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October 13, 2020

BGL Announces the Sale-Leaseback of Precision Products Group Properties on behalf of Auxo Investment Partners

Brown Gibbons Lang & Company (BGL) is pleased to announce the sale-leaseback of two NNN-leased manufacturing/warehousing facilities totaling 113,398 square feet on 17.23 acres in Apple Creek, Ohio, and Fort Wayne, Indiana. The facilities were owned by Precision Products Group (PPG), which was recently acquired by Auxo Investment Partners (Auxo); BGL’s Industrials team served as the exclusive financial advisor to the prior owners of PPG in that transaction, while Auxo utilized BGL’s Real Estate Advisors team on the sale-leaseback component of the deal. The specific terms of both the operating company and sale-leaseback transactions were not disclosed.

The properties were purchased by Diversified Industrial Properties, LLC, a wholly-owned subsidiary of Agracel, Inc. (Agracel), which was established in 1986 as a farmland investment company in Effingham, Illinois. Today, it is an industrial development firm, owner, manager and investor in over 20 million square feet in over 20 states through the U.S., and focuses on developing projects and creating jobs in small, rural towns.

PPG is comprised of two business units – Paramount Tube and Euclid Medical. Paramount Tube is the dominant player for mission-critical, small-diameter spiral-wound and extruded tubular products known for providing highly customized, tight tolerance and uniquely shaped solutions. Applications include components for electric motors, transformers, fuses, automotive, single-dosage medications, pharmaceutical packaging, eco-friendly consumer packaging, and military ordinances. Euclid Medical designs, engineers and manufactures highly engineered automated single- and multi-dose pharmaceutical packing systems driven by proprietary software for use in hospitals, retail pharmacies, and long-term care facilities. Euclid Medical also converts medical-grade films into consumable unit-dose pharmaceutical packaging.

PPG’s Apple Creek, Ohio facility is 81,352 square feet, was built in the 1970s, and is located on approximately 15 acres. PPG’s Fort Wayne, Indiana facility is 32,046 square feet, was built in the 1970s, and is located on approximately 2.23 acres.

BGL’s Real Estate Advisors team offers comprehensive real estate investment banking services tailored to the middle market. It provides client-focused solutions with an emphasis on real estate advisory, debt, preferred and private equity placement, financial restructuring, recapitalizations, sale-leasebacks, structured finance, and asset acquisitions and dispositions across all asset classes. The team assists real estate owners and developers looking to form alliances and joint ventures with single-source capital providers to gain local and institutional access for all capital needs.