Industrials & Manufacturing

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.

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]

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.

G2 Capital Advisors is pleased to present its Industrials & Manufacturing industry updates for Q2 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.

G2 is pleased to present a Q&A session our very own Victoria Arrigoni moderated recently with Jim Gillespie, the CEO and co-founder of | GrayMatter | a leading Industrial Intelligence and Digital Transformation company. We had the opportunity of speaking with Mr. Gillespie to discuss key trends in digitization and technology adoption in manufacturing and middle market companies, including how COVID-19 has affected those trends. Mr. Gillespie has over 30 years of experience curating technology and guiding the digital process for manufacturing companies. GrayMatter enables assets and people to become smarter, more visible, and more productive. Through co-innovating with companies in manufacturing, water/wastewater, power, and oil and gas markets, GrayMatter delivers custom-fit operational technology programs and solutions.

G2 Capital Advisors is pleased to present its Industrials & Manufacturing industry updates for Q1 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.

CLIENT:
Copperweld Bimetallics LLC (“Copperweld” or the “Company”) is the leading supplier of bimetallic wiring products and the only domestic producer of copper clad steel (“CCS”) and copper clad aluminum (“CCA”) wire. Copperweld’s CCS and CCA products are well-positioned based on product material characteristics (e.g., weight, durability, theft deterrence, etc.) and cost advantages to take market share from traditional copper wiring products.

SITUATION:
Under previous ownership, the Company had encountered challenges with integration of its manufacturing assets and with its distributor sales channels. As a result, in October 2016, ownership of Copperweld was transferred to certain affiliates and managed funds of THL Credit Advisors LLC (“THL Credit”). Under THL Credit’s ownership, G2 Capital Advisors, LLC (“G2”) was engaged to develop and execute on the Company’s revitalization plan, as well as replace the existing advisor working with the Company. The Company engaged G2 to provide interim resources including an interim Chief Financial Offer and General Manager, who executed on the operational plan. During G2’s involvement, Copperweld’s management team focused efforts on realigning the growth strategy towards expansion into new markets and strengthening the Company’s presence supplying in existing industries with a refreshed go to market strategy. Since that transition, Copperweld management sourced meaningful new business in critical high growth end-market opportunities with the Company now supplying CCS and CCA into a diverse set of end-markets, as well as continuing to drive development of innovative solutions into high growth opportunities.

ENGAGEMENT:
After successfully revitalizing Copperweld, G2 served as the exclusive sell-side advisor to Copperweld, leading a robust, highly tailored process, which ultimately resulted in identifying Kinderhook Industries, LLC, (“Kinderhook”) as the ideal equity partner for the business as it continues to drive growth.

OUTCOME:
The transaction was successfully completed through a sale to Kinderhook. Details and terms of the acquisition were not disclosed.

“Copperweld has proven itself as the leading bimetallics wire manufacturer and is well-positioned to capitalize on the attractive opportunities derived from recent expansion efforts thanks to the Company’s proprietary manufacturing and differentiated products,” said Tim Durkin, former Chairman of Copperweld and Sr. Managing Director at G2. “In partnership with G2, the Company has evolved through a period of revitalization and is now poised for significant growth as an investment platform for Kinderhook.”

Craig York, CEO of Copperweld, shared, “We thank G2 Capital Advisors for working alongside us for the past 2+ years. The partnership with G2 and THL Credit was essential to our long-term growth strategy. As a result, Copperweld is well positioned to continue to serve our long-standing client base and expand our footprint in dynamic and growing end markets. Under Kinderhook’s new ownership, we look forward to continuing our tradition of product innovation and providing high value to our customers.”

“We’re very proud of the improvements that occurred at Copperweld while we were in control of the Company,” said Chris Flynn, CEO of THL Credit. “G2 was instrumental in helping to manage the business at a critical inflection point and find a proper buyer when the Company was in a position to be sold.”

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:
Victoria Arrigoni, Managing Director, Practice Leader Industrials & Manufacturing: T: 617.918.7934 E: [email protected]
Tim Durkin, Senior Managing Director: T: 404.861.6005 E: [email protected]
Mike Boyer, Senior Advisor: T: 717.380.4684 E: [email protected]
Connor Grogan, Senior Associate: T: 617.918.7973 E: [email protected]
Tom Gujda, Principal: T: 551.998.6900 E: [email protected]

Q3 2019 Industrials & Manufacturing Market Update
G2 Capital Advisors is pleased to present its Industrials & Manufacturing industry update for Q3 2019, providing commentary and analysis on M&A and market trends within the Industrials & Manufacturing sectors. We hope you find this report helpful 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.

