CLIENT
EIG provides a comprehensive range of consultative services, including project management, engineering, systems analysis and planning, field services and specialty services to traditional utility companies, project developers, regulatory and government agencies, energy companies, financial organizations, and a wide range of other entities within the energy industry.
EIG was founded in 2000 and employs a growing team of more than 70 industry professionals.
SITUATION
EIG’s founders, John Marczewski and Charles “Chuck” Wilson, were interested in seeking a recapitalization of the business with the right partner who valued EIG’s deep team and had the ability to expand upon EIG’s established leadership in the energy sector.
ENGAGEMENT
G2 served as the exclusive financial advisor to EIG, responsible for running an efficient sale process. John Marczewski and Chuck Wilson explained, “We’re excited to join the EN Engineering team, and we are confident that our collective expertise and resources will lead to increased opportunities for growth and enable us to continue to be a leader in the energy industry. We appreciate the guidance of G2 throughout the process and helping us find a great partner in EN Engineering.”
OUTCOME
The transaction was successfully executed through a sale to EN Engineering, a portfolio company of General Atlantic. EN Engineering provides comprehensive and dependable engineering, consulting, and automation services to utilities, pipeline companies, and industrial customers. The company operates in key energy and manufacturing regions across the United States. Ben Newman, Vice President, Corporate Development at EN Engineering agreed, “EN Engineering has long been a leader in the gas-related markets, and we have also developed a burgeoning electrical presence in recent years. As technical experts in electric power, EIG significantly expands our capabilities and adds new categories of highly valuable services for our clients.”
“We are pleased to be a part of such a successful outcome for the entire EIG team. Partnering with EN Engineering will allow both EIG and EN Engineering to better serve their longstanding customers as a true leader in the energy sector,” said G2 Managing Director, Matt Konkle.
CLIENT
Atlantic Packaging Products, Ltd., (“Atlantic”) is one of the largest privately-owned integrated packaging company in Canada. Founded in 1945, Atlantic is a market leader in the manufacturing of containerboard and corrugated packaging products. It provides customers with a total packaging solution through its recycled paper mills, corrugated packaging manufacturing, and supply chain management services.
SITUATION
Atlantic is focused on executing a strategic shift into the U.S. to diversify from its reliance on low-growth markets in Canada. It is seeking to expand its foothold in the U.S. market by forming strategic partnerships with independent owner-operators of corrugator and converter plants. As an enabler of growth, Atlantic provides its partners with financial and operational support while preserving their independence.
ENGAGEMENT
G2 Capital Advisors (“G2”) was engaged by Atlantic in 2012 to develop a U.S. market penetration strategy. Over the years since then, G2 supported Atlantic’s leadership team in the sourcing and executing of partnership opportunities across the Midwest and Mid-Atlantic regions. G2 provided Atlantic with end-to-end corporate development services, from strategy development to transaction execution.
OUTCOME
In partnership with G2, Atlantic has successfully executed five (5) strategic partnerships over the years. The recent partnership with York Container Company (“York”) in August 2017 was the largest and most transformative. York is a market-leading, family-owned independent corrugated packaging business serving the needs of customers in the Mid-Atlantic region.
Dave Boles, President of Atlantic, states:“G2 has worked hard to identify strong partnership opportunities for us. York Container is a growth-oriented and market-leading independent in the Mid-Atlantic, with strong strategic and cultural alignment to Atlantic.”
CLIENT
Project Bay (“Bay”) specializes in training and equipping of foreign militaries and indigenous defense forces with an entrenched position with U.S. government.
As a global program manager in support of military sustainment services, Bay maintains a demonstrated past performance of placing people and resources in CONUS and OCONUS locations in support of the U.S. government and coalition partners.
SITUATION
Following the award of a $42 million U.S. government contract, Bay sought G2’s advisory services to establish a credit facility to fund operations and support general working capital needs.
ENGAGEMENT
G2 served as the exclusive financial advisor to Bay with a multi-stage mandate that comprised initially of helping to strengthen the company’s financial reporting capabilities in preparation for a capital raise process.
Upon completion of the first stage of the engagement, G2 initiated a capital raise process, targeting non-traditional lending partners that had expertise within government contracting and capability to underwrite a facility with cross-border complexity in an expedited manner.
