Tag Archives: Equity Partners HG

Longtime Ashland manufacturer avoids shutdown and loss of jobs

Longtime Ashland manufacturer avoids shutdown and loss of jobs

November 22, 2019

ASHLAND — Rochester Shoe Tree, Inc., has sold the assets of its 97-year-old cedar shoe tree and shoe care product manufacturing operation, preserving jobs that would have been lost had the company shut down.

The company retained Equity Partners HG in late April to seek a buyer for the company. Equity Partners conducted an exhaustive marketing process that resulted in 32 groups executing confidentiality agreements and proceeding to conduct due diligence. Ultimately, three groups submitted acquisition structures for the owner and secured creditors to consider.

Eventually, they negotiated with one of the company’s suppliers that agreed to allow the operations to continue at the Ashland facility, saving as many as 90 jobs. While the offer paid only 80-90% of what the company’s secured creditors, Northway Bank and TD Bank, were owed, both banks agreed to allow the transaction to move forward, rather than proceed with foreclosing on the assets in the hopes of possibly making up the shortfall. That allows for the preservation of jobs in the community.

Hank Waida, a managing director at Equity Partners HG, said in a statement: “We are extremely pleased that all constituents agreed to work together and allow this transaction to move forward. Without the cooperation of both Northway Bank and TD Bank, this long-standing business would have had to close its doors and all employees would have lost their jobs.”

Founded in 1922, Rochester Shoe Tree is one of the largest providers of aromatic red cedar shoe trees in the world and has been a fixture in Ashland, employing both hourly and salaried employees. Other red cedar products manufactured there include coat hangers, gift boxes, shoeshine kits, shoe racks, cedar blocks, and hardwood display trees. The company also manufactures a variety of shoe cleaners, lotions, creams, polishes, and leather protectors, and it distributes shoe brushes, shoehorns, shoelaces, polishing cloths, and backroom supplies, providing retailing clients with all their shoe care needs.

Shawnee Tubing Taps Equity Partners HG to Advise in Sale of Business

 

Shawnee Tubing Taps Equity Partners HG to Advise in Sale of Business

November 11, 2019

Shawnee Tubing Industries, LLC, a manufacturer of smooth and finned copper tubing, has retained Equity Partners HG to seek a buyer for the business. Originally started in 1974 as Wolverine Tube Shawnee in Shawnee, OK, the Company has been producing copper tubing for industrial and construction use for 45 years. The business was acquired by a member of management in April 2017, and was then restructured and acquired by AIAC in July 2018.

Shawnee Tubing Industries manufactures industrial tube in a wide range of wall thickness, diameter and hardness, and currently produces over 200 SKUs. The plant was designed to produce high-quality wall and grain/temper capabilities and its annual capacity is 65 million lbs. per year. STI’s manufacturing facility totals 342,450 sq. ft. on a 49-acre parcel with ample space for expansion. The plant includes 252,550 sq. ft. of manufacturing space, 33,000 sq. ft. of warehouse space, and 39,600 sq. ft. of offices. Equipment includes tube forming and winding equipment, extrusion presses, continuous casting lines, annealing and melt furnaces, fin machines, and general material handling and support equipment.

Keith Keeling, a Managing Director at Equity Partners HG, stated “STI is a great opportunity to acquire significant production capacity with an experienced workforce. Initiatives to establish the Company as the premier source for specialized products, along with developing a major copper recycling operation, are well underway and we are excited to work with STI to explore options as they transition the Company for sustained growth.”

Equity Partners HG, based outside Baltimore, MD, provides investment banking services in special situations and has completed in excess of 550 engagements throughout the United States since 1988.

Beef International to Sell Operations to RKW Holdings in Deal Arranged by Equity Partners HG

 

Beef International to Sell Operations to RKW Holdings in Deal Arranged by Equity Partners HG

November 6, 2019

Beef International Inc., (BI Foods) a custom manufacturer of premium meat products, announced that it has reached an agreement to sell its business operations and certain assets to RKW Holdings, LLC (RKW).  The transaction is expected to close within the next 30 – 45 days.  RKW will continue to operate the business out of the existing Beef International location in Pennsauken, NJ and employ over 50 people.

