Matrix Capital Markets Group (804) 780-0060 - Case Study: ASC Industries

Case Study: ASC Industries - Staged Liquidity Transaction

Situation

ASC Industries, headquartered in North Canton, Ohio with major manufacturing operations in both the U.S. and China, is the leading North American manufacturer of new, aftermarket water pumps for automotive applications. Products are sold through the mass retail and aftermarket automotive retail channels.

Objective

Shareholders sought a liquidity event, growth capital and a new financing relationship that would support aggressive growth plans.

Solution

Matrix Capital managed a broad-based and disciplined approach to potential private equity investors, ultimately receiving over 20 preliminary bids.
American Capital Strategies (NASD: ACAS), a leading private equity and mezzanine investment firm with over 80 portfolio companies and $1.0 billion in capital, was selected by ASC’s shareholders.
As a result of the timing and process that Matrix Capital crafted and managed, shareholders realized a return that was over 50% greater than had been originally expected.
ASC shareholders experienced a significant liquidity event while still maintaining majority ownership of ASC’s common equity and operational control of the business.