Consumer Retail

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G2 Capital Advisors (“G2”) announced today the formal launch of its fourth industry practice, Consumer Retail, synchronously with the appointment of Brian Cohen as Managing Director, Head of Consumer Retail. While this announcement officially acknowledges the newly-formed practice, the decision to invest in the firms’ growth across this industry is rooted in its’ deep history serving clients within the Consumer Retail space over the last ten years. Of note, G2 has completed 30+ engagements to date supporting Consumer and Retail clients such as The Paper Store, Chia Pet, Bee’s Wrap, Directed, Sound United, Arbre Farms, Slade Gorton, Yandy.com, etc.

Cohen has over 25 years of client-facing experience and a deep knowledge of the consumer and retail space; he is a seasoned and recognized business and marketing executive, visionary, and change agent. Brian brings a dedicated expertise in enterprise-level operations and leadership, M&A, marketing, digital transformation, and eCommerce with a proven track record as a hands-on entrepreneur, business builder, operator, growth driver, and team leader. With a focus on executing strategic M&A transactions, planning & execution, and capital raises for emerging brands, Brian will collaborate with G2’s senior leadership to expand the firms’ existing footprint in the space.

“Adding a leader and professional of Brian’s quality and accomplishments is a key milestone for our Firm. His background is uniquely suited for this role given his diverse blend of consumer and retail experience, and a career track record of driving strategic growth initiatives for both the clients he’s served and companies he’s led, including M&A, advisory and restructuring initiatives. We are looking forward to harnessing his drive, ingenuity, and collaboration as we grow and expand our sector expertise across the consumer and retail universe,” said Matt Konkle, President of G2 Capital Advisors.

Leveraging the full breadth of G2’s capabilities across buy-side advisory, sell-side advisory, capital markets, and restructuring, the Consumer Retail team will utilize its expertise to help clients fuel long-term strategic growth. This announcement builds on G2’s tremendous momentum over the past year. Brian’s addition to G2’s highly qualified and experienced team will naturally extend the Firm’s reputation in the Consumer space, leveraging the strength of the G2 brand with more activity and resources in the associated verticals.

“I’m thrilled to join G2 at such an important moment in the company’s history.” Said Cohen.  “As a former client, I’ve witnessed first-hand the value, expertise, and partnership that this organization provides, and I am energized to extend that same partnership forward through the launch of the Consumer Retail practice.”

“We live in a fast-moving and ever-changing world. Shifting consumer motivations and behaviors are driving a whole new set of opportunities and challenges for retailers, service providers, and manufacturers alike.” Cohen continued, “As a result, organizations are facing new opportunities to achieve meaningful growth and maximize value.  As a former CEO faced with this very dynamic, G2 helped me navigate these challenges and identify the best path forward for operation. It is for these reasons that now is the perfect time to join G2 and formally launch the Consumer Retail practice to help guide and support others in the same capacity.”

Before G2 Capital Advisors, Brian was the CEO of Match Marketing Group, a private equity-owned North American consumer and retail-focused marketing services organization with 500+ employees across the US and Canada. Brian led the financial turnaround to profitability and stability while simultaneously modernizing Match’s data-driven go-to-market approach, new business philosophies, and marketplace position. He facilitated the sale of Match during the Covid-19 pandemic for a favorable return for all.

Brian will be based out of G2’s Boston office and report directly to Matt Konkle, President of G2 Capital Advisors.

MEDIA RELATIONS:

Jennifer Johnson, Vice President, Marketing T: 978.204.8050 E: [email protected]

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G2 Capital Advisors announced today that Matt Konkle has been appointed President of the firm. Formerly Senior Managing Director and Head of Industry Teams at G2, Matt is an accomplished C-Level executive and operator with 25 years of experience in the Technology and E-commerce services industry. Matt possesses a deep background leading complex advisory transactions in the middle market. In his role as President, Matt will lead the day-to-day aspects of G2 as well as provide oversight to the firm’s business sectors in developing and executing against its short and long-term strategies.

“With the explosive and sustained growth of the firm, it is the right moment for us to continue to invest in our organizational leadership. Matt has the vision, leadership, and expertise to support the changing and growing needs of our organization as G2 continues to scale and drive towards our long-term strategic objectives,” says Founder & Chief Executive Officer Jeffrey Unger.  “Matt’s unique understanding of our clients from entrepreneurs to institutional investors and their respective requirements makes him the ideal leader to complement our management team. We are making this organizational change to support the next stage of our growth, amidst significant firm-wide momentum as we charge through the second half of this year. Matt will be working very closely with our entire leadership team to leverage its collective experience, market and industry knowledge and operational expertise to position G2 to achieve, if not exceed, the objectives set for growth.”

