Transaction Overview

• The Lenox Group supported a management team in acquiring a multinational entity domiciled in Montreal, Canada, with operations in Belgium, South Africa, Brazil, Canada and the United States.
• Raised senior debt, subordinated debt and equity capital to facilitate the transaction.
• Advised management on acquisition price and structuring of buy-out.
• Enabled management team and private equity group to secure cash flow financing in otherwise difficult market thus maximizing leverage.
• Secured debt financing from an entity that would provide liquidity in multiple international locations.

Transaction Process

• The Lenox Group prepared a descriptive memorandum and an investor presentation describing the investment opportunity.  The memorandum highlighted the key investment considerations, a post-transaction capital structure, and the company's history, product lines, operations, sales force, marketing initiatives, industry dynamics, and management team backgrounds.  The investor presentation was used during meetings with management and included additional details regarding the company's growth initiatives and projected revenue/costs associated with these opportunities.
• The Lenox Group contacted over 30 potential equity investors, sent the memorandum to approximately 20 interested parties, held meetings with eight equity/mezzanine groups, received eight term sheets thus creating an auction environment and an extremely competitive process.  Selected a leading institutional investor that provides both equity and mezzanine, thereby maximizing the amount of equity that the management team would own post-closing.
• The Lenox Group also contacted over 15 potential senior debt providers, sent the memorandum to approximately ten interested parties, held meetings with five senior debt providers and received five term sheets, again creating a competitive bidding process. 

Transaction Benefits

• Maximized management team ownership at closing as well as negotiated incentive shares providing additional upside.
• Structured a transaction that was readily acceptable in today's debt markets and provided attractive return expectations for equity/mezzanine groups.
• Secured equity financing in 30 days, a requirement of target management to provide credibility that our client could close the transaction in a timely manner.
• Generated flexibility for management team in terms of future growth from its debt provider.