2020

CLIENT
At its inception more than 55 years ago, the original vision of The Paper Store (“TPS” or the “Company”) was to serve as a local retailer offering newspapers, magazines, greeting cards and school supplies. Since then, The Paper Store has expanded beyond its original vision and has grown organically from a “mom-and-pop” shop to a regionally renowned specialty retailer. Today, The Paper Store is one of the leading specialty gift chains in the Northeast with 86 locations in 7 states.

SITUATION

TPS had experienced a significant decline in store traffic and related consumer spending, as well as numerous operational challenges as a result of the COVID-19 pandemic, especially on account of actions taken in response to the public health crisis. Mandated store closures significantly contributed to missed sales targets, unsold inventory, and depressed profit margins. The Company could no longer cover its pre-bankruptcy debt service and was facing an impending liquidity crisis given working capital requirements leading in to the holiday season. Prior to filing, TPS pursued several strategic alternatives to address the liquidity need and balance sheet challenges but was not able to reach consensus across the interested parties.

ENGAGEMENT

TPS engaged G2 Capital Advisors, LLC (“G2”) as its restructuring advisor in June 2020, following the liquidity and operational challenges to examine strategic alternatives and stabilize operations. Following an inability to reach an out-of-court solution with the key stakeholders, TPS expanded G2’s role by appointing Don Van der Wiel as Chief Restructuring Officer (“CRO”). The Company subsequently filed for Chapter 11 bankruptcy to facilitate a going concern sale of the Company. Through the CRO role, G2 became the chief fiduciary tasked with creating sufficient runway to preserve going concern value and maximizing potential recovery for all stakeholders. Through the CRO role, G2 actively navigated complex stakeholder dynamics, during a time when market instability was at an all-time high due to the continued pandemic. G2 developed and executed liquidity management tactics to maximize strategic options for the Company, as well as managed all transactional and bankruptcy proceeding timelines. With a long-term focus on maximizing value, G2 supported TPS’s sale process, leading to efficient and expeditious transaction execution.

Tom Anderson, President & CEO of The Paper Store said, “G2 was a true partner for The Paper Store as we navigated the highly disruptive impacts of Covid 19 across our business. The G2 team, with its operational and financial advisory capabilities, quickly understood our Company and situation, developed a set of strategic alternatives, and then assisted us in executing the strategy, resulting in a stabilization of day-to-day operations and the long term survival of the Company.”

OUTCOME

G2 provided day-to-day liquidity and process management support throughout the bankruptcy proceedings, including leading a tailored transaction process resulting in the signing of an asset purchase agreement in August 2020 and an eventual going concern sale of TPS on September 1, 2020 under Section 363 of the Bankruptcy Code for $22MM in cash consideration, plus the assumption of certain liabilities.The highly efficient court case process took 49 days from the petition filing date to the closing of the transaction.

Throughout the engagement and culminating with the successful transaction, G2 was able to assist the company in preserving nearly 2,000 jobs across the TPS platform. The strategic execution of the engagement also created significant value for junior creditors in terms of assumed liabilities.

“We are very proud of G2’s contributions to help TPS navigate through the complex challenges presented by the COVID-19 pandemic. The blend of our operational turnaround and transactional experience proved invaluable in allowing us to support the unique requirements of this project in an overall tough retail landscape.” – said Jeffrey Unger, CEO of G2 Capital Advisors.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. served as the Company’s bankruptcy counsel and SSG Capital Advisors, LLC served as investment banker for the transaction.

About The Paper Store:

The Paper Store, LLC, based in Acton, Massachusetts, is a leading specialty gift retailer with 86 stores located in the northeastern United States. Since its inception, the Company’s mission has been to help their customers find unique gifts to celebrate all of life’s occasions from humorous to heartfelt. The Company also believes in maintaining strong, local ties to the community thru various charitable endeavors. For more information, please visit https://www.thepaperstore.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. For more information, please visit www.g2cap.com

Securities offered through Hollister Associates, LLC. Member FINRA, SIPC. G2 Capital Advisors, LLC and Hollister Associates, LLC are separate and unaffiliated entities.

G2 Capital Advisors CONTACTS ON THIS Transaction:

Jeffrey Unger, CEO:
E: [email protected]

Don Van der Wiel, Managing Director, Restructuring:
E: [email protected]

Konstantin A. Danilov: Vice President, Restructuring:
E: [email protected]

Matt Powers: Associate, Restructuring:
E: [email protected]

CLIENT:
Roadrunner Transportation Systems, Inc. (Pink: RRTS) (“Roadrunner”) has transitioned from being a multi-modal transportation and logistics service provider to being a transportation service provider focused exclusivity on less-than-truckload services. The temperature controlled truckload division, RRTC Holding, Inc., d.b.a A&A Express, LLC (“RRTC Holdings” or the “Company”) is a leading provider of temperature-controlled transportation services of food and beverage products for retail and food service customers. The Company is headquartered in South Dakota and services a majority of the lower 48 states with greatest lane density across the Midwest and West regions.

