Tag Archives: acquisition

Equity Partners HG brokers sale of Cosmos Granite (Central), LLC to Justh Holdings, LLC

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Equity Partners HG brokers sale of Cosmos Granite (Central), LLC to Justh Holdings, LLC

 

For Immediate Release | October 15, 2019

Cosmos Granite (Central), LLC (“COSMOS”) has completed a going concern sale transaction with Justh Holdings, LLC of Kent, Washington. Justh Holdings operates a similar business to COSMOS’ primarily in the northwest and southeast United States. COSMOS was operating in a receivership and Equity Partners HG, a Maryland-based investment banker, served as intermediary for the Receiver.

COSMOS was founded in 2007 with the aim of providing its customers (primarily natural stone fabricators/installers) with superior quality materials at competitive prices and services. Quality and service have always been its founding principles and with the knowledge and experience of its industry experts, COSMOS become a leading distributor in the upper Mid-West.

COSMOS had seen a reduction in its revenues over the past few years and was no longer profitable. As a result of that, combined with a dispute among some of the owners, COSMOS entered into a Receivership in a North Carolina State Court proceeding in which the Receiver retained Equity Partners HG as its exclusive broker. Equity Partners HG’s charge was to quickly find a buyer for the business. Equity Partners HG ran an exhaustive marketing process, reaching out to thousands of prospective buyers. Following a thorough evaluation of the market, Equity Partners HG narrowed the field of nearly 20 active interested prospects down to the four most logical buyers. Following a lively auction and extensive negotiations with all the buyers, Justh Holdings was ultimately approved as the successful suitor for the business. All full-time employees were retained, and the business continues to operate with plans to grow.

Fred Cross, managing director at Equity Partners HG said, “This was an outstanding result. Justh Holdings, LLC brings countless synergies to COSMOS and the sale brought a far greater recovery to creditors than liquidation would have. Keeping the jobs in Chicago and St. Louis and the assumption of the building leases make this acquisition a great success for Justh Holdings and the Receiver in the case. All of us at Equity Partners HG are happy to see an outcome like this and we look forward to COSMOS providing countertop solutions to both markets long into the future.”

Other professionals who worked on the transaction include:

  • John Northen, Northen Blue LLP, Receiver, N.C.
  • Vicki Parrot, Northen Blue LLP, counsel to the Receiver
  • Clint Morse, Brooks, Pierce, McLendon, Humphrey & Leonard, LLP., counsel to Justh Holdings LLC
  • Charles Coble, Brooks, Pierce, McLendon, Humphrey & Leonard, LLP., counsel to Justh Holdings LLC
  • Luis Lluberas, Moore & Van Allen, PLLC, counsel to Bank of America

Equity Partners HG brokers sale of Bartlett Management, Inc. to EYM Foods II, LLC

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Equity Partners HG brokers sale of Bartlett Management, Inc. to EYM Foods II, LLC

 

For Immediate Release | February 1, 2019

Bartlett Management Services, Inc. and its two affiliates, Bartlett Management Indianapolis, Inc., and Bartlett Management Peoria, Inc. (“Bartlett” or “the Company”) completed a going concern sale of its 30 Kentucky Fried Chicken franchise locations to EYM Foods II, LLC (“EYM”). EYM is an affiliate of Irving, Texas based EYM Group, which owns and operates 241 restaurants with 5,400 employees. Its restaurant holdings include 58 Denny’s, 29 Burger Kings and 154 Pizza Huts. Equity Partners HG, a Maryland-based investment banker, served as intermediary for the seller and conducted an auction that included 2 suitors for the business.

The Bartlett operation was divided into three different geographical divisions including Central Illinois, Northern Illinois/Wisconsin and Indianapolis. The Company leased 26 of its 30 locations and owned 4, as well as its corporate headquarters in Clinton, Il. The seller originally purchased the Company in 2008 after working for the previous owner since 1997. With a team of approximately 70 salaried and 570 hourly employees in place, Bartlett was consistently one of KFC Corporation’s top performing operations

Costs involved with equipment leases, a management/advisory agreement, and real property leases, as well as the recession of 2008-2010, resulted in a decrease in revenue, and an inability to sustain positive cashflow, ultimately leading the Company to seek Chapter 11 bankruptcy protection in December of 2017. In mid-September of 2018, Bartlett retained Equity Partners HG as the exclusive court approved broker to seek an investor, joint venture partner or buyer for the Company.