“I am honored and excited to take on the role as President of the G2 team. It’s a privilege to be a part of a tremendously strong company poised for continued growth. We have an extremely talented, diverse and accomplished team who are deeply committed to achieving success for our clients. Now is the time to focus on how G2 can evolve holistically to support overall firm growth.” says Konkle. “This is a pivotal moment for G2 to build on the impressive momentum we have accomplished, the collaborative relationships we have with our clients, and the organizational culture and go-to-market strategy established by our CEO and founder, Jeffrey Unger. I have worked beside Jeffrey for the last six years and personally understand the significance of his contributions. His dedicated leadership and passion provide an example for us all, and I look forward to partnering together as we leverage the knowledge and expertise across the organization to unlock G2’s growth potential.”

Before joining G2, Matt was President of Fifth Gear, a tech-enabled services company and provider of end-to-end e-commerce solutions, including order management, fulfillment, customer care, and freight management. Matt led Fifth Gear from inception, including developing the company’s product and service offerings and go-to-market strategy. Matt partnered with G2 on buy-side, financial advisory, and sell-side mandates as part of Fifth Gear’s growth strategy. In 2014, Matt and G2 completed a strategic sale of the business to Speed Commerce (NASDAQ: SPDC). As the Chief Operating Officer of Speed Commerce, Matt was responsible for a team of over 1,500 employees serving over 30 retail and consumer brands. In his previous role at G2 as Head of Industry Teams, Matt was focused on maximizing the value of firm’s industry-specific, operations-centric approach in the middle market. Through that work, Matt has developed a deep understanding of the support required for a high-growth organization like G2. He has had a direct impact on the firm’s agile approach to accommodating the evolving needs of its clients. 

Matt holds a Bachelor of Science in Business Administration from the Indiana University Kelley School of Business and a Master’s in Business Administration from the University of Chicago Booth School of Business.

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CLIENT

Worldwide Produce (“Worldwide”) is a leading distributor of high-quality fresh fruits, vegetables, dairy products, and specialty foods to local restaurants, national chains, hotels, country clubs, entertainment venues, and catering companies in the Southern California region. Operating from state-of-the-art climate-controlled facilities in Los Angeles, California and Las Vegas, Nevada, Worldwide stocks thousands of items needed to efficiently operate a foodservice business. Worldwide also carries hard-to-find specialty items, paper goods, and cleaning supplies.

SITUATION

Long-term industry leader, Worldwide, joined forces with financial partner, Sole Source Capital (“Sole Source”) in 2019. Since being founded in 1989, Worldwide established its reputation as a premium produce provider to the Foodservice industry and experienced strong organic growth. Following its partnership with Sole Source, Worldwide’s management team were looking to further enhance their growth through a targeted M&A strategy to deepen their service and product offerings, acquire new customers, and expand geographically into new markets.    

ENGAGEMENT

G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to Worldwide leading a bespoke buy-side effort focused on identifying and engaging with companies that have a strong market presence and operations within the produce distribution markets.

OUTCOME

G2’s mandate with Worldwide led to the acquisition of Vision Produce Company (“Vision”) which added an enhanced geographic presence, additional sales channels, deep grower relationships, and a strong talent pool. Together, Worldwide and Vision will leverage a larger geographic footprint, impressive food safety records, and expertise to deliver the highest quality of goods to their customer base.

Todd Ferguson, CEO of Worldwide Produce, commented “I’m thrilled that Vision Produce has joined the Worldwide family. The team at Vision brings tremendous experience sourcing and importing quality produce, and expertly serving their blue-chip customer base. With a location in Phoenix as well as Los Angeles, Vision’s footprint allows us to continue to expand our reach and serve customers in this key growth market.”

“We are excited for the Worldwide team on its closing of Vision Produce as this acquisition will further enhance their capabilities. Both companies are highly reputable players with long histories of success, and we are glad to have played a role in their new partnership,” said Andrew Keleher, Vice President at G2 Capital Advisors.

