summit
shareholders will purchase Summit Custom Spray Drying ("SCSD") from Summit.
These proceeds are expected to be returned to Summit's shareholders upon
completion of the Summit sale to One Rock. SCSD provides custom spray drying
products to the food, pharmaceutical, nutraceutical, flavor and fragrance
industries. SCSD will operate as a stand-alone business following the closing
of the Summit sale.
Assuming full realization of the closing conditions and escrow and the sale of
SCSD, MVC Capital would receive gross proceeds from its equity investment of
approximately $63 million, that results in an estimated gross IRR of 31% since
August 2006 (the time of the original investment). The gross IRR includes all
fees and distributions received from its equity position in Summit over the
life of the investment. The transaction is expected to close prior to March
31, 2013.
As part of the sale, MVC will provide Summit with a $22 million second lien
loan.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: NewsAsset Sales
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in