For virtually every business owner, a vast majority of their personal net worth
Promontory Point Capital is an investment banking boutique with a focus on privately-held businesses located in the Midwest. Our firm is engaged by both younger and mature companies in a variety of industries that are seeking capital or transaction advisory expertise.
For companies seeking capital to fund organic growth, acquisition, debt refinancing, or shareholder liquidity needs, PPC provides resources and expertise to achieve your financing objectives. For owners with liquidity objectives, PPC is engaged by owners and shareholders seeking full liquidity from the sale of their business or partial liquidity from the sale of a business segment or from the execution of an owner recapitalization. PPC also provides transaction advisory services to companies considering growth by acquisition, merger, or joint venture.
For virtually every business owner, a vast majority of their personal net worth
Whether your Company is trying to grow externally via merger, acquisition, joint
The principals of Promontory Point Capital bring efficiency and experience to
Successful CEO’s and CFO’s understand while cash flow is the life blood of
Since 1947, Pieper Electric, Inc. has been a leading Midwest electrical contractor providing high-quality, technically advanced building, equipment, and electrical construction services. Promontory Point Capital was engaged by Pieper to explore growth and acquisition alternatives for the Company’s Automation and Controls Group which incorporates application development, design, programming, control panel fabrication, quality assurance, and customer training into a complete client solution for a variety of industries including waste and water treatment, mining, heavy industry manufacturing, food and beverage, pharmaceutical, correctional institutions, and data acquisition.
PPC advised Pieper with the development of a specific investment thesis focused on long-term growth that led to the strategic acquisition of an automation and controls business. After establishing the target acquisition criteria, PPC designed an approach to identify acquisition candidates aligned with Pieper’s strategic objectives which ultimately resulted in the Company acquiring HiTech Enterprises of Green Bay, Wisconsin. The acquisition of HiTech achieved a variety of objectives for Pieper including the addition of new capabilities and services, customers and industry segments, and engineering talent.
In addition to the investment thesis development and search activities, PPC directed the entire acquisition process, including the negotiation of economic terms and conditions of the transaction as well as management of all due diligence activities, which culminated in the closing of the transaction in June of 2016.
American Metal Technologies is a leading Tier 1 and Tier 2 automotive, diesel, and heavy industrial supplier of engineering-centered, precision machined components. As a result of its most recent acquisition of a high pressure aluminum die casting operation, the Company has begun to win new Tier 1 and Tier 2 programs that allow AMT to fully integrate its acquired capabilities. The Company’s expanding business opportunities quickly required additional funding to support new capital expenditures and growing working capital needs.
Since first establishing a relationship with AMT in 2009, PPC has served as the Company’s principal financial advisor on several occasions involving both financial and strategic initiatives. The Company once again engaged PPC in 2015 to explore and evaluate multiple funding alternatives that would allow AMT to expand its existing capital structure by leveraging the available borrowing capacity of its real estate & equipment assets. The Company’s new multi-bank lending facilities, closed by PPC in February of 2016, provide AMT with increased borrowing capacity and added flexibility to keep pace with its growth opportunities and expanded customer programs.
Arandell Corporation provides high-quality premedia, catalog printing, mailing, distribution, list management, database marketing, mobile solutions, logistics, and consulting services to its partners in the retail and direct mail catalog markets. Having served as the Company’s financial advisor since 2013, Arandell again sought out Promontory Point Capital’s assistance during 2015 to help design and execute a multi-year strategic plan for the business. As a result of this process, several strategic initiatives were identified that could be achieved through targeted investments in new equipment, automation, and technology. Further, PPC’s advisory efforts identified several areas of the business that could be strengthened through complementary acquisitions.
To address the Company’s longer-term funding needs that would arise from future capital investments and/or acquisitions, PPC advised Arandell on funding alternatives that better utilized its balance sheet including the exploration of a real estate sale-leaseback involving the Company’s headquarters in suburban Milwaukee. The sale-leaseback transaction, consummated with W.P. Carey, provides an infusion of cash to support future growth initiatives, increases balance sheet flexibility, and lowers the Company’s weighted-average cost of capital. After closing the financing arrangements at the end of of 2015, Arandell is well-positioned to capitalize on future growth opportunities during 2016 and beyond.
Orchid International is a world class manufacturer and supplier of engineered metal products, automotive assemblies, and electric motor technology. The Company operates manufacturing facilities in Mount Juliet, Tennessee and Monroe, Wisconsin and serves as a direct Tier 1 supplier to a variety of Fortune 500 companies including General Motors, Ford, Phillips, Caterpillar, and General Electric. As a direct result of Orchid’s deep in-house engineering, tool building, and tool repairing capabilities, the Company secured record new levels of purchase orders in 2015. This strong level of new business resulted in the Company needing additional funding beyond their existing asset-based lending facility. PPC was engaged by Orchid International to explore growth financing options and, through an investment arranged through a Private Family Office, the Company was able to address their increased funding needs and also strengthen their capital structure.
Founded in 1982, Tapco Circuit Supply is a Chicago-based national distributor of products and services to the U.S. printed circuit board industry. The Company has worldwide supplier relationships encompassing lamination products, process chemistries, and drill room supplies required by U.S. printed circuit board manufactures that look to Tapco for their diverse product set and technical expertise. Promontory Point Capital was first introduced to Tapco Circuit Supply in 2010 and, over a successful five year relationship, PPC assisted the Company and family ownership group in achieving a variety of objectives involving securing financing, designing and implementing profit improvement plans, evaluating potential acquisition opportunities, as well as other strategic initiatives. Given the attractive M&A market experienced during 2015, the ownership group decided to explore strategic options for two of Tapco’s business segments. Tapco’s drill room and lamination products businesses were viewed by several international companies as attractive targets which would provide direct access to the U.S. printed circuit board industry. After evaluating a variety of strategic alternatives, Tapco divested of these two business segments to Taiwanese-based TCT Group. The sale transaction was completed during July of 2015.
Since being formed in 1961, family-owned and operated Soderholm Wholesale Foods has been a leading food distributor serving grocery and food service clients throughout the upper Midwest. The Madison, Wisconsin-based company serves as a direct store distributor (DSD) to more than 500 food retailers supplying niche products within the bakery, dairy, deli, frozen food, meat, produce, and seafood categories. Food retailers look to Soderholm to provide access to growing specialty products including natural, organic, and gluten free items that are increasingly desired by consumers.
After successfully building the business over several decades, the Soderholm family came to the conclusion that it was an opportune time to divest of their ownership interest. Promontory Point Capital was introduced to the Soderholm family by their accounting firm and long-time business advisor, and shortly thereafter, PPC was engaged to explore strategic alternatives for the business. PPC’s recommended engagement strategy included marketing the business to a mix of both strategic and financial buyers, allowing the family to benefit from today’s aggressive M&A market. Ultimately a transaction with Michigan-based Lipari Foods, who sought out Soderholm’s strong Midwest market presence and solid relationships with specialty food products companies, was the best fit for the owner’s objectives. Soderholm Wholesale Foods successfully closed on the sale of their business in December, 2014.
PROMONTORY POINT CAPITAL | 322 East Michigan Street, Suite 500 | Milwaukee, Wisconsin 53202 | Office: (414) 225-0484Copyright © Promontory Point Capital