GB Merchant Partners Leads a $16 Million Term Loan Supported by Machinery & Equipment to Swanson Group

Press Release

BOSTON, MA – GB Merchant Partners, the investment management affiliate of Gordon Brothers Group, announced today that it has agented a $16 million financing package to Swanson Group Inc., a major solid wood products firm based in Western Oregon. The term loan is supported by the machinery & equipment and proceeds will be used as working capital to fund operations.

“The lumber industry continues to feel the effects of a depressed housing market,” stated Steve Swanson, President and Chief Executive Officer of Swanson Group Inc. “During this downturn, we’ve made a strategic decision to focus on enhancing our internal operations to create greater efficiencies and build a world class forest products company. This loan provides us with the necessary capital to continue making steady progress towards achieving that goal.”

“Swanson Group has a strong balance sheet and a solid history in the lumber industry,” commented Lisa Galeota, Director at GB Merchant Partners.

“We are honored to support Swanson Group with the capital necessary to help position them for future growth and success,” added Lawrence Klaff, Principal & Managing Director at GB Merchant Partners.

Founded in 1951, Swanson Group, Inc. (www.swansongroupinc.com) is a successful family owned forest products company. Through their five operating mills, Swanson manufacturers, sells and distributes lumber products, including dimension lumber, studs and plywood. The company has a long history of environmental stewardship and the production of excellent finished products.

About GB Merchant Partners 
GB Merchant Partners (www.gbmerchantpartners.com), the investment management affiliate of Gordon Brothers Group with over $500 million of capital under management, focuses on private equity, structured debt and secondary debt investments. Debt investments are made as structured loans in the form of junior secured, “Tranche B” or enterprise value loans, ranging from $10 to $50 million, to middle-market companies in the distribution, wholesale, industrial, retail, consumer products and real estate sectors. Equity investments are made through the 1903 Equity Fund, which takes majority and minority equity positions in middle-market retail and consumer products companies.