OUTCOME
G2 successfully executed on a debt raise that resulted in the formation of a customized credit facility for Bay. The facility included a three-party lending group structured to provide Bay with a flexible lending solution required to satisfy the company’s U.S. government contract requirements and solve for future borrowing needs.
G2 Securities (“G2”) served as exclusive financial advisor to Bay. G2 Securities offers securities through Western International Securities, Inc., Member FINRA, SIPC. G2 Securities and Western International Securities are separate and unaffiliated entities.
CLIENT
Aerospace Holdings, Inc. (“GroupAero”) is a critical provider of advanced engineering, design and manufacturing services to the commercial and defense aerospace markets. GroupAero consists of three companies, NC Dynamics located in Long Beach California; Valley Tool and Manufacturing located in Orange, Connecticut and NCDM, a maquiladora located in Mexicali, Mexico. These three operating companies have been providing aerospace components and assemblies, servicing military and civilian fixed wing and helicopter markets for over 30 years to companies located in the USA, Europe, and Asia.
SITUATION
Facing significant liquidity issues and a default with its secured and unsecured creditors, GroupAero sought to restructure its capital structure, raise additional liquidity, or execute a full sale starting in late 2016. GroupAero filed chapter 11 on March 28, 2017.
ENGAGEMENT
G2 served as the financial advisor to GroupAero pre-petition, providing M&A advisory services and served as GroupAero’s investment banker post-petition during the initial 363 process and private sale proceedings.
OUTCOME
The transaction was successfully executed via a complex, multi-stage process that included Harlow Aerostructures, LLC (“Harlow”) pursuing an acquisition of substantially all of GroupAero’s assets by credit bidding their ownership of GroupAero’s first lien debt within the context of a 363 sales process during the initial stages of the chapter 11. The proceedings were then converted to a private sale. “This transaction will reposition and strengthen the business for future growth and continued high customer service. G2 played a critical role in developing several transaction options as our financial advisor,” said Steve Woodhouse, President, NC Dynamics, Inc.
“We are pleased to see a successful outcome of the transaction for the entire GroupAero team, its employees, customers and vendors,” said Tom Thompson, Managing Director at G2 Capital Advisors.“This aerospace combination will strengthen GroupAero’s legacy as it continues to serve its longstanding customers.”
CLIENT
Midstate Mechanical has been a leading provider of mechanical contracting services to industrial and commercial clients in the Southwest since 1986. Midstate Mechanical has built its reputation through self-performance and as a leading provider in all major phases of mechanical work, including process piping, heating, ventilation, air conditioning (HVAC), plumbing, and special project services. Midstate Energy is an independent provider of comprehensive development, design and engineering services relating to infrastructure upgrades and energy efficient, asset sustainability solutions to the K-12 and municipal market in Arizona.
SITUATION
Midstate’s founder was seeking a solution to recapitalize Midstate Energy and find the right partner to help the company execute its clearly defined growth strategy.
ENGAGEMENT
G2 represented Midstate Mechanical as its exclusive sell-side advisor responsible for running a high-touch divestiture process. “We were very pleased with G2’s depth of knowledge of our business and how they integrated with our team to bring about this successful transaction” said Dave Jones, Founder and CEO of Midstate Mechanical.
OUTCOME
Bow River Capital Partners partnered with management to recapitalize and acquire a controlling interest in Midstate Energy and select service assets of Midstate Mechanical. The transaction includes the separation and acquisition of the Performance Contracting and Service Divisions of Midstate Mechanical. Midstate Mechanical will continue under the leadership of its founder, Dave Jones, as it has for the past 30 years. Midstate Energy management, and Midstate Mechanical anticipate a collaborative and beneficial relationship going forward.
“It was a pleasure working with such a high quality team from Midstate, to drive to a successful outcome for all parties,” said Tim Durkin, G2 Senior Managing Director.
Enlightenment Capital, an aerospace, defense, and government-focused investment firm, announced that it has made a strategic investment in Aurora Flight Sciences, a world leader in unmanned aircraft systems (UAS) and autonomous flight technologies for military and commercial customers. The investment will support Aurora’s strategy for expanding the company’s development and manufacturing scale as demand continues to increase. Financial terms of the transaction were not disclosed.
