2019

CLIENT:
Yandy.com (“Yandy” or the “Company”) headquartered in Phoenix, AZ is a leading eCommerce retail company specializing in women’s specialty intimates apparel. The Company was founded in 2007 and has grown to become one of the leading suppliers of everyday intimates, lingerie, swimwear, costumes, and accessories.

SITUATION:
On February 24, 2020 Yandy.com (“Yandy”), a Phoenix-based, online specialty apparel retailer was acquired by Playboy Enterprises, Inc. Playboy Enterprises recently announced a corporate repositioning to establish its parent company as PEI Holdings (“PEI”). “We’re excited to partner with the talented Yandy team to continue delivering value to their dedicated consumers and to accelerate the growth of all our businesses with new shared capabilities,” said Ben Kohn, CEO of PEI.

ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) served as the exclusive sell-side advisor to Yandy.com, leading a highly strategic and robust sales process, which ultimately resulted in identifying PEI as the ideal partner for the business to accelerate its next phase of growth. “This exciting partnership provides Yandy with an opportunity to leverage Playboy’s global brand to accelerate our growth strategy and extent our reach in the ecommerce market,” said Aras Koktas and Jeff Watton, Co-CEOs of Yandy. “We thank G2 Capital Advisors for guiding us through this process and helping us find a great partner in PEI”.

OUTCOME:
The acquisition of Yandy will significantly expand PEI’s direct digital audience reach, its eCommerce capabilities and back-end technical and operational infrastructure. Yandy has a strong, established, profitable business and an experienced team that is responsible for fulfilling more than 50,000 monthly orders of intimates, sleepwear and accessories to a primarily female, US-based audience. “We are honored and privileged to have represented Yandy in the successful outcome of this transaction”, said Matt Konkle, Head of Industry Teams for G2. “We believe the partnership between PEI and Yandy will prove highly strategic and we wish both organizations much future success.”

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.

About Yandy.com (www.yandy.com)
Yandy is a leading online retailer of sexy women’s specialty apparel. Millions of women around the world wear Yandy everyday intimates, lingerie, swimwear and costumes. Our passion for design, fit and fashion drives our company’s “own your sexy.” mantra in everything we do, from product innovation and merchandising to our mission to help every woman discover or rediscover her own brand of sexy.

About Playboy Enterprises
Playboy, the cornerstone of PEI Holdings, today reaches a wide global audience through a diverse portfolio of consumer products, content, gaming and hospitality offerings. With 97% unaided global brand recognition and nearly 50 million social media fans worldwide, Playboy remains one of the most iconic brands in history. Under its mission of Pleasure for All, the 66-year-old Playboy brand drives more than $3 billion in annual sales at retail across 180 countries.

CONTACTS ON THIS DEAL:
Matt Konkle, Sr. Managing Director, Head of Industry Teams: T: 317.371.6608 E: [email protected]
Jarl Berntzen, Managing Director, Technology & Business Services Practice Leader: T: 415.825.5866 E: [email protected]
Bisma Ahmed, Senior Associate: T: 617.918.7928 E: [email protected]

G2 Capital Advisors (“G2”), a leading full-service financial advisory firm is pleased to announce the hiring of Amy McCormack to the position of Vice President, Talent. As VP of Talent, McCormack will report to Chairman and CEO, Jeffrey Unger and will lead all human capital initiatives for the company including talent management, recruiting, total rewards, employee engagement and workforce compliance at G2.

“I am beyond thrilled to have Amy leading our Talent Management efforts. She is passionate about powering performance through collaborative and innovative solutions and possesses a rare combination of leadership, specialized expertise, forward-thinking, and creativity. G2 is committed to investing in our team and prioritizing professional development. Amy joining the team is an example of our commitment to the future of G2 and her work will complement firm culture and empower our employees to reach their maximum potential,” said G2’s Chairman and CEO, Jeffrey Unger.

McCormack’s career has enabled her to design and execute scalable people strategies and talent management solutions for companies large and small during moderate to hyper-growth phases. Prior to joining G2, McCormack most recently oversaw all HR operations at Beyond Finance and its affiliate partners across the US as Vice President, Human Resources.

Before joining Beyond Finance in 2017, McCormack was Director of Talent Management at Trinity Partners, where she led their talent programs that included learning and development, annual performance planning, people operations and culture management. Prior to that, she was a Manager in the Leadership Development group for Bain Capital, LLC designing and implementing best in class leadership training and development programs globally.