About Worldwide Produce:

Worldwide Produce is a leading distributor of fresh fruits, vegetables, dairy products, and specialty foods to independent and chain restaurants across the Southern California region. The company operates out of two distribution facilities located in Los Angeles, CA and Las Vegas, NV and stocks roughly 6,000 SKUs.  Worldwide Produce was founded by current management in 1989 and has rapidly grown its revenue base due to its high-quality produce, superior service levels, strong sales staff, and high-quality 

leadership.

About Vision Produce Company: 
Established in 1980 with facilities in both Los Angeles and Phoenix, Vision Produce is a produce importer and distributor selling primarily to retail, wholesale and foodservice distribution customers in the Western United States. The Company offers a variety of fresh produce types including mangoes, limes, melons, chili peppers and more, which are sourced primarily from Mexico and South America. Additionally, Vision Produce owns Southwest Truck Brokers, a Phoenix-based freight and logistics broker primarily servicing the Western United States.

About Sole Source Capital

Founded in 2016 by David Fredston, Sole Source Capital is a private equity firm that thematically invests in fragmented, high-growth industrial subsectors. Sole Source seeks founder-owned businesses or corporate carve-outs that will benefit from the team’s operating and M&A capabilities. The Firm has a strong operating heritage that enables it to execute a buy and build strategy with significant downside protection. The Firm is headquartered in Dallas, Texas with offices in Santa Monica, California. For more information, please visit www.solesourcecapital.com or contact [email protected]

About G2 Capital Advisors

G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:

Peter Reed, Director, Buy-side: T: 617.918.7972 E: [email protected]

Andrew Keleher, Vice President: T: 860.748.6480 E: [email protected]

Matt Ball, Senior Associate: T: 617.918.7933: [email protected]

Aaron Levy, Senior Analyst: T: 857.250.2767 E: [email protected]

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CLIENT:
Arbre Group Holding Corporation (“AGH”) is a family-owned business that began in 2009 following the acquisition of the assets of Arbre Farms Corporation (“AFC”) and Willow Cold Storage Corporation (“WCS”, together with AFC, “the Company”). AGH has roots dating back to 1948 when Francis Marks founded a fresh produce company. Through its wholly owned subsidiaries, including Paris Foods Corporation, Holli-Pac Inc. and Sun Mark Foods, AGH offers processing, re-packaging, distribution, and storage for a variety of frozen fruit and vegetable products.

SITUATION:
AGH was formed through a combination of frozen fruit and vegetable processing, re-packaging, cold storage, and distribution businesses across Central and Eastern U.S. G2 Capital Advisors, LLC (“G2”) was initially engaged by the Board of Directors of AGH to evaluate strategic alternatives for the Company in service of helping them realize their long-term vision, including a current state analysis of the business, assessment of potential growth opportunities and development of financial and operational alternatives. Following thoughtful consideration of the strategic alternatives, the Board of Directors engaged G2 to pursue partnership opportunities for its processing assets, allowing AGH to allocate resources to its core distribution businesses.

ENGAGEMENT:
G2 served as the exclusive financial advisor to AGH, leading an expedited, hands on process to evaluate partnership opportunities for AFC and WCS. G2 focused on identifying potential partners for the Company with deep operational expertise in food processing and who understand the value of the facility and assembled assets.

“The AGH team trusted G2 to run the process to support its long-term vision for its companies. It was a pleasure working with the AGH team to deliver the optimal outcome for AFC and WCS. We are excited about the future and look forward to watching the continued success of the Company with a highly capable partner in OPC.” said Don Van der Wiel, Managing Director for G2.

OUTCOME:
After evaluating various partnership options, AGH determined a carve out sale of the Company ultimately presented the best path forward for AFC and WCS. The transaction was successfully closed on April 30th, 2021 through a sale of AFC and WCS to Oregon Potato Company (“OPC”), and assigned to OPC Arbre Farms, LLC. The acquisition strengthens OPC’s position as a leader in the vegetable processing and distribution space to better serve its customers across North America.

“This outcome provides AFC and WCS with an opportunity to leverage OPC’s footprint, expertise, and relationships to accelerate growth and extend its reach in the frozen vegetable market. We thank G2 Capital Advisors for guiding us through this complex and detailed process. G2 acted as an extension of our team providing valued support and trusted advice throughout.” said Dylan Marks, President & CEO of AGH.

