• Client: Richmond Electric Supply Co., LLC
• Location: Richmond, VA
• Industry: Industrial Products
• Buyer/Investor: Locke Supply Co.
• Close Date: July 2019

Situation
Richmond Electric Supply Co., LLC (“RESCO”) is a full-line, stocking electrical wholesale distributor that serves commercial contractors, government and military agencies, residential contractors, and industrial and OEM markets on a regional and national scale.

Objective
The ownership group, including a family office and management, engaged Matrix to serve as its exclusive financial advisor to market the business to a select number of prospective buyers and run an expedited sale process.

Solution
Matrix tailored a process to meet the requirements outlined by the client, including approaching dozens of mid-sized, regional players in the electrical products distribution market.

Following the receipt of several bids and in-person diligence meetings, Matrix was able to negotiate with multiple parties to yield the most optimal outcome.

Closed the transaction with a party that achieved the goals of all constituents: an above-market price for the exiting shareholders and a supportive parent company that shared management’s vision for growth.

• Client: Dealers Building Supply, Inc.
• Location: Indianapolis, IN
• Industry: Building Products
• Buyer/Investor: An Investor Group including The Firefly Group and Kocolene Development Corporation
• Close Date: October 2016

• Client: CMA Supply Co., Inc.
• Location: Indianapolis, IN
• Industry: Building Products
• Buyer/Investor: Carters-Waters, a portfolio company of Merit Capital Partners and Aiglon Capital Management, LLC
• Close Date: December 2015

• Client: Area Equipment Sales & Rentals
• Location: Chesapeake, VA
• Industry: Industrial Products
• Buyer/Investor: BlueLine Rental, a portfolio company of Platinum Equity
• Close Date: April 2015

Situation
Area Equipment, LLC, headquartered in Chesapeake, Virginia, was established in 2006 and has grown to become a premier full-line equipment rental company, serving the Hampton Roads and Northeastern North Carolina markets.

Objective
Matrix was retained by Area Equipment to pursue a sale of the business by approaching a broad universe of private equity and strategic buyers with the goal of exiting passive shareholders and possibly management of their equity positions.

Solution
Produced extremely detailed Confidential Information Memorandum that generated substantial interest among private equity and strategic buyers.

Transaction multiple significantly exceeded recent values for similar businesses in the industry.

Matrix required that buyer assume indebtedness associated with equipment purchased by the sellers during months prior to closing, increasing cash proceeds to shareholders considerably.

• Client: Banker Steel Company
• Location: Lynchburg, VA
• Industry: Industrial Products
• Buyer/Investor: Atlas Holdings and Turnspire Capital Partners
• Close Date: August 2014

Situation
Banker Steel Company is a leading fabricator of structural steel components used in commercial and infrastructure projects, with a production capacity of 50,000 tons of steel per year. The company operates from two fabrication facilities, one in Lynchburg, VA and one in Orlando, Florida. Banker Steel has been the fabricator of choice on projects such as Barclays Center in Brooklyn, NY, the award winning Washington Nationals Park in Washington, DC and Hudson Yards, the largest mixed use development in New York City since Rockefeller Center.

Objective
The Company’s founders and primary owners, Don & Carol Banker, desired to team with a strategic partner in order to diversify their personal holdings, as well, better position the Company to take advantage of its successful growth opportunities.

Solution
Matrix targeted a select number of private equity groups that possessed an understanding of the industry and experience with sureties, as much of Banker Steel project’s required substantial bonding ability.

The bonding requirement for the Company created a very complex financing structure that Matrix helped develop prior to conducting serious negotiations with suitable partners.

Working closely with management, Matrix analyzed and evaluated a range of offers from investment groups that proposed acquiring from a minority interest to as much as 80% of the Company. Also of paramount importance, was the cultural fit with the Banker Steel organization.

Atlas Holdings, LLC through its operating company, Bridge Fabrication Holdings, LLC, together with Turnspire Capital Partners was ultimately chosen as the preferred partner. Don Baker is continuing as the Company’s CEO and retains a significant equity ownership.

