CLIENT:
Rand-Whitney Container, LLC (“Rand-Whitney” or the “Company”) (www.randwhitney.com) a subsidiary of The Kraft Group, LLC (“Kraft Group”), is the largest independent corrugated manufacturer in New England. The company operates from multiple facilities and can assist with a wide range of packaging needs, covering engineering, design, testing, fulfillment and real-time information processing. Rand-Whitney is headquartered in Worcester, MA with facilities across the US.
SITUATION:
Rand-Whitney has a continued focus on growing its presence through strategic partnerships and acquisitions of independents across the US. Adding capabilities in the Mid-Atlantic and investing capital and knowhow behind strong operators has been and will continue to be a core part of this growth strategy.
ENGAGEMENT:
Rand-Whitney’s buy-side transaction advisor was G2 Capital Advisors, LLC (“G2”), which continues to execute Rand-Whitney’s long-term M&A growth initiative.
OUTCOME:
Rand-Whitney acquired Specialty Finance & Consulting Corporation (“SF&C”), located in Red Lion, Pennsylvania, which specializes in the manufacturing, warehousing and distribution of corrugated sheets, corrugated packaging, and related ancillary products and services. The acquisition includes Specialty Industries, Inc., NuPak Printing, LLC and Krafcor Industries, Inc. SF&C has been in the corrugated business more than 40 years and has earned a reputation as a high-quality manufacturer with a focus on customer service. Rand-Whitney looks forward to accelerating the growth of both Rand-Whitney and SF&C’s operations in the Mid-Atlantic through continued dedication to supporting customers with exceptional service and additional investment.
“G2 brought invaluable industry connections and experience that was critical to identifying the opportunity and achieving a successful outcome. We look forward to partnering with G2 to continue to execute on highly accretive M&A opportunities.” shared Nick Smith, President & CEO of Rand-Whitney.
“We are very excited for the future of SF&C, as Rand-Whitney represents a unique acquirer, able to invest significantly in the organization and drive sustained long term growth” said Ben Wright, COO of G2. “We see significant opportunity for additional partnerships between Rand-Whitney and independent corrugated packaging companies across the US.”
About Rand-Whitney (www.randwhitney.com)
Rand-Whitney, based in Worcester, Massachusetts, is the largest independent corrugated manufacturer in New England. The company operates from multiple facilities and can assist with a wide range of packaging needs, covering engineering, design, testing, fulfillment and real-time information processing. Rand-Whitney services customers in the medical, food and beverage, electronics, aerospace, industrial products and consumer goods industries. The company is 100 percent owned and operated by The Kraft Group.
About The Kraft Group (www.thekraftgroup.com)
The Kraft Group, headquartered in Foxborough, Massachusetts, is the holding company for the Kraft family’s various businesses, with concentrated interests in five areas: paper and packaging manufacturing, sports and entertainment, real estate and development, private equity investing, and philanthropy. Together, the Rand-Whitney Group and International Forest Products conduct business in more than 100 countries and form one of the largest privately-owned paper, packaging and distribution companies in the world, trading more than 4 million tons of pulp and paper grades annually. The Kraft Group’s sports and entertainment division features Gillette Stadium, New England’s premier concert and entertainment venue and home to the National Football League’s six-time Super Bowl champion New England Patriots and Major League Soccer’s New England Revolution.
About Specialty Finance & Consulting Corporation (“SF&C”)
Specialty Finance & Consulting Corporation (“SF&C”) is located in Red Lion, Pennsylvania is in the business of manufacturing, warehousing and distributing corrugated sheets, corrugated packaging, and related ancillary products and 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.
CLIENT:
BWP Transport, Inc. (“BWP” or the “Company”) (https://www.bwpt.net), a subsidiary of Ravago Holdings America, Inc. (“Ravago”), is a leading regional carrier specializing in the transportation, storage, packaging and delivery of dry bulk materials specifically plastic resin. BWP services all 48 states and Canada operating 24 hours a day, 7 days a week to ensure on-time deliveries, excellent customer service, and effective transportation management. BWP is headquartered in St. Clair, Michigan, with satellite facilities located in Barberton and Plainfield, Ohio.
SITUATION:
Ravago acquired BWP in 2015 to become a key source of transportation and logistics services for internal plastic resin requirements. After several years, Ravago decided to carve out and sell BWP to a potential partner that could continue operating BWP and support increasing transportation requirements of their plastic resin business.
ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to Ravago and BWP and ran a highly strategic and efficient sales process.
