BHI announced that its Commercial and Industrial Group has closed $1.1 billion in transactions year-to-date 2021. BHI’s C&I Group handles financing for commercial and industrial companies in the middle market and encompasses sectors including private equity, food and beverage, Israeli business, technology, corporate banking, and project finance renewable energy across the bank’s markets in New York, New Jersey, Florida and California. BHI is the U.S. division of Bank Hapoalim, one of Israel’s largest financial institutions.

“We have seen enormous traction in the last few years and are proud to have closed $1.1 billion in total deals during 2021.  We have invested in growing our talent and enhancing the efficiency of our processes for speed and certainty of execution.  BHI is a boutique bank focused on the middle market that is A-rated, with strength backed by the $170 billion balance sheet of Bank Hapoalim, one of the premier global financial institutions,” said John Yoler, BHI Executive Vice President, Division Executive and Head of U.S. C&I.

Recent notable BHI C&I transactions include:

• A $27.5 million revolving line of credit for New Jersey-based Citromax Group and Citromax International Corporation, one of the world’s leading growers of lemons and a global leader in lemon oil processing.

• $25 million provided to a Reno, Nevada-based supplier of alternative and renewable energy technology with geothermal and recovered energy generation (REG) power plants in 30 countries, to finance an acquisition for expansion of its capacity in Nevada and California.

• $35 million provided as part of a club deal for a Utah-based distributor of audio headphones and accessories.  BHI provided a $22.2 million revolver loan and $12.8 million term loan as part of a total $102.5 million credit facility.

• Debt financing for a private equity firm to acquire a significant interest in a designer and provider of adjustable memory-foam pillows and other bedding products sold via online channels, to support the company’s brand expansion and next phase of growth.

Yoler noted some key trends that are driving C&I deals in the middle market. For example, about half of middle market companies are owned by private equity, depending on their revenue size. Buyouts have become a viable strategy for private companies that need to monetize, particularly family-owned businesses with no clear line of succession.

After a slowdown caused by the pandemic last year, 2021 has been a record year so far for mergers and acquisitions. According to the JD Supra Mid-Market M&A Barometer, released in August 2021, the number of deals in just the first and second quarters equaled 96% of the total for all of 2018.  Valuations for the last 12 months through May are higher than any year since 2010, according to data from Wilcox Investment Bankers.

Yoler noted that stimulus checks, increased savings and pent-up demand have also sparked activity and growth in the C&I sector, as consumers started spending in record numbers.

“We supported our clients through the pandemic and like them, we are poised for ongoing growth and to build on our momentum,” Yoler said.