CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has purchased a majority equity stake and made a concurrent debt investment in Douglas Machines Corp. in partnership with the firm’s management.
According to a filing with the Securities and Exchange Commission, Douglas received approximately $40.7 million which included rollover investment from existing pre-closing owners. CNL Strategic purchased an approximately 90 percent indirect equity ownership interest in Douglas’ capital stock, with the remaining owned by members of the Douglas executive management team and existing pre-closing owners.
CNL Strategic also made an approximately $15 million debt investment in Douglas in the form of senior secured notes.
Founded in 1979 and headquartered in Florida, Douglas is a manufacturer of commercial cleaning and sanitizing equipment to the food, pet food, nutraceutical and industrial end markets in the United States. CNL Strategic noted that many of these end markets, in particular food safety, are subject to increasingly stringent regulations, further accelerated by the COVID-19 pandemic.
This is the ninth company in CNL Strategic Capital’s portfolio.
CNL Strategic Capital acquires controlling equity stakes in combination with loan positions in middle-market businesses. The company is externally managed by CNL Strategic Capital Management LLC and Levine Leichtman Strategic Capital LLC.