Amalgamated Capital Leads Senior Financing for the Acquisition of Franklin Energy Services by the Cortec Group

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NEW YORK, NY, October 18, 2010 - Amalgamated Capital (AmalCap), the New York-based leveraged finance division of Amalgamated Bank, announced today that it served as Lead Arranger and Administrative Agent in support of the acquisition of Franklin Energy Services, LLC by Cortec Group Fund IV, L.P. AmalCap provides cash flow-based senior financing to support investments made by private equity sponsors in high quality, lower middle- market companies. The amount of the transaction was not disclosed.

Based in Port Washington, Wisconsin, Franklin Energy specializes in the implementation of energy efficiency programs on behalf of utilities, states and municipalities. Cortec Group Fund IV, L.P. is an affiliate of Cortec Group, a New York-based private equity firm which invests in middle-market manufacturing, distribution, healthcare, and proprietary services businesses.

"This was our second transaction with Cortec Group and an opportunity that was a great fit with our business model," said Timothy Clifford, Executive Vice President and Head of Amalgamated Capital. "Franklin Energy is a high quality, lower middle-market company with strong historical cash flow. It had financing needs that fell directly within our target financing range and was backed by a leading private equity firm."

"We were very happy with the work of the AmalCap team on the transaction we completed with them last November," commented Jonathan Stein, Senior Managing Director of Cortec Group, "which is why we wanted to work with them again. They are responsive, enthusiastic and decisive. When AmalCap committed, they delivered on time and as promised." 

About Cortec Group

Cortec Group acquires high value-added, middle-market manufacturing, service, healthcare and distribution businesses with leadership positions in their market niches. Cortec Fund IV has more than $410 million of committed capital used to acquire platform companies with enterprise values of $30 million to $250 million and smaller follow-on acquisitions. For additional information, visit www.cortecgroup.com.

About Franklin Energy

Founded in 1994, Franklin Energy specializes in the implementation of energy efficiency programs on behalf of utilities, states and municipalities. Headquartered in Port Washington, the firm has six additional Wisconsin locations as well as offices in Colorado, Michigan, and Minnesota. For additional information, visit www.franklinenergy.com.