NewSpring Capital Leads Mezzanine Investment in Cellucap Manufacturing Company
October 17, 2011
RADNOR, PA - October 17, 2011 - NewSpring Capital, a family of private equity funds providing growth and expansion capital to the Mid-Atlantic region, announced today that NewSpring Mezzanine, the dedicated mezzanine fund of NewSpring Capital, has invested $8 million of mezzanine debt financing in Cellucap Manufacturing Company ("Cellucap" or the "Company"). The proceeds are being used to fund the acquisition of DISCO, a subsidiary of Katy Industries, Inc. (OTCPK: KATY).
Cellucap, based in Philadelphia, Pennsylvania, manufactures and distributes disposable protective apparel and related products to the foodservice, healthcare and safety markets. Cellucap sells its coveralls, aprons, gowns, hairnets and other disposable products to end customers through some of the largest distributors in each end market. NewSpring Mezzanine, along with PNC Bank, who provided a senior term loan and a revolving credit line, funded Cellucap to acquire DISCO. The acquistion will further expand the Company's product lines with market leading scrubbing and cleaning brands, Brillo, Grilbrik, Filter Brite, and Big Boss among others. Cellucap believes the expansion of its product lines will allow it to continue its growth trajectory.
Jane Harris, President of Cellucap, stated, "We are excited to acquire and begin the integration of DISCO into the Cellucap family of products. We believe that with NewSpring's financing and support, we will be able to take our 60 year old family owned and operated business to the next level."
Steve Hobman, General Partner of NewSpring Mezzanine, added, "We look forward to our partnership with Cellucap and the management team. The Company's history of profitable growth combined with DISCO's strong market presence creates an exciting platform for future growth and success."