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]
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]
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]
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.
G2 is pleased to announce that our client, Slade Gorton & Co., Inc, a leading U.S.-based seafood distributor, has entered a strategic partnership with Samherji, a leading seafood company based in Iceland, through a minority recapitalization.
“Samherji has made a significant investment in Slade Gorton, and is glad to have the opportunity to partner with a company with such a long standing legacy in the seafood industry,” Gustaf Baldvinsson, head of sales at Samherji, said in a release issued by Slade Gorton
Slade Gorton, a third generation importer and distributor, will remain majority owned and controlled by Gorton family. Slade Gorton said the deal will expand the distribution of Samherji products in the U.S. market. It will also “support the continued expansion of Slade Gorton’s value added line of business”, it said.
“This partnership with Samherji is an exciting development in the evolution of Slade Gorton,” said Slade Gorton President & CEO, Kim Gorton, in a statement.
G2 Capital Advisors served as the exclusive advisor to Slade Gorton.
About Slade Gorton
Slade Gorton is one of America’s largest importers, distributors and manufacturers of fresh, frozen and premium value-added seafood products. Founded in 1928, Slade Gorton is a privately held, multi-generational family business committed to feeding America with wholesome, nutritious and sustainable seafood.
About Samherji
Operating in a system of resource management where the aim is sustainable fishing, Samherji, founded in 1983, is a leading seafood company in Iceland. Outside Iceland, Samherji has or takes part in operations in Germany, Poland, U.K., the Faroe Islands, Africa, Canada, France and Spain. Samherji is involved in all stages of the value chain from fishing, farming and processing to export and sales. The strong position of Samherji together with knowledge, experience and strong quota ownership in all species ensures that the company can minimize risks and ensure stability.
About G2 Capital Advisors
G2 Capital Advisors provides investment banking, financing 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.
CLIENT
A leading U.S.-based importer, distributor and manufacturer of premium food products (the “Company”). The Company has a long history in the food industry and their constant focus on quality, service and innovation has helped grow their customer base for generations.
SITUATION
The Company sought financing to improve the terms of their existing banking relationship and to provide increased working capital to support their growing business.
ENGAGEMENT
G2 Capital Advisors served as the exclusive financial advisor to the Company to facilitate the financing. Due to G2 Capital Advisors’s relationships among potential lenders, the transaction generated significant interest from a diverse mix of credit institutions and banks.
OUTCOME
The transaction was successfully executed in Q2 2014 through a $45 million asset-based debt financing led by Wells Fargo. Ultimately, the Company was able to lower their borrowing cost and increase their availability while providing greater flexibility to continue to provide excellent service to their customers.
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]