Done Deals: BancBoston Buys Hardware Group –

BancBoston Capital this month closed on its acquisition of Component Hardware Group Inc. in an $80 million transaction. Senior debt financing was provided by BHF Bank and First Source Financial. Mezzanine financing was provided by Allied Capital. Tucker Anthony Cleary Gull served as adviser to Component Hardware. A source close to the deal said that a combination of approximately 50% equity and mezzanine financing and 50% senior debt went into the transaction.

Partners at BancBoston declined to comment on the transaction.

Based in Lakewood, N.J., Component Hardware is a manufacturer of specialty hardware components for the commercial food service equipment and related industries. The company has annual revenue of approximately $45 million.

Jon Teitbohl, group head and managing director at Tucker Anthony, said the deal was struck through previous relationships between BancBoston and Tucker Anthony. The former owners of Component Hardware retained 25% of the company with Tucker Anthony also retaining a small percentage of the company.

“There is a lot of fragmentation in the industry and this is an opportunity for BancBoston to take the company to another level,” Teitbohl said, adding there are plans to install a partner as chief executive of the company to work with the former owners on future add-on acquisitions. Teitbohl labeled the opportunity as “very coveted” and said that there was “a very deep bench of buyers” interested in the company.

Other recent investments made by BancBoston Capital include a joint commitment with Berkshire Partners to the tune of $125 million in iDeal Partners (BUYOUTS April 5, 1999, p. 12), the acquisition of seven network affiliated television stations in mid-size markets for $100 million (BUYOUTS March 11, 1996, p. 11), and the sale of Jordan’s Meats to Heritage Partners for an undisclosed amount (BUYOUTS Jan. 29, 1996, p. 8).

BancBoston Capital is an affiliate of Fleet Bank.