Equity Partners conducted an exhaustive marketing process that resulted in 70 groups conducting due diligence, with 9 of those groups engaging in significant discussions about the opportunity. In order to become a qualified bidder, interested groups were required to not only show financial wherewithal to purchase the operation, they also had to be qualified by KFC Corporate to be a franchisee. The Debtor’s professionals also had to negotiate revised building leases with 13 landlords that would be acceptable to a new buyer. This effort resulted in 3 groups submitting offers by the bid deadline, and 2 of those groups were qualified by KFC Corporate to participate in the auction. Equity Partners HG conducted an auction in Bloomington, IL on December 20, 2018. After numerous rounds of bidding, EYM was deemed the winning bidder and proceeded to close.

Hank Waida, managing director for Equity Partners HG, said, “This was an extremely complicated engagement with numerous moving parts and requirements that needed to be met by many of the constituents involved. It took significant concessions by all parties to get this deal across the finish line and save more than 600 jobs.”

Other professionals who worked on the transaction include:
• Jonathan A Backman, Law Offices of Jonathan A. Backman, counsel for Bartlett
• Steven A. Nerger, Silverman Consulting, Inc., chief restructuring officer for Bartlett
• Mark Bogdanowicz, Howard & Howard, counsel for Heartland Bank and Trust
• Erika Barnes, Sites & Harbison PLLC, counsel for Yum Brands
• Mathew McClintock, Goldstein & McClintock LLP, counsel for the creditor’s committee

Equity Partners HG brokers sale of BTH Quitman Hickory LLC Pellet Mill to Mohegan Renewable Energy

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Equity Partners HG brokers sale of BTH Quitman Hickory LLC Pellet Mill to Mohegan Renewable Energy

 

For Immediate Release | November 16, 2018

Mohegan Renewable Energy was the winning bidder for a shutdown white wood and torrefied pellet mill owned by BTH Quitman Hickory, LLC in an auction held on October 22, 2108 in the United States Bankruptcy Court for the District of Nevada, Reno Division. Since coming online in 2009, The Quitman plant has produced over 75,000 tons of torrefied material and is the first commercial scale torrefaction facility located in the US. While torrefied wood pellets are an immediate and practical replacement for coal, able to integrate easily into existing coal power plants without lengthy or expensive conversions, white wood pellets are a more common replacement in coal fired operations. Because of this, in 2014, management decided to focus on producing white wood pellets and to sell into that market while continuing to develop the torrefied product and market. Unfortunately, due to oversupply, the price per ton for white wood pellets continued to decline forcing operation to close down in March of 2016 (torrefaction production ceased in December of 2016). When BTH Quitman Hickory filed for Chapter 11 bankruptcy protection in December of 2017, Equity Partners was hired to seek a buyer for the facility. After an exhaustive marketing campaign, Mohegan Renewable Energy submitted the highest and best bid.

Hank Waida, a Managing Director at Equity Partners HG, stated “Both the buyer and creditors have worked extremely hard coming to agreement on a purchase price better than liquidation, while at the same time allowing Mohegan to make the necessary investment in the plant to bring it back online”.

Other professionals who worked on the transaction include:
• Kevin A. Darby, Darby Law Practice, counsel for the Debtor
• Darren Azman, McDermott Will & Emery LLP, counsel for Mohegan Renewable Energy
• Richard Holly, Holley, Briggs, Walch, Fine, Wray, Fuzey, Thompson, counsel for Utica Leasco
• Tim Lukas, Holland & Hart, counsel for Hickory Leasing LLC
• Dawn Cica, Mushkin, Cica, Coopedge, counsel for Amandus kahl
• Blakely Griffith, Snell & Wilmer L.L.P. counsel for Caterpillar Financial
• Kevin Rogers, Wells Marble & Hurst, PLL, counsel for Clarke County Mississippi

Equity Partners HG Serves as Investment Banker to LORAC Cosmetics in Successful Sale of Assets to Markwins Beauty Brands

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Equity Partners HG Serves as Investment Banker to LORAC Cosmetics in Successful Sale of Assets to Markwins Beauty Brands

 

For Immediate Release | June 19, 2018

Equity Partners HG (“Equity Partners”) a premier M&A advisory firm to middle market companies in transition, announced that it acted as investment banker to LORAC Cosmetics, LLC, (“LORAC” or the “Company”) in a recently completed sale by U.S. Bank pursuant to Article 9 of the Uniform Commercial Code of the assets of the Company to Markwins Beauty Brands (“Markwins”).

