2015

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CLIENT
Great Western Leasing and Sales, LLC, (“GWLS” or the “Company”) is a leading full-service, integrated solutions provider to the flatbed and specialized trailer industry.  Based in Irvine, CA, the Company operates a network of strategically located facilities in the Western United States which offer customers a broad range of sales, financing, leasing and rental options for new and used trailers, as well as after-market trailer repair and maintenance. The Company distributes trailers for a broad range of manufacturers including Fontaine Trailer Company, Wilson Trailer Company, East Manufacturing Corporation, Manac Trailers USA, XL Specialized Trailers and Side Dump Industries.

SITUATION
The Company sought a strategic partner through an equity recapitalization to establish itself as a platform to consolidate the regionally fragmented heavy trailer sales and leasing business and support its rapid growth.

ENGAGEMENT
G2 Capital Advisors was the exclusive sell-side advisor to GWLS.

OUTCOME
The transaction was successfully executed through a majority sale to an investor group led by Headhaul Capital Partners and Argosy Investment Partners.

Headhaul Capital Partners LLC is a New York-based middle market private equity firm focused on acquiring and building businesses in the transportation, logistics and distribution industries.

Argosy Private Equity, founded in 1990, specializes in providing capital and operating and financial expertise to lower middle market companies across a broad range of industries.

“This is a terrific outcome for the leadership of GWLS and the new partners,” said Ron Lentz, Managing Director and Transportation and Logistics Practice Leader for G2 Capital Advisors. “This transaction is yet another exciting outcome for the growing T&L sector here at G2.”

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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.

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The Dolan Company, a diversified business information and professional services provider, sought to divest Counsel Press, a non-core operating business. Since 1938, Counsel Press has assisted attorneys in all 50 states with expert assistance in preparing, filing, and serving appeals in state and federal appellate courts nationwide and several international tribunals through its experienced staff of attorneys, appellate consultants, and appellate paralegals. Counsel Press’ operations include fully staffed offices in 12 locations nationwide and production centers in 6 locations.

SITUATION
The Dolan Company, majority owned by investment funds affiliated with Bayside Capital, Inc., embarked on a revitalization plan in the summer of 2014. Dolan sought to divest non-core business units, including Counsel Press, in an effort to focus on and invest behind core service offerings. “G2 guided the process from start to finish and allowed us to focus on our core businesses while still successfully completing the sale of the Counsel Press business,” said Mark McEachen, CEO of the Dolan Company.

ENGAGEMENT
G2 Capital Advisors was engaged by The Dolan Company to run a targeted, highly involved sales process to a select set of strategic and financial buyers. G2 worked closely with Counsel Press’ existing management team, the Dolan Company, and prospective buyers to structure and execute the carve out transaction in an efficient and expedited manner.

OUTCOME
The transaction was successfully consummated through a sale to Gladstone Investment Corporation (NASDAQ: GAIN), a publicly traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States. “G2 ran a well-organized, high-touch process that resulted in a very successful outcome which exceeded our expectations,” said Jackson Craig, Managing Director of Bayside Capital, Inc. The aggregate Gladstone investment totaled $32.5 million in a combination of equity and debt.

“We are thrilled with the successful completion of the transaction for our client at Dolan and Bayside,” said Jeffrey Unger, CEO of G2 Capital Advisors. “The operational perspective that G2 brings to our mandates continues to be a critical driver of our clients’ success.”

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ITS Logistics (ITS), a rapidly growing leading provider of third party logistics and supply chain management services. ITS provides these services to a broad range of name brand and blue chip clients, primarily in the retail, eCommerce, food and beverage, and healthcare industries.

SITUATION
The ITS founding management team was seeking a solution to recapitalize the business and execute its clearly defined growth strategy. Management had identified several organic and acquisition growth opportunities, which build upon the company’s current national platform, diversified service offering and solid customer base.

ENGAGEMENT
G2 Capital Advisors was engaged to assist with the analysis of and advise on all potential alternatives for pursuing identified growth opportunities, including traditional lending, debt and private equity markets. Management selected a majority recapitalization solution for their needs. G2 represented ITS Logistics as the exclusive sell-side advisor responsible for running a targeted and high-touch sale process. “G2 Capital Advisors was absolutely a great fit for ITS Logistics and vital in ensuring the process went as smooth as possible while keeping everything on track and on time! Without their expertise and contacts in the financial markets, I doubt we would have found such a perfect partner for ITS. They brought us extreme value through the entire process and positioned and represented the company very well and were a great balance for ITS.” said Jeff Lynch, CEO of ITS Logistics.

