Target Information

Assurance Mezzanine Fund ("Assurance") is excited to announce its recent investment in Old Mill Brick, LLC ("OMB"), which was finalized in February 2018. This strategic partnership was made in collaboration with Bridger Capital Partners, a private equity firm specializing in middle-market investments focused on founder-led and family-owned businesses that have not previously engaged with institutional investors.

Founded in 2007, Old Mill Brick is a prominent player in the construction materials sector, owning and distributing innovative, patented thin brick panel systems. These systems allow for versatile installation with various types of thin brick, including tumbled and cast varieties. OMB's flagship products, "BrickWeb" and "Colonial," are widely available through significant retail chains specializing in home improvement across North America, catering to both residential and commercial building needs.

Industry Overview

The construction materials industry in the United States is robust and continues to experience growth driven by increasing demand for innovative building solutions. As more homeowners and developers seek out environmentally friendly and cost-effective building materials, companies like Old Mill Brick are poised to benefit from this trend. The popularity of thin brick systems is on the rise, as they offer both aesthetic appeal and practical advantages in terms of weight and ease of installation.

In recent years, the home renovation market has witnessed significant expansion, prompting a greater interest in durable and visually appealing materials. The ongoing demand for home improvement and renovation is catalyzed by favorable economic conditions and increased disposable income, making the construction materials sector a promising arena for investment.

Moreover, the push for sustainability in building practices has led many companies to innovate and develop products that minimize environmental impact. Thin brick systems, such as those provided by OMB, provide a sustainable alternative to traditional brick by reducing waste and energy consumption during transportation and installation.

Rationale Behind the Deal

Assurance's investment in Old Mill Brick underscores a strong belief in the company's growth potential and market relevance. By providing both mezzanine debt and equity support, Assurance aims to facilitate OMB's expansion and enhance its product offerings in response to market demands. This strategic investment is expected to accelerate OMB's market penetration and drive revenue growth.

The alignment of Assurance's investment strategy with OMB's innovative product line positions them to capitalize on current trends in the construction materials industry, ultimately creating value for both parties involved in the transaction.

Investor Information

Assurance Mezzanine Fund specializes in providing flexible financing solutions to high-growth companies. The firm targets investments in businesses that demonstrate strong growth potential, particularly in sectors that offer stability and demand. Assurance focuses on businesses led by experienced management teams and differentiates itself through its commitment to supporting the operational growth of its portfolio companies.

Bridger Capital Partners complements Assurance's approach by specializing in founder-led companies. Their expertise in identifying and managing investments in family-owned businesses allows them to leverage deep industry knowledge to maximize value creation.

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When evaluating the investment in Old Mill Brick, this deal appears to be a sound decision based on current market trends and the company's innovative product offerings. Old Mill Brick operates in a growing segment of the construction industry characterized by an increasing preference for lightweight and aesthetically versatile building materials. This growing demand bodes well for OMB's financial performance in the coming years.

Additionally, the collaboration between Assurance and Bridger Capital Partners brings together a wealth of experience and resources, likely enhancing OMB’s competitive edge. The expertise of Bridger in managing founder-led companies ensures that OMB will receive focused guidance, which may contribute to operational improvements and revenue growth.

Furthermore, given the sustained demand for home improvement products, the investment is likely to yield significant returns as the construction materials market continues its upward trajectory. The long-term growth potential of Old Mill Brick positions it as an attractive investment opportunity in the dynamic construction landscape.

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