OUTCOME:
The transaction was successfully executed on June 28, 2019 through a sale of BWP to A&R Logistics, Inc. (“A&R”), a portfolio company of Wind Point Partners. The acquisition of BWP further expands A&R’s geographic presence in the Midwestern U.S. and increases A&R’s overall transportation capacity with additional tractors and specialty trailers. The investment in BWP represents the first add-on acquisition for A&R in the execution of an aggressive growth strategy.
With the divestiture of BWP to A&R, Ravago is strengthening the relationship with a long-term partner who can continue to grow and support their long-term plastic resin requirements. “The partnership between Ravago and A&R has the potential to provide significant future value to both organizations. We are honored to have had the opportunity to support Ravago in the divestiture of BWP,” said G2 Managing Director, Ron Lentz. “A&R was built to partner with a company like Ravago and we are excited to track the success of this partnership.”
“G2 brought invaluable industry experience that was critical to achieve a successful outcome. They provided unique insights that helped execute a complex carve out sale process and engaged with a number of parties to ensure the right outcome was achieved. We are excited about the long-term prospects of a partnership with A&R.” said Sean Williams, Director of Operations of Ravago.
G2 Capital Advisors, LLC (“G2”) continues to advance with the promotion of three instrumental leaders, and the hiring of five key additions to the firm’s team. These developments underscore the breadth of our firm’s capabilities and rapid growth trajectory.
Promotions since September 2018 include Ben Wright, Chief Operating Officer; Matthew Konkle, Head of Industry Teams; Victoria Arrigoni, Industrials & Manufacturing Practice Leader; and Konstantin Danilov, Vice President. “It is gratifying to recognize the contribution of these outstanding leaders to our firm in driving the firm’s continued growth,” said Jeffrey Unger, Chairman & CEO. “We are extremely proud of the three individuals who have been promoted as they represent G2’s differentiated team and our unique value proposition as advisors in the middle market.”
Ben Wright promoted to Chief Operating Officer. Wright joined G2 in 2014 as a Vice President specializing in sell-side, buy-side, and capital raise investment banking services. Ben’s experience and dedication to the team has had significant impact on the firm’s rapid growth. After supporting the Company as the Director of Operations for the last two years, he will continue to support firm efforts as Chief Operating Officer with focused attention on ensuring long-term success through effective mandate execution, resourcing, recruitment and overall organizational development.
Matthew Konkle promoted to Head of Industry Teams. Konkle joined G2 in 2016 as the Technology and Business Services Practice Leader. Konkle has distinguished himself throughout his career not only by his financial acumen but by his executive management and relationship skills. A recognized leader in the ecommerce industry with deep operational experience in outsourced business models and technology, his knowledge and experience will serve him in providing strategic leadership to the firm’s industry investment banking teams.
Victoria Arrigoni promoted to Industrials & Manufacturing Practice Leader. Arrigoni joined G2 in 2011 with over 14 years of experience in product manufacturing, institutional investing, and financial advisory services. A prominent force in the firm’s middle market transactional efforts advising companies and institutions through a variety of complex situations, Arrigoni will focus her efforts on continued development of the firms’ Industrials & Manufacturing practice.
Konstantin Danilov promoted to Vice President. Danilov joined G2 in 2018 and his efforts have focused on the support of special situation and restructuring clients facing financial, liquidity, operational, or market challenges. Konstantin has been tremendously influential in assisting clients by leveraging his bankruptcy advisory background to assist in assessing and implementing financial and operational restructuring strategies.
Following these promotions G2 announces five key additions to the firm including Jeffrey Varsalone, Managing Director; Mike Williams, Director Industrials & Manufacturing; Jennifer Johnson, VP of Marketing; MatthewBall, Associate; and Jacob Blau, Analyst.
JeffreyVarsalone,Managing Director in Special Situationsbrings nearly 20 years of experience to the G2 team with a focus on distressed transactions, including restructuring, turnarounds, workouts, going concern asset sales and representing various stakeholders and parties-in-interest in out of court restructurings and chapter 11 bankruptcies. Prior to joining G2 Capital Advisors, Jeff spent several years in leadership roles in the restructuring groups of three of the largest accounting and financial advisory firms in the U.S. Jeff earned his Juris Doctor from St. John’s University School of Law, where he served as an editor for the American Bankruptcy Institute Law Review, and holds his Bachelor of Arts degree from Boston College.
Michael Williams, Director in Industrials & Manufacturing brings over 12 years of investment banking and financial advisory experience executing mergers, acquisitions, capital market financings, corporate strategy and shareholder defense assignments. Prior to joining G2, Mike was at Harris Williams providing advisory services to private and publicly traded companies on mergers, acquisitions, capital raising, and strategic advisory assignments across a variety of sectors including the manufacturing, building products, industrial, business services, and technology. Mike holds a Masters of Business Administration from the Darden School at the University of Virginia, and a Bachelor of Science in Economics from Boston College.