OUTCOME
The transaction was successfully executed through a sale to McNally Capital: a Chicago-based private equity firm that partners with family offices and high net worth investors to make and manage direct private equity investments, and Coughlin Capital: a family-held private investment group with an emphasis on direct private equity investments in small and middle market companies and substantial experience and expertise in logistics, transportation, international growth, operations and the development of scalable process-driven organizations. The ITS founding management team retained a large ownership percentage, and the partnership will provide strategic and financial expertise to continue to grow.

“We are thrilled with the successful outcome of the transaction for the entire ITS team,” said Ron Lentz, Global Managing Director, Transportation and Logistics Practice for G2 Capital Advisors. “We are very confident in the long term success of the company and their goals.”

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Elmet Technologies, Inc. (Elmet) is a fully integrated global leader in the production of highly specialized and engineered molybdenum and tungsten products. Elmet’s world-class facilities manufacture and fabricate to their customers’ most exacting specifications. With over 300,000 square feet at three manufacturing sites in Maine, Georgia, and Chengdu, China, Elmet produces milled, machined, and fabricated products for semiconductor, hig-temp furnace, flat panel display manufacturing, medical imaging, and several other industries.

SITUATION
The sudden bankruptcy of one of Elmet’s largest customers in October created a challenging situation for the Company. The Company relied on the strength of the relationships with its customers as well as its unique position in their industry to overcome this difficult situation. The Company made the decision to seek strategic alternatives, however the market dynamics required a rapid approach to the transaction execution.

ENGAGEMENT
G2 Capital Advisors was engaged to represent Elmet Technologies, Inc. as the exclusive sell-side advisor responsible for running an expeditious, targeted, and high-touch sale process while evaluating other strategic alternatives and options.

“G2 has developed an extensive practice area within special situations M&A advisory,” said Jeffrey Unger, CEO of G2 Capital Advisors. “While a challenging set of market and company dynamics were at play, we are thrilled with such a successful outcome for our client.”

OUTCOME
The resulting transaction was successfully executed through a series of transactions with multiple parties. Ultimately, the business was sold to Anania & Associates Investment Company, LLC and management. Anania & Associates is a Maine based and focused investment firm that invests in well-managed specialty manufacturing businesses.

“There are so many positives that come with this transaction,” said Andy Nichols, CEO of Elmet. “our ownership is an awesome group of seasoned, forward-thinking business leaders from Maine, we have strong commitment to and from our highly experienced and knowledgeable workforce, and with local ownership, we are laser-focused partnering with our global customers to enhance our leadership position in the market.”

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Fifth Gear is a rapidly growing tech-enabled eCommerce services company that provides order management, fulfillment, value-add processing, contact center, freight management, account management, and business support services to e-commerce retailers, catalogers, and brand manufacturers. Its customers include some of the largest and most progressive brands in the world of direct-to-consumer retail, along with highly successful niche retailers across industries.

SITUATION
Fifth Gear was seeking the right strategic buyer to support the next phase of its rapid growth plan. Becoming part of larger organization was considered an important strategic step for its go-to-market offering. By combining unique complex fulfillment capabilities with a fully integrated e-commerce services platform, Fifth Gear will deliver a more seamless online shopping experience and better fulfill the ‘brand promise’ that its clients make to their customers every day.

ENGAGEMENT
G2 Capital Advisors was engaged to act as the exclusive advisor responsible for running a targeted, discreet, and high-touch sale process for Fifth Gear.

“The G2 Capital Advisors team executed a well-developed and thoughtful sell-side process for Fifth Gear,” said Matt Konkle, President of Fifth Gear. “Their understanding of our industry and relationships across our sector proved to be both valuable and insightful as we executed our transaction with Speed Commerce.”

OUTCOME
The transaction was successfully executed through a sale to Speed Commerce, Inc. (Nasdaq:SPDC) – a leading provider of omni-channel eCommerce services including web development and hosting, managed and marketing services, order and inventory management, pick and pack, returns processing, and 24/7 customer care. Total consideration included $55 million in cash paid at closing with an additional contingent payment based on future performance – which makes for a total enterprise valuation of about 1x revenue.