Chevy Chase, Md. – Farragut Capital Partners, a Chevy Chase-based mezzanine investment firm offering customized financing solutions to lower middle market private companies, is pleased to announce that it has exited its investment in Industrial Services Group, Inc. (“ISG”). Farragut’s senior subordinated note with warrants has been refinanced by an undisclosed investor. The transaction marks the third exited investment from the team’s current fund, Farragut Mezzanine Partners III, LP. Farragut first invested in ISG alongside Salem Investment Partners in December 2012 and invested a total of $3.65 million in the company across three rounds of financing. Farragut ultimately achieved an internal rate of return of approximately 20% on its investment.
Based in Sumter, South Carolina, ISG is an industrial services company specializing in the application of protective coatings and linings on concrete and metal substrates primarily used by the power generation, pulp and paper, and chemical industries to protect against erosion, corrosion, abrasion, and chemical attack. Throughout the course of its investment, Farragut provided capital to refinance the Company’s existing debt and investors’ warrants; complete the acquisition of K-Industries, Inc., a pioneer in the field of fiberglass-reinforced plastics; and launch an industrial-grade blast and paint facility to serve pipeline customers in the Marcellus and Utica Shale basins. These initiatives enhanced the breadth of services provided by ISG.
“We are pleased with the outcome of our investment in ISG and offer Joe and Tripp our congratulations on a job well done,” commented Javier Aguirre, Managing Partner of Farragut. “We enjoyed a collaborative and productive partnership with the team and wish them good luck going forward.”