Case Study:

ATCO - Management Buyout

Situation

• Anderson-Tully Company (ATCO) of Memphis, TN specializes in the management of quality hardwood timber stands and the production of hardwood lumber for domestic and foreign use.
• ATCO entered the production and marketing of engineered hardwood flooring under the Capella Hardwood Floor brand as a means to diversify its core operations.
• The Capella brand is well recognized in the marketplace and is sold through a number of leading distributors and retailers.

Objective

• Although ATCO had invested significant time and financial resources in establishing and growing Capella, a strategic decision was made to re-focus on the core hardwood timber and sawmill operations. Thus, the engineered wood operation and the Capella brand were targeted for sale.

Solution

• Matrix was engaged by Anderson-Tully Company to market the engineered wood operations to both strategic and financial buyers.
• Through an auction process, Matrix contacted many prospective buyers on a global basis.
• After presenting this opportunity to numerous potential strategic and financial buyers, Anderson-Tully concluded that a sale to management offered the greatest long term value to its shareholders.