Tobacco

Investment Firm Takes Minority Stake in Smoker Friendly

Retailer will also have access to line of credit, loan to assist with acquisition growth strategy
Smoker Friendly

HOUSTON — Investment firm Main Street Capital Corp. has made a $51.7 million investment in tobacco retailer Smoker Friendly, taking a minority stake in the company.

Main Street Capital completed a new portfolio investment to facilitate the minority recapitalization of Bolder Panther Group LLC, known as Smoker Friendly.

The company partnered with Smoker Friendly’s senior management team and other shareholders to facilitate the transaction, which includes Main Street funding $51.7 million in a combination of first-lien, senior secured term debt and a direct preferred equity investment, Main Street Capital said.  

Main Street Capital also provided Smoker Friendly a revolving line of credit to support its working capital needs and will make a delayed draw term loan available to the company to assist with its acquisition growth strategy. In November 2019, Smoker Friendly acquired 33-store chain Smoker’s Outlet.

Smoker Friendly representatives did not immediately respond to calls and emails from CSP seeking more information.

Houston-based Main Street Capital is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Its investments are typically made to support management buyouts, recapitalizations, growth financings, refundings and acquisitions, the company said.

Boulder, Colo-based Smoker Friendly has a diverse portfolio of retail locations, with a variety of tobacco stores, premium cigar lounges and locations that also include fuel, beer, wine, liquor and lottery. It owns a private-label tobacco line and has an additional 710 licensee stores that participate in the SF Private-Label program. The company also puts on the annual Smoker Friendly conference and tobacco festival.

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