Commercial Microwave Technology, Inc., headquartered in Rancho Cordova, CA, is a leading manufacturer of RF and microwave filters for the telecommunication and aerospace industries worldwide.
Acquirer: API Technologies Corp. (NASDAQ:ATNY)
Description: Founded in 1997, CMT had developed an excellent reputation among many Fortune 100 companies as being a sole source supplier of custom filters for use in a variety of applications, including satellites, surveillance, remote metering and interference mitigation. With the majority shareholder looking to retire but wanting to provide a platform for continued growth of the company, he engaged Barnard/Montague to exclusively represent the Company in a sale process. Barnard/Montague approached a carefully selected universe of strategic buyers to conduct a competitive auction process. The sale to API was completed in only 22 days after reaching agreement on terms, requiring tremendous coordination among all parties.
Dura Chemicals, Inc., based in Emeryville, CA, is a leading supplier of high-quality metal organics and essential additives worldwide.
Transaction: Strategic and financial advisory
Description: Founded in 1994, DURA has grown to become the second largest supplier of drier additives in the U.S. with a worldwide customer network. The Company offers metal organics used as additives and catalysts serving the requirements of Coatings (paint and graphic arts), Polyester, Polyurethane, Lube, Adhesives and Sealant and Petrochemical industries. The Company manufactures and distributes additives which are essential for DURA’s customers to create their final product.
DURA engaged Barnard/Montague to explore strategic alternatives to determine the best strategy to implement the Company’s growth plan and vision. After considering Barnard/Montague’s review of the Company, analysis of the market and the investor appetite for such an opportunity, the Company has decided to seek equity capital for both recapitalization and growth purposes and has engaged Barnard/Montague to execute that strategy.
Partners in Business Systems, Inc., is a premier provider of professional consulting and IT staffing services to a select group of corporate clients in Northern California.
Acquirer: Software Management Consultants, Inc. (SMCI), with headquarters in Glendale, CA, is a well recognized IT staffing solutions leader in the various regional markets that it serves.
Transaction: Sell side representation
Description: The shareholder of Partners in Business Systems was looking to retire after successfully building the Company for 15 years but wanted to ensure that the next level of management could continue thriving under new ownership. The acquisition gave SMCI a strong presence in the SF Bay Area based on Partners’ unique focus on senior level professionals combined with its long term client relationships.
Kip Prahl Associates (KPA), based in Hayward, CA, provides environmental compliance and safety management services to automobile dealerships nationally.
Acquirer: Wiegers Capital Management, LLC, of Denver, CO
Transaction: Sell side representation
Description: KPA reached a point in its development where sales were accelerating rapidly and multiple opportunities for entering new markets became available. KPA’s shareholders made the decision to seek a financial partner that could provide capital to fuel growth, to assist it in exploiting new growth opportunities and to offer a degree of shareholder liquidity. A group of investors led by Wiegers Capital Management provided the equity and the San Francisco office of Union Bank of California provided debt for the acquisition. The management team remained in place and reinvested in the newly formed company.
Joseph Schmidt Confections, headquartered in San Francisco, CA, is recognized as the premier producer of gourmet chocolate truffles.
Acquirer: The Hersey Company
Transaction: Exclusive sell side representation
Description: The shareholders of Joseph Schmidt Confections were seeking an exit strategy after successfully capitalizing on the European heritage of the company’s founder and building a nationwide brand selling gourmet chocolate products through an exclusive network of high end retailers and specialty stores. A competitive auction process generated a high degree of interest from major food companies worldwide and resulted in a sale to The Hershey Company. The acquisition gave Hershey an immediate presence in the gourmet chocolate segment of the industry as well as access to specialized manufacturing and new product capabilities.
Corwil Technologies, based in Milpitas, CA, provides high quality and responsive IC assembly and test services to the semiconductor, OEM electronics, military and aerospace, and medical industries.
Transaction: Strategic and financial advisory
Description: Corwil had recently complete the build-out of a new state of the art production facility and the two shareholders wanted to consider strategic alternatives including raising capital for growth as well as selling all or part of the company. After the development of a comprehensive strategic plan including five year financial projections and a thorough analysis of the market, the shareholders decided to continue to grow the company and seek outside capital at a point in the future.
Coen Company, Inc., based in Woodland, CA, designs, manufactures, installs and provides maintenance for burner equipment and combustion systems.
Acquirer: John Zink Company, a Koch Chemical Technology Group, LLC, company of Tulsa, OK.
Transaction: Sell side representation
Description: Coen had reached a stage in its development where significant growth opportunities existed through product line extensions and geographic market expansion. In order to achieve the Company’s full growth potential, additional investments would be required. To capitalize on these new product and market opportunities, the shareholders made the decision to explore a sale of the Company, among other alternatives. In a competitive process, John Zink Company acquired all of the outstanding shares of Coen, which continued to operate as a wholly owned subsidiary of John Zink.
Solatube International, headquartered in San Diego, CA, is the premier developer, manufacturer and marketer of state-of-the-art high performance day-lighting systems for use in a wide range of residential, commercial and industrial buildings.
Capital Source: Praesidian Capital Investors
Transaction: Private placement of mezzanine capital
Description: Solatube International was seeking growth capital to construct a new manufacturing and sales facility in Shanghai, China, as well as fund other growth initiatives worldwide. After approaching a wide range of capital sources, a very attractive mezzanine finance transaction was funded by Praesidian Capital Investors out of New York. The flexible capital enabled Solatube to further expand its presence in the green-tech arena and become a major global player.
Redwood Companies (Redwood Toxicology Laboratory, Redwood Biotech, and PerMaxim), based in Santa Rosa, CA, serves three distinct, but related, segments of the diagnostic drug testing market: laboratory, on-site and point-of-care and operates the largest single-location drug testing toxicology laboratory in the United States. The Company had earned the reputation of being the preeminent laboratory within the correctional and rehabilitation segments of the over $1 billion drugs-of-abuse market.
Acquirer: The San Francisco office of American Capital Strategies, Ltd. (Nasdaq: ACAS) of Bethesda, MD, led the transaction.
Transaction: Sell side representation
Description: With 25% year over year growth and strong margins, Redwood had reached a stage in its development where significant growth opportunities existed both by entering new but related markets and through acquisitions. In order to achieve the Company’s full growth potential, additional investment would be required to capitalize on these new market and acquisition opportunities. In a competitive process, American Capital acquired the Redwood Companies. The entire Redwood management team remained in place and reinvested in the newly formed company.
Nichols Inc., headquartered in Salt Lake City, UT, is a premier provider of graphics, hardware and fabric structures to tradeshows, point-of-purchase programs and special events.
Acquirer: Moss Inc., a portfolio company of Riverside Company, one of the largest private equity firms focused on the middle market
Transaction: Exclusive sell side representation
Description: The shareholders of Nichols, having built the company to be the leader in graphic display technology, were interested in not only gaining liquidity but also positioning the company for further growth. After a competitive auction process with carefully targeted strategic and private equity buyers, the sale of a majority interest in Nichols to Moss created the most comprehensive manufacturer of tensioned fabric structures, display hardware and printed graphics in the world. The acquisition also brought an expanded customer base, as well as unparalleled cross-selling opportunities.