SITUATION:
RRTC Holdings was developed through a rollup of four distinct acquisitions across the Midwest region. The four legal entities were consolidated into one operating company which operated as A&A Express, LLC. Roadrunner was seeking to sell RRTC Holdings as part of a multi-pronged reorganization strategy for Roadrunner to become a national carrier focused solely on providing less-than-truckload transportation services.

ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) was engaged by Roadrunner as the exclusive sell-side advisor to lead a highly targeted and efficient sale process to carve out Roadrunner’s temperature-controlled truckload segment.

OUTCOME
The transaction was successfully executed on July 30, 2020 through a sale of RRTC Holding to an affiliate of Laurel Oak Capital Partners (“Laurel Oak”). The acquisition was Laurel Oak’s platform investment in the cold chain logistics services and represents a unique opportunity to build upon a strong brand and experienced management team.

The President of A&A Express Tim Anderson said, “My experience in working with G2 throughout the sale process was second to none. They were extremely diligent, hard working and focused on achieving the best outcome for all parties involved. The A&A team is excited to work with our new partners at Laurel Oak who clearly share a common vision for continued growth and exceptional customer service execution for our valued customers.”

The Company is well positioned to benefit from the strong tailwinds that have accompanied the temperature controlled transportation segment and, given the solid economic resiliency it has demonstrated throughout the COVID-19 crisis, RRTC Holding will likely continue to play an integral role within the larger cold supply chain industry.
“The market conditions driven by COVID-19 provided unforeseen challenges that required us to find creative ways to drive the due diligence process forward. It was an honor and privilege to work with Roadrunner and A&A’s management on the highly strategic divestiture”, said Chris Hughes, G2’s Managing Director and Transportation & Logistics Practice Leader. “Rena Clark and Emanuel Slater at Laurel Oak were a pleasure to work with and we look forward to tracking their success investing in the cold chain logistics segment.”

About Roadrunner Transportation Systems:
Roadrunner Transportation Systems is a leading less-than-truckload provider offering high quality, reliable LTL services under the Roadrunner Freight® brand. Roadrunner’s “Ship It Like You Own It” commitment guides the company to provide unparalleled service and reliable LTL solutions for customers. With 31 service centers and strategic partnerships across the country, Roadrunner delivers expansive long haul, regional and next day service in all major US markets.

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.

CONTACTS ON THIS DEAL:

Chris Hughes, MD, T&L Practice Leader : T: 404.395.6889 E: [email protected]
Chris Casteleyn: Director, T&L : T: 415.531.3138 E: [email protected]
Tess Sheidy: Associate, T&L : T: 248.767.1283 E: [email protected]
Peter Reed: Vice President : T: 617.366.9254 E: [email protected]
Ben Crawford: Research Analyst : T: 713.591.7301 E: [email protected]

G2 Capital Advisors is pleased to present its Transportation & Logistics 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 Capital Advisors is pleased to present its Technology & Business Services 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 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.

CLIENT:
Strategic Delivery Solutions (“SDS Rx” or the “Company”) is a healthcare focused supply chain solutions provider focused on the long-term care (“LTC”) the pharmacy market, specializing in the movement of pharmaceuticals from wholesale distributors to pharmacies and hospitals and from LTC pharmacies to facilities and patients.

SITUATION:
Founded in 2009, SDS Rx was initially designed to target the pharmaceutical distribution sector and offer pharmaceutical distributors, pharmacies, labs and healthcare systems a combination of proven process, enhanced technology, and a local delivery network on a national scale. Building on that model, the Company has achieved consistent revenue growth, establishing a national footprint while setting the local benchmark for delivery accuracy and establishing itself as the undisputed thought leader in last mile healthcare delivery and logistics. With fresh capital through its financial partnership with HCI Equity Partners (“HCI”) in 2018, SDS Rx is now well positioned to accelerate its growth through a disciplined acquisition strategy and explore expansion opportunities into new healthcare markets.

ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) served as the buy-side advisor to SDS Rx with respect to the Medical Delivery Services (“MDS”) acquisition. After serving as the Company’s financial advisor with HCI’s recapitalization of the business in 2018, G2 was a natural fit to support additional acquisition search activities within the healthcare logistics marketplace.

OUTCOME:
Like SDS Rx, MDS has an attractive, non-asset based business model, leveraging a broad network of independent contractors to deliver its freight. The acquisition of MDS brings SDS Rx into new geographies, builds density in existing geographies, and provides access to a new healthcare end market in radiopharmaceuticals.

CEO of SDS Rx, Drew Kronick said, “This acquisition is a perfect fit as we execute on our strategic growth initiative to grow complementary segments of the healthcare market. The radiopharmaceutical market is a large unique market that requires years of experience to service. MDS brings the people, the experience and the reputation which will allow us to continue to grow our market share in this important segment.”