Founded in 1995 by Hollywood beauty legend, Carol Shaw, LORAC was one of the original celebrity cosmetic brands with prominent product offerings that included Pro Palette, Alter Ego, and Mega Pro. The Company’s sales were primarily to retail stores throughout the United States including ULTA and Kohl’s, as well as HSN, and through various websites. LORAC also enjoyed a robust social media presence with over 850,000 Facebook likes and over 2 million Instagram followers.

Commenting on the sale, Chief Restructuring Officer, Robert O. Riiska of Focus Management, stated, “I think the assets of the Company fit really well with Markwins’ existing business and this is a great opportunity for Markwins. As part of Markwins, the LORAC brand is well positioned to grow and continue to be successful as a result of the sale. Equity Partners did an excellent job with the marketing of the Company, and we believe the best result was achieved.”

Markwins Beauty Brands is a global leader in beauty and cosmetics. The company, founded in 1984 by CEO Eric Sung-Tsei Chen, is distinguished by groundbreaking product innovation, reimagined go-to-market strategies, and leading-edge supply-chain dynamics. From humble, disruptive origins, the company – famous early as the pioneer of compact palettes and gift sets – stands today as one of beauty’s largest privately-held firms and is recognized within the industry as a top “brand builder.”

With a brand portfolio that includes wet n wild®, Physicians Formula®, Black Radiance®, Lip Smacker®, and Bonne Bell®, the company commands a US FDM share of almost 10, and is enjoying growth that vastly outpaces the industry. With distribution in over 80,000 doors and 80 countries, Markwins Beauty Brands can be found in retail outlets including Department, Specialty, Mass, Drug, and Food stores.

Matt LoCascio, a Managing Director at Equity Partners HG, stated, “We were eager to work with such a well-known brand like LORAC and believe we found the right caretaker for the brand in Markwins. LORAC’s brands are an excellent complement to Markwins already impressive portfolio and it seems the acquisition should only broaden the reach of both brands.”

Professionals who worked in the case include:
• Robert O. Riiska of Focus Management served as Chief Restructuring Officer of LORAC
• Tom Kelly and Peter Nelson of Dorsey & Whitney LLP served as counsel for the secured lender, U.S. Bank National Association;
• C. John M. Melissinos of Greenberg Glusker Fields Claman & Machtinger LLP provided representation to LORAC; and
• Robert Gaida and Derek Herbert of Stifel served as the investment banker to Markwins Beauty Brands.
• David A. Zaheer of Latham & Watkins LLP served as counsel for Markwins Beauty Brands.

Equity Partners HG brokers sale of Fairfield Aluminum Casting Company, Inc. to Alcast Company Midwest Works LLC

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Equity Partners HG brokers sale of Fairfield Aluminum Casting Company, Inc. to Alcast Company Midwest Works LLC

 

For Immediate Release | August 29, 2017

Fairfield Aluminum Casting Company, Inc. (FALCO) has completed a going concern sale transaction with Alcast Company Midwest Works, LLC of Peoria, IL. Alcast’s parent company, Alcast Company, operates a similar business to FALCO’s in Illinois. Equity Partners HG, a Maryland-based investment banker, served as intermediary for the seller.

FALCO started in 1946 in a 5,000-sq. ft. foundry and over the years grew to the 200,000-square foot full-service operation that they are today. Providing aluminum product design and production, the company specializes in sand and permanent mold products with fast turnaround prototypes. FALCO provides its customers with turnkey products, offering pattern making, assembly, machining, coating, inserting, heat treating, pressure testing, impregnating and other value add casting operations.