Strong long term corporate strategy is also excellent late cycle strategy. In this issue, we explore how late cycle trends and mindsets, for both investors and operators alike, can distract from pursing long term strategies. Late cycles produce ample opportunity for transition, development and long term sustainable growth. We walk through a series of examples where different players within the automotive value chain are seeking long term sustainable opportunity within the vertical. There are a range of options these companies are taking, including a combination of organic investment, focused acquisitions and strategic discipline. In many respects, a late economic cycle is an excellent time to revisit, assess and execute on long-term strategic initiatives as many market participants are often backward looking or focused elsewhere.

It is important to remember that there is a multitude of opportunities for the growth of your organization no matter the cycle stage. Seeking the guidance of industry expert financial advisors and former industry operators can help uncover unique and creative paths to achieve a company’s strategic long-term goals in any stage of a cycle.

Thought Leadership Series
Volume 1, Issue No. 1

G2 Capital Advisors is pleased to introduce the first issue of its’ recurring Thought Leadership Series. This issue features a piece written by Michael Williams, Director of Industrials & Manufacturing at G2 Capital Advisors who discusses recent implications of China Tariffs on the American Workforce.

CLIENT
Founded in 2007, United Steel Supply, LLC (“United Steel Supply” or “the Company”), based in Austin, TX, is the market-leading distributor of painted Galvalume® steel coils to the independent steel roll former industry. The Company’s Galvalume® and other flat rolled steel product is used to meet the growing demand for metal roofing and siding applications in residential, commercial, industrial, and agricultural end markets. The Company has served as a strategic partner to hundreds of customers across the United States, providing them with high-quality product and reliable inventory availability and best-in-class customer service.

The Company is headquartered in Austin, TX with distribution centers strategically located in Mississippi, Indiana, Arkansas, and Oregon.

SITUATION
United Steel Supply’s founders created the market leading distribution platform through innovative solutions and a focus on putting customers first. The Company’s revolutionary model allowed for shorter lead times from suppliers, as well as just-in-time services and guaranteed standard inventory availability for its customers. This transformative approach to working with its suppliers and customers, further supports and fosters growth of the industry they serve. After completing two acquisitions at the beginning of 2018, the founders identified further opportunity to accelerate their vision and growth with the right strategic partnership.

ENGAGEMENT
G2 has served as a long-term strategic advisor to United Steel Supply and as the exclusive financial advisor for this process, responsible for running a highly tailored, strategic, and efficient recapitalization transaction process for the Company.

OUTCOME
The transaction was successfully executed through a sale of United Steel Supply’s majority interest to Steel Dynamics, Inc. (NASDAQ/GS: STLD, “Steel Dynamics”), with an option to sell the remaining interest to Steel Dynamics in the future. Steel Dynamics purchased 75 percent of the equity interests of United Steel Supply for $134 million, comprised of cash consideration of $93 million and the assumption of $41 million in apportioned net indebtedness. Additionally, Steel Dynamics has an option to purchase the remaining 25 percent equity interests of United Steel Supply in the future.

Bret Curtis, President of United Steel Supply, shared, “G2 has been our trusted advisory partner for many years, supporting the execution of United Steel Supply’s long-term vision, as well as leading the exploration of several of the Company’s strategic initiatives. Throughout the course of this most recent process and the duration of our relationship, G2 has helped us to successfully navigate options and lead us through to the best possible outcome. Their knowledge of our business, our industry and the future potential of our platform was critical to the success of the sale process, which was highly customized and required significant hands on work specific to the partnership and transaction ultimately completed with Steel Dynamics.”

“The partnership between United Steel Supply and Steel Dynamics is strategically compelling for both organizations. We feel privileged to have had the opportunity to play an active role in the successful outcome of this transaction,” said Jeffrey Unger, CEO of G2. “Our relationship with United Steel Supply is a terrific example of our strategy of acting as an industry focused trusted advisor and partnering with best-in-class founders and management teams.”

The transaction will support the Company’s growth initiatives of expanding service and product offerings.