Matrix Capital Markets Group (804) 780-0060 - Case Study: New England Surfaces, Inc.

Case Study: New England Surfaces - Private Placement

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 Capital sought to value 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 182 subordinated debt lenders, issued 33 Confidential Information Memoranda (“CIM”) and received 9 bids.
6 firms were invited to a management presentation and 3 were selected based on proposed transaction economics, means to provide additional growth capital and perceived suitability as a business partner.
Matrix Capital received final proposals with improved terms, selected one firm and closed the transaction less than 3 months after CIMs were issued.