In late February, FALCO retained Equity Partners HG as its exclusive broker. FALCO had seen a reduction in its revenues over the past several years and was no longer profitable. Equity Partners HG’s charge was to quickly find a buyer for the business before it was forced to shut down. Equity Partners HG ran an exhaustive marketing process, reaching out to thousands of prospective buyers. Following a thorough evaluation of the market, Equity Partners HG narrowed the field of more than 75 active prospects down to the three most logical buyers. After extensive negotiations with all three buyers, Alcast was finally approved as the successful suitor for the business. All 47 full time employees were retained, and the business continues to operate with plans to grow.

Fred Cross, managing director at Equity Partners HG said, “This was an outstanding result. FALCO brings countless synergies to Alcast Company and the sale brought a far greater recovery to creditors than liquidation would have. Keeping the jobs in Fairfield, IA and building on these synergies will make this acquisition a great success for Alcast long into the future. All of us at Equity Partners HG are happy to see an outcome like this and we look forward to FALCO/Alcast Company Midwest Works providing another 70+ years of continued service.”

Other professionals who worked on the transaction include:
• Joe Pieffer, Peiffer Law Office, P.C., counsel to FALCO
• Autumn Noble, McGrath North, P.C., counsel to FALCO
• Mark Walton, Miller, Hall & Triggs, LLC, counsel to Alcast Company Midwest Works LLC
• John Eichelberger, Eichelberger Law Office, P.C., counsel to Alcast Company Midwest Works LLC
• Lynn Hartman, Simmons, Perrine, Moyer Bergman, PLC, counsel to First American Bank

Equity Partners HG brokers sale of Accubuilt, Inc. to SPV Coach Company, Inc. d/b/a Armbruster Stageway

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Equity Partners HG brokers sale of Accubuilt, Inc. to SPV Coach Company, Inc. d/b/a Armbruster Stageway

 

For Immediate Release | August 8, 2017

Accubuilt, Inc. completed a going concern sale, including its two preeminent brands, The S&S Coach Company and Superior Coaches, to Kansas City, KS-based SPV Coach Company d/b/a Armbruster Stageway. Equity Partners HG, a Maryland-based investment banker, served as intermediary for the seller.

Accubuilt, Inc. (“Accubuilt” or the “Company”) is a leading manufacturer of funeral vehicles, including coaches and limousines, utilizing Cadillac and Lincoln chassis. The Company has the most diverse product portfolio in the industry and is one of the industry’s largest producers, completing more than 425 vehicles in 2016. Accubuilt operates out of a leased 180,000 square foot facility in Lima, Ohio and employs over 90 people. Employees have been notified operations will continue in place following the acquisition.

Armbruster Stageway has a rich tradition in the funeral car industry that dates back for over one hundred years and has the distinction of building the first combustion engine limousine. According to Sean Myers, President of Armbruster Stageway, “I am pleased we were able to acquire Accubuilt and its two iconic brands, S&S and Superior. We look forward to working with the employees in Lima to continue manufacturing premier vehicles and serve the customer base they have successfully built over the years. We believe our collective team is the best in the industry and we are excited to carry on the long, rich history of the Accubuilt brands.”
With the acquisition, it is believed Armbruster Stageway now controls over 50% of the funeral vehicle market.

Rob Hubbard, Chairman of the Board and Chief Restructuring Officer for Accubuilt, commented, “This was a great fit all around. Sean’s vision and Accubuilt’s manufacturing capabilities make the combined company the benchmark for all other industry players. Armbruster is getting a tremendous operation with great people, and I know they will have continued success with it.”

In mid-November 2016, Accubuilt retained Equity Partners HG as the exclusive broker for the company. Under Hubbard’s leadership, the Company had completed a successful three year restructuring process to review operational practices and institute cost saving measures to the manufacturing process. Seeing significant improvement from those efforts, ownership felt it was the appropriate time to pursue a sale of the Company.

Matt LoCascio, managing director for Equity Partners HG, said, “Our task was to maximize value and find the right buyer for Accubuilt. As we explored the market and considered the options available, it was clear Armbruster Stageway presented the best fit for the long term success of Accubuilt, its employees, customers, and vendors. We are very pleased with the outcome.”