• Client: Ashton Lewis Lumber Co.
• Location: Gatesville, NC
• Industry: Building Products
• Buyer/Investor: A privately held company
• Close Date: February 2014

Situation
Ashton Lewis Lumber Co., headquartered in Gatesville, NC, is recognized as one of the premier producers of Southern Yellow Pine lumber in the Southeastern United States.

Objective
Matrix was retained by Ashton Lewis to pursue a 100% sale of the business with the goal of maximizing proceeds with a buyer that would retain the Company’s employees and maintain the Company’s core values and culture.

Solution
Produced a detailed Confidential Information Memorandum to share with interested parties as part of the marketing process.

Matrix leveraged its industry expertise to approach a broad universe of buyers uniquely positioned to consummate an acquisition.

Closed transaction at a value well in excess of client expectations that created an exit strategy for shareholders while preserving the Company’s culture.

• Client: Butler Woodcrafters, Inc.
• Location: Richmond, VA
• Industry: Industrial Products
• Buyer/Investor: Sauder Manufacturing Co.
• Close Date: January 2014

Situation
Butler Woodcrafters, Inc., headquartered in Richmond, VA, is a leading manufacturer of institutional furniture serving the education and human services markets.

Objective
Matrix was retained by Butler to pursue a stock sale of the business with the goal of maximizing proceeds for shareholders while preserving culture and positioning the Company and its management team for future growth.

Solution
Matrix orchestrated a robust and competitive process among private equity groups and strategic buyers and received numerous Indications of Interest before conducting management presentations.

Buyer was chosen due to attractive valuation and willingness to overcome the previously mentioned impediments to the transaction.

100% stock sale was achieved at a valuation above client expectations and with a buyer that sought to maintain Butler’s brand and culture while allowing the Company to grow in both existing and new markets.

• Client: Richmond Electric Supply Co., Inc.
• Location: Richmond, VA
• Industry: Industrial Products
• Buyer/Investor: Richmond Electric Supply Co., Inc.
• Close Date: December 2012

Situation
Richmond Electric Supply Company, Inc. (“RESCO”), headquartered in Richmond, Virginia, operates as a full-line, stocking electrical wholesale distributor that serves commercial contractors, the government & military, residential contractors and industrial & OEM markets on both a regional and national scale. Founded in 1983 by Darryl Harman with locations in Richmond and Norfolk, RESCO has a strong industry reputation with a solid customer base and supply chain.

Mike Bourn, an industry leader, was interested in acquiring RESCO, but as CEO of a substantially larger competitor, he was not in the position to receive financial information and negotiate directly with Darryl Harman, who was looking for a liquidity event and succession plan.

Objective
Matrix was engaged to analyze RESCO’s financial information, revenue forecasts and operations in order to develop an offer and negotiate an LOI directly with Darryl Harman.

Solution
Matrix served as the financial advisor to RESCO Acquisition, LLC, the entity created to represent Mike Bourn and the group of private investors who acquired the Company.

The Matrix team built a detailed valuation and pro forma model to evaluate the current business, analyze future cash flows & growth opportunities and source the capital for the transaction, including the equity and debt.

Matrix utilized its relationships to raise the equity and source & negotiate terms for the optimum senior financing. In addition, Matrix facilitated the purchase of RESCO’s existing real estate by a separate group of investors.

The management buy-in, led by Mike Bourn as the new CEO, enabled RESCO to capitalize on a liquidity event and succession plan that preserved the Company’s brand, employees and customer base.

• Client: Ontario Hardwood Co., Inc.
• Location: Keysville, VA
• Industry: Building Products
• Buyer/Investor: n/a
• Close Date: December 2012

• Client: The Wagner Group
• Location: Owega, NY
• Industry: Building Products
• Buyer/Investor: Baillie Lumber
• Close Date: July 2012

Situation
The Wagner Group, headquartered in Owego, New York and comprised of three independent sawmill operations, serves as the premier producer of hardwood lumber in the Northeast region and one of the largest sawmill operations in the nation.

