Cascade facilitates growth for Pacific Power and Systems; arranges financing for 2nd acquisition & working capital line of credit

Business Services, Case Studies, Industry Business Services, Industry Infrastructure, Infrastructure, Transaction Financings and Recapitalizations, Transactions

Cascade Partners is pleased to announce its exclusive arrangement of the acquisition financing for Pacific Power & Systems’ (“PPS,” or the “Company”) acquisition of Adkins Electric with White Wolf Capital. Based in Jacksonville, Florida, Adkins Electric is a provider of electrical contracting services for multi-family and commercial construction projects. As part of the engagement, Cascade also arranged a working capital line of credit for the Company with First Horizon/Iberia Bank. Earlier this year, Cascade arranged the acquisition financing for PPS’ acquisition of Millennium Electric.

PPS originally approached Cascade to secure growth capital for its first acquisition to expand into the high-growth Florida market and support future acquisitions and organic growth. Cascade was able to expeditiously secure financing and negotiate a favorable deal structure. The capital raising process was even more difficult because lenders are typically wary of lending to contractors because of the project nature of their revenue and receivables. Cascade’s process enabled PPS to find a partner that believed in its growth and completed the acquisition of Millennium Electric in mid-2021.

PPS continued to accelerate its acquisition strategy and identified Adkins Electric as a second candidate for its buy-and-build platform. Given Cascade’s insight into both PPS and White Wolf Capital, Cascade was able to expedite the financing process for the acquisition of Adkins by successfully negotiating a larger facility and creating capacity for future growth. Additionally, Cascade’s broad capital raising experience allowed it to quickly position PPS to receive a working capital line of credit with a favorable structure for both the Company and its shareholders. The line of credit provided critical liquidity to support the near-term operating requirements of PPS and its newly acquired companies.

Cascade’s ability to secure both non-traditional financing and a traditional bank loan has resulted in the closing of two acquisitions and the procurement of working capital to fund the business. PPS has evolved into a market leader in Florida with a platform for continued growth in the Southeast. Cascade looks forward to continuing to be a trusted advisor and partner to PPS.

The Cascade Difference

When a company is looking for financing to expand through acquisition, organically, or to recapitalize, Cascade Partners is there to assist in securing financing with the right partner.

No matter if it is a complex situation in a hard to finance segment, such as the contractor market, or if it is a simple financing, the team at Cascade is experienced in finding the right partner and developing structures and terms that fit the unique needs of each client. In most instances, the addition of a value-added partner like Cascade can assist in facilitating negotiations and identifying a broader group of potential partners that may offer better structures and improved pricing.

In today’s market, you must be ready to move quickly when the right opportunity presents itself, which is how Cascade responded when PPS identified a second, meaningful acquisition within days of closing their first transaction.

As a trusted advisor, Cascade continued to serve as a sounding board to the PPS as it executed its buy-and-build strategy. Cascade’s involvement post transaction demonstrates the team’s focus on the relationship rather than the transaction.

The Results

Securing financing quickly for its accelerating acquisition strategy and working capital was important for PPS, and therefore it was important to us. We worked collaboratively to secure the terms that benefited PPS and its shareholders and expanded the partnership we helped create with the Company’s financing partners.

Cascade’s financing expertise and experience with both PPS and its lenders ensured that all parties would benefit as PPS grows.

PPS is now operating as the Norlee Group, which includes Pacific Power & Systems (Fairfield, CA), Millennium Electric (Orlando, FL) and Adkins Electric (Jacksonville, FL). Norlee Group is a leading electrical contractor serving the Florida, Southeast, and San Francisco Bay markets focused on multi-family, commercial, industrial, public works, renewable energy and lease-leaseback projects.