Other professionals who worked on the transaction include:
• Rob Hubbard, Hub Management Group, chief restructuring officer to Accubuilt, Inc.
• Chris Bordoni, Adam Calisoff, and Robert Stefancin, Ice Miller, counsel to Accubuilt, Inc.
• Pete Palladino and Doug Gooding, Choate Hall & Stewart, counsel to secured creditor

Equity Partners HG brokers sale of Sailing Specialties, Inc. to SSI Custom Plastics Partners, LLC

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Equity Partners HG brokers sale of Sailing Specialties, Inc. to SSI Custom Plastics Partners, LLC

 

For Immediate Release | June 7, 2017

Sailing Specialties, Inc. (“the Company”) has completed a going concern sale transaction with SSI Custom Plastics Partners, LLC. Maryland based Equity Partners HG served as investment banker for the seller.

Founded in 1974 and located in southern Maryland, Sailing Specialties, Inc. has become a premier plastic thermoforming company, manufacturing the largest selection of custom and proprietary thermoformed plastic products in the marine industry. The Company retained Equity Partners HG in early February to find a buyer that would allow the owner, Greig Parks, to retire after operating the company for over 40 years. The ideal outcome sought by Greig was to locate a buyer that would continue operations in southern Maryland and continue to provide the quality and service his longtime customer base has come to expect. Equity Partners HG ran an exhaustive marketing process, reaching out to thousands of prospective buyers. Following a thorough evaluation of the market, Equity Partners HG narrowed the field down to the two most logical buyers. After extensive negotiations with both groups, the owner chose to move forward with SSI Custom Plastics Partners, LLC, the principals of which are Maryland based investors that have successfully owned and operated various manufacturing facilities across the country.

Hank Waida, managing director at Equity Partners HG stated, “Greig Parks built an outstanding company servicing many of the largest boat manufacturers in the country. I am pleased we were able to find a buyer with a similar passion for the marine industry, and the experience and financial wherewithal to take Sailing Specialties, Inc. to the next level.”

 

Other professionals who worked on the transaction include:

  • Bill D. McKissick, Jr., Esq. Dugan, McKissick & Longmore, LLC, counsel to SSI.
  • Gabriel J. Kurab, Katz Teller, counsel to SSI Custom Plastics Partners, LLC

Equity Partners HG brokers sale of Peters Machine, Inc. to BMC Global, LLC

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Equity Partners HG brokers sale of Peters Machine, Inc. to
BMC Global, LLC

 

For Immediate Release | May 8, 2017

Peters Machine, Inc. (“Peters Machine”) has completed a going concern sale transaction with Ventoux Capital’s subsidiary, BMC Global, LLC (“BMC Global”) of Blissfield, MI. Ventoux Capital specializes in acquiring smaller distressed manufacturing operations with strong management teams in place, and provides guidance and working capital allowing the company to continue operations. Maryland based Equity Partners HG served as investment banker for the seller.

In late 2016, Peters Machine retained Equity Partners HG as the exclusive broker to sell their 36 year old company specializing in machining and drilling tube sheets and baffles. The company had borrowed to expand its capacity during a period of sharp increase in demand for its service and subsequently experienced a reduction in its revenues due to the financial crisis and a slowdown of corn ethanol production. Equity Partners’ charge was to quickly find a buyer for the business before it was forced to shut down, and the firm ran an exhaustive marketing process reaching out to thousands of prospective buyers. Following a thorough evaluation of the market, Equity Partners narrowed the field down to the three most logical buyers. After extensive negotiations with all three prospective buyers, a competitive, court approved auction was held for the Peters Machine personal propery, along with the real esate the business operated in, and several pieces of equipment either owned by the Peters Machine shareholders or controlled by a bankruptcy trustee. BMC was the winning bidder for all of these assets, allowing for the continued operation of the business.

Hank Waida, managing director at Equity Partners HG stated, “Peter’s Machine will add unique capabilities to BMC Global’s manufacturing operatations. Building on those synergies and keeping jobs in Decatur, IL will make this acquisition a great success for them. The sale also brought a far greater recovery to creditors than a liquidation of the assets would have.”

 

Other professionals who worked on the transaction include:

  • Jonathan Backman, Law Office of Jonathan A. Backman, counsel to Peters Machine Inc.
  • Chris Mehring, Goldstein McClintock, counsel to BMC Global, LLC.
  • Mark Wenzel, Smith Amundson, counsel to Regions Bank
  • Marianne Pogge, chapter 7 trustee

Equity Partners HG brokers sale and Financing for Leading Lumber Manufacturer

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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