Announcement

Periculum Capital Company, LLC has successfully completed the sale of Maxon Corporation to Hammond, Kennedy, Whitney & Company, Inc.

Maxon Corporation is based in Muncie, Indiana and was founded in 1916. The Company is one of the largest manufacturers of industrial combustion equipment and shut-off valves in the United States. It has manufacturing facilities in the United States, Europe, and China. Hammond, Kennedy, Whitney & Company, Inc. (HKW) is a private equity fund with offices in New York, New York, Chicago, Illinois, and Indianapolis, Indiana. HKW focuses on acquiring middle market companies through leveraged buyout and management led buyout transactions and increasing company value through growth and acquisitions.

The Maxon Board of Directors and shareholders decided to sell the company but wanted to maintain the company headquarters in its Muncie, Indiana location. Because of this, the shareholders realized they would need to sell to a financial buyer, however they still wanted a “strategic” price. The Board identified several potential buyers and received letters of interest, but none of the indications of value met shareholder expectations.

Periculum was engaged to facilitate the negotiation between Maxon and the potential financial buyers in order to increase value, manage the process, and close a transaction. Periculum

Periculum was able to drive the company’s valuation by communicating new insights into the market, identifying potential consolidation opportunities for a financial buyer, and intensely negotiating with each potential buyer to achieve maximum value.

Periculum closed the transaction 5 months later and exceeded the client’s expectations as the final purchase price was 40% more than the highest indication of value initially given by the potential buyers.