Graham Partners recaps refurbisher

Graham Partners, a Philadelphia private equity firm, announced its recap of truck equipment refurbisher TransAxle, its fifth platform investment from its $465m second fund.

Philadelphia-based private equity firm Graham Partners has announced its recapitalization of New Jersey truck equipment remanufacturer TransAxle. Terms were not disclosed, but the recap came from the firm’s $465 million (€364 million) second fund.

Ohio bank National City led the senior debt financing for the deal, with New York financing firm Golub Capital providing subordinated debt. Private investment banking firm Goldsmith Agio Helms advised TransAxle for the transaction.

TransAxle, which operates 16 locations, primarily in the Northeast, caters to an $860 million (€674 million) nationwide market for aftermarket truck parts. Most of its business consists of supplying replacement equipment for long-haul trucks, particularly transmission parts. Its competitors are mostly small, local, independent operators with little nationwide reach.

Graham plans to grow the business by expanding TransAxle’s presence in the Southeast United States, with an overarching strategy to take market share from these independent remanufacturers.

Graham Partners has more than $850 million (€666 million) under management, and it is sponsored by Graham Group of York, Pennsylvania, a privately held investment group with holdings in plastics, packaging, machinery, building materials, and other manufacturing sectors. The private equity firm concentrates on the acquisition of companies with revenues in the $20 million to $350 million range.