News

NEWS & ANNOUNCEMENTS

07.18

Periculum Advises Morgan Foods, Inc. in its Acquisition of American Soy Products, Inc.

Periculum Capital Company, LLC (“Periculum”) is pleased to announce the acquisition of American Soy Products, Inc. (“ASP”) by Morgan Foods, Inc. (“Morgan” or the “Company”). Periculum acted as the exclusive advisor to Morgan, assisting with both the sourcing and negotiation of the transaction and with the structuring and placement of the financing.

Founded in 1899 and based in Austin, Indiana, Morgan is the leading private label canned soup and bean manufacturer in the U.S. Today, the Company produces over 400 different formulations across almost 2,000 SKUs.

As Morgan continues to diversify and grow its business, the Company made the strategic decision to expand its product selection by offering aseptic packaged products. Aseptic processing is the highly specialized process of packaging sterile food products in a sterile container, preventing microorganisms and bacteria from entering the package. This process keeps the sealed products safe and shelf stable for up to 18 months without the need for refrigeration. Aseptic is one of the fastest growing segments in the consumer packaged food industry.

Morgan engaged Periculum after evaluating a build-versus-buy strategy and deciding that the most effective way to enter this rapidly growing segment was to acquire a company that had existing aseptic packaging capabilities. Periculum ran a focused search for aseptic packaging companies in North America. During the process, Periculum identified and contacted over 30 potential targets. After conversations with several targets, ASP was identified as the best fit and was open to pursuing a transaction with Morgan. Periculum prepared the valuation, gathered the necessary information for Morgan to make the operational decision, and assisted in the preparation of the IOI and LOI. During the closing process, Periculum helped with problem solving and simultaneously ran a financing process to fund the acquisition and working capital needs for Morgan. The successful outcome allows Morgan to not only offer new packaging options, but also offer new products to its existing customer base.

Louis Gottsponer, President of Morgan, reflected on the positive outcome saying, “The Periculum team did an excellent job of identifying potential targets and managing both the acquisition and financing process. This outcome would have been much more difficult without their expertise and experience.”

04.18

Periculum Advises Fortis Security Products, LLC. in its sale to BASE Equity Partners and The Frederic H. Mayerson Group

Periculum Capital Company, LLC (“Periculum”) is pleased to announce the sale of Fortis Security Products, LLC (“Fortis” or the “Company”), a portfolio company of Fort Washington Capital Partners and Queen City Angels, to BASE Equity Partners (“BASE”) and The Frederic H. Mayerson Group (“FHMG”). Periculum acted as the exclusive financial advisor to Fortis in connection with the transaction.

Founded in 2004 and based in Greendale, Indiana, Fortis is the second leading firm in the physical security products manufacturing industry, providing solutions to financial institutions throughout the United States. The Company provides a wide range of drive-up security products, vaults, safes, and other cash protection solutions and is known in the industry for its quality, service, and quick turnaround times.

Owned by three founders and a financial sponsor group led by Fort Washington and Queen City Angels, the management team sought to pursue expanded growth while allowing outside investors to realize their current investment. The Company engaged Periculum to arrange a customized solution allowing shareholders to exit, while securing a new investment partner for the management team. Following management meetings with several potential buyers, the Company’s shareholders selected BASE and FHMG as the ideal partners to provide the financial, operational, and strategic support necessary to facilitate the Company’s next phase of growth. With its new partners, the Company plans to invest in additional employees and equipment to expand its product line as well as enter new markets.

One of the founders of the Company, Kirk Williams, reflected on the positive outcome saying, “The Periculum team did an excellent job of identifying potential acquirers and managing the transaction process. This outcome would not have been possible without their experience and expertise.”

01.18

Periculum Advises Tyson Onsite in its sale to WillScot Corporation

Periculum Capital Company, LLC (“Periculum”) is pleased to announce that it acted as the exclusive financial advisor to Onsite Space LLC d/b/a Tyson Onsite (“Tyson” or the “Company”) in its sale to WillScot Corporation (NASDAQ: WSC) (“Williams Scotsman”).

Founded in 1967, Tyson is a regional leader in the sale and rental of mobile offices, modular buildings, portable classrooms, and other storage solutions. In 2012, following the economic recession and passing of its then-owner, the Company was acquired by entrepreneurs and industry veterans Brent and Matthew Claymon who saw an opportunity to jump back into the industry they knew well and transform a struggling Company. The Claymons achieved significant growth during their ownership by investing in fleet and equipment, hiring a strong management team, and improving business practices, resulting in a market-leading Company well-known for its quality, capabilities, and service.

