D.A. Davidson & Co., a full-service investment firm with a nationwide investment banking practice, served as exclusive financial advisor to Hawk Ridge Systems related to its recapitalization by Main Street Capital Corporation and management. Hawk Ridge Systems is one of North America’s largest value-added resellers of SolidWorks’ computer-aided design, computer-aided manufacturing, computer-aided engineering software solutions and 3D Systems Corporation’s 3D printing solutions.
Main Street, a principal investment firm providing long-term debt and equity capital to lower middle market and middle market companies, partnered with Hawk Ridge’s co-founder and chief executive officer to facilitate the transaction, which resulted in the buyout of the chief executive officer’s co-founding partners through the investment of $16.25 million in a combination of first-lien, senior secured term debt and direct equity from Main Street and a co-investor. In addition, Main Street and its co-investor are providing Hawk Ridge an undrawn credit facility to support its future organic and acquisition growth initiatives and working capital needs.
“Over the past 20 years, Hawk Ridge’s co-founders have built one of the most well-respected and technically sophisticated companies within the SolidWorks ecosystem,” said Brad Gevurtz, Head of Technology Investment Banking at D.A. Davidson. “By partnering with Main Street, Hawk Ridge was able to provide full liquidity to several of the company’s co-founders, while allowing management to retain control of the business and further the company’s vision of being a preeminent provider of engineering software and additive manufacturing solutions.”
“Hawk Ridge fits very well with the typical profile of what we look for in our lower middle market portfolio companies, including a strong management team with significant equity ownership, a leading position in their market and solid historical financial performance” said Dwayne Hyzak, President and Chief Operating Officer of Main Street. “In addition, we believe Hawk Ridge is positioned to experience significant growth in both the near-term and long-term and we are very excited to partner with Dale and the rest of the team at Hawk Ridge to support their vision as they execute on their growth initiatives. We also appreciate the introduction to this opportunity from D.A. Davidson and their efforts to help get the transaction completed.”
“D.A. Davidson’s experience and expertise were critical in allowing us to realize a transaction which achieved the objectives of each of the company’s co-founders, while also providing us with a partner that understood our business and will support our continued growth,” said Dale Ford, CEO of Hawk Ridge. “We are excited to partner with Main Street and continue to build Hawk Ridge as a market leader in the industry.”
About D.A. Davidson & Co.
D.A. Davidson & Co. is a full-service investment firm with operations throughout the country. D.A. Davidson’s Equity Capital Markets Group provides capital markets services and products that include investment banking, institutional sales, trading, research and corporate services. The firm’s industry-driven research teams offer award-winning research and are supported by a dedicated group of sales and trading professionals. D.A. Davidson's investment banking team underwrites public offerings, serves as a placement agent for private financings, and advises companies on mergers and acquisitions.
The Equity Capital Markets Group operates from offices in Baltimore; Boston; Chicago; Denver; Great Falls, Mont.; New York; Orange County, Calif.; Portland, Ore.; Salt Lake City; and Seattle. D.A. Davidson & Co. is one of four firms within D.A. Davidson Companies, an 81-year-old, employee-owned financial services holding company. With approximately 1,350 employees working in 23 states, D.A. Davidson Companies is responsible for more than $43 billion in client assets under management and administration. More information at www.dadavidson.com or Twitter: @DADavidsonCo