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Arro Secures $2.25MM Secured Term Loan From CapX Partners

November 07, 2014, 07:16 AM
Filed Under: Manufacturing

CapX Partners closed on a $2.25 million secured term loan to the Arro Corporation to fulfill the company's goal of meeting short-term capital growth needs.

Arro specializes in processing, contract manufacturing, logistics and warehouse services. Headquartered in the Chicago area, Arro is privately owned and supported by an experienced management team. In the last ten years, Arro has added over $60 million of annual revenue, the bulk of which has come in the last three years. Having successfully expanded its customer base and penetrated new markets, Arro was looking for funds to support their continued growth needs.
Arro started in 1986 as a basic break-bulk station for inbound railcars or bulk trucks of dry commodities that would be packaged into smaller pack sizes for distribution. In 1995, Patrick Gaughan acquired Arro, leaving his role in commercial lending with LaSalle National Bank. Following two acquisitions (1997 and 1999), Arro entered co-manufacturing in 2000 with Kraft as its sole customer in that sector.

“Time and time again, Pat Gaughan impressed us with the vision he had for growing Arro Corporation. He laid out a logical path to for us to follow – a path that required an appropriate amount of growth capital. We are pleased to be able to provide the capital he needed and to have the opportunity to work with Pat and his fine company,” says Jim Hallene, Founding Partner, CapX Partners.

Founded in 1999, CapX Partners is a specialty finance company that focuses on private equity and venture backed portfolio companies looking for debt financing in the $2 million to $20 million range. CapX provides senior and mezzanine debt including lease lines and favors manufacturing, distribution, technology, energy and healthcare industries with an emphasis on revenue producing fixed assets.

Arro is a co-packer and co-manufacturer of a wide range of liquid and dry products in the food and pharmaceutical industries, ranging from a gram size package to a full size rail car of product, including hot and cold beverages, bakery, pizza, specialty sugar products including starch, dextrose, phosphates, oils, syrups and related commodities.

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