Objective
Matrix was retained by The Wagner Group to pursue a sale of the business to a strategic buyer that would offer an ongoing cultural fit, drive future growth, and allow for a liquidity event for the Company’s two shareholders.

Solution
Matrix conducted an expedited and competitive process among select strategic acquirers and obtained indications of interest and letters of intent prior to selecting the buyer.

Buyer was chosen due to attractive valuation, acceptable legal terms, willingness to close transaction expeditiously, and overall cultural fit with The Wagner Group.

Deal valuation exceeded client expectations and allowed the Company’s two shareholders a full liquidity event while giving them ongoing involvement in the business.

• Client: Coastal Lumber/American Industrial Partners
• Location: Charlottesville, VA
• Industry: Building Products
• Buyer/Investor: American Industrial Partners
• Close Date: October 2011

Situation
Coastal Lumber Company, headquartered in Charlottesville, Virginia, is a regional producer of high grade, green sawn and kiln dried hardwood lumber.

Objective
Matrix was retained by American Industrial Partners, a New York, New York based private equity group, to pursue an acquisition of the assets of Coastal Lumber Company, which consisted of nearly a dozen distinct operations.

Solution
Due to challenging industry conditions, Coastal Lumber was in a distressed financial condition.

Accordingly, Matrix and American Industrial Partners entered into negotiations with the Company’s senior lender, which controlled the outcome of the transaction.

Price, terms and conditions of a transaction were successfully negotiated with the Company’s senior lender, resulting in a favorable outcome for American Industrial Partners.

• Client: Lawrenceville Brick, Inc.
• Location: Lawrenceville, VA
• Industry: Building Products
• Buyer/Investor: The Belden Brick Company
• Close Date: July 2011

Situation
Lawrenceville Brick, Inc. (“LBI”) was founded over 60 years ago by individuals from the local community in Lawrenceville, VA. The company rose to become a leading brick manufacturer with an annual brick capacity of 115,000,000 SBEs. The company has two active production facilities, one built in 2003, which is highly automated and state of the art. Nearby, the company owns an estimated 40 years of clay reserves, as well as two additional retail locations in Chesapeake and Williamsburg, VA. The company accumulated considerable net losses for 2008-2010 caused by the decline of the housing market in 2008. LBI’s bank was not willing to extend their long term debt without new investment.

Objective
The special committee of LBI hired Matrix to assess the viability of raising capital, with a goal of raising much of the funds from its existing shareholder base of 170+ shareholders. Initially, it appeared that the company could weather the housing market decline with approximately $1.5mm of new capital. As the housing starts continued to languish, and the company continued to post losses, the new capital requirements rose to an estimated $2.5-$3.0mm. The revised objective was to maximize the value for all stakeholders, marketing the company to a larger strategic acquirer that valued LBI’s capabilities, reputation, customer base, etc. – a suitor that would have the ability and willingness to carry the company until the U.S. housing market recovered.

Solution
Matrix orchestrated a mini-auction environment with approximately six strategic acquirers. The goal was to maximize value while “teaming up” with the best long-term partner for LBI, its employees and the community.

A large international building materials company appeared to be the most interested, and a reasonable fit, but after extensive due diligence, they lowered their offer while delaying the closing by 30 days.

This created an opportunity for The Belden Brick Company to accelerate due diligence, revise and receive board of director approval of an offer and issue an LOI in a matter of days. Belden submitted a commitment letter from their bank a few days later, ultimately closing the transaction 18 days from the LOI. Belden Brick is the largest family owned and operated brick manufacturer in the U.S., making the Company an ideal partner for LBI, whose own shareholder based includes second and third generation family members.

Matrix was able to negotiate a roughly $4.5mm discount with LBI’s bank, in order to shift proceeds to employee severance, miscellaneous expenses and ultimately to the shareholders.

