Lawrence Golub

"I've never in my career had five transactions of any kind in a month, never mind that it's August," Golub says. The record-breaking feat gave the midmarket firm, which traditionally keeps a low profile, an occasion to chat about its activities.

Two of the deals involved public companies going private: Celebrity Inc. , a Tyler, Texas supplier of artificial floral products, and AHL Services Inc. , an Arlington, Va., marketing support services provider.

Celebrity was acquired by Denver-based KRG Capital Partners for $42.5 million, financed with $24 million of senior debt from U.S. Bank NA of Pittsburgh and Madison Capital Funding LLC of Chicago. Golub supplied an additional $10.75 million in subordinated debt and equity. (The transaction produced a handsome return for the seller, majority shareholder Sun Capital Partners, which had invested just $3 million originally.)

AHL was a more complex deal. The company was acquired by Atlanta buyout firm Cravey, Green & Whalen Inc. in a deal valued at $118 million. Golub and Ableco Finance LLC provided a $30 million credit facility - $19 million from Ableco and $11 million from Golub.

The deal was originally structured with B- and C-term loans and a subordinated debt in separate tranches. But the lenders ultimately decided to collapse the tranches so there would not be so many potential conflicts among creditors. A large part of the business was a German subsidiary with assets and operating income in Germany, and some business lines were volatile while others were not. Simplifying the debt structure made it much easier to reach an agreement, Golub adds.

In a third transaction, Golub took a 20% equity stake - with no debt - in Synventive Molding Solutions Inc. , a Dutch maker of equipment for advanced injection plastic molding. Chicago private equity firm Madison Capital Partners was the lead investor, with subordinated debt financing from Massachusetts Life Insurance Co.

Golub also invested in a building products supplier Golub declined to identify, citing confidentiality agreements. His firm put in sub debt and warrants. A fifth deal, on the verge of closing at press time, involved a mail order company being acquired by a large financial sponsor. Golub put in preferred stock with warrants.

Altogether, Golub has closed 12 deals this year, versus 10 for 2002. Not bad for a small buyout firm with nine professionals. What's in store for the rest of the year? More deals, Golub says. At least two, maybe more.