Jennifer Johnson,Vice President of Marketing brings 6 years of financial marketing experience across investment banking and advisory product areas both domestically and internationally. Prior to joining G2, Jenn played a fundamental role on the global marketing team at Canaccord Genuity focused on strategic marketing initiatives and brand management where she and her team successfully completed an all-encompassing corporate rebrand, developed digital marketing campaigns, annual communication strategies, as well as produced large-scale investor conferences and client events. Jenn holds a M.A. in Marketing & Brand Management from the Savannah College of Art and Design and a Bachelor of Arts in Marketing from Boston College.
Matthew Ball, Associatejoins G2 with a focus on our buy-side and business development efforts. Ball previously served as the Business Development Director at FG Gravel, a glass recycling organization, where he initiated and executed a business strategy to implement a high-tech, recycled product for use within the civil engineering sector. Matthew also spent over two years at AXA Investment Managers as a sales resource in the professional services sector.Matthew is a graduate of High Point University, North Carolina with a Double Major in Finance and Marketing.
Jacob Blau, Analyst joins G2 with a focus on supporting the firm’s restructuring practice. Previously of Analysis Group Blauspent the last 2+ years supporting various litigation and court cases as a financial consultant conducting advanced valuation and financial analyses. Jacob also spent time as a Securities Analyst at Goldman Sachs working primarily on the Interest Rates desk. Jacob graduated from Williams College, majoring in Economics.
“These key team additions will be vital to driving the continued growth at G2; we are thrilled to have been able to attract such talented and capable executives to our organization,” said Jeffrey Unger, CEO of G2. “We welcome our newest team members and are confident their industry experience and transaction expertise will contribute greatly to our clients’ successes.”
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.
CLIENT
Founded in 2011, Danforth Advisors, LLC (“Danforth” or the “Company”) offers an integrated and scalable “one-stop shop” solution for all operations from controller through CFO performing activities ranging from accounting and operational finance services, to capital raising, financial planning and analysis, M&A, and IPOs. The Company has served as a strategic thought partner to over 300 clients across all stages of a company’s life cycle, from inception to exit. Danforth employs a deep team of consultants who are experienced finance and accounting professionals, including CFOs, Big 4 public accounting alumni, corporate controllers, start-up accountants and subject matter experts such as financial planning & analysis specialists.
The Company is headquartered in Somerville, MA with additional offices in New York, Pennsylvania, Colorado, and Texas.
SITUATION
Danforth had created the leading provider of specialty consulting solutions to the life sciences industries in the Northeast and had an opportunity to expand its breadth of services and increase its geographic presence nationally. Danforth’s principals, Daniel Geffken, Gregg Beloff, and Stephen Dipalma, wanted to diversify their risk and were seeking the right partner who could support the next phase of growth of the Company’s leading consulting platform.
ENGAGEMENT
G2 served as the exclusive financial advisor to Danforth, responsible for running an efficient and strategic recapitalization transaction process.
OUTCOME
The transaction was successfully executed through an investment from Stone-Goff Partners (“Stone-Goff”), a private equity investment firm that invests in lower middle market founder-owned businesses and corporate carve-outs in the business services and consumer sectors.
“G2 brought invaluable industry experience that played an integral part in telling the Danforth story. They guided us through the complex transaction process and cultivated the right set of potential partners for us to consider. In Stone-Goff, we found a partner that shared the same passion and vision for the future of Danforth,” said Stephen Dipalma, Managing Director of Danforth.
The investment will support the Company’s growth initiatives of expanding service offerings, building out the consultant team, geographic expansion into new life sciences clusters, and opportunistic acquisitions of complementary outsourced service providers in the life sciences industry.
“We are pleased to be a part of such a successful outcome for the Danforth team. Dan, Gregg, and Steve have built a leading company in a highly fragmented, growing market,” said G2 Senior Managing Director, Matt Konkle. “It was important to the principals to achieve an outcome that was the right strategic and cultural fit for their people. In Stone-Goff, they have found a great partner that understands their business and will help them accelerate their strategic vision for Danforth moving forward.”
“The Danforth team has built a market leader providing strategic services to life sciences companies,” said Laurens Goff, co-founder of Stone-Goff Partners. “We are excited to partner with Dan, Gregg, Steve, and the entire Danforth organization as they enter the next phase of growth.”
