Industrials & Manufacturing

Image

G2 Capital Advisors is pleased to present its Industrials & Manufacturing industry update for Q3 2021, providing commentary and analysis on M&A and market trends within the Industrials & Manufacturing sectors.  We hope this report finds you and your families safe and healthy, we encourage you to contact us directly if you would like to discuss our perspective on the current market environment, trends, or our relevant industry experience.

Image

CLIENT
Founded in 1971, The Granite Group Wholesalers, LLC (“The Granite Group” or “the Company”), serves New England residential and commercial contractors, providing exceptional service and products to plumbing, heating, cooling, water, and propane markets. Headquartered in Concord, NH, the Company’s best-in-class e-commerce and 45+ branch network is operated by expertly trained staff that offer an industry-leading customer experience. The Company serves a diverse mix of contractors and fuel dealers with a deeply ingrained, people-first culture, positioning the Company as one of the top building product distributors in the Northeast.

SITUATION
The Granite Group has long been one of the leading family-owned businesses in the Northeast. In the past few years, the Company has embarked on a strategic, thoughtful expansion across New England and within its e-commerce platform, increasing density in key markets and expanding its presence through organic branch openings and acquisitions. A meticulous approach to product line expansion has ensured strategic alignment with the Company’s customers and differentiated product knowledge. With its sustained growth, the family identified further opportunities to fast-track their vision with the right strategic growth partner.

ENGAGEMENT
G2 has served as a long-term strategic advisor to The Granite Group and as the exclusive financial advisor for this process, was responsible for leading a highly tailored and efficient transaction process for the family and Company.

OUTCOME
The transaction was successfully executed through a growth investment by BBH Capital Partners (“BBHCP”) in the equity interests of The Granite Group. The family is retaining ownership, and Bill Condron, President and CEO of The Granite Group, will continue to lead the Company, using additional resources and expertise from BBHCP to execute on a shared vision of growth.

“G2 has been our trusted advisor and partner for many years, supporting the execution of family’s and the Company’s long-term vision. Throughout this process and the duration of our relationship, G2 has been a key strategic advisor, aligning with our people-first culture, and helping us define and execute the best possible outcome. G2’s deep knowledge of our business and industry, and vision for the potential of our platform was critical to the success of this process, along with their unique ability to guide the family through a major life event,” said Bill Condron, CEO of The Granite Group.

“The exciting partnership between The Granite Group and BBHCP will supercharge the robust growth of their platform and allow them to execute their strategic vision on an accelerated timeline. We are thrilled to have had the opportunity to lead our client through to a successful outcome,” said Jeffrey Unger, CEO of G2. “Our relationship with The Granite Group is a terrific example of our strategy of acting as an industry focused trusted advisor to innovative, high growth companies.” 

The transaction will support the Company’s growth initiatives of expanding organic footprint and executing strategic acquisitions. 

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. (www.g2cap.com

CONTACTS ON THIS DEAL:

Jeffrey Unger, Chairman & CEO: T: 617.918.7929 E[email protected]


Victoria Arrigoni, Managing Director, Industrials & Manufacturing: T: 619.742.6441 E[email protected]

Image

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.

Image

CLIENT:
Systems Control (the “Company”) is a best-in-class designer and manufacturer of customized, highly engineered control panels and electrical substation equipment enclosures for the transmission and distribution industry across North America. The Company is recognized by electric utility providers for supplying high-quality, critical components to ensure reliable operations of the electrical grid. Systems Control is headquartered in Iron Mountain, Michigan and employs over 750 people.

SITUATION:
Systems Control established aggressive growth objectives and an acquisition strategy to identify manufacturing expertise in the market that would enhance and expand utility customer relationships, broaden its geographic presence, and maintain an aligned business philosophy. With fresh capital through its financial partnership with Comvest Partners (“Comvest”) in 2018, Systems was well positioned to accelerate its growth through a disciplined acquisition strategy and explore expansion opportunities.

ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) was engaged by Systems Control as the exclusive buy-side advisor to identify, source and engage with acquisition targets that fit with the Company’s end-market profile.

OUTCOME:
The definitive agreement was announced on June 21st, 2021. The acquisition provides additional capabilities and geographic scale to Systems Control’s operations.

The team at Keystone is a strong cultural fit with the Systems Control family. Both companies have similar values and approaches to providing engineering and manufacturing services. Furthermore, the additional investment in Keystone will accelerate growth, while unlocking core capabilities in a high growth market.

“We are really excited about the opportunity to partner with the Keystone team” said Brad Lebouef, CEO of Systems Control. “Keystone has a reputation for high quality products, is a great cultural fit all around, and will immediately expand our production capabilities.”
“It was a pleasure working with Systems Control and the Comvest team to help identify opportunities, build relationships, and ultimately execute a highly strategic transaction with Keystone. We look forward to watching the ongoing success of Systems as they continue to expand the platform within the electrical enclosures and systems industries,” said Michael Williams, Director at G2 Capital Advisors.

