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
Founded in 1979, Interior Systems, Inc. (“ISI”) is a privately-owned, niche provider of design, project management, manufacturing, and installation services to the restaurant, education, hospitality, and other selected retail, commercial, and institutional markets. Industry leaders such as McDonald’s, Burger King, Applebee’s, Kohler, Ferguson, Target, and many others rely on ISI’s complete turnkey offering to create unique interiors that differentiate their commercial or retail position to the marketplace. Over the Company’s 35+ year history, ISI has delivered on its “Think. Create. Build.” tagline through the management of interior design projects around the globe for its clients.
Several years ago, Promontory Point Capital (“PPC”) was introduced to the owners of ISI to advise on the founder’s longer-term objectives involving an ownership transition. With an industry-leading position built through creative professionals, strong customer and channel relationships, and an overall focus on excellence, a critical aspect of PPC’s engagement involved the identification of potential strategic partners that would have a true appreciation for ISI’s core values.
After researching ISI’s commercial and institutional markets and identifying the key players growing within these sectors, PPC approached Chicago-based Elkay Manufacturing Co. (“Elkay”). While most known for its extensive line of stainless steel sinks and drinking fountains, American-owned Elkay has a growing presence in many of ISI’s traditional restaurant, retail, and other commercial markets. After several meetings, the two businesses realized that they shared a similar set of core values and that a number of strategic benefits would be achieved through a combined effort. Following preliminary discussions among the parties resulting in a signed Letter of Intent, Elkay closed on its acquisition of Interior Systems, Inc. during January of 2017. Read the Press Release
Since commencing operations in 1965, Vendura Industries has grown as a specialized designer and manufacturer of custom solid surface countertops and related products used in healthcare facilities and various other commercial markets. The Company’s propriety solid surface product line is composed of materials used in a variety of applications ideally suited for shower bases, shower walls, vanity tops, countertops, workstations, transaction countertops, and wall coverings, amongst others. Vendura’s product line is available in over 70 rich tones and colors and the Company offers custom color creation and matching services.
Promontory Point Capital was introduced to the President of Vendura Industries by his accounting firm given the business owner’s goals to transition away from the business. PPC was engaged during May of 2016 to design and execute an ownership transition plan consistent with the owner’s objectives which included keeping Vendura as an independent, Madison-Wisconsin based employer. After a full evaluation of various options, a transaction was consummated with the private capital firm of Stuck Investments during October of 2016. The relatively rapid transaction timeframe (of less than 6 months from the beginning of PPC’s engagement through the transaction closing date) reinforces the success of Promontory Point Capital’s results driven approach for achieving client objectives.
Steele Solutions, Inc. (“SSI”) is a preferred designer and manufacturer of engineered steel structures, including mezzanines, work and equipment platforms, towers, catwalks, and crossovers for material handling, storage, conveyor, equipment and machinery support, and other industrial and commercial uses. Formed in 1996 by three longtime industry experts, SSI has grown considerably over the past two decades gaining clients in all 50 states and around the globe. The Company services a growing list of blue chip clients from its manufacturing, design, and office facilities located in the greater metropolitan Milwaukee area.
Promontory Point Capital was introduced to the ownership group of Steele Solutions by the Company’s legal counsel. After several years of exponential growth, the Company’s senior leadership desired to explore strategic options that would address both ownership objectives while supporting the long-term success of the business. PPC’s engagement encompassed a confidential, targeted marketing process involving strategic parties and financial firms while SSI management continued to grow their business at a record pace. In May of 2016, PPC’s engagement with Steele Solutions culminated in the formation of a financial partnership between SSI and Chicago-based Merit Capital Partners.
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.
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