Seacoast Capital Exits Non-Control Growth Capital Investment in Cambium
Seacoast Capital Exits Non-Control Growth Capital Investment in Cambium United
December 2, 2020 – Boston, Massachusetts. Seacoast Capital (“Seacoast”), a lower middle market non-control growth capital investor, announced today its exit from its investment in Cambium United, L.P. (“Cambium” or the “Company”). In 2017, Seacoast invested $16 Million of subordinated debt and redeemable preferred equity in Cambium to recapitalize its balance sheet, make a distribution to the Company’s Limited Partners, and fund certain actionable growth opportunities in order to accelerate Cambium’s regional and national expansion.
Cambium, based in Plano, TX, is a holding company whose sole operating asset is Sustainable Modular Management, Inc. (“SMM”). SMM is engaged in the leasing and sale of highly engineered, customized, commercial modular buildings for customers encompassing the military, government, education, and industrial end markets, among others.
Seacoast Principal, Jamie Donelan noted, “What initially attracted us to Cambium – largely a function of our deep experience in the portable sanitation space – was the Company’s porta potty rental services division which the Company subsequently sold in 2018. We quickly realized that the relatively stable, long-term, recurring nature of SMM’s lease cash flow streams was a perfect match for Seacoast’s structured non-control securities. Nick Mackie and the entire SMM team did a masterful job of establishing a defined, long-term growth plan for SMM and methodically executing on their strategy, which put them in the enviable position of choosing their destiny as it related to refinancing us out. We wish Nick and the SMM team the best as SMM continues its rapid growth in the customized modular building market”.
“I couldn’t have asked for a better partner in Seacoast,” said Nick Mackie, CEO of Cambium. “The process of selecting an equity partner was a daunting task – one that we chose to conduct in-house absent any outside advisors. From the beginning interviews to the final selection it became more apparent that Seacoast was the right partner for Cambium. Their team’s experience, support and advice over the years has been invaluable. Seacoast conducts themselves in a highly professional manner with an emphasis on creating and preserving relationships. Mission accomplished.”
About Seacoast Capital
Founded in 1994, with offices in Boston, MA and San Francisco, CA, Seacoast Capital invests non-control growth capital in partnership with management in lower middle market companies. Seacoast is industry agnostic and typically invests $5 million to $25 million of capital in companies with $10 million or more in revenue and $2 million or more of EBITDA. Capital is used to support growth, refinancings, acquisitions, family wealth and ownership transfers, shareholder liquidity events, and partnership or management buyouts. Geographically, Seacoast invests anywhere in the United States. Since its inception, Seacoast has managed over $600 million of capital, which the firm has invested in 79 non-controlling transactions. Now managing its fourth fund, Seacoast Capital Partners IV, L.P., the firm continues to actively seek new investment opportunities. Learn more by visiting www.seacoastcapital.com.