About Arbre Group Holdings:
Founded in 2009 with history dating back to the late 1940’s, AGH through its subsidiaries specializes in globally sourced frozen fruit and vegetable wholesale distribution, frozen produce importing, frozen vegetable processing, frozen produce re-packing, and cold storage services to the retail grocery, foodservice, and frozen food manufacturing companies throughout North America.

About G2 Capital Advisors:
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:
Ben Wright, COO: E: [email protected]

Don Van der Wiel, Managing Director: E: [email protected]

Zach Talotta, Senior Associate: E: [email protected]

Kevin Lamb, Senior Analyst: E: [email protected]

Andrew Keleher, Vice President: E: [email protected]

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CLIENT:
Match Marketing Group (“Match” or the “Company”) provides a suite of marketing services focused on driving consumer engagement, brand recognition and sales conversion. The Company is comprised of two business segments Public Label, a creative agency focused on helping brands align with consumer motivations and cultural movements and Match Retail, an agency focused on helping brands become retail ready. Specific service offerings across the two business segments include creative, strategy insights and data analytics, social and digital media, shopper marketing, experiential marketing, merchandising and retail solutions. Match’s client roster includes numerous Fortune 500 Companies, spanning consumer packaged goods, automotive, insurance, service businesses, technology, electronics and retailers. Public Label label is headquartered in Boulder, Colorado and Match Retail is located in Toronto, ON.

SITUATION:
Match Marketing Group was developed through a roll up of a collection of marketing agencies prior to Southfield’s acquisition in 2018. When the COVID pandemic hit in early 2020, the marketing and creative agency industry was among many industries negatively impacted. Global stay at home mandates reduced the demand for marketing support to brick and mortar retailers, and mass gatherings and large audience based events were put on hold. Further, the Board of Directors had hired new leadership in Q3’19 to facilitate a strategic re-imagination and modernization of Match’s core offerings through the investment in, and acquisition of, new tools, companies and capabilities.

ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) was initially engaged by by the Board of Directors of Match to evaluate strategic alternatives for the Company in service of helping them realize their long term vision, including a current state analysis of the business, assessment of potential growth opportunities and development of capital alternatives. Following thoughtful consideration of the strategic alternatives by all stakeholders, Match’s Board of Directors engaged G2 to pursue a recapitalization of the business with a new source of debt and equity capital under a focusedmarket process.

OUTCOME:
The transaction was successfully executed on December 23, 2020 through a sale of Public Label and Match Retail to Innovatus Capital Partners, LLC, an independent investment adviser and portfolio management firm, with a private debt and diversified asset based strategy. This acquisition comes on the heals of Innovatus’ purchase of VSA Partners, and in preparation for future acquisitions as they seek to develop a global marketing agency. Both Public Label and Match Retail are experiencing positive momentum since the acquisition, and combined with Innovatus’ vision and capital are poised for strong growth.

Brian Cohen, Chief Executive Officer of Public Label and Match Retail said, “Match had a complicated history that, in turn, made any transaction a difficult one to realize. Though we had a focused vision pre-COVID, the path to realization was less clear once the pandemic disrupted our foundations in experiential and retail. G2’s pragmatic approach, experience in my shoes, and deep subject matter expertise were critical to advising us through a complex and dynamic situation. The outcome was exactly what we were looking for, and the process, partner identification and overall understanding of how to get us there exceeded our expectations from beginning to end. I couldn’t be happier with the outcome and the dedicated support and partnership G2 provided.”

“We are honored to have had the opportunity to work with the Board of Directors of Match Marketing Group”, said Matt Konkle, G2’s Senior Managing Director and Head of Industry Teams. “Brian and his team have built a great business that will continue to prosper under the new partnership with Innovatus Capital Partners. We are excited to see what the future brings for the Company.”

About Public Label
Public Label is a North American creative marketing agency. Made up of an inspired group of enthusiasts from all corners of the marketing world, Public Label’s mission is to help brands recognize and align with consumer motivations and cultural movements. Public Label identifies cultural trends, taps into what people already believe in, and builds stronger brand affinity and loyalty. This results in action that drives conversion, ultimately leading to brand growth. For more information, visit www.publiclabelagency.com.

About Match Retail
Match Retail is a leading sales, merchandising and branded retail agency working for major brands across North America. Inspired by an endless desire to help transform brands so they can be retail ready, Match Retail works with tier one clients to drive conversion in traditional shopping environments through enhanced customer experiences. The agency prides itself on top-notch people and best-in-class training to produce unparalleled execution that it measures with pinpoint accuracy. Learn more at www.matchretail.com.