• Client: O’Sullivan Films, Inc.
• Location: Winchester, VA
• Industry: Industrial Products
• Buyer/Investor: Konrad Hornschuch AG, a portfolio company of Barclays
• Close Date: March 2010

Situation
O’Sullivan Films, a leading producer of polymer and finishing film technologies, was approached by Konrad Hornschuch AG, a portfolio company of Barclays Private Equity, based in Weissbach, Germany. As well, another overseas suitor was formally pursuing the company.

In addition, there were substantial obstacles to overcome as a result of having three different shareholder groups with varying needs and interests, including the original seller (PolyOne Corp.), management, who would be continuing in their roles with the new owner, and third party investors.

Objective
After originally representing management in the 2006 acquisition of O’Sullivan Films from PolyOne, Matrix was again retained to represent O’Sullivan and offer our expertise to help structure and negotiate the transaction.

Solution
Matrix negotiated an extremely complex deal with a premium valuation based on normalized earnings.

This transaction was complicated by several factors, including reinvestment by the management team (and potential conflicts with the other shareholders who were not reinvesting), seller retained real property that was in the process of being sold, difficult environmental conditions, and complexities related to the buyer’s legal structure, which included more than six legal entities involved in the chain of ownership. Lastly, the acquiring company would be merged into the seller at closing further complicating the protection and security for future earn out payments.

• Client: Sharon Stairs
• Location: Akron, OH
• Industry: Industrial Products
• Buyer/Investor: Worthington Integrated Business Systems
• Close Date: June 2008

Situation
Matrix was retained by Alliance Holdings, Inc. to sell the Company in a process that would maximize purchase price.

Since investing in the Company, the CEO had consolidated the Company’s manufacturing facilities and successfully implemented several growth initiatives, increasing revenues by 220% in the four years leading up to its sale.

Objective
After owning the company for over nine years, the private equity group was ready to exit its investment in order to pursue several additional platform companies while simultaneously realizing a significant return on its capital.

Solution
Matrix identified and contacted private equity groups and strategic buyers and received an abundance of IOIs before inviting groups to management presentations.

Matrix successfully identified and negotiated a deal with a strategic buyer that aligned management’s interests going forward, closed within 45 days of signing a letter of intent, and exceeded the client’s value expectation, despite current industry concerns.

• Client: Riddleberger Brothers, Inc.
• Location: Mount Crawford, VA
• Industry: Building Products
• Buyer/Investor: Comfort Systems
• Close Date: February 2008

Situation
Riddleberger Brothers is the largest mechanical contractor in Virginia’s Shenandoah Valley. The Company provides engineering, installation and maintenance of mechanical systems in Central and Western Virginia and serves a diverse group of commercial and institutional clients.

Comfort Systems USA (NYSE: FIX), the nation’s largest mechanical systems installation and service provider, approached Riddleberger on an unsolicited basis to acquire the company.

Matrix had a long-term advisory relationship with the owner of Riddleberger, dating back to when Matrix advised the owner when he initially acquired Riddleberger ten years prior.

Objective
Matrix was hired to manage the transaction process with Comfort Systems, negotiate the terms and conditions of the deal, and to “keep the buyer honest” with the threat of an auction.

Solution
Matrix effectively streamlined the process by coordinating between the attorneys and accountants of both sides and by coordinating the diligence process.

By leveraging the threat of an auction process, Matrix was able to maximize the terms and consideration of the deal, while serving the dual role as a buffer between the Riddleberger and Comfort Systems management teams, who would be working closely together post close.

• Client: Rossi American Hardwoods/Hardwood Lumber Manufacturing, Inc.
• Location: Cromwell, CT
• Industry: Building Products
• Buyer/Investor: HIG Capital
• Close Date: October 2007

Situation
The owners of Rossi American Hardwoods and Hardwood Lumber Manufacturing, Inc. were seeking a Private Equity Fund to support a targeted consolidation strategy.

