News

NEWS & ANNOUNCEMENTS

03.17

Periculum Advises Phoenix Fabricators and Erectors, Inc in its Partnership with Union Capital Associates

Periculum Capital Company, LLC (“Periculum”) is pleased to announce that it acted as the exclusive financial advisor to Phoenix Fabricators and Erectors, Inc. (“Phoenix” or the “Company”) in its partnership with Union Capital Associates, LP (“Union Capital”). Union Capital invested in Phoenix for its future growth prospects, particularly in the composite elevated water tank market.

Phoenix is an industry-leading provider of elevated water storage tanks, commonly referred to as water towers. Founded in 1986, the Company maintains its corporate headquarters in Avon, IN and has an additional manufacturing facility in Sebree, KY. Phoenix has constructed over 5,000 tanks throughout the United States. By employing its own field crews, the Company offers a turnkey solution, including engineering, fabrication, foundation installation, field erection, and painting services, to ensure high quality and timely construction.

In order to continue to expand and maximize its already strong market position, Phoenix was looking for a partner to give them access to additional capital for expansion. Periculum was engaged to conduct a focused search of potential equity investors to partner with the existing management team. Following an extensive process, management determined the best partner for Phoenix was Union Capital.

Jeff Short, one of the founding partners of Phoenix, stated, “I will continue to serve on the Board of Directors and Management Advisory Committee but this is a great opportunity for Tim Yohler, Kurt Fuller, and Jonathan Dixon, a seasoned management team that we trained and promoted and who have over 50 years of combined experience building composite and steel tanks, to partner with an investment team that has an extensive track record of helping private companies grow and expand.” Tim Yohler, President of Phoenix, echoed this sentiment by saying, “In the 23 years I have been at Phoenix, this is the biggest opportunity we have ever had to expand our presence in the elevated water tank market and specifically to continue our momentum in the composite tank market. Phoenix has seen incredible growth during the past five years in this segment, constructing over 50 composite tanks of all sizes, including 30 composite tanks that are over 1 million gallons in capacity. The Periculum team did an excellent job positioning our growth story and identifying quality potential partners. The Union Capital investment will allow us to increase our share in this market substantially.” Bill Ogden, Managing Partner at Union Capital added, “Our team is excited to provide the capital to Phoenix to continue their growth in the elevated water tank market. We were extremely impressed with the reputation of their products and the experience and dedication of Tim Yohler and the rest of the management team. Throughout our nearly 50-year history the key to our success is partnering with great management teams and providing them with the capital to take advantage of market opportunities like the composite tank market.”

 

Periculum Advises Dickinson Fleet Services, LLC in its Sale to Ridgemont Equity Partners

Periculum Capital Company, LLC (“Periculum”) is pleased to announce the sale of Dickinson Fleet Services, LLC (“Dickinson” or the “Company”), to Ridgemont Equity Partners (“Ridgemont”). Periculum served as the exclusive financial advisor to Dickinson regarding the sale of the Company.

Based in Indianapolis, Indiana, Dickinson is the industry-leader in the provision of preventative maintenance and repair services for vehicle fleet owners and operators throughout the United States. As the largest independent fleet maintenance company in the country, Dickinson provides mobile maintenance and repairs leveraging both its network of mobile technicians and in-shop maintenance at its 15 branch facilities.

The Company’s ownership situation was unique, as two members of the ownership team sought to retire subsequent to the sale of the Company, while two others desired to remain and continue to build upon the family business. Dickinson exclusively engaged Periculum to structure a customized solution to meet the goals of all Company shareholders. Periculum executed a broad search of potential buyers including large strategic companies in the fleet management and maintenance industry, companies owning large fleets that were currently performing maintenance work in-house, and private equity firms with industry expertise. Following management meetings with several potential buyers, the Company’s shareholders determined that Ridgemont was the ideal financial partner to transition the leadership of the company, supporting the remaining owners and management team as they continue to grow the business.

The founder of the Company, Bob Dickinson, said, “Our experience with Periculum was very rewarding. They helped us to exceed our valuation expectations, and identified potential buyers we couldn’t have found on our own. The Periculum team was always available for advice and guidance throughout the entire process.”

“We had a very positive experience working with the Periculum team throughout the Dickinson transaction process,” said Jack Purcell, Partner at Ridgemont. “Dickinson and the entire vehicle repair and maintenance industry are at an inflection point with respect to the use of technology, leveraging a mobile work force and pursuing M&A opportunities. Periculum positioned their client to be successful during a critical time in the Company’s history. We look forward to expanding the geographic footprint and service offering alongside the management team at Dickinson.

