Case Studies

Client Name: Adams Rite Manufacturing Co

Client Type: Closely-held family business (4th generation)

Industry: Industrial – Building Products

Shareholder Goals: Liquefy family shareholdings and maximize valuation

Process: Broad auction including strategic and financial buyers

Buyer(s): ASSA ABLOY

Buyer Type: International Strategic Buyer

Unique Deal Attributes: The sale of Adams Rite to ASSA ABLOY represented a win-win transaction. Not only was the acquisition consistent with ASSA ABLOY’s strategy of acquiring niche leaders and allowing them to remain independent, it also brought high quality, company owned manufacturing capabilities in Asia. The selling shareholders, in turn, received a premium valuation while positioning Adams Rite to flourish within a larger platform.

Client Name: A-Med Health Care

Client Type: Privately held

Industry: Healthcare

Shareholder Goals: Targeting both strategic and financial buyers for the consolidated entity and each standalone business

Process: Approached strategic buyers and financial sponsors in the U.S. and abroad.

Buyer(s): Byram Healthcare, a subsidiary of Mediq N.V.

Buyer Type: Foreign Strategic Buyer

Unique Deal Attributes: A-Med Health Care’s Medical Supply division is a leading distributor of urinary, incontinence, enteral and tracheotomy products to fee-for-service patients on Medicare and Medicaid / Medi-Cal. We positioned and marketed A-Med as either (i) a consolidated entity, (ii) a medical supplies business, or (iii) a specialty pharmacy business depending upon buyer interest. We emphasized strong brand name and presence in California and completed sale to Byram Healthcare, the U.S. based subsidiary to Mediq headquartered in the Netherlands.

Client Name: Bradshaw International, Inc

Client Type: Portfolio Company of Private Equity Sponsor

Industry: Consumer – Housewares

Shareholder Goals: Divest portfolio company

Process: Full strategic and financial auction

Buyer(s): Arbor Private Investment Company

Buyer Type: Private Equity

Unique Deal Attributes: Bradshaw, a provider of kitchen utensils and gadgetry, benefited from over 100 years of family ownership and an entrenched market position. The sale process required thoughtful timing aimed at mitigating company and market specific conditions. While the sale was protracted due to market conditions, our long term commitment to the deal process and partnership approach with our client yielded an attractive value for the selling shareholders.

Client Name: CLP Resources, Inc.

Client Type: Portfolio Company of Private Equity Sponsors

Industry: Business Services – Staffing

Shareholder Goals: Exit of portfolio company and continued role for management

Process: Broad auction including strategic and financial buyers

Buyer(s): True Blue, Inc

Buyer Type: Domestic Strategic Buyer

Unique Deal Attributes: Under private equity ownership, CLP grew to become the largest construction staffing firm in the country. The acquisition of CLP provided True Blue with a higher margin service offering and a platform to create a national construction staffing practice. After significant negotiations and structuring, we completed a transaction that constituted a highly successful exit for the selling shareholders with limited future liability. Additionally, the CEO of CLP was given a senior management role at True Blue after the transaction.

Client Name: Herbalife International, Inc

Client Type: Publicly Traded with significant share held by family trust

Industry: Consumer – Neutraceuticals

Shareholder Goals: Diversify shareholdings (family trust); explore value maximization alternatives

Process: Targeted auction including strategic and financial buyers

Buyer(s): Whitney & Co. and Golden Gate Capital

Buyer Type: Private Equity

Unique Deal Attributes: Herbalife International was a publicly traded company with a significant stake held by the trust of its deceased founder and CEO, Mark Hughes (the “Trust”). Following Mr. Hughes’ death, the Trust sought to evaluate various alternatives for its Herbalife shareholdings. During our advisory assignment for the Trust, we were re-engaged to represent the Special Committee of the Board in evaluating a potential sale of the Company. We contacted equity sponsors and ultimately completed a take-private transaction at a 34% premium despite significant challenges with the Company’s performance, management and underlying markets.

Client Name: Home Pharmacy of California, Inc.

Client Type: Privately held

Industry: Healthcare

Shareholder Goals: Sell business, exit day to day management

Process: Full strategic and financial auction

Buyer(s): Walgreen Company

Buyer Type: Domestic Strategic Buyer

Unique Deal Attributes: Home Pharmacy was a growing home infusion therapy business with significant regional market share. After conducting a broad process, we selected Walgreen as the strategic acquirer with a unique need to expand its business in the home pharmacy sector. We negotiated an attractive price and terms reflecting the strategic value of Home Pharmacy to Walgreen. We carefully managed the process through closing to maintain momentum during an extended due diligence and regulatory approval process.

Client Name: Interactive Health LLC

Client Type: Privately held

Industry: Consumer – Home Furnishings

Shareholder Goals: Sell business, exit day to day management

Process: Full strategic and financial auction

Buyer(s): Whitney & Co

Buyer Type: Private Equity

Unique Deal Attributes: Interactive designed and marketed electronic massage chairs and was experiencing significant sales increases. By highlighting the proprietary nature of the product line, running a broad process and tenaciously managing diligence and negotiations with multiple parties, we mitigated some of the Company’s business risks and we closed the transaction at an attractive valuation.