BI Foods retained Equity Partners HG earlier this year to explore strategic options for the Company and after completing an extensive process, ownership felt the offer presented by RKW was the best fit. Matt LoCascio, a managing director at Equity Partners HG, added “The offer from RKW compliments the existing business and employees of BI Foods and will allow them to pursue their growth objectives.”

Founded over 35 years ago, BI Foods specializes in manufacturing roast beef, corned beef, pastrami, pot roast, ribs, osso bucco, shredded pork and other “value-added” protein products. The operation is run out of a U.S.D.A. approved 36,000 sq. ft. facility and is SQF level 2 and Halal certified.

“We are excited for the opportunities to grow the business and build upon BI Foods commitment to provide its customers with high-quality protein products.” said Kevin Ingraldi, RKW’s President.  “We will be working to provide our customers with new “value-added” offerings, in addition to our existing products. We look forward to expanding upon the quality reputation BI Foods has in the markets that it services including service major food-service distributors, restaurant chains, supermarkets and specialty food providers.”

Marc Ross of HBM Management Associates, LLC, consultants to BI Foods, commented, “RKW’s significant experience will translate into great things for the Company.  I believe the plans they have proposed to grow the Company and expand its product offerings fit well with the history of BI Foods and the great management team here. There are some exciting things to come in the future and I look forward to seeing them grow and prosper.”

Equity Partners Serves as USI Investment Banker in 363 Sale

 

Equity Partners Serves as USI Investment Banker in 363 Sale

November 28, 2018 

M&A advisory firm Equity Partners acted as investment banker to USI Services Group in its recently completed sale to SecurAmerica. The sale was effectuated through a Chapter 11 Section 363 process, which was approved by the Bankruptcy Court in New Jersey on November 8.

Founded 112 years ago, USI provides facility maintenance and security guard services to major, multi-national retail and event service customers for decades. The company employs almost 2,000 people across the country, with the majority of those jobs to be retained by SecurAmerica.

Frederick Goldring, president and CEO of USI, said, “We are thankful to have found the right partner in SecurAmerica and believe the synergies will make for a very strong company moving forward. We are excited to continue to provide excellent service to our customers with additional resources and build upon the successes of the past 112 years.”

Headquartered in Atlanta, SecurAmerica provides innovative, premium security services across the U.S., along with, through its ERMC subsidiary, janitorial, maintenance, security and landscaping services in over 650 locations.

Frank Argenbright, founder and executive chairman of SecurAmerica, stated “We are excited about the opportunity to partner with the USI team, which has a legacy based on forging long-lasting strong customer relationships. We look forward to building on the USI legacy as we continue to execute our strategic initiatives for future growth and market expansion.”

Matt LoCascio, a managing director at Equity Partners, stated, “The opportunity to save almost 2,000 jobs was something we were motivated by and we are pleased with the result. I believe this will be an excellent fit for both parties and wish them the best of luck as they proceed.”

Based in Easton, MD, Equity Partners provides boutique investment banking services for special situations and middle market companies.

Equity Partners HG Named Outstanding Investment Banking Firm

Equity Partners HG Named Outstanding Investment Banking Firm

August 17, 2018 

Equity Partners HG, a subsidiary of Heritage Global, has been selected as an Outstanding Investment Banking Firm by the Beard Group’s Turnarounds & Workouts publication.

Turnarounds & Workouts is a newsletter for corporate restructuring professionals. Each issue features news articles, Who’s Who columns profiling significant bankruptcy case, resource lists, and special reports on bankruptcy and insolvency professionals.

Ken Mann, Senior Managing Director for Equity Partners HG, said, “We are laser focused on getting great results for our clients and it is nice when credible industry sources take notice of our good work and include us in the company of other elite M&A advisors serving distressed companies. We thank the Beard Group for the kind recognition, and we congratulate the other outstanding firms selected.”

Equity Partners HG Wins Special Situation M&A Deal of the Year Award

Equity Partners HG, a subsidiary of Heritage Global, is a 10th Annual Global M&A Network Award winner. The firm won the Turnaround Atlas Award for Special Situation M&A Deal of the Year as the investment banker on the Accubuilt acquisition by SPV Coach (Armbruster Stageway).

The Global M&A Network is the M&A, turnaround and finance professionals’ leadership organization. The independently governed awards recognize excellence in categories of transactions, outstanding firms, top professionals and legendary leaders.

