Main Street Capital Corporation announced it has completed a follow-on investment totaling $26.0 million in its existing portfolio company Trantech Radiator Topco, LLC to support a strategic acquisition.
The investment, made alongside co-investor MSC Income Fund, Inc., will help finance Trantech’s acquisition of Transformer Maintenance and Service, Inc., a company that provides maintenance and repair services for utility equipment used by original equipment manufacturers and utility customers.
Main Street’s portion of the investment includes approximately $24.7 million in first lien, senior secured term debt and $1.4 million in direct equity. The transaction also includes equity participation from the sellers of Transformer Maintenance and Service, who will retain ownership stakes in Trantech.
Founded in 1932 and headquartered in Edgefield, South Carolina, Trantech designs and manufactures radiators and cooling systems for transformers used in electric power generation, transmission, and distribution. Transformer Maintenance and Service, founded in 1978, brings complementary capabilities in field service, repairs, and refurbishment.
The acquisition is expected to enhance Trantech’s service offerings and strengthen its ability to meet growing demand across the electric utility market.
Main Street originally invested in Trantech in May 2019 and continues to support the company’s expansion strategy through a combination of debt and equity financing.
