FocalPoint Advises Horsburgh & Scott on its Refinancing by Great Rock Capital

The Horsburgh & Scott Co. (“H&S” or the “Company”), a leading manufacturer of custom engineered, large-diameter gears and gearboxes for heavy industrial machinery, has raised $20 million in debt financing from Great Rock Capital Partners Management, LLC (“Great Rock”) to refinance its existing debt facility and provide additional capacity for anticipated growth. H&S is a portfolio company of GenNx360 Capital Partners, LLC (“GenNx360”). FocalPoint Securities, LLC (“FocalPoint”) served as the exclusive financial advisor to the Company.

H&S manufactures, repairs, and services gears and gearboxes for heavy machinery used by some of the world’s largest industrial corporations. Following a change to its executive team in 2017, the Company experienced a significant improvement in revenue and profitability – the new management team implemented several initiatives that reinvigorated the business, diversified revenue, and eliminated operational inefficiencies that were burdening the organization. As a result, H&S significantly improved its profitability and credit profile and sought to refinance its existing debt facility in advance of the maturity date with more cost effective, flexible capital.

Randy Burdick, CEO of H&S, said, “We are more than pleased with the new facility, which reduces our cost of capital and will allow our team to continue fostering the rapid growth our organization has experienced over the past two years. The FocalPoint team presented a list of strong financing options and helped us choose the partner that fulfilled all our needs.”

Rishi Verma, Vice President at GenNx360, added, “This is an outstanding outcome for a process that went to market at the onset of COVID-19. FocalPoint identified a diverse group of lenders, negotiated favorable terms for the Company, and facilitated an expedited diligence process to ensure an on-time close.”

Michael Fixler, Managing Director at FocalPoint, commented, “This closing highlights our ability to alleviate the challenges associated with structuring and securing creative, affordable financing in the ever-changing COVID-19 capital markets landscape. The team worked around the clock to once again secure an exceptional result for a valued client in H&S.”

About Horsburgh & Scott

Founded in 1886, H&S is a manufacturer of custom engineered, large-diameter gears and gearboxes for heavy industrial machinery used in the steel, mining, oil & gas and other end-markets. The Company’s reputation for providing the highest quality, trusted products and services has made it the preferred supplier of gears and gearboxes for some of the largest industrial companies in the world. For more information, please visit www.horsburgh-scott.com.

About GenNx360

GenNx360 is a New York-based private equity firm focused on acquisitions of middle market business services and industrial companies. The firm seeks investments in companies with proven and sustainable business models in expanding industries. Target industries include industrial machinery and components, logistics and supply chain solutions, industrial and environmental services, food and agricultural products and services, infrastructure equipment and services, specialty chemicals, packaging, and aerospace and defense. For more information, please visit www.gennx360.com.

About Great Rock Capital

Great Rock is a commercial finance company serving the needs of middle market companies with a wide variety of secured lending products ranging in size from $10 million to over $100 million. The firm has extensive experience providing asset based and backed loans to customers in all types of situations, from growth capital to restructuring financings, in the commercial & industrial, consumer products, transportation, metals, healthcare, retail, technology, and defense sectors. For more information, please visit www.greatrockcapital.com.

About FocalPoint Partners, LLC

FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements, financial restructurings, and special situation transactions. Since 2002, the firm has provided advisory services to middle market clients across eight industry sectors: aerospace and defense, business services, consumer, energy, financial services, healthcare, industrials, and technology/media. With offices in Los Angeles, Chicago, New York, and Shanghai, and affiliated partner offices around the world, FocalPoint's domestic and international coverage is truly global. To learn more, visit focalpointllc.com and follow us on LinkedIn and Twitter.

Please contact Michael Fixler at 312-508-5780 or Matthew Cumbee at 312-508-5778 with any questions about this transaction.