About G2 Capital Advisors:
G2 Capital Advisors provides M&A, capital markets, and restructuring advisory services to the middle market. G2 offers integrated, multi-product, and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. G2 aspires to be the trusted advisor of choice to its clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:
Matt Konkle, Sr. Managing Director, Head of Industry Teams: T: 317.371.6608 E: [email protected]

Jeff Varsalone, Managing Director T: 516.410.6215 E: [email protected]

Pat Reinhardt, Managing Director: T: 508.287.7065 E: [email protected]

Chris Casteleyn, Director: T: 415.531.3138 E: [email protected]

Matt Powers, Associate: T : 940.395.3714 E: [email protected]

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CLIENT

Koffee Kup Bakery (“KKB” or the “Company”) is a manufacturer of baked goods, including bread, donuts, and English muffins, delivering to an established base of high-volume customers in the Northeast and Mid-Atlantic regions. The Company distributes its products to over 4,500 delivery points supported by a 135-route distribution network.

SITUATION

Koffee Kup Bakery, founded in 1940, experienced tremendous growth in 2013 through the acquisition of Vermont Bread Company. The Company is in the process of repositioning its business to capitalize on a compelling platform of established brands, private label partnerships, long-term relationships with blue-chip retailers, and a vast distribution network. The Company sought a financial partner to accelerate its next phase of growth and profitability. KKB is one of largest employers in the state of Vermont, with 500 employees across its three bakery facilities: Brattleboro, VT; Burlington, VT; and North Grosvenor Dale, CT.

ENGAGEMENT

G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to KKB, leading a targeted and efficient sell-side effort focused on finding the optimal partner to support the Company’s long-term growth strategy. G2 and the Company have had a long-term relationship prior to the transaction process including G2 providing financial advisory and liquidity management support.

OUTCOME

Koffee Kup Bakery successfully completed a transaction with American Industrial Acquisition Corporation (“AIAC”) on April 1, 2021. AIAC has significant experience partnering with manufacturing and distribution businesses and is well positioned to continue the expansion of KKB, capitalizing on operational improvements and driving growth momentum forward.

“Prior to the transaction, G2 had been serving as a financial advisor to KKB. Their in-depth knowledge of the company’s needs and shareholders’ criteria allowed G2 to find the best fit for a new investor. Once our shareholders chose the right investor to partner with, G2 put all their efforts towards completing the deal in a timely manner. In the end, the work done by G2 maintained the criteria set out in the LOI and facilitated the entry of a new investor with deep ties in Vermont industry. The completion of this transaction will certainly drive the development of KKB in the interest of all its employees as well as financial partners and suppliers,” said Hubert Aubery, owner of KUPCO

“The success of this transaction is a fantastic example of working with the current majority shareholder, KUPCO, who is committed to their employees. The owners and management team at KKB understood that in order to take their company to the next level, they needed a partner who would not only provide financial support, but operational expertise at the executive level. With AIAC’s commitment to not only providing immediate capital infusions but enriched credit facilities, together KKB & AIAC will uncover substantial operational improvements and ultimately maximize the growth potential of the Company,” said Pat Reinhardt, Managing Director of G2.

About Koffee Kup Bakery:

KKB is a leading, VT-based manufacturer and distributor of branded baked goods. The Company manufactures 325 bread, bun, English muffin, and donut SKUs, which it delivers to over 4,500 delivery points through its Company-operated distribution network. The Company sells its leading brands throughout the Northeast and boasts a diverse and tenured base of over 1,000 customers.

About American Industrial Acquisition Company:

Founded in 1996, American Industrial Acquisition Corporation is an investment firm, based in New York, New York. The firm seeks to invest in the manufacturing, aerospace, automotive, truck, rail, appliance, power generation, mining, oil and gas, packaging, pulp and paper, medical equipment and pharmaceutical sectors.