Client Name: Joico Laboratories Inc

Client Type: Closely-held by entrepreneur

Industry: Consumer – Personal Care/Hair Care

Shareholder Goals: Gain liquidity and maximize valuation

Process: Targeted auction to select group of strategic buyers

Buyer(s): Zotos International, Inc., a subsidiary of Shiseido Co., Ltd.

Buyer Type: International Strategic Buyer

Unique Deal Attributes: As a leading hair care brand in the premium salon channel, Joico was viewed as an desirable asset by global personal care companies seeking to expand their channels and brand portfolios. We approached a targeted group of strategic acquirers and prepared customized management presentations highlighting the specific synergies that each acquiror could obtain in an acquisition. The transaction closed in less than six months at a premium valuation. We delivered such valuation by identifying buyer synergies and presenting a growth scenario supported by recently launched programs of the Company.

Client Name: Nelson Name Plate Company

Client Type: Closely-held by entrepreneurs

Industry: Industrial – Electronic Components

Shareholder Goals: Gain liquidity and maximize valuation

Process: Broad auction including strategic and financial buyers

Buyer(s): Superior Capital Partners, LLC

Buyer Type: Private Equity

Unique Deal Attributes: Nelson manufactures electronic membrane switches, graphic overlays and nameplate identification products. By highlighting the attractive recurring revenue nature of the business, opportunities for profit and revenue growth and running a broad process, we closed the transaction at an attractive valuation. We took a hands-on approach during due diligence to proactively address potential transaction issues and ensure a successful closing. In addition, we achieved the shareholders’ transaction goal to diversify their shareholdings.

Client Name: Newport Medical

Client Type: Privately held, physician led company

Industry: Healthcare

Shareholder Goals: Gain liquidity and maximize valuation while allowing the Company to continue its expansion

Process: Approached a limited number of highly strategic parties

Buyer(s): Covidien (NYSE: COV)

Buyer Type: Global strategic buyer

Unique Deal Attributes: While Newport Medical was set on pursuing an exclusive process with one suitor, we recognized outsized risk in engaging in exclusive discussions so early in the process. Consequently, Intrepid approached a limited number of highly strategic parties and tailored the message to communicate buyer-specific synergies.

Client Name: Pacific Architects and Engineers Incorporated

Client Type: Privately held

Industry: Defense

Shareholder Goals: Sell business, exit day to day management

Process: Full strategic and financial auction

Buyer(s): Lockheed Martin Corporation (NYSE:LMT)

Buyer Type: Domestic Strategic Buyer

Unique Deal Attributes: Pacific Architects and Engineers was a leading provider of outsourced services to the U.S. and allied military forces as well as to U.S. government agencies. Such services included camp construction and operation, transportation and complex logistics worldwide, most often in hostile environments. To generate buyer interest, we emphasized the scarcity value of PAE and its market potential. We helped the Company articulate its growth vision that illustrated how the significant increases in performance driven by ongoing government outsourcing and growing geopolitical conflict were expected to continue for the foreseeable future. Our process created a highly competitive auction and resulted in a sale to Lockheed Martin at a premium valuation.

Client Name: Pasternack Enterprises, Inc.

Client Type: Portfolio Company of Private Equity Sponsor

Industry: Industrial – Electronic Connectors

Shareholder Goals: Divest portfolio company

Process: Full strategic and financial auction

Buyer(s): Windjammer Capital Investors

Buyer Type: Private Equity

Unique Deal Attributes: Pasternack supplied electronic connectors, cable assemblies and various other components under its own brand marketed through catalogs and electronic media. The Company benefitted from a unique business model that generated margins well in excess of industry averages. To generate a premium value, we highlighted the significant opportunity to grow the business through international expansion and substantially improve performance through newly adopted data mining and techniques. By helping the Company develop a well-supported growth thesis and conducting a tightly managed auction process, we completed a transaction at a premium valuation.

Client Name: Plant Equipment, Inc.

Client Type: Closely-held family business (2nd generation)

Industry: Technology - Software

Shareholder Goals: Diversify family shareholders’ estate, gain liquidity and seek a value-added partner to help the Company continue its growth and retain management

Process: Broad auction including strategic and financial buyers

Buyer(s): Golden Gate Capital

Buyer Type: Private Equity

Unique Deal Attributes: Plant emerged as a leader in the public safety industry after many years of measured expansion. We positioned Plant as a business that could be used as a platform for consolidation in the public safety market. The transaction closed within 60 days of signing a letter of intent with a structure and valuation that met the family’s goals. Certain family shareholders rolled a portion of the proceeds into the new company’s stock and achieved major liquidity and substantial appreciation when the Company sold to a strategic investor after three years of aggressive acquisitions.

