Investments

Dual Investment Capability:

Mill Rock has the ability to invest in two ways

Majority Equity:

Mill Rock invests majority equity stakes in businesses with solid fundamentals in partnership with talented management teams with long-term strategic vision. We target leading companies within our core industry verticals through change-of-control transactions, which may arise from succession planning, management buyouts, corporate divestitures or other catalyst events. In particular, we seek businesses that are performing and highly defensible, yet which have untapped potential that Mill Rock may assist in accelerating.

Activ Capital®

Activ Capital® is structured capital, including debt, senior equity and hybrid investments that brings all the features of Mill Rock’s value-added partnership without requiring majority control.

Features of Activ Capital® are as follows:

  • Security Type: Senior or subordinated debt, PIK notes, convertible debt, debt with warrants, senior/preferred equity, hybrid products
  • Seniority: Varies, although must have meaningful subordinated enterprise value
  • Transaction Types: Growth capital; recaps and refinancing, LBO/MBO, structured finance, equityholder liquidity, acquisition financing

Partnering with Mill Rock

Business Owners and Managers:

The decision to bring in a financial partner is a significant one, with difficult choices to navigate along the way. Selecting the right financial partner can be daunting as you consider both cultural fit and economic implications. We take the time to get to know your business. Our partnership develops over time and is built on trust and straightforward communication.  After nearly 30 years of partnering with management teams, the things we value most are the relationships we have forged. We operate with integrity, respect and professionalism in all situations and expect the same from our partners. We understand that we succeed only when our management partners succeed.

Intermediaries:

Intermediaries are critical to the success of our business. We value our relationships with referral sources. We pledge to be highly responsive to opportunities you share with us and to respect the confidentiality of our conversations. We appreciate that your time is valuable and will respond quickly and constructively with thoughtful questions and feedback.  We have closed over 100 transactions as a team and have earned the confidence and trust of our intermediaries by holding ourselves accountable to the promises we make. Our goal is to operate with transparency and efficiency during the transaction process.  We constantly seek to expand our network.

Executive Network:

Mill Rock was founded based on the premise that the bottleneck in our industry is in operational know-how – not financial savvy.  The success we have enjoyed as investors is predicated on our partnership with outstanding managers.  We have spent our careers cultivating relationships with an extensive network of seasoned advisors. These visionary leaders have direct experience building businesses in the verticals we target, many of them entrepreneurs and business owners themselves.  The entire Mill Rock team is involved in every facet of our investment process and participates in substantially everything that we do.  We have the utmost flexibility in terms of how we can work with experienced industry professionals.  If you have interest in working with us, please contact us.

Current Investments

Asbury Carbons

Core Vertical: Chemicals, Materials & Packaging
Headquarters: Asbury, NJ
Website

Grammer Logistics

Core Vertical: Transportation & Logistics
Headquarters: Columbus, IN
Website

Cisco Industrial Services

Core Vertical: Services
Headquarters: Odessa, TX
Website

Mill Rock Packaging

Core Vertical: Chemicals, Materials & Packaging
Headquarters: Renton, WA
Website

Venture Metals+

Core Vertical: Metals & Engineered Materials
Headquarters: Dallas, TX
Website

DRT Holdings

Core Vertical: Industrial Technology & Specialty Manufacturing
Headquarters: Dayton, OH
Website

Tandym Group

Core Vertical: Services
Headquarters: New York, NY
Website

Investment Criteria

Company Type

Industrials, North American Headquarters and B2B businesses in core verticals

Size

Late stage only, minimum EBITDA

generally ~$10 million

Investment Size

Between $50 million and $200 million, greater in select situations

Security Type

Control equity

Activ Capital®: non-control debt, senior equity or hybrid

Secondary debt purchase

 

Other Characteristics

Market leadership position

Demand relatively price inelastic

Opportunity for value enhancement

Strong free cash flow

No concentration risks