(CAMBRIDGE, ONTARIO, Dec. 5, 2011) NorthSpring Capital Partners (“NorthSpring”) announced today the closing of a subordinated debt financing to enable local parts manufacturer to implement a major productivity improvement project. Commented Brian Hunter, President of NorthSpring, “Our client had experienced a doubling of sales in the past two years.
As a consequence of this rapid growth, the company was experiencing capacity constraints, excessive overtime costs and quality issues. At our urging, a team of productivity improvement consultants conducted an in-depth review, which revealed significant opportunities to improve operations. They are currently implementing a project which is expected to deliver over $1 million per year of productivity improvements and cost savings.”
The NorthSpring financing was designed to fund the upfront costs of implementing this six month project. The repayment terms were structured such that the financing will be repaid from the cost savings from the project. This preserved the Company’s working capital to accommodate further sales growth.
Continuous improvement is the hallmark of successful companies. NorthSpring takes great pride in assisting its clients to strengthen and grow their businesses.
About NorthSpring Capital Partners:
NorthSpring Capital Partners provides risk capital to small and medium sized companies with the goal of creating value. Investments range between $250,000 and $1 million in the form of subordinated debt and/or mezzanine equity across a variety of traditional industries located in Southern Ontario. NorthSpring takes a flexible approach when reviewing investment opportunities and tailors its investment structure to fit the unique aspects of the business. Funds are available for:
- Management Buyouts and acquisitions
- Growth companies
- Unlocking the value of SR&ED claims
- Turnarounds, in select situations
NorthSpring Capital Partners is part of North Consulting Group, a full-service, diversified consulting company that is dedicated to providing strategic insights and resources to help clients attain their objectives. Other companies in the group include NorthBridge Consulting Services (R & D tax credit consulting) and NorthLink Capital Advisors (mergers & acquisition, capital raising and succession planning advice).