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Case Study

Teichert acquires aggregate mining operation

Based in Sacramento, California, Teichert is a family-owned and operated construction and building materials company that has been in operations for over 125 years since its founding in 1887.

Case Study

Teichert acquires aggregate mining operation

Based in Sacramento, California, Teichert is a family-owned and operated construction and building materials company that has been in operations for over 125 years since its founding in 1887.

At a Glance

Financing an acquisition with long-term capital

In 2019, Teichert began exploring an opportunity to acquire an aggregate mining operation adjacent to the Company’s existing operations in Yuba County, California. Given the multi-generational nature of the asset, the management team looked to utilise long-term capital to fund the transaction.

Relationship since 1994
Transaction details:
  • US$125,000,000 Senior Acquisition Financing
“Pricoa spent the time to get to know us, our industry, and our business. Their process is efficient and the relationship insightful. They are true financial partners.”
Ron Gatto CFO, Teichert

The Full Story

Acquiring an aggregate mining operation

Based in Sacramento, California Teichert is a family-owned and operated construction and building materials company that has been in operations for over 125 years since its founding in 1887.

The relationship between us and Teichert goes back to 1994 when we first became a lender to the company. Over the past 25+ years, we have put together several financings to help fund Teichert’s continued growth and have built a strong relationship with the ownership group and senior management team.

In 2019, Teichert began exploring an opportunity to acquire an aggregate mining operation adjacent to the company’s existing operations in Yuba County, CA. Given the multi-generational nature of the asset, the management team looked to utilise long-term capital to fund the transaction.

Although they considered other private placement lenders and bank term loan facilities, Teichert ultimately chose to work with us, due to our close relationship, ability to provide long-term capital, and deep understanding of the inherent cyclicality involved in the construction and aggregates space.

The acquisition closed in April 2020, during the early stages of the COVID-19 pandemic. While this introduced some complexities into the due diligence process, we were able to provide the Company with a US$125 million financing package consisting of an US$80 million fixed-rate financing, as well as a $45 million 3-year Pricoa-Shelf facility.

We are excited for our long-term partnership and honored to have been a part of the acquisition process. We look forward to supporting Teichert’s continued growth.

Worker pouring concrete

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