Watermill Group

Client Profile
Watermill Group is a strategy-driven private equity firm based in Boston that has closed over 60 transactions in its 34 year history. Tenere is a full-service designer and fabricator of complex metal and plastic parts and assemblies. Its highly engineered machined and electromechanical components are critical to its customer base that includes leading companies in the cloud computing and network communications sectors as well as in the aerospace, medical and industrial segments. Tenere operates three facilities located in Dresser, WI; Somerset, WI; and Lakewood, CO.
Situation
Watermill executed a letter of intent to acquire Tenere and shortly thereafter retained SSG to help deliver creative financing alternatives in light of the fact that Tenere required significant capital to fund growth in addition to the capital necessary to consummate the acquisition.
Solution
SSG worked closely with Watermill to negotiate a transaction structure that included a senior working capital revolver as well as a senior term loan. In order to support growth in Tenere’s cloud computing and network communications business, Watermill intends to invest in more manufacturing capacity. As a result, SSG also helped source a capital expenditure line. The total financing package was $32 million.