Managing Partner of HCI, Doug McCormick said, “G2 brought invaluable industry connections and expertise 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 strategic M&A opportunities.”

“We are very excited for the future of MDS, as SDS Rx 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 SDS Rx and pharmaceutical logistics companies across the US.”

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 HCI Equity Partners
HCI Equity Partners (“HCI”) is a lower middle market private equity firm focused on partnering with family and founder owned manufacturing, service and distribution companies. HCI focuses on building solid partnerships with company owners and management teams to develop and execute their growth strategies.

About SDS-Rx
SDS Rx provides dedicated, flexible delivery solutions nationwide to long term care, specialty, infusion, as well as pharmaceutical distributors, labs and healthcare networks. Our industry-leading technology is seamlessly integrated with each unique customer in order to ensure compliance, accuracy, accountability and transparency.

About Medical Delivery Services
MDS was established in 1977 to services the radiopharmaceutical industry. Through superior Commitment, Service and Compliance, MDS is a nationwide specialized carrier for the legal and safe transport of radiopharmaceuticals for all major Nuclear Medicine manufacturers and shippers.

CONTACTS ON THIS DEAL:
Ben Wright, COO: T: 415.800.1258 E: [email protected]
Peter Reed, Vice President of Buy-side T: 617.918.7972 E: [email protected]
Andrew Keleher, Vice President: T: 617.918.7982 E: [email protected]
Matthew Ball, Associate: T: 617.918.7933 E: [email protected]

Media Relations Inquiries:
Jennifer Johnson, Vice President, Marketing
T: 978.204.8050 E: [email protected]

CLIENT:
Crash Champions (“Crash”) is a leading Illinois-based collision repair group that has formal direct repair program relationships with leading national insurance carriers. As a Certified Collision Repair center operating approximately 40 locations across Illinois, Ohio, and California. Crash utilizes state-of-the-art facilities, highly trained repair technicians, and refinish teams to retain vehicles value and safety while ensuring the car is repaired back to its original factory standards.

SITUATION:
Crash was a multi-location collision repair operator with a strong market position in Chicago. Crash had grown organically and through the acquisition of several shops with strong operations and management. Having built a 13-location business in Chicago. Crash was well positioned to accelerate its disciplined acquisition strategy and explore geographic expansion opportunities into new markets outside of Chicago.

ENGAGEMENT:
G2 Capital Advisors, LLC (“G2”) served as the exclusive buy-side advisor to Crash Champions, leading a tailored buy-side effort focused on engaging with companies that have a strong reputation for auto collision repair and customer service across targeted geographies. Crash CEO, Matt Ebert, asked G2 to look into several markets with a small presence from some of the largest national auto body chains, such as Caliber, Boyd-Gerber, Service King and AutoNation. Having identified Central Ohio as key target market, G2 went shopping for the best way for Crash enter that market.

OUTCOME:
G2’s search ultimately led to the acquisition of Auto Body Collision and Glass (“ABCG”), which added three new locations in Columbus, OH, additional capabilities, and a strong brand in the market. This ABCG acquisition is the first of what the Company hopes will be several expansions in the market either via further purchases or new shop openings. Together Crash Champions and ABCG will leverage their newly combined talent, service offerings and geographic footprint to deliver a more integrated solution of auto collision repair services to individuals and insurers across Illinois, Ohio and California.

CEO of Crash Champions, Matt Ebert, said, “We are very excited about entering the growing Columbus area and I feel that the acquisition of Auto Body Collision and Glass was the best platform for our organization as we grow throughout Ohio. ABCG was the largest multi-site operator in the Columbus area with a great history and strong insurance relationships. We look forward to bringing our corporate culture, cutting-edge industry training and certified collision repair services to Columbus and surrounding areas.”

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 Crash Champions (www.crashchampions.com)
Crash Champions began in 1999 with a small shop in New Lenox, IL, called New Lenox Auto Body. After over 15 years of owning a small neighborhood collision center, Matt Ebert wanted to bring his vision to towns throughout the Chicagoland area. In 2014, the company’s name was changed to Crash Champions-New Lenox and the brand began to grow. Since 2014, the Crash Champions organization has grown to have close to 40 collision centers throughout the Midwest and West Coast and became a regional leader in collision repair.

About Auto Body Collision and Glass
Auto Body Collision and Glass has been a market leader throughout the Columbus, OH area for more than three decades. ABCG, a three-location collision group has been an outstanding performer for local insurance carriers and customers alike.

CONTACTS ON THIS DEAL:
Peter Reed, Vice President of Buy-side: T: 617.918.7972 E: [email protected]

Andrew Keleher: Vice President: T: 617.918.7982 E: [email protected]

Matthew Ball: Associate: T: 617.918.7933 E: [email protected]

Ben Crawford: Research Analyst: T: 617.918.7940 E: [email protected]

G2 Capital Advisors is pleased to present its Technology & Business Services 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.

G2 Capital Advisors is pleased to present its Transportation & Logistics 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.