Manufacturer of Plastic Shopping Carts

Phoenix conducts a Quality of Earnings review for a private equity fund to provide analysis of the potential synergies available for the integration of two plastic shopping cart manufacturers.

The Client

Company #1 was the world’s largest manufacturer of plastic shopping carts and material handling equipment for retailers. Company #2 was a family-owned manufacturer of plastic and wire shopping carts and wire store shelving and displays headquartered in MI with three manufacturing facilities.

The Challenge

A Private equity Fund was considering a transaction to acquire Company #1 and Company #2 (collectively the “Companies”). The premise of the transaction was that while both organizations had endured operating challenges and lackluster profitability, the potential synergies between the two appeared to be significant, and the combined Companies would allow the Companies to leverage each of their respective strengths.

The Solution

Phoenix was retained by the Private Equity Fund to evaluate the historical operating performance of each of the Companies and to provide analysis of the potential synergies available. Further, Phoenix evaluated the resulting management and identified key risks and opportunities within the team and the likely time-frames associated with the execution to achieve the synergies. Phoenix further identified the key economic drivers  and possible strategies to both mitigate those issues and to leverage existing opportunities.

Phoenix Transaction

Primary Industry

  • Manufacturing

Secondary Industry

  • Consumer Products

    Primary Services

  • Quality of Earnings