CLIENT
Founded in 1997, Lois L. Lindauer Searches (“Lindauer” or the “Company”) is a leading national executive search firm serving the nonprofit sector. Lindauer specializes in recruiting nonprofit leaders and their teams for premier institutions in education, healthcare, the arts and sciences, and mission-driven advocacy organizations. The Company places more advancement and development professionals than any other search firm. Lindauer is headquartered in Boston, MA and serves clients around the world.
SITUATION
With a strong management team in place, including the appointment of Deb Taft as CEO in 2017, the client sought a transaction to transition ownership to the management team and attract an experienced, well-regarded investment partner to support the CEO and management team as they execute on the Company’s growth strategy.
ENGAGEMENT
G2 Capital Advisors, LLC (“G2”) served as the exclusive financial advisor to Lindauer, responsible for running a high touch search for an investment partner for management.
OUTCOME
The transaction was successfully executed through a management led buyout supported by Gemini Investors (“Gemini”), a private investment firm that invests in smaller middle market businesses. Gemini will support the Company’s growth initiatives of further expanding the search team and pursuing acquisitions of complementary businesses.
“We saw a great opportunity to support a strong management team and expand upon the Company’s leadership position,” said Jimmy Rich, Managing Director at Gemini Investors. “We focus on partnering with proven management teams to support their ambitious growth plans. We are excited to work with Deb Taft and her team to build on the great legacy established by the Company’s founder.”
“When we began this process, we were focused on finding a buyer that would preserve the Company’s legacy and support employees who have been critical to the Company’s success. G2 spent time understanding our goals and, with their support, we were able to transition ownership to the current management team, and identify the ideal investment partner to support their growth plans,” said Lois Lindauer, the former owner of Lindauer.
“Our team is excited to partner with Gemini as we continue to build upon our leadership position in nonprofit executive search,” said Deb Taft, CEO of Lindauer. “We look forward to continuing to serve our clients in this sector as we help them build and develop world-class teams.”
“We are very pleased with the result for our client and the entire Lindauer team,” said Pat Reinhardt, Managing Director at G2. “Working with founder-owned businesses that have such an important role within their respective industries is extremely rewarding and we look forward to following the Company’s continued success.”
The M&A Advisor announced the winners of the 13th Annual Turnaround Awards on Thursday, December 20th. G2 Capital Advisors was named a winner for the Distressed M&A Deal of the Year (Category: Transactions over $100MM to $250MM) for the Restructuring and Recapitalization of LEGACY Supply Chain Holdings, Inc.
“Since 2002, we have been honoring the leading turnaround transactions, companies and dealmakers. G2 Capital Advisors was chosen from over 275 participating companies to receive the award. It gives us a great pleasure to recognize G2 Capital Advisors and bestow upon them our highest honor for distressed investing and reorganization firms and professionals,” said Roger Aguinaldo, Founder, The M&A Advisor. “G2 Capital Advisors represents the best of the distressed investing and reorganization industry in 2018 and earned these honors by standing out in a group of very impressive candidates.”
“We are thrilled the successful outcome for this multi-year effort with the team at Legacy and its stakeholders,” said Jeffrey Unger, CEO at G2. “This is a terrific example of the G2 special situations value proposition of financial, operational restructuring and an M&A capability.”
The Awards Gala is a feature of the 2019 Distressed Investing Summit. The Summit will take place on March 27/28 and will feature 250 of the industry’s leading professionals participating in exclusive interactive forums led by a faculty of restructuring industry stalwarts and business media experts. Palm Beach’s exclusive Colony Hotel will be home to the One-on-One Meetings, Opening Night Reception, Symposium, Awards Celebrations, and our infamous Closing Party. For an event profile CLICK HERE.
G2 professionals on this deal include, among others:
Matt Konkle, Senior Managing Director, Head of Industry Teams
Victoria Arrigoni, Managing Director, Industrials & Manufacturing
Ron Lentz, Managing Director, Transportation & Logistics
Jim Wiesen, Managing Director, Restructuring
Tom Gujda, Principal, Restructuring
Emily Murphy, Associate, Industrials & Manufacturing
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.
Securities offered through Western International Securities. Member FINRA, SIPC. G2 Securities and Western International Securities are separate and unaffiliated entities. This does not constitute an offer to buy or sell securities.
The M&A Advisor
Now in its 20th year, The M&A Advisor was founded to offer insights and intelligence on mergers and acquisitions, establishing the industry’s leading media outlet in 1998. Today, the firm is recognized as the world’s premier leadership organization for mergers & acquisition, restructuring and corporate finance professionals, delivering a range of integrated services.