McCormack began her career in human resources & spent over a decade working at Deloitte and PricewaterhouseCoopers, LLP. Amy holds a B.S. degree in Mass Communications from the University of Hartford.

To find a career opportunity at G2 Capital Advisors or to learn more about our team of highly differentiated, industry experts please visit: https://info.g2capitaladvisors.com/culture/

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.

G2 Capital Advisors (“G2”), a leading full-service financial advisory firm is pleased to announce that Howard Lanser has joined the firm as a Managing Director and Head of Capital Markets. Lanser will oversee G2’s extensive capital markets platform, partnering with Louise Roussel, Director of Capital Markets in enhancing the firm’s execution of complex financings for our clients.

Howard brings 20+ years of capital markets, M&A, and corporate finance advisory experience for financial sponsors, public companies, and private family/founder-owned businesses across numerous industries. Most recently, Howard served as Managing Director, Co-Head of Debt Advisory for Robert W. Baird & Co. where he was responsible for the seamless execution of over 260 transactions, raising over $50 billion dollars globally.

Howard will be instrumental in originating transactions and expanding G2 Capital Advisors’ coverage of corporate and financial sponsor clients. He brings significant experience raising capital for sell side and buy side M&A transactions, dividend recapitalizations, refinancings, and special situations. This hire exemplifies the firm’s commitment to meeting the needs of our clients through industry-leading services.

“We are pleased to welcome Howard to the G2 leadership team,” said Jeffrey Unger, Chairman & Chief Executive of G2 Capital Advisors. “His extensive knowledge of the corporate and financial sponsor universe, deep relationships with lenders and investors, and ability to assist clients with complex transaction execution will be extremely valuable as our capital markets capabilities continue to grow.”

“The addition of Howard represents a critical next step in our firm’s growth, and further augments the value we deliver to our clients as trusted advisors,” said Ben Wright, Chief Operating Officer of G2. “Under Howard’s leadership, G2 will continue to deliver customized capital markets solutions and expand our reputation for providing a wide breadth of high value advisory services.”

G2’s Capital Markets capabilities include facilitating asset-based loans, cash flow / enterprise value-based term loans, first lien, second lien, unitranche, mezzanine, and convertible debt as well as preferred and common equity (majority and minority) across growth and special situations. Clients benefit from leveraging G2’s C-level operational experience, market intelligence, and comprehensive understanding of our core industries.

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.

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 Transportation & Logistics Market Update
We are pleased to share the latest G2 Transportation & Logistics industry update for Q3 2019. In this piece we present key insights into current market trends in the first nine months of the year. Furthermore, we describe how a market slowdown impacts asset-based transportation service providers and identify potential levers that companies can pull to lessen the impact of lower asset utilization. G2 has leveraged its experience both operating companies and working with clients with unique capabilities to develop these recommendations. We plan to follow up in future quarters with other topical newsletters addressing specific relevant topics as the Transportation & Logistics industry continues to evolve as consumers demand goods be delivered faster, cheaper and with more transparency.

In addition, we provide a general market update along with a review of recent M&A transactions in the Transportation & Logistics sector.

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.

We are pleased to share the latest G2 Technology & Business Services market update. In this piece we present an introductory overview of the vertical SaaS market, an area of strong focus for G2. The vertical SaaS market is often seen to bridge traditional legacy industries with technology, driving a strong force of digitization and utilization of data in driving improved efficiencies across entire industries. This is very core to the G2 industry focuses and we plan to follow up in future quarters with other topical newsletters addressing specific relevant topics associated with this fast growing market.

In addition, we provide a general market update along with a review of financing and M&A trends in the Technology & Business Services sector.

CLIENT:
Arrow Material Services, LLC (“Arrow” or the “Company”) based in Sewickley, Pennsylvania, was a provider of transloading services operating over 24 terminals in over 15 states throughout the United States. The Company provides material handling, logistics, transload, secure bulk commodity storage, and facility construction services to customers. The Company also operated EMS Management, LLC (“EMS”) providing environmental cleaning solutions to rail, marine and terminal assets throughout North America, based out of Houston, Texas.

