Largest U.S. Scissor Manufacturer

Phoenix IB® serves as financial advisor to the largest scissor manufacturer in the U.S. selling substantially all of its assets to an undisclosed buyer.

The Client

Phoenix’s client was the largest U.S. Manufacturer of Hot-Forged Scissors and Shears for a wide variety of markets.

The Challenge

Despite the positive cash flow of the Company, the business did not fit into the long-term strategy of the Parent Company which was not re-investing the profits in the business to support its growth potential. In addition, the business had known environmental issues on the company-owned real estate that were continuing to be addressed over time. In order to maximize the value of the Parent’s Company investment and to help achieve its overall corporate goals, Phoenix IB® was engaged as the exclusive financial advisor to sell the business.

The Solution

Phoenix began its due diligence, prepared a descriptive memorandum, and was ready to go to market about a month later. Prior to going to market, a customer of the business was identified as an interested buyer. Phoenix IB® negotiated a premium purchase price in exchange for allowing a “pre-emptive” bid prior to starting the competitive sale process. The final sale price represented a very attractive multiple of adjusted EBITDA as a result of real synergies between the two companies.

When the strategic buyer expressed interest in the business, it noted that the environmental due diligence would be its top priority due to a negative experience with a prior real estate transaction. Maneuvering through the environmental due diligence issues and negotiating acceptable solutions for both sides proved challenging and nearly derailed the closing several times.

Over the course of seven months, Phoenix IB®:

  • Assembled a strong professional team
  • Spearheaded the transaction process
  • Coordinated communications between numerous constituents
  • Managed expectations of the various parties
  • Mediated disputes to resolve environmental due diligence issues
  • Reached a successful closing despite numerous delays

Phoenix Investment Banking

Primary Industry

  • Manufacturing

Secondary Industry

  • Metal Products

    Primary Services

  • Business / Operational Assessments