ShoreBridge Merchant Partners ("SBMP") is pleased to announce its investment alongside Astara Capital Partners ("Astara") in the majority acquisition of Cross City Lumber ("CCL"). Based in Cross City, Florida, CCL is a Southern Yellow Pine sawmill that manufactures specialty and dimensional grades of lumber. The company will continue to be led by its current senior management team in conjunction with Bob McKagen of Astara who has joined the company as its CEO. Mr. McKagen has decades of experience as a senior executive in both the manufacturing and distribution of wood-based building products and has a history of working with CCL’s senior management team at nearby Suwanee Lumber Company.
Astara, an independent private equity sponsor founded in 2020 by former Blue Wolf Capital Partners investor Michael Ranson, has deep experience in the forest, lumber, and building products industries.
SBMP is an independent sponsor-focused investment program led by ShoreBridge Capital ("ShoreBridge") in partnership with a group of premier family offices. "ShoreBridge and our family office partners are excited to be backing Astara in an industry in which they have a track record of successfully operating and investing. Astara is a prime example of the profile and quality of an independent sponsor we look to work with in our SBMP strategy," said Douglas Blagdon, Founder and Managing Partner of ShoreBridge.
The team at Astara leveraged its network of sawmill executives to source the opportunity and to underwrite a series of capital projects that will substantially increase the capacity of CCL and significantly reduce its breakeven point. In addition, Astara is actively seeking and evaluating investments in other Southern Yellow Pine mills in the Southeast U.S. that will complement CCL.
Michael Ranson of Astara stated, "We are pleased to have ShoreBridge Merchant Partners as an investor with us in this transaction. We view SBMP as a value-added partner and look forward to continuing to work together."
About ShoreBridge Capital
ShoreBridge Capital is an alternatives-focused investment and merchant bank dedicated to private funds and direct investment opportunities. ShoreBridge was founded in 2015 and is headquartered in New York. More information about ShoreBridge can be found at www.shorebridge.com.
About Astara Capital Partners
Astara Capital Partners is an integrated team of investors and operators that pursues a value- and special-situations investment strategy in the middle market. The firm invests in a handful of sectors where it has deep experience, including packaging and converting, food, building products, forest products, and industrial manufacturing, distribution and services. Astara selects companies in those industries that are undergoing significant transformation with the goal of building sustainable value and positioning them for long-term success. More information about Astara can be found at www.astaracapital.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210421005657/en/