New West Petroleum
Sale of the largest independent distributor of gas/diesel fuel in the Western USA, creating a market entry vehicle for Japanese refiner, Idemitsu Kosan
Situation Overview:
Global sale process and balance sheet restructuring
Our Client:
- Gas/diesel wholesaler to Western US rack customers through a network of pipelines and 14 Western US storage terminals; 1+ MM barrels per month; $1+ billion annual sales
- The most attractive market entry vehicle into the refined petroleum market in the Western USA
The Goal:
- Strengthen balance sheet to satisfy the Company’s lenders
- We crafted a forward game plan which the lenders supported
- We managed a dual track process to restructure the balance sheet, while marketing NWP globally
- Attract a sophisticated strategic partner to help NWP capitalize on growth opportunities
- We generated active interest from conglomerates and trading companies in the USA and six European and Asian countries
The Outcome:
- NWP became Idemitsu’s US market entry platform
- Idemitsu Kosan Co., Ltd. (TSE:5019): A Japanese global energy company engaged in crude oil shipping, large scale petrochemical
refining, industrial coal and fuels, renewable energy, and the operation of 4,300+ service stations in Japan
* This transaction was managed by a Riverbrook principal while the principal was engaged at a prior firm.
NTP Distribution
Strategic sale of NTP Distribution to Keystone Automotive, creating a distribution powerhouse in the RV parts industry
Situation Overview:
M&A-driven business strategy that maximized shareholder value
Our Client:
- Second largest distributor of RV after-market parts in the US; operated out of 5 facilities throughout the USA
- 25-year veterans of the RV industry; outstanding reputation and deep customer relationships
The Goal:
- Position NTP strategically to become the dominant RV parts distributor in an industry that was undergoing consolidation
- We helped NTP identify several game changing merger opportunities and then sequentially pursued them
- Create a business combination that changes the nature of competition within the industry, enhancing NTP’s value proposition and competitive position
The Outcome:
- NTP became the RV division of Keystone Automotive, allowing Keystone to instantly become a major player in RV parts distribution
- The combination merged NTP’s deep customer relationships and market knowledge with Keystone’s 300+ trucks/trailers and national cross-dock logistics system
Fiesta Concession
Leveraged recap financing to support the buyout of the Company’s majority shareholders
Situation Overview:
Two of the Company’s four shareholders wanted to liquidate their ownership positions. The other two shareholders did not want to sell.
Our Client:
- 40+ year old family-owned company
- One of the largest plush toy manufacturers selling into museums, zoos, aquariums, theme parks and specialty gift shops
- Owned by three family members and an outstanding industry CEO who was not a family member
The Goal:
- Help the CEO achieve the majority shareholders’ goal of selling their shares
- Maximize the value for selling shareholders, while simultaneously allowing the CEO to choose his future partner
The Outcome:
- After evaluating numerous acquisition proposals from a diverse mix of investors, we helped the CEO and one family shareholder secure the acquisition financing necessary for the Company to repurchase the shares of two major shareholders
- The deal structure allowed insiders to retain ownership control
Tumbleweed
Separation of the business interests of two founding partners
Situation Overview:
The operating partner of Tumbleweed Educational Enterprises wanted to explore the financial and operational viability of buying out her business partner, who managed the financial function but was not involved in daily operations.
Our Client:
- TEE is the largest independent bus transportation company serving private schools in the greater Los Angeles metropolitan area
The Goal:
- Determine the working capital and financial requirements necessary to successfully buy out one of the founding partners
- Identify a transaction structure that would be better for all parties than selling the Company to a third party
- Negotiate the terms of a separation agreement
- Develop long-term strategies for enhancing free cash flow and shareholder value
The Outcome:
- Our client successfully negotiated the separation of business interests and became the sole owner of the Company
ADCO Corporation
A targeted strategic sale to meet the diverse goals of different family shareholders
Situation Overview:
A third-generation family business, owned by stakeholders with very different goals and objectives
Our Client:
- One of the top brands of all-weather covers for recreational vehicles
- Third-generation family business, owned by three siblings and their father
The Goal:
- Allow the shareholders who weren’t running the business to monetize their ownership
- Increase available working capital to fully leverage the Company’s growth opportunities
- Provide a unique career opportunity for the CEO, as part of a much larger organization
The Outcome:
- ADCO became the RV division of Covercraft, the world’s largest manufacturer of custom-patterned vehicle covers
- ADCO’s CEO joined Covercraft’s Board of Directors, assumed responsibility for the newly created RV Division, and managed digital marketing for Covercraft across all divisions.
EPIC Homecare
Sale of the largest single-branch home healthcare operation in Los Angeles County
Situation Overview:
After building a successful business over 15 years, the founders wanted to transition into retirement.
Our Client:
- The largest single-branch home healthcare operation in Los Angeles County, serving patients in 85 zip codes
- Founders were experienced and had relationships that were central to the success of the business
The Goal:
- Allow the founders to limit their post-closing operational involvement so they could retire
The Outcome:
- Sold the company to a husband/wife team, backed by an investor group
- Assisted the buyer with their acquisition financing, to ensure the buyer could finance the purchase price
Prassas Metal Products
Sale of a specialty steel distributor to Mill Steel, one of the premier suppliers of flat-rolled and coated steel in the United States
Situation Overview:
An experience steel industry veteran decided to sell his business in the aftermath of Covid-19
Our Client:
- A highly experienced and well regarded distributor of pre-painted and coated coil and acrylic galvalume
- Strong customer relationships throughout the Southeastern United States
- Excellent steel mill relationships overseas
The Goal:
- Maximize the value for the Company by selling it to a strategic buyer
The Outcome:
- PMP was acquired by Mill Steel, allowing Mill Steel to expand its customer base in eight Southeastern states
- The purchase provided Mill Steel with valuable additional inventory, as the nation began experiencing supply chain disruptions due to Covid-19
Lobster Sports
Sale of the leading tennis ball machine company to the leading supplier of tennis court surfaces
Situation Overview:
A 52-year-old family business decided it was time to pass the business over to new ownership
Our Client:
- Designer and manufacturer of one of the leading tennis ball machines in the world
- The owners had lived out of state for many years, managing the business remotely
- Remote management became very difficult during Covid-19, and the owners elected to sell the business rather than move back to California
The Goal:
- Maximize the value for the selling shareholders, while ensuring the Company’s future success by selling it to a strong future owner
The Outcome:
- Lobster Sports was sold to Har-Tru, the world’s leading supplier of premium tennis court surfaces
- The purchase of Lobster extended Har-Tru’s premium product offering and launched Har-Tru into the direct-to-consumer side of the tennis industry