“Over the twenty-five years since Aurora was founded, we’ve demonstrated a commitment to innovation in unmanned aircraft systems, advanced aeronautic design and, more recently, robotic systems that are defining the future of autonomous flight,” said John S. Langford, chairman, CEO and founder of Aurora. “This investment by Enlightenment Capital supports our efforts to grow in line with our customers’ requirements. The proven aerospace and defense sector expertise at Enlightenment Capital will ensure our strategy and investments remain aligned to expanding military and commercial market opportunities.”
“Aurora has an outstanding track record in support of the most demanding UAS applications and aerospace customers,” said Devin Talbott, Managing Partner of Enlightenment Capital. “We are excited to partner with Aurora’s leadership as they continue to provide leading-edge capabilities in both unmanned and manned aerospace systems.”
“Aurora has been a leader in their field, providing some of the most advanced UAS for over twenty-five years. They are an innovator in a surging UAS market, and we look forward to supporting their continued growth and innovation,” added Pierre Chao, Managing Partner of Enlightenment Capital.
A number of new contracts and milestones have demonstrated Aurora’s technology leadership. On March 3, 2016, DARPA awarded Aurora an $89 million contract to build a demonstrator aircraft for the agency’s cutting edge vertical take-off/land experimental plane (VTOL x-plane). Also on March 3, 2016, the company’s Orion UAS was awarded the prestigious Aviation Week Laureate Award, as the top aerospace innovation of the year. Under contract with both the National Aeronautics and Space Administration (NASA) and the Federal Aviation Administration (FAA), Aurora is developing an ultra-efficient future commercial aircraft design, known as D8. And, in December, 2014 the Orion medium-altitude, long-endurance UAS developed for the U.S. Air Force shattered the world flight endurance record with an 80-hour flight.
G2 Securities served as exclusive financial advisor to Aurora. G2 Securities offers securities through Western International Securities, Inc., Member FINRA, SIPC. G2 Securities and Western International Securities are separate and unaffiliated entities.
About Aurora Flight Sciences
Aurora Flight Sciences is a leader in the development and manufacturing of advanced aerospace vehicles. It is a leading innovator in the unmanned aerial systems (UAS) and composite aerostructures market. Aurora is headquartered in Manassas, VA and operates production plants in Bridgeport, WV and Columbus, MS; and a Research and Development Center in Cambridge, MA.
For more information, visit www.aurora.aero.
About Enlightenment Capital
Enlightenment Capital, a Washington, DC-area based private investment firm, provides senior debt, mezzanine debt, and minority equity to middle market companies in the Aerospace, Defense & Government (ADG) sector. The firm partners with management teams, equity sponsors, and those businesses that provide vital services, protect critical infrastructure, innovate cyber and data solutions, engineer aerospace systems, safeguard national security, and endeavor to meet the challenges of today and tomorrow.
For more information, visit www.enlightencap.com.
About G2 Capital Advisors
G2 Capital Advisors is an integrated multi-product, sector-focused boutique investment bank. G2 Capital Advisors delivers unique investment banking solutions and uncompromising advice by pairing highly experienced C-level executives with specialist investments bankers in both growth and stressed situations.
For more information, visit www.g2cap.com.
CLIENT
Atlantic Packaging Products Ltd. (“Atlantic”) is a leading Canadian manufacturer of containerboard and corrugated packaging products. The largest privately owned fully integrated corrugated packaging company in Canada, Atlantic provides customers with a total packaging solution through its recycled paper mills, corrugated packaging and paper bag manufacturing, and supply chain products.
SITUATION
Atlantic Packaging sought to expand its foothold in the US market, while adding depth to their box manufacturing and packaging supplies distribution capabilities. Atlantic is actively looking for additional partnership opportunities with independent US firms in the corrugated packaging supply chain.
ENGAGEMENT
G2 Capital Advisors is engaged as Atlantic’s exclusive strategic advisor to run a targeted M&A strategy that is at the core of Atlantic’s US growth initiative.
OUTCOME
Atlantic acquired Skybox Packaging, a manufacturer of custom corrugated packaging and distributor of
packaging supplies located in Mansfield, Ohio.
“The acquisition is a natural fit that acts as a seed investment to grow our manufacturing platform in Ohio. Mansfield is a terrific location from which to grow thanks to its proximity to multiple key target markets,” says Atlantic’s President, Dave Boles.
G2 sees significant opportunity for additional partnerships between Atlantic and independent corrugated packaging.
