Washington, D.C.—Hanley Wood, publisher of Builder
, has recapitalized and slashed its long-term debt from $410 million to $80 million. As part of this deal, the construction industry information company has a new ownership group that has invested $35 million of new capital into the company.
The ownership group is led by funds managed by Oaktree Capital Management, Strategic Value Partners and Tennenbaum Capital Partners. (A group led by JPMorgan Partners, a private equity affiliate of J.P. Morgan Chase & Co., acquired Hanley Wood in 2005 for $618 million.)
“This recapitalization is very positive news for the company, our customers, suppliers, business partners and employees,” said Frank Anton, CEO of Hanley Wood CEO, in a statement. “"With a strengthened balance sheet, we expect to be much better positioned to invest in and grow our businesses and take full advantage of the strength of our operations.”
Hanley Wood joins many b-to-b media companies—such as Advanstar Communications, Cygnus Business Media and Penton Media—which were acquired in the middle of the last decade and underwent financial restructuring after the recession. Hanley Wood is also hurt by its focus on the construction industry, among the sectors hit hardest by the economic downturn.
"Hanley Wood is an operating company that is exceptionally well positioned and managed with excellent margins that in the past could not handle the leverage, but now has a manageable balance sheet and is in fine shape to take advantage of a slowly recovering housing market," said Roland DeSilva, managing partner of DeSilva & Phillips, an investment bank.