About G2 Capital Advisors

G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:

Pat Reinhardt, Managing Director: T: 508.287.7065 E: [email protected]

Michael Williams, Director, Industrials & Manufacturing: T: 917.523.2164 E: [email protected]

Matthew Ball, Associate: T: 978.914.4421 E: [email protected]

Will Luetmer, Associate: T: 857.449.0236 E: [email protected]

Evan Carlson, Senior Analyst: T: 775.445.0677 E: [email protected]

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CLIENT
Bee’s Wrap LLC (“Bee’s Wrap” or the “Company”) is a leading producer of sustainable food wraps that serve as a natural alternative to plastic wrap. The Company distributes its products through 3,000+ retail locations across the U.S. and ecommerce channels and reaches over 40 countries across the world. As a certified B-Corp, the Bee’s Wrap team is committed to using their work, and the best manufacturing practices, to support the planet and better the lives of their employees, families, and local and global communities.
SITUATION
Bee’s Wrap was founded in 2012 by Sarah Kaeck while seeking a way to remove plastic from her kitchen in favor of a more sustainable solution for food storage. Over the last eight years, the Company has achieved significant growth and Sarah was seeking a partner that could leverage Bee’s Wrap’s successful track record and lead the Company through its next stage of growth.
ENGAGEMENT
G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to Bee’s Wrap leading a targeted effort focused on finding the optimal partner that would maintain the culture and commitment to driving social change and continue building on the Bee’s Wrap legacy.
“Sarah entrusted G2 to advise her in a most important transition and transaction. It was our great honor to work with her and the entire Bee’s Wrap management team to deliver an optimal outcome for all. We are very excited for Bee’s Wrap and for what the future holds with a partner who values the mission and culture of this unique Vermont-based company,” said Pat Reinhardt, Managing Director for G2 Capital Advisors.
“It was a real privilege working with Sarah and the Bee’s Wrap team. Bee’s Wrap is quickly becoming an iconic brand in the sustainable packaging industry, with products that are truly essential in any deep green focused consumer kitchen. We are excited about the new partnership, and look forward to watching the continued success of the company and the accelerating adoption of these sustainable solutions,” said Mike Williams, Director for G2 Capital Advisors.
OUTCOME
Bee’s Wrap successfully completed a transaction on February 4, 2021 with a private investor. The buyer has significant experience partnering with niche consumer products businesses and is well positioned to continue expanding through established channels and capitalize on Bee’s Wrap’s first mover advantage.
“Bee’s Wrap has grown exponentially since I founded the business in 2012, and the acquisition of our company brings resources that will even further grow the national and international recognition of our unique solution to the problem of single use plastics. In facilitating this acquisition, G2 made it possible for us to find a partner that would scale the Company while also firmly upholding our mission, values, and vision for Bee’s Wrap. As a value based Company it was essential for us to find the perfect partner and G2 made this happen. They were a pleasure to work with during this process, providing valuable support and expertise,” said Sarah Kaeck, Founder of Bee’s Wrap.
About Bee’s Wrap (www.beeswrap.com):
Bee’s Wrap is a leading alternative to plastic wrap. From its headquarters in Middlebury, Vermont, Bee’s Wrap creates bees wax wraps—sold online and in stores around the world—that provide a versatile and durable solution for sustainable food storage.

About G2 Capital Advisors (www.g2cap.com):
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:
Pat Reinhardt, Managing Director: T: 508.287.7065 E: [email protected]
Michael Williams: Director, Industrials & Manufacturing: T: 917-523-2164 E: [email protected]
Andrew Keleher, Vice President: T: 860-748-6480 E: [email protected]
Tess Sheidy, Associate T: 248-767-1283 E: [email protected]
Kevin Lamb, Senior Analyst T: 508-282-6262 E: [email protected]

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CLIENT
A casual family-focused seafood restaurant chain with approximately 30 locations in the Southeast U.S. (the “Company”).

SITUATION

As sales came to a screeching halt in March 2020 due to the impacts of the global COVID-19 pandemic, our client faced a severe liquidity crisis losing approximately 95% of its sales. By the end of March, the Company was operating 11 of its stores on a take–out only basis and was in default of its senior secured debt. The Company was forecasting to run out of cash within 90 days with liquidation of the business imminent.

ENGAGEMENT

In connection with a forbearance agreement with its lenders, the board of directors of the Company retained G2 to provide expertise in quickly finding a solution that would save the business. Jeffrey T. Varsalone, a Managing Director at G2, was appointed Chief Restructuring Officer (“CRO”) and through the CRO, G2 assisted the board in actively navigating complex stakeholder dynamics during a time when market instability was at an all-time high due to the continued pandemic. G2 developed and executed liquidity management tactics to maximize runway for a potential restructuring transaction and assessed strategic options for the Company and its stakeholders. With a focus on maximizing value for creditors and preserving jobs, G2 provided the board with restructuring expertise in negotiating a consensual resolution with the Company’s lenders and facilitating a restructuring transaction that preserved the going concern.