About Systems Control
Systems Control specializes in engineering and manufacturing of equipment enclosures and control and relay panels used in electrical transmission and distribution substations across North America.

About Comvest Partners
Comvest Partners is a private investment firm providing equity and debt to middle-market companies across the U.S. Since its founding in 2000, Comvest has invested over $6.1 billion. Today, Comvest Partners has approximately $5.0 billion of assets under management. Through extensive capital resources and broad network of industry relationships, Comvest Partners offers companies financial sponsorship, critical strategic and operational support, and business development assistance.

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:
Michael Williams: Director, Industrials & Manufacturing: T: 917.523.2164 E: [email protected]
Andrew Keleher: Vice President: T: 617.918.7982 E: [email protected]
Matt Ball: Associate: T: 617.918.7933 E: [email protected]
Aaron Levy: Senior Analyst: T: 857.250.2767 E: [email protected]g2cap.com

Image

CLIENT

Founded in 1986, Action Target, Inc. (“Action Target” or the “Company”), a portfolio company of Dubin Clark & Company, Inc. (“Dubin Clark”), is the leading provider of equipment and services for live-fire training facilities. With the most technologically advanced and customized live-fire solutions, Action Target is the provider of choice for law enforcement, military, international, and commercial customers.

SITUATION

Action Target successfully implemented a growth strategy started in 2019 to expand and professionalize service offerings for live-fire training facilities. With the reorganization of the business into two distinct and focused business units, Range Projects and After-Market Services, Action Target was seeking to refinance its existing debt to lower the cost of capital and expand capacity to fund growth initiatives.

ENGAGEMENT

G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to the Company. G2’s Capital Markets team leveraged deep capital markets expertise and precise positioning of the Company’s growth strategy to generate a competitive process that ultimately yielded a flexible capital solution capable of supporting Action Target’s strategy going forward.

OUTCOME

The new senior secured credit facility consists of an Asset Based Revolver and Term Loan Facility (i.e., unitranche) provided by Emigrant Bank.

Mike Birch, Chief Executive Officer, commented, “Despite a turbulent year stemming from the COVID-19 pandemic, we continued to successfully expand our After-Market Services unit while also continuing to drive strong performance in our core Range Products business across all channels. We hired G2 to find a new financial partner who could support our growth objectives for the future. G2 took the time to understand all facets of our business. They helped us articulate a compelling and detailed investment opportunity for potential lenders, which we believe was an important part of the success of this transaction.

Tom Caracciolo, Managing Partner at Dubin Clark, added, “We also were impressed with G2’s ability to access a broad range of lenders, which allowed us to simultaneously evaluate multiple structures for the Company. G2 seamlessly coordinated an efficient competitive process and found the right partner for the Company in Emigrant Bank.”

“We are proud to have partnered with Action Target to execute a refinancing that will provide the fuel for the next stage of their growth. Management put in a significant amount of dedication and focus to execute a strategic shift during a pandemic. It is great to see this hard work pay off as the Company now has the capital structure in place to support initiatives to drive higher growth and profitability,” said Howard Lanser, Managing Director and Head of Capital Markets at G2.

About Action Target

Action Target is a business that has transformed the concept of shooting range installations. Founded in 1986, the company started by creating a pneumatic turning target system for the Provo Police Department training curriculum. From there, the Company continued to design, develop, and implement new products and services for the $600 million live-fire training facility market serving the U.S. commercial, U.S. military, U.S. law enforcement, and international segments. The Company has redefined the customer experience in live-fire training facilities by introducing groundbreaking technology-driven solutions that generate a modern feel and maximize engagement. For additional information, visit https://actiontarget.com/.

About Dubin Clark

Established in 1984, Dubin Clark is a private equity firm that focuses on strategic and operational value creation. Dubin Clark seeks to acquire interest in branded consumer and industrial niche manufacturers and specialty services businesses with unique business models and a strong growth trajectory. The Firm is based in Boston, Massachusetts, with an additional office in Jacksonville Beach, Florida. For additional information, visit https://dubinclark.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.

CONTACTS ON THIS DEAL:

Howard Lanser, Managing Director, Head of Capital Markets
C: 312.961.7227 E: [email protected]

Cullen Moore, Senior Analyst, Capital Markets
C: 774.571.7926 E: [email protected]

Ben Wright, Chief Operating Officer
C: 619.972.3586 E: [email protected]

Image

G2 Capital Advisors is pleased to present its Industrials & Manufacturing industry updates for Q1 2021, providing commentary and analysis on M&A and market trends within the sectors. We hope these reports find you and your families safe and healthy, and encourage you to contact us directly if you would like to discuss our perspective on the current market environment, trends, or our relevant industry experience.

