Situation
Founded in 1898 by local entrepreneur Louis Goldish, American Producers Supply Co., Inc. (“American Producers”) operates as a value-added distributor of industrial and construction supplies across 13 branch locations housed across six states.

Family-owned through the entirety of its history, Chris Brunton was the Company’s sole shareholder at time of sale. In 2010, Mr. Brunton onboarded Joe Wesel to help lead American Producers’ growth and expansion into new end markets and locations.

Objective
Matrix was engaged by Mr. Brunton to help achieve a personal liquidity event, while providing American Producers the opportunity to source capital as it looked to complete several growth initiatives, namely the acquisition of branches in new geographic territories.

Solution
Matrix marketed the business to a broad universe of strategic and financial investors and successfully negotiated the purchase of the business with a private equity group with previous industry experience, at a value containing the fully marketed adjusted EBITDA figure.

Conviction in the new partnership, and Company growth opportunities that will come through it, led both Mr. Brunton and Mr. Wesel to roll equity into the new enterprise.

Matrix recommended a sell-side quality-of-earnings analysis be performed by a third-party accounting firm, which provided surety around American Producers’ historical earnings base and accounting processes, and ultimately assisted with the buyer’s diligence processes.