CLIENT
Leigh Delaware Holdings, LLC ., an affiliate company of Leigh Fibers, Inc., is a family owned business headquartered in New England. Leigh Fibers, Inc. is headquartered in Wellford, SC, near the center of the Greenville-Spartanburg area. As a fourth-generation manufacturer of recycled fibers, the company is one of the world’s largest reprocessors of natural, synthetic and specialty fibers. Since 1917 it has diverted more than 14 billion pounds of post-industrial and used fiber from landfills and is currently active in 25 countries around the world.
SITUATION
Leigh sought the ability to broaden and deepen their resources through an acquisition of synergistic capabilities and expertise in supply and trading. ICE Recycling was founded in 2008, as a post-industrial nylon recycling company. ICE quickly built relationships throughout North and South Carolina’s industrial plants and began its path as the ‘TOTAL RECYCLING SOLUTIONS’ company. ICE now services a broad array of industrial businesses, providing engineering and program services, making those companies ‘LANDFILL FREE’. ICE recycles a large assortment of materials including: textiles, plastics, metals, cardboard, and E-waste.
ENGAGEMENT
G2 Capital Advisors served as the exclusive financial advisor to Leigh in facilitating the acquisition of ICE Recycling. G2 Capital Advisors led the acquisition, which was accomplished through our buy-side advisory services.
OUTCOME
The transaction was successfully completed in June of 2014 through a sale of the assets of ICE Recycling to Leigh Delaware Holdings. Larry Gay will remain with the sale and become the President of ICE Recycling.
CLIENT
Airlie Group (“Airlie”) is a global, multi-strategy investment manager that manages a diverse portfolio of credit strategies and control equity investments on behalf of its pooled investment vehicles.
SITUATION
Airlie’s portfolio company, Eastern Montana Minerals (“EMM”), was seeking long-term financing to monetize its royalty cash flow stream. In addition to its predictable royalties, EMM’s credit strengths include coal reserves, mineral rights, additional reserve collateral provided by the parent company and strong historical financial performance. The mining royalties represent EMM’s primary source of cash flow, which is generated through third-party mining and transportation of coal on and around the company’s properties.
ENGAGEMENT
G2 Capital Advisors was awarded the mandate to facilitate a structured credit financing for EMM and develop a strategy to identify the right partner. Due to G2’s relationships among potential lenders and investors, the transaction generated significant interest from a diverse mix of structured credit institutions, private equity groups and family office investors.
“Mining royalties as the basis for a structured credit are certainly not a common approach,” said Jeffrey Unger, CEO of G2 Capital Advisors. “We are pleased with the outcome of this complex transaction and are confident all parties have achieved a truly productive solution.”
OUTCOME
The transaction was successfully executed in 2014 through a $41.5 million senior secured structured term facility syndicated and led by Deutsche Bank.
THE CLIENT
Sankaty Advisors, LLC, The credit affiliate of Bain Capital, LLC
Sankaty is a leading private manager of fixed income and credit instruments. With approximately $18.9 billion assets under management, Sankaty invests in a wide variety of securities and investments, including leveraged loans, high-yield bonds, distressed/stressed debt, mezzanine debt, structured products and equities.
THE SITUATION
After executing an extensive operational turnaround, Sankaty Advisors, the control owner of Rotorcraft Leasing Company (“RLC”), was exploring financing options to fund additional working capital and new growth opportunities. This was a complicated transaction based on the number of stakeholders involved in the process and due to market conditions and events that occurred prior to Sankaty taking control of the business in 2011.
THE ENGAGEMENT
In 4Q 2012, G2 Capital Advisors was engaged as the exclusive Investment Banker to Sankaty and RLC. The focus of the mandate was to develop a capitalization strategy and then to execute a financing process. The process included; identifying and engaging multiple capital providers, identifying new funding sources and leading negotiations with the new financing partner. Due to the nature of the complex stakeholder structure around the transaction, G2 played a key role in the negotiations and communications between the original debt holder syndicate, secondary lenders, equity holders and RLC management team.
THE OUTCOME
After a comprehensive analysis and selection process, Salus Capital Partners was chosen as the partner of choice for Sankaty and RLC, providing a creative $45 million unitranche asset based solution that satisfied the needs of both RLC’s management and the original debt and equity holders of the Company.