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March 4, 2010
Served as exclusive financial advisor and investment banker to the client and assisted the shareholders and senior management team in returning the Company to profitability, marketing the Company for sale, and negotiating and closing a transaction with a strategic buyer.
Shared System Technology, Inc., and Secured System Technology, Inc. (collectively “SST”) is the largest industrial refractory contractor on the East Coast. Founded in 1993, SST, has expanded from one office located in New Jersey, to several strategically centered locations across the United States delivering solutions for its customers in the areas of refractory/brick installations, fireproofing, stud-welding, secondary containments, concrete restorations, civil, specialty coatings, sandblasting, epoxy injections, pressure grouting, building restorations and general building maintenance.
The Company’s 10 year run of strong year-over-year growth stalled as a result of a multi-million dollar receivable dispute. As a result of this working capital loss, the Company experienced a 10% decline in net sales and, with the help of Phoenix Management, restructured operations and returned to profitability. A refocus on operations put SST back on track to grow sales once again, but continued capital constraints and a tired lending relationship lead the Company to explore strategic alternatives.
SST engaged Phoenix Capital Resources (“PCR”) as exclusive investment banker to explore the sale of the Company. PCR designed a two stage process to maximize value and simultaneously insulated the Company from competitive threats. PCR delivered numerous Letters of Intent to SST and ultimately Structural Group Inc. was selected as the buyer of the Company.
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