Case Study:

New England Surfaces - Capital Raising

Situation

• New England Surfaces is the exclusive distributor for Dupont branded solid surface (Corian) and engineered stone (Zodiaq) countertops in New England. NES also distributes Merillat branded cabinetry and vinyl and laminate flooring. NES had revenues in excess of $40 million and operated four warehousing facilities throughout New England.  Bob Dion, 50% owner and son of the business’s founder, sought to acquire the 50% of company stock owned by his partner and co-CEO, Ron Winde.    

Objective

• Matrix valued New England Surfaces in order to negotiate and structure a transaction with Bob’s partner and Co-CEO.  Following this exercise, Matrix sought to fund the purchase amount as well as some excess capital with subordinated debt.   

Solution

• Matrix contacted mezzanine lenders and received multiple bids.
• Several firms were selected based on proposed transaction economics, means to provide additional growth capital and perceived suitability as a business partner.
• Matrix received final proposals with improved terms, selected one firm and closed the transaction less than three months after CIMs were issued.