Client Name: Polk Audio

Client Type: Closely-held business, entrepreneur owned

Industry: Consumer – Electronics

Shareholder Goals: Diversify founding stockholders’ estates, achieve liquidity and maximize value

Process: Targeted auction including strategic and financial buyers

Buyer(s): Directed Electronics (NASDAQ:DEIX), backed by Trivest Partners

Buyer Type: Domestic Strategic, backed by Private Equity Spons

Unique Deal Attributes: At the time of our engagement, Polk Audio was owned by its founders and management, who built the Company into one of the largest independent brands in home entertainment with an iconic heritage. The acquisition expanded Directed Electronics’ stable of consumer electronics brands and product portfolio. The deal process produced a transaction where the selling shareholders received a premium valuation and a structure consistent with their goals to diversify their shareholdings.

Client Name: Soff-Cut (“Soff-Cut” or the “Company”)

Client Type: Private equity and management-owned

Industry: Industrial – Building Products

Shareholder Goals: Liquidity; Maximize Valuation

Process: Targeted auction including strategic and financial buyers

Buyer(s): Husqvarna AB

Buyer Type: International Strategic Buyer

Unique Deal Attributes: Soff Cut developed a propriety solution for concrete sawing that involved both equipment and consumables with strong brand awareness and repeat sales. The acquisition enabled Husqvarna to continue strengthening its position as a supplier to the construction industry with a proprietary solution. The selling shareholders received a premium valuation while positioning Soff-Cut to flourish within a global platform.

Client Name: Specialty Merchandise Corporation

Client Type: Privately held

Industry: Consumer Products - Toy and Giftware

Shareholder Goals: Sell business, exit day to day management

Process: Targeted auction to select group of strategic and financial buyers

Buyer(s): Pacific Direct Marketing LLC, an affiliate of Shackleton Equity Partners

Buyer Type: Affiliate of Private Equity

Unique Deal Attributes: As a leading direct selling and business opportunity company that operates in the giftware and home décor products industry, SMC provides members a complete solution to launch and operate their own direct selling consumer products business under their own name. The current majority shareholder and former CEO was no longer active in the business and desired an operational exit while maintaining the continuity and legacy of the family business. We achieved shareholders’ objectives, including the ongoing success of the business and preservation of the family business legacy by selecting Shackleton based on their commitment to the ongoing success of the business.

Client Name: Tax Credit Co.

Client Type: Privately held

Industry: Business Services

Shareholder Goals: Gain liquidity and seek a value-added partner to help the Company continue its growth and retain management

Process: Targeted auction including strategic and financial buyers

Buyer(s): Veronis Suhler Stevenson

Buyer Type: Private Equity

Unique Deal Attributes: Tax Credit Co. is the leading independent provider of tax incentive solutions for Fortune 500 companies and small and medium size businesses across the United States. Ultimately, Veronis Suhler Stevenson proved to be the most appropriate partner thanks to its experience in the tax credit services industry and strong support of the shareholders’ vision for growth.

Client Name: Thomason Mechanical Corporation / Bender Machine

Client Type: Closely-held by entrepreneur and his son

Industry: Industrial – Facilities Services

Shareholder Goals: Diversify family shareholdings, gain liquidity and maximize valuation

Process: Broad auction including strategic and financial buyers

Buyer(s): John Wood Group Plc

Buyer Type: International Strategic Buyer

Unique Deal Attributes: TMC was positioned as a unique company that enjoyed a special competitive advantage in its key markets because of its favorable relationship with the main union supplying qualified professionals to carry out its work. We conducted a broad auction that involved several foreign acquirors and effectively used the competitive process to extract a high valuation and short transaction timeline.

Client Name: Wickes Furniture Inc.

Client Type: Subsidiary of foreign parent

Industry: Retail

Shareholder Goals: Represented U.S. receiver in an offshore bankruptcy proceeding.

Process: Full strategic and financial auction

Buyer(s): Rooms to Go, Inc. / Sun Capital Partners

Buyer Type: Domestic Strategic, backed by Private Equity

Unique Deal Attributes: Wickes Furniture, a retailer of household furniture, was owned by a Taiwanese company that was facing financial difficulties and had pledged the stock of the chain in support of guarantees of its Taiwanese facility. We conducted a broad auction process for the retail operation and ultimately completed a sale to a joint venture of Sun Capital and Rooms To Go, one of the largest furniture retailers in the U.S. The sale was completed on behalf of a court appointed receiver who had taken control of the asset on behalf of the bank creditors. By identifying a private equity group with a unique joint venture partner and significant experience in the furniture sector, we achieved an attractive valuation and effectively separated Wickes from its struggling parent.

Client Name: Wild Planet Entertainment, Inc.

Client Type: Privately held with a diverse shareholder base

Industry: Consumer Products - Toy and Giftware

Shareholder Goals: Gain liquidity and maximize valuation

Process: Broad auction including strategic and financial buyers

Buyer(s): Spin Master Ltd.

Buyer Type: International Strategic Buyer

Unique Deal Attributes: Founded in 1993, Wild Planet is a designer and marketer of branded children’s toys that actively engage children ages 4 to 10 and promote imaginative, evergreen play patterns. Despite a strong market position in the spy category, Wild Planet was in a difficult financial position. We received multiple final round bids with different structural alternatives for the shareholders and selected Spin Master based on valuation, strategic fit and certainty of close. By identifying a strong strategic partner we were able to achieve an attractive valuation and complete the transaction under a short timeline.