Due to leveraged balance sheets, working capital availability had become tight thereby restricting operating flexibility.

Objective
Identify PEG’s that would be willing to research the industry deeply in order to overcome what appeared to be less favorable characteristics, such as volatile pricing, commodity risk, seasonality and heavy capex requirements.

Solution
Matrix used its relationship with HIG Capital to avoid a broad, time-consuming process. Several initial face to face meetings were held to gauge preliminary interest, which was determined to be strong. An LOI was executed within 60 days.

Sellers ultimately experienced a liquidity event, management participated in the equity and significant availability was created to run the business. In addition, HIG and Fifth Street committed to providing additional capital for continued acquisitions.

• Client: Tri State Foam Products, Inc.
• Location: Martinsville, VA
• Industry: Building Products
• Buyer/Investor: Harbert Private Equity Fund II, LLC
• Close Date: December 2006

Situation
Tri State Foam Products, Inc., is a Martinsville, VA based manufacturer of expanded polystyrene foam with products ranging from protective packaging to building products applications.

Objective
Matrix was retained by Tri State’s CEO to assist the company in evaluating its strategic options, which ranged from growth by acquisition to finding a strong financial partner that would provide the Company’s share holders with a significant liquidity event.

Solution
Matrix reviewed Tri State’s options with the goal of finding a strategic or financial partner that would support the Company’s history of strong sales growth.

Matrix decided the Company and its shareholders would be best served by partnering with a larger buyer.

Matrix ran a broad process, contacting several buyers and receiving multiple Indications of Interest.

Harbert was ultimately chosen as Tri State’s preferred partner based on chemistry with management, strong valuation, and a similar vision for growing the company.

• Client: Ann Arbor Machine Co.
• Location: Chelsea, MI
• Industry: Industrial Products
• Buyer/Investor: Private Investment Company
• Close Date: December 2005

Situation
Ann Arbor Machine Company, a leading designer and manufacturer of customer made machine tools, with annual revenues of $66mm, had been successfully owned and operated as a privately-held business for over thirty years.

The founder, CEO and principal shareholder, Bob Betzig, after a fifty year career in the industry, was looking to retire.

Ann Arbor Machine was well positioned and out performing its industry, which was in the midst of a protracted downturn.

Objective
The Board sought a full liquidity event for all shareholders (in excess of 200) in a transaction that would position the company for continued growth.

Solution
Matrix identified and contacted many strategic and financial buyers in a process that included both domestic and international acquirers. Confidential memoranda were distributed to interested parties and several indications of interest were received.

After completing management presentations, the Board of Directors selected the Borman Family to complete the sale of the business.

• Client: Kadant Composites
• Location: Green Bay, WI
• Industry: Building Products
• Buyer/Investor: Liberty Diversified Industries
• Close Date: November 2005

Situation
Kadant Composites is a leading manufacturer of composite decking and roofing products under the GeoDeck brands, with national distribution and operations in Green Bay, WI and Bedford, MA. Kadant Composites reported approximately $20mm in revenue.

As a subsidiary of Kadant, Inc. (NYSE: KAI) Kadant Composites no longer fit the strategy of its parent company and the decision was made to divest the business. Complicating the divestiture, was a series of on-going product warranty claims, the lack of a CEO and softening financial performance.

Objective
Matrix assisted Kadant in reviewing strategic alternatives for the composite decking business, including a sale to potential strategic and financial buyers.

Solution
Matrix identified and contacted multiple potential strategic and financial buyers including distressed private equity investment funds.

Confidential information memoranda were distributed to several interested parties and indications of interest were received. Ultimately, two aggressive buyers pursued the acquisition.

After completing management presentations, Liberty Diversified Industries, a strategic acquirer with a strong interest to enter the composite decking business, was selected to complete a sale of the business.

• Client: Paddock Pools
• Location: Scottsdale, AZ
• Industry: Building Products
• Buyer/Investor: Lincolnshire Management, Inc.
• Close Date: April 2005