Equity Partners HG brokers sale and Financing for Leading Lumber Manufacturer
For Immediate Release | March 2, 2017
Equity Partners HG served as the investment banker for a leading lumber manufacturing business with revenue of approximately $85 million annually (the “Company”). In early March, two transactions in excess of $30 million closed: 1.) A sale of the saw mill and lumber manufacturing division (about $30 million revenue) for 5 times proforma EBITDA, and (2.) a refinancing of the two remaining divisions at very attractive rates.
Up until the sale, the Company operated three related businesses: A sawmill/lumber manufacturing business, lumber concentration yards, and wood flooring manufacturing business. In mid-October 2016, the Company retained Equity Partners HG; having recently added significant capacity, the Company wanted to explore its options to find working capital to further grow those businesses.
Ken Mann, senior managing director for Equity Partners HG, said, “As we explored the market and considered the options and our client’s long term succession plan, it became clear that the saw mill was a highly attractive target. The sale, combined with a refinancing of the remaining operations, was the ideal path forward.”
According to the Company’s CEO, “This sale will allow us to put some growth capital into our remaining concentration yard, and to continue to grow our flooring business.”
Other professionals who worked on the transaction include:
- Richard Nichol, Evans Petree PC, counsel to Seller
- Michael Coury, Glanker Brown, counsel to Seller
- David Bradley, Hodgson Russ LLP, counsel to Buyer