OUTCOME

G2 implemented a tailored, expedited restructuring transaction process that resulted in the sale of the senior debt and the subsequent consummation of a credit bid going concern asset sale transaction in June 2020. “The lightning fast execution of this restructuring mandate maximized value for the Company’s lenders and provided recovery for junior creditors”, said Jeffrey T. Varsalone, the Company’s Chief Restructuring Officer. “The transaction provided an ongoing customer for trade vendors and an ongoing tenant for landlords at a time when retail vacancies are sky rocketing”, Varsalone continued. “Most importantly G2 takes great pride in being able to assist the board in saving over 500 jobs at a time when the annualized unemployment rate was at an all-time high”, Varsalone concluded.

About G2 Capital Advisors
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

Securities offered through Hollister Associates, LLC, Member FINRA & SIPC.
G2 Capital Advisors, LLC and Hollister Associates, LLC are separate and unaffiliated entities.

CONTACTS ON THIS DEAL:

Jeffrey Varsalone, Managing Director, Restructuring: T: 516.410.6215 E: [email protected]

Matt Powers: Associate, Restructuring: T: 940.395.3714
E: [email protected]

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CLIENT
At its inception more than 55 years ago, the original vision of The Paper Store (“TPS” or the “Company”) was to serve as a local retailer offering newspapers, magazines, greeting cards and school supplies. Since then, The Paper Store has expanded beyond its original vision and has grown organically from a “mom-and-pop” shop to a regionally renowned specialty retailer. Today, The Paper Store is one of the leading specialty gift chains in the Northeast with 86 locations in 7 states.

SITUATION

TPS had experienced a significant decline in store traffic and related consumer spending, as well as numerous operational challenges as a result of the COVID-19 pandemic, especially on account of actions taken in response to the public health crisis. Mandated store closures significantly contributed to missed sales targets, unsold inventory, and depressed profit margins. The Company could no longer cover its pre-bankruptcy debt service and was facing an impending liquidity crisis given working capital requirements leading in to the holiday season. Prior to filing, TPS pursued several strategic alternatives to address the liquidity need and balance sheet challenges but was not able to reach consensus across the interested parties.

ENGAGEMENT

TPS engaged G2 Capital Advisors, LLC (“G2”) as its restructuring advisor in June 2020, following the liquidity and operational challenges to examine strategic alternatives and stabilize operations. Following an inability to reach an out-of-court solution with the key stakeholders, TPS expanded G2’s role by appointing Don Van der Wiel as Chief Restructuring Officer (“CRO”). The Company subsequently filed for Chapter 11 bankruptcy to facilitate a going concern sale of the Company. Through the CRO role, G2 became the chief fiduciary tasked with creating sufficient runway to preserve going concern value and maximizing potential recovery for all stakeholders. Through the CRO role, G2 actively navigated complex stakeholder dynamics, during a time when market instability was at an all-time high due to the continued pandemic. G2 developed and executed liquidity management tactics to maximize strategic options for the Company, as well as managed all transactional and bankruptcy proceeding timelines. With a long-term focus on maximizing value, G2 supported TPS’s sale process, leading to efficient and expeditious transaction execution.

Tom Anderson, President & CEO of The Paper Store said, “G2 was a true partner for The Paper Store as we navigated the highly disruptive impacts of Covid 19 across our business. The G2 team, with its operational and financial advisory capabilities, quickly understood our Company and situation, developed a set of strategic alternatives, and then assisted us in executing the strategy, resulting in a stabilization of day-to-day operations and the long term survival of the Company.”

OUTCOME

G2 provided day-to-day liquidity and process management support throughout the bankruptcy proceedings, including leading a tailored transaction process resulting in the signing of an asset purchase agreement in August 2020 and an eventual going concern sale of TPS on September 1, 2020 under Section 363 of the Bankruptcy Code for $22MM in cash consideration, plus the assumption of certain liabilities.The highly efficient court case process took 49 days from the petition filing date to the closing of the transaction.

Throughout the engagement and culminating with the successful transaction, G2 was able to assist the company in preserving nearly 2,000 jobs across the TPS platform. The strategic execution of the engagement also created significant value for junior creditors in terms of assumed liabilities.

