A group of private-equity investors has agreed to inject $200 million of fresh capital into Brand Group Holdings Inc. in Lawrenceville, Ga., the company announced Monday.
The Carlyle Group, Stephens Group and Nonami LLC, owned by the family of Atlanta real estate developer Tom Cousins, are to anchor the investment. The firms plan to invest $125 million in the first quarter, and up to $75 million more during the next two years. A press release did not specify the amount each firm would contribute or what percentage stake they will buy.
As part of the transaction, banking veteran John E. McKinley 3rd is to join the $1.2 billion-asset company as executive chairman of the parent and its subsidiary, Brand Banking Co. McKinley was the principal operating officer for BankSouth Corp. in the 1990s before its sale to Bank of America Corp. Representatives from the three private-equity firms also will join Brand's board of directors.
Bartow Morgan Jr., who is to remain CEO of the company and bank, said the investments will strengthen Brand's capital base. At Sept. 30, the bank had a leverage ratio of 4.3% and a total risk-based capital ratio of 8.2%, according to its call report.