 

03.17

Periculum Advises JBS United in the Sale of its Eastern Illinois Grain Business to Premier Cooperative, Inc.

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 eastern Illinois grain business (“JBS United Grain East”) to Premier Cooperative, Inc. (“Premier”).

JBS United’s primary focus and 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 process because of the firm’s extensive experience and contacts in the food and agricultural markets – particularly the grain origination and storage segments. Periculum ran a formal process focused on domestic and international strategic buyers interested in entering or expanding in eastern Illinois. Following an extensive process, JBS United determined the best team to take over its eastern Illinois grain operations was Premier Cooperative. Steve Biddle, Vice President of the Grain Group, echoed this sentiment by saying, “Periculum delivered significant value to us through their experience and well thought out sale process. They identified and targeted strategic buyers that we may not have otherwise been able to attract. With Periculum’s leadership we were able to find the right buyer and a good place for our people going with the business.”

JBS United Grain East is comprised of three grain storage and merchandising facilities located in Royal, Rossville, and Collison, 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 CSX and Union Pacific railroads, complementing Premier’s existing grain origination footprint and culture.

02.17

Periculum Advises CGS Services, Inc. in its Sale to Advanced Disposal Services, Inc.

Periculum Capital Company, LLC (“Periculum”) is pleased to announce the sale of CGS Services, Inc. (“CGS” or the “Company”), to Advanced Disposal Services, Inc. (NYSE: ADSW). Periculum acted as exclusive financial advisor to CGS in connection with the sale of the Company.

Based in Morristown, Indiana, CGS provides waste collection, recycling, and disposal services throughout eastern and central Indiana. The Company has been in business since 1946 and is known for its quality products and superior levels of service.

Periculum was engaged to conduct a customized search of potential buyers ranging from large strategic companies in the waste management industry to financial sponsors with industry expertise. CGS was a third-generation family business, making it critical that Periculum find the right partner to continue the Company’s legacy. Following management meetings with several potential buyers, the Company’s shareholders determined that Advanced Disposal was the right partner. The transaction provided superior value to shareholders while also ensuring that CGS’s customers and employees would be taken care of post-sale. “Things went exactly as Periculum described from the very first meeting and we had a very successful outcome,” said co-owner Linda Muegge. CGS’s other owner, Dana Caldwell, said “Periculum helped drive a deal structure that was not common in our industry, but was important to our family’s particular situation.”

Advanced Disposal (NYSE: ADSW), based in Ponte Vedra, FL, is the fourth largest non-hazardous solid waste management company in the U.S., as measured by revenue and provides non-hazardous solid waste collection, transfer, recycling, and disposal services for residential, commercial, and industrial customers across the Southeast, Midwest and Eastern regions of the United States, as well as in the Commonwealth of the Bahamas.

02.17

Periculum Capital Announces Its Founding of Aequus Advisors, LLC

Periculum Capital Company, LLC (“Periculum”) is pleased to announce its founding of Aequus Advisors LLC (“Aequus”), a differentiated provider of financial advisory and investment banking services focused on the unique needs of smaller companies. Co-founded and led by Kurtis Speer, Aequus offers a comprehensive range of professional services normally reserved for larger middle market companies.

Aequus’ services include sell-side representation of businesses and business owners and placements of senior debt to support growth. In addition, Aequus provides owners with guidance on the value of their businesses and strategic alternative reviews. The firm advises closely-held businesses located within 250 miles of Indianapolis with operating earnings of $1-3 million.

Kurtis Speer, Managing Director of Aequus, has extensive experience in addressing the specialized corporate finance needs of smaller clients and has served in various capital formation, advisory, and operating roles. Mr. Speer explained, “After researching the micro-cap market, I was struck by the lack of professional investment banking services for smaller firms. There are a large number of high-quality companies that are too small for traditional middle-market investment banks, but require advisory services beyond those offered by traditional business brokers.”

Chris Caniff, Senior Managing Director of Periculum, stated, “We are excited to have Kurtis as a co-founder and leader of this new firm. His considerable experience working with clients in the micro-cap segment of the middle market and serving as a private equity portfolio company executive position him well to offer the high-quality services to Aequus’ advisory clients that are typically reserved for larger middle-market companies.”