Case Study:

Implus Corporation - Recapitalization

Situation

• Implus Corporation, headquartered in Durham, North Carolina, is the number one manufacturer and distributor of performance insoles and related foot and shoe care products.  The company has extensive distribution through sporting goods retailers, food and drug stores and mass merchandisers, and generated $32 million in revenues at the time.

Objective

• The founders and management were looking to take-out the inactive majority shareholders, generate a partial liquidity event for themselves, and access expansion capital to support the company’s continued growth.

Solution

• Matrix presented the opportunity to financial investors/buyers and received several preliminary bids.  Shareholders selected FdG Associates to complete the transaction.
• Matrix advised Implus for several years prior to the transaction and assisted management in positioning the company and determining the optimal timing to enter the market.  As a result of the competitive process, Matrix identified an equity sponsor that was very aggressive on valuation and flexible regarding deal structure.