“The award validates excellence, tireless work of professionals and firms from the industry. Winners should take pride for effectuating successful restructurings, proving their creativity, expertise and differentiated talents.” said, Shanta Kumari, CEO and Global Group Editor at Global M&A Network.

“I’m thankful for this recognition of the great work Matt LoCascio, and the other professionals involved, did on this transaction, in particular, Rob Hubbard, of Hub Management Group, the CRO and Pete Palladino, counsel to the secured creditor, NewStar Financial.” said Ken Mann, Senior Managing Director for Equity Partners HG. “I also want to congratulate all of the other winners and nominees – we are proud to be in such good company.”

Bridgeport Biodiesel retains M&A specialist Equity Partners HG

 

Bridgeport Biodiesel 2 LLC, a fully permitted, commercial-scale biodiesel refinery with a capacity of 13 MMgy, has retained Equity Partners HG to find an investor or buyer for the company. Bridgeport is one of only four commercial-scale biodiesel refineries in New England, and is the closest biodiesel plant to the largest mandated market (New York City) in the Eastern U.S.

The refinery is located in an ecotechnology park in Bridgeport, Connecticut, just 50 miles north of New York City. Commissioned in 2017, the plant produced 220,000 gallons of on-spec biodiesel from used cooking oil (UCO) and generated and sold RINs. While the primary feedstock is UCO, Bridgeport can also produce biodiesel from a variety of used and virgin vegetable oils and animal fats. In addition, the company also produces marketable glycerin as a coproduct and recycles all methanol used in the process.

“During production last summer, a somewhat untested esterification process created a severe bottleneck in the facility’s output and limited production to 20,000 gallons a week,” said Brent Baker, CEO of Bridgeport. “This was well below the production level needed to break even and with limited working capital, we would not be able to sustain losses from operations or replace the reactor. We determined the only option was to cease operations until the reactor could be replaced and filed Chapter 11 to facilitate this process. We are eager to exit bankruptcy properly capitalized and restart operations.”

Matt LoCascio, a managing director at Equity Partners HG, said, “This is an excellent opportunity to invest in or purchase a fully permitted biodiesel refinery that features an automated, continuous-flow process production train and manufactures biodiesel fuel from a variety of fats and oils.”

Equity Partners HG, based outside Baltimore, Maryland, provides investment banking services and has completed in excess of 500 engagements throughout the United States since 1988.

Equity Partners HG Serves as Investment Banker to LORAC Cosmetics in Asset Sale

 

Equity Partners HG, 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.

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.

Firm hired to sell, preserve Shawnee Tubing Solutions

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Shawnee Tubing Solutions, LLC has retained an investment banking firm to assist in the sale and preservation of its business, the company said Monday.

The company said a severe drop in its credit lines, from $33 million to $11 million, has produced a “cash flow crisis.” David Baker, of Aurora Management Group, has been appointed chief restructuring officer and is managing the business through a sale, the company said.

With 300 employees, STS said it is the third largest employer in Shawnee.

The investment banking firm of Equity Partners HG is working with the company, which manufactures a variety of industrial tubing for the HVAC and refrigeration industries, the company said.

“Given its tremendous capacity, its trained workforce, its customer base, and its great location, we believe that some well-funded strategic and financial partners will be interested in acquiring and operating STS in place,” Ken Mann of Equity Partners said in a statement issued by the company.

Equity Partners plans to find a properly capitalized buyer to keep the factory from shutting its doors.

Shawnee Tubing Solutions searches for buyer

 The Fabricator - A publication of the Fabricators and Manufacturers Association, Intl.
Shawnee Tubing Solutions LLC (STS), Shawnee, Okla., has retained investment banking firm Equity Partners HG, Easton, Md., to assist in the sale and preservation of its business.

STS, founded as Wolverine Tube Shawnee in 1974, is a manufacturer of copper tubing selling to manufacturers in the HVAC and refrigeration industries. The 342,450-sq.-ft. plant, which has a total annual capacity of more than 65 million lbs., produced and shipped 36 million lbs. of product in 2017.

With capacity and past experience in plumbing tube production as Wolverine, the company had detailed plans to resurrect that segment of its business in 2018, but a significant drop in supplier credit lines have limited those plans. The firm currently employs 300 people.