After nearly six years of ownership, the Claymons decided to sell the Company to focus on other businesses and investment opportunities, engaging Periculum to run the sale process. While the universe of potential acquirers in the industry was small and well-known, Periculum was able to drive a strong and competitive process, ultimately resulting in the Company’s sale to Williams Scotsman (NASDAQ: WSC) – a large, national competitor looking to enhance its Midwest presence. The Claymons reflected on the positive outcome, stating, “the process went smoothly and Periculum’s experience and knowledge made that happen.”

Headquartered in Baltimore, Maryland, WillScot Corporation is the public holding company for the Williams Scotsman family of companies in the United States, Canada, and Mexico. WillScot Corporation trades on the NASDAQ stock exchange under the ticker symbol “WSC.” Williams Scotsman is a specialty rental services market leader providing innovative modular space and portable storage solutions across North America. Williams Scotsman is the modular space supplier of choice for the construction, education, health care, government, retail, commercial, transportation, security, and energy sectors. With over half a century of innovative history, organic growth, and strategic acquisitions, its branch network includes over 100 locations, its fleet comprises nearly 100,000 modular space and portable storage units, and its customer base has grown to approximately 35,000.

10.17

Periculum Advises JBS United, Inc. in the sale of its western Illinois grain business to Bunge-SCF Grain, LLC.

Periculum Capital Company, LLC (“Periculum”) is pleased to announce that it acted as the exclusive financial advisor to JBS United, Inc. (the “Company”) in the sale of its western Illinois grain business (“JBS United Grain West”) to Bunge-SCF Grain, LLC (“Bunge-SCF”).

JBS United’s core business is the research, development, and production of animal nutrition solutions, which has no direct connection to the grain origination and storage business. Given that, and the Company’s desire to significantly grow in the nutrition segment, JBS United decided to divest its grain business to free up management’s time and reallocate funds to additional nutrition research and development.

JBS United selected Periculum to lead the sale engagement because of the firm’s focus, extensive experience, and contacts in the food and agricultural markets. Periculum ran a formal process, focused on both domestic and international strategic buyers seeking entrance or expansion in western Illinois. Following an extensive review, the Company determined that the best candidate to acquire its western Illinois grain operations was Bunge-SCF. Steve Biddle, Vice President of the Grain Group, added, “Through Periculum’s experience, connections, and process we were able to attract buyers with significant strategic interest in our grain assets – both people and facilities. Each deal presents its own unique challenges, but through those challenges, Periculum delivered an outcome that would have been unattainable without their expertise.”

JBS United Grain West is comprised of three grain storage and merchandising facilities located in Griggsville, Pittsfield, and New Canton, Illinois with significant storage capacity and a team of highly experienced grain personnel. The elevators are strategically positioned with access to multiple markets along the Norfolk Southern railroad.

Bunge-SCF Grain LLC, a joint venture between Bunge North America and SCF Agri/Fuels LLC, was created to provide improved infrastructure to serve growing demand for commodities in the U.S. and export markets. The partners include Bunge North America, the North American operating arm of Bunge Limited (NYSE: BG), which buys, sells, stores and transports grains and oilseeds to serve customers worldwide, and SEACOR Holdings Inc.’s subsidiary, SCF Agri/Fuels LLC, which specializes in the purchase, storage, transportation and sale of agricultural and energy commodities.

10.17

Periculum Advises DRT Holdings, Inc. in the sale of its Medical Subsidiary to NN, Inc.

Periculum Capital Company, LLC (“Periculum”) is pleased to announce that it acted as the exclusive financial advisor to DRT Holdings, Inc. in the sale of its wholly-owned subsidiary DRT Medical, LLC (“DRT Medical” or the “Company”) to NN, Inc. (NASDAQ: NNBR) (“NN”).

DRT Medical was incorporated in 2005 after DRT Holdings entered the medical supply market. Today, the Company is a leading supplier of precision manufactured medical instruments and orthopedic implants to many of the largest global medical device OEMs.

DRT Holdings decided to sell the medical portion of its business to focus on its container and power systems businesses. Periculum was engaged to find a buyer that would not only meet valuation expectations, but also provide the knowledge and resources to continue to grow the Company. Following a targeted marketing process, DRT Holding’s President and CEO, Gary Van Gundy, determined that the best option was to sell the Company to NN. He reflected on the positive outcome, stating, “Periculum did an excellent job of finding a strategic acquirer who was looking for the expertise our company offered in this segment of the medical industry.”

NN is a publicly-traded diversified industrial company based in Johnson City, Tennessee. It combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. NN has 36 facilities throughout North America, Western Europe, Eastern Europe, South America, and China.