Image

It’s now over a year since the start of the pandemic, and, despite a stepped-up vaccination program, and a loosening of business restrictions, a robust recovery is still a ways off. Although COVID-impacted earnings are recovering for many businesses, uncertainty remains as to what the new normal will look like, and when it will be reached.

After a slow M&A market in the spring and summer of 2020, activity has picked up through early 2021. Many have delayed M&A in the hopes of maximizing the value of the businesses they’ve built. Nevertheless, there are ways for sellers to achieve their goals, even in the midst of uncertainty.

Image

G2 Capital Advisors is pleased to present its Industrials & Manufacturing industry updates for Q4 2020, providing commentary and analysis on M&A and market trends within the sectors. We hope these reports find you and your families safe and healthy, and encourage you to contact us directly if you would like to discuss our perspective on the current market environment, trends, or our relevant industry experience.

Image

CLIENT

Williams Industrial Services Group Inc. (OTCQX: WLMS) (“Williams” or the “Company”), is a leading provider of construction, maintenance, project, and support services to the energy, power, and industrial end-markets.

SITUATION

Given its strong financial outlook and market opportunity, Williams raised approximately $80 million of total new debt commitments to refinance existing debt, lower interest expense, enhance liquidity, and fund growth opportunities.

ENGAGEMENT

G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to the Company, providing combined Capital Markets capabilities and industry expertise from its Industrials & Manufacturing (“I&M”) practice through a multi-stage engagement. G2’s I&M Financial Advisory team supported the Company’s finance and accounting workstreams through detailed working capital and valuation analyses while helping the Company in its strategic planning through financial forecast modeling. Leveraging this work, G2’s Capital Markets team ran a highly competitive process and identified financial partners who were able to provide Williams a flexible capital structure that expands with growth needs.

OUTCOME

The new facilities consist of a $30 million Revolving Credit Facility provided by PNC, a $35 million Senior Secured Term Loan Facility and a $15 million Delayed Draw Term Loan (together, the “Term Loan Facility”), provided by Energy Impact Partners (“EIP”, as Agent to the Term Loan Facility), CION Investment Corporation, and CrowdOut Capital.

Randy Lay, Chief Financial Officer, commented, “We are executing well on our strategic plan during a tumultuous year, expanding our core business while also growing and diversifying revenue through new customers and markets. We made significant progress in 2019 and 2020, evidenced by approximately $457.9 million in total backlog at September 30, 2020, with approximately $166.7 million of backlog expected to convert to revenue in the next 12 months. We hired G2 to construct a flexible capital structure solution with the necessary funding needed to deliver on our growing backlog and the diversification and growth objectives of our strategic plan. G2 was instrumental in driving competitive terms, and coordinating and facilitating the process with the lenders through the closing of the Transaction.”

“We are proud to have partnered with the Company through this important operational and financial inflection point. The Company’s new lenders are highly supportive of the business strategy and are providing the flexible capital and liquidity needed to drive future growth,” said Howard Lanser, Head of Capital Markets at G2.

Under the terms of the new facilities, the Revolver interest rate is LIBOR plus 2.25%, and the Term Loan Facility interest rate is LIBOR plus 9.00%, stepping down to LIBOR plus 8.50% when the Total Leverage ratio is lower than 2.50x. The minimum LIBOR floor on both facilities is 1.00%. In addition, the loan facilities mature in December 2025, extending the maturity by three years in comparison to existing facilities. Additional details regarding the transaction can be found in the Form 8-K filed by the Company with the SEC today.

About Williams

Williams Industrial Services Group has been safely helping plant owners and operators enhance asset value for more than 50 years. The Company provides a broad range of construction, maintenance and modification, and support services to customers in energy and industrial end markets. Williams’ mission is to be the preferred provider of construction, maintenance, and specialty services through commitment to superior safety performance, focus on innovation, and dedication to delivering unsurpassed value to its customers. Additional information about Williams can be found on its website: www.wisgrp.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.

CONTACTS ON THIS DEAL:

Howard Lanser, Managing Director, Head of Capital Markets
C: 312.961.7227 E: [email protected]

Victoria Arrigoni, Managing Director, Industrials & Manufacturing Practice Lead
C: 619.742.6441 E: [email protected]

Louise Roussel, Director, Capital Markets
C: 917.402.5618 E: [email protected]

Connor Grogan, Senior Associate
C: 860.707.5754 E: [email protected]

Image

G2 Capital Advisors is pleased to present its Industrials & Manufacturing industry updates for Q3 2020, providing commentary and analysis on M&A and market trends within the sectors. We hope these reports find you and your families safe and healthy, and encourage you to contact us directly if you would like to discuss our perspective on the current market environment, trends, or our relevant industry experience.