SBIC Fund Sponsored by Opus Bank Makes Growth Equity Investment in Leading Bridge & Highway Infrastructure Company
Overview of Transaction
Opus Bank’s bank-sponsored SBIC Fund, Opus Equity Partners (“OEP”), has made a growth equity investment in both Simplex Construction Supplies, Inc. (“Simplex”) and Lightcap Industries, Inc. (“JC Supply & Manufacturing” or “JC”).
The combination of Simplex and JC establishes a leading vertically integrated manufacturer and supplier of infrastructure products and solutions to bridge and paving contractors throughout America.
OEP will partner with Sarah Bazey, the founder, owner, and CEO of Simplex, to integrate Simplex’s robust distribution business with JC’s industry leading manufacturing operations.
Opus Financial Partners (“OFP”), Opus Bank’s wholly-owned registered broker-dealer, raised senior and subordinated debt financing to support the transaction, demonstrating the capabilities of Opus’ merchant banking platform and one-stop principal investing and advisory solution.
Significance of Transaction
The combination of Simplex and JC establishes a leading vertically integrated manufacturer and supplier of infrastructure products and solutions, with facilities totaling 260,000 square feet and 20 acres of capacity across locations in Ontario, CA, Carlyle, IL, and Minneapolis, MN.
The growth equity investment facilitates the company’s expansion into additional geographic areas and product offerings, better positioning the company to play a leadership role in shaping the new infrastructure investment across the country.
The combination of both companies provides for significant operational and sales synergies, and establishes a more robust platform with superior product quality and customer service to better serve the needs of contractors and state and federal DOTs.
Opus Merchant Banking Division’s Role
OEP identified the investment opportunity through proprietary relationships, and presented the strategic rationale and potential market opportunity to both Simplex and JC.
In partnership with management from both companies, OEP led the development of the strategic initiatives and plan of execution to achieve the collective vision and projected value creation for the combined company.
OEP facilitated the merger with a growth equity investment from its SBIC Fund, and led the execution of the transaction, including all financial, business, legal, market, operational, and other due diligence.
Opus Bank’s broker-dealer subsidiary, OFP, raised senior and subordinated debt financing to support the transaction.