Securities transactions conducted through StillPoint Capital, LLC, Tampa, FL
Standard-Knapp, Inc. Success Story:
Standard-Knapp, Inc., a leading manufacturer of packaging equipment, traces its roots back to 1890 and is one of the most recognized names in its industry.
The company changed hands many times before eventually being acquired by its employees in 1984. The two majority owners of the business were looking to transition to retirement, one at the conclusion of the sale and one under a transition plan of up to five years.
Since these two owners owned a significant percentage of the business, a stock buyback would likely have a negative impact on cash flow and borrowing from their bank would restrict capital for future investments in equipment and R & D.
Therefore, they decided to put the company up for sale – and engaged Osage Advisors to market the company and represent them throughout the sale process.
From our very first meetings, the majority owners made clear they did not want the business to be moved from its current location in Portland, CT. Providing the employees and fellow shareholders who helped build the business was just as, if not more important, than the overall price.
Osage Advisors’ first reached out to multiple strategic and private equity buyers in the U.S., Canada and Europe with the objective of presenting a variety of high-quality buyers. We wanted Standard-Knapp to be able to choose the best buyer for their business: in this case, a company that would keep the business in Portland.
Osage received significant interest and initial offers from several highly qualified strategic and private equity buyers that met our client’s price range. We reviewed these offers with our client and decided to invite a number to visit the facility and meet with the company’s management team.
During the meetings, it became apparent all but one of the prospective buyers was unwilling to commit to keeping the business in Connecticut long-term.
Enter EOL Packaging Experts. The company is a division of A+F Automation + Fördertechnik from Germany, and a portfolio company of Swiss investment firm, CGS Management AG.
EOL manufactures a similar product line to Standard-Knapp but focuses on different markets and lacked a presence in the U.S. The company made the strategic decision to acquire a U.S.-based business rather than open a new facility to gain a foothold in the U.S. market. In addition, their strategy included opening European markets for the company they acquired in America.
EOL’s offer, after negotiation with Osage Advisors, not only met Standard-Knapp’s price expectation but guaranteed the business would remain in Portland and included a significant capital improvement budget to invest in the Connecticut facility.
Throughout this deal and in all transactions, Osage Advisors’ commitment remains to our clients first. For Standard-Knapp, Osage delivered the best buyer at the overall best value including price, culture, legacy and in this case, protecting the jobs of the company.
* Securities transactions conducted through StillPoint Capital, LLC, Tampa, FL
