| Sellers
>>Duni
Corporation
Large multinational, multi-product line
company in the food services and packaging market divested
of the US operation of one of it's product lines to focus
more on European markets. When you position profit and loss
responsibility at the division level it enables deals like
this one. Duni still owns the deSter unit's operations in
the Americas. Employee morale
and acceptance of this transition is key to continued growth
in the sector.
>>Intergraph
Corporation
This is a not a traditional deal for the private
equity companies and represents a management challenge moving
forward. A large part of the due diligence will be based
on future product potential and future licensing fees for
intellectual property... difficult challenges for a technology
company much less a private equity company. If the buyout
is successful, this company may be repositioned in a three
to five year timeframe and sold to a bigger technology company
or broken up to realize the value in the diversity of its
product portfolio.
>>Roofing
Services International, Inc.
Regional roofing contractor based in San Diego,
CA. Solid International buyer with substantial experience
and resources will use RSI as a new regional base for the
southwest US market and to expand into other construction
materials and distribution channels. This is a very positive
vote of confidence for RSI management and a great opportuity
for the Americas Products and Distribution Division of CRH.
>>Vail
Banks, Inc.
With both the founder and the President /
CEO reaching retirement age and the number of potential
acquisitions limited, this sale of a regional Colorado banking
resources makes sense for the founder and eliminates a strong
competitor for US Bancorp. Since US Bancorp was already
established in the Colorado market, its due diligence of
WestStar Bank should be straightforward. With less than
$1B in assets under management this is not a substantial
deal for US Bancorp. For example US Bancorp Asset Management,
Inc. has combined assets under management of $124B as of
calendar year end 2005.
>>Superior
Renewable Energy, Inc.
The main geographic areas of focus for wind
energy included five states: South Dakota, New Mexico, Texas,
California and Hawaii. The technical expertise of the sellers,
along with the resources and the financial expertise of
the buyers, are very complementary. The cultural fit will
be very important as the seller does offer a deep bench
and the principals in the seller's organization are key
to making this acquisition work.
>>Houno
AS
This Danish company was founded by a mechanical
engineer and he is the sole owner. Usually, this makes due
diligence and the transaction easier to complete but the
operation trickier to transition. The owner needs to be
committed to running the a part of the Danish company for
a reasonable period of time. At the same time, the buyer
needs to have representatives on site to learn the nuances
of development and manufacturing. The Houno AS sales capability
was limited to Sweden, Denmark and the UK. Middleby should
be able to quickly broaden the distribution of the product
line quickly to out geographies to capture the benefits
of the transaction.
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