SITUATION:
Arrow Material Services, LLC (“Arrow” or the “Company”) based in Sewickley, Pennsylvania, was a provider of transloading services operating over 24 terminals in over 15 states throughout the United States. The Company provides material handling, logistics, transload, secure bulk commodity storage, and facility construction services to customers. The Company also operated EMS Management, LLC (“EMS”) providing environmental cleaning solutions to rail, marine and terminal assets throughout North America, based out of Houston, Texas.

ENGAGEMENT:
G2 served as the Chief Restructuring Officer of the Company, developing and executing restructuring initiatives as interim management and managing liquidity on a day to day basis. In the summer of 2019, G2 also supported Arrow’s divestiture processes, leading efficient and expeditious transaction execution processes.

OUTCOME:
G2 executed a tailored transaction process resulting in the signing of an asset purchase agreement in August 2019 to Precision Terminal Logistics, LLC (“PTL”), an entity jointly owned and operated by affiliates of Anacostia Rail Holdings Co. and Brown Brothers Harriman Capital Partners. The transaction was successfully completed with PTL acquiring 23 transload facilities in 15 states in September 2019.

G2 also successfully completed a management buyout of EMS in July 2019, and the divestiture of a single facility in Belpre, Ohio to CC Utica, LLC in August 2019.  

“The outcomes of the transactions were positive for the Company, employees and customers, resulting in continuity of service for customers and preservation of jobs” said Ben Wright, COO at G2. 

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:
Dennis DeBassio, VP, Restructuring: T: 312.952.7494 E: [email protected]
Zach Talotta, Associate: T: 802.745.9291 E: [email protected]
Jim Gamache, Senior Advisor: T: 330.338.4938 E: [email protected]
Ben Wright, Chief Operating Officer: T: 415.800.1258 E: [email protected]

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:
BeavEx Incorporated (“BeavEx” or the “Company”) based in Atlanta, Georgia, is a provider of time-critical, same-day transportation and logistics services to businesses throughout the United States. The Company facilitates the delivery of mission-critical packages for retail/distribution, clinical lab/pharmaceutical, critical parts, and financial services customers with a network that provides same-day access to more than 77% of the U.S. population. The Company also operates Guardian Medical Logistics, a lab specimen logistics provider based in St. Louis, Missouri.

SITUATION:
In spring 2018, following liquidity and operational challenges, BeavEx sought additional management and strategic support and engaged G2 Capital Advisors (“G2”) to provide various advisory services.

ENGAGEMENT:
G2 served as the Chief Restructuring Officer of the Company, developing and executing restructuring initiatives as interim management and managing liquidity on a day to day basis. In the fall of 2018, G2 was engaged to serve as the exclusive sell-side advisor to BeavEx, leading a robust, highly tailored sale process.

OUTCOME:
G2 launched a robust sales process resulting in the signing of a stalking horse asset purchase agreement with TFI International (“TFI”) in February 2019. On February 18, 2019 BeavEx filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. G2 initiated a competitive bidding process under Section 363 of the Bankruptcy Code designed to achieve the highest or otherwise best offer, or offers, for the Company’s assets. Following an extensive examination of strategic alternatives and a robust marketing process, the transaction was successfully completed with a sale of the majority of the Company’s assets to TFI, and the acquisition of BeavEx accounts receivable, by Tiger Capital Group LLC in April 2019.

“The recapitalization was a very positive development for the Company, business partners, employees and customers” said Ben Wright, COO at G2.  “With a strengthened position and the partnership with TFI, we expect BeavEx to be well equipped to take full advantage of the depth of its operations.”

About BeavEx (www.beavex.com)
BeavEx Incorporated is a leading provider of time-critical, same-day transportation and logistics services to business throughout the United States, operating 24 hours-a-day, 7 days-a-week, 365 days-a-year. The Company offers cross-docking and distribution, mail room operations, warehousing, storage, and product fulfillment services.

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:
Ben Wright, COO: T: 415.800.1258 E: [email protected]
Ron Lentz, Managing Director: T: 630.362.8317 E: [email protected]
Don Van der Wiel, Managing Director: T: 317.417.2746 E: [email protected]
Peter Reed, Vice President: T: 617.366.9254 E: [email protected]
Connor Grogan, Senior Associate: T: 617.918.7973 E: [email protected]
Aaron Keyes, Associate: T: 317.506.6624 E: [email protected]