Matrix Capital Markets Group (804) 780-0060 - Case Study: Rossi Hardwood Holdings

Case Study: Rossi Hardwood - Private Placement

Situation

Rossi American Hardwoods is an 80 year old, privately-owned, family business.
In the mid-90’s the majority stockholder sold a significant equity interest in the business to private equity investors and acquired several regional companies over the next several years. However, the company had to suspend their acquisition strategy due to unfavorable industry conditions.

Objective

Matrix was engaged by the CEO to assist in formulating an operating budget and to raise equity to repurchase certain operating businesses, with only a 90 day window to close the transaction.

Solution

Due to unfavorable industry conditions and the short time frame, Matrix proposed an unconventional financing strategy. Matrix approached a series of hedge funds because they are less bureaucratic, can provide multiple layers of capital, and can close transactions very quickly.
This transaction raised nearly $30 million in acquisition financing for the CEO to re-acquire the family business founded by his father.
Matrix was engaged to assist the owner with a subsequent transaction and the Matrix representative was asked to sit on their Board of Directors.