Otis Eastern Service


Branche
Industrie & Automobil
Abschluss
2014
Käufer / Investor / Target
Argonaut Private Equity
Mandat
Verkauf
Kurzbeschreibung

The majority owner of Otis Eastern, a NY-based, third generation, pipeline construction company had a long-term vision and specific objectives for this transaction that included: • Retain a significant equity stake. • Monetize the minority equity interest of his three siblings. • Recapitalize the company for future growth, without adding debt. • Create future leadership opportunities for his son. • Partner with an oil & gas investor who could achieve long-term growth objectives. The 26-month transaction required two marketing programs and faced major obstacles: • Owner dictated very restrictive requirements for potential investors. • Unfunded pension liability issues with 21 of 64 labor unions. • One customer accumulated $8MM in past due accounts receivables that had to be recovered through litigation. • Major financial restructuring was required. The deal was placed on hold for six months while all issues were resolved. Phase II marketing targeted family funds. The buyer, Argonaut Private Equity, a multi-billion dolar, well-respected, family fund, and a major, global, player in the industry, wanted to expand its natural gas portfolio. Both parties shared the same vision and values. Overall transaction value was $125MM. The buyer met all owner objectives; allowed the owner to retain a significant equity stake in the company, and remain as CEO.

 
 
Pressemitteilung
Link