“We are very proud of G2’s contributions to help TPS navigate through the complex challenges presented by the COVID-19 pandemic. The blend of our operational turnaround and transactional experience proved invaluable in allowing us to support the unique requirements of this project in an overall tough retail landscape.” – said Jeffrey Unger, CEO of G2 Capital Advisors.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. served as the Company’s bankruptcy counsel and SSG Capital Advisors, LLC served as investment banker for the transaction.

About The Paper Store:

The Paper Store, LLC, based in Acton, Massachusetts, is a leading specialty gift retailer with 86 stores located in the northeastern United States. Since its inception, the Company’s mission has been to help their customers find unique gifts to celebrate all of life’s occasions from humorous to heartfelt. The Company also believes in maintaining strong, local ties to the community thru various charitable endeavors. For more information, please visit https://www.thepaperstore.com.

About G2 Capital Advisors

G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors. For more information, please visit www.g2cap.com

Securities offered through Hollister Associates, LLC. Member FINRA, SIPC. G2 Capital Advisors, LLC and Hollister Associates, LLC are separate and unaffiliated entities.

G2 Capital Advisors CONTACTS ON THIS Transaction:

Jeffrey Unger, CEO:
E: [email protected]

Don Van der Wiel, Managing Director, Restructuring:
E: [email protected]

Konstantin A. Danilov: Vice President, Restructuring:
E: [email protected]

Matt Powers: Associate, Restructuring:
E: [email protected]

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CLIENT

Joseph Enterprises, Inc. (“JEI”) and Joseph Pedott Advertising and Marketing, Inc. (“JPAM”) are integrated consumer products and marketing companies which design, market and distribute novelty, home and garden products through drug, mass, home, hardware and direct retail channels throughout the U.S., Canada and Europe. JEI is best known for the development of Chia Pet® and The Clapper® into consumer icons, achieved through highly effective marketing and using widely recognized licenses from movies, television shows and pop culture. Americans of all generations can sing the “Ch Ch Ch Chia” and “Clap On, Clap Off” slogans which we have grown to love. JPAM is the marketing engine which produces and airs television commercials throughout the U.S. and Canada for JEI and other third-party products.

SITUATION

Joseph Pedott founded the organization as an advertising agency more than 65 years ago while still in college. Through hard work, dedication and perseverance, he built a platform which specializes in marketing and selling consumer products primarily through the mass merchandise retail channel. After a long and storied career selling more than 25 million Chia Pets, 7 million Clappers and making the Garden Weasel a top selling product in Europe, he hired G2 Capital Advisors (“G2”) to find a partner who would embrace his legacy and maintain the Company’s culture he spent his professional life building.

ENGAGEMENT

G2 served as the exclusive sell-side advisor to JEI / JPAM, responsible for running a robust, hands-on sale process, which ultimately resulted in a sale to NECA.

“I am thrilled to be able to transition the company I have spent my whole life building to Joel Weinshanker, CEO of NECA. I know he is going to preserve the nature of what makes Chia Pet® and The Clapper® so special and unique, while at the same time providing new ideas to refresh the brands,” said Joseph Pedott, Founder and President of JEI / JPAM.

OUTCOME

The transaction was successfully executed through a sale to NECA, a leading creator and global distributor of licensed consumer products based on some of the world’s most recognized movies, video games, comic books, and pop culture.

“It’s not every day that brands as strong and well known as Chia Pet® and The Clapper® are for sale. I saw a clear opportunity to leverage JEI/JPAM’s high-caliber team and proven performance combined with NECA’s expertise in licensing third party property and highly talented product designers to develop products and sales channels while maintaining the existing mass merchandise retail model,” said Joel Weinshanker, CEO of NECA. “I enjoyed getting to know Joseph Pedott’s life story and am honored to continue his legacy and ensure his DNA remains front and center of the organization.”

“It was our duty as advisors to make certain Pedott’s legacy would be honored and the unique portfolio of iconic consumer products were valued. Through the process it became clear that NECA was the right buyer and we feel honored to have played a role in the successful outcome of helping Pedott transition the business and retire after more than 65 years of hard work. We are excited to witness the teams execute on their plan to take Chia Pet® and The Clapper® into the next generation” said G2 Vice President, Christopher Casteleyn, based out of San Francisco.