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Lock LBO

Century City-based Kann Capital Ltd., a private investment banker, last week announced it had arranged the financing for Compton-based Tibrand Industries Inc. to acquire Los Angeles-based home lock manufacturer Weslock National Inc. The company has been renamed Weslock Brand, and its corporate headquarters moved to Compton.

Terms were not disclosed. However, Kann Capital revealed that it had arranged for $19 million in acquisition financing, and an additional $16 million credit line for Tibrand to upgrade plant and equipment.

The lock maker’s old South Los Angeles manufacturing plant has been shuttered and production shifted to Mexicali. An investor group, led by Manhattan Beach-based investor Howard Brand, will own and operate the new Weslock Brand.

Kann Capital specializes in leveraged buyouts and corporate restructurings requiring $3 million to $40 million, said Garry Kann, Kann Capital president and founder. “Basically, if an emerging or middle-market company wants financing for growth, we tap the private market to help them,” said Kann.

Weslock’s goal is to improve product quality while increasing market share, said Kann. “I think it can become a $100 million (sales) company.” In May, Kann had arranged more than $5 million in financing to allow Tibrand to acquire Talent Metal Products Inc., a high-end metal shop.

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