Polar Corp.

Case Study

Polar Beverages, a family that grows together

Headquartered in Worcester, Massachusetts, Polar Corp. is a leading bottler of proprietary brand and private label soft drinks and spring water.

At a Glance

Completing a minority recapitalization

Relationship since 2001

Transaction details:

Mezzanine Financing

“Mezzanine financing from PGIM provided capital to expand and grow the business which resulted in earnings growth and the ability of family owners to increase their equity stake.”

Ralph Crowley, Jr., President and CEO, Polar Beverages

<p>“Mezzanine financing from PGIM provided capital to expand and grow the business which resulted in earnings growth and the ability of family owners to increase their equity stake.”</p>

The Full Story

Transitioning business ownership

Polar Beverages was looking for a way to transition the business from fourth to fifth generation ownership. That meant simultaneously buying out minority shareholders and refinancing some senior debt, which would require a good deal of capital. The remaining family owners were not interested in selling or giving up control of the business, which has been in the Crowley family since 1882. They turned to us for solutions to help them rebuild their capital structure, facilitate the buyout and help Polar grow under the new generation.

We worked closely with Polar’s senior family owners to complete a minority recapitalization to help them rebuild their capital structure and facilitate the buyout. We were also awarded a board seat and observer rights. Polar repaid the mezzanine financing in full, from earnings, in less than six years, and we continue to have a strong relationship.