Transaction Overview

• Senior management team approached Lenox Group bankers about buying out the sole owner who had owned the business for 25 years and wanted liquidity.  The Company produced items used to melt aluminum and fabricate metal.
• Managers did not have an ownership position but had operated the Company for the previous five years.  The team lacked significant investment capital. 
• The owner was reluctant to relinquish control and remain with the business.
• Lenox was retained to negotiate price and structure of the acquisition and raise the capital necessary to close the deal. 

Transaction Process

• Negotiated the Letter of Intent while balancing the maximization of price to the seller and arranging the best deal for the management team from an ownership perspective.
• Constructed the Confidential Information Memorandum for the transaction and developed lists of private equity groups to contact regarding a possible investment.
• Worked with management team to overcome union contract and environmental (formerly a Standard Oil facility) concerns with key customers and investors.
• Arranged management calls and meetings with potential investors while minimizing the impact on the business.

Transaction Benefits

• Negotiated a transaction that was amenable to owner and management team.
• Owner agreed to a seller note for a portion of the purchase price over three years and to remain with the Company in a strategic advisory role.
• Management invested minimal capital, borrowed some from a private equity group and has the ability through reasonable performance hurdles to earn a significant ownership stake.