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

  1) analyzed the company and the industry outlook in order to properly position the opportunity for the financial buyers,

2) valued the company in light of its financial performance and comparable transaction data,

3) put together presentations of the opportunity for the financial buyers,

4) took over and managed all the negotiation efforts, and

5) closed the transaction.

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.


 



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Periculum Capital Company, LLC provides investment banking and corporate and venture development services to middle market companies located primarily in the Midwest. Periculum provides strategic and financial advisory services focusing on middle-market mergers & acquisitions, complex financial restructuring transactions, and growth equity financings.We do the following: capital, investment, investment bank, bank, banking, indianapolis, Indiana, mergers, aquisitions, equity, debt, private equity, private debt, financing, sell business, growth consulting, growth, corporate finance, advisors, advisory service, M&A, debt financing, equity financing, ipo, business broker, growth consulting, recapitalization, leveraged buyout, lbo, management buyout, mbo, sell company, sells companies.