News

NEWS

04.19

Sale of Pretzels, Inc. to Peak Rock Capital Recognized as Deal of the Year

Periculum Capital Company, LLC is pleased to announce that the 2018 sale of Pretzels, Inc. to Peak Rock Capital was recognized as Deal of the Year by the Association for Corporate Growth (“ACG”) at its 2019 Indiana Annual Awards Dinner. The transaction was recognized for successfully transitioning the Indiana-based, multi-generational family business to the institutional finance markets while maintaining the company’s significant Indiana footprint and expanding its potential economic impact. Periculum served as the exclusive financial advisor to Pretzels, marking the third consecutive year that Periculum has advised companies recognized by ACG Indiana at its Annual Awards Dinner.

In 2018, Periculum’s financial advisory client, Dickinson Fleet Services, won the Corporate Value award, driven by its 2017 acquisition by Ridgemont Equity Partners. Periculum also served as the exclusive financial advisor to Kinetrex Energy on their 2016 sale to Parallel49 Equity, which was recognized in 2017 as Deal of the Year.

Periculum has built a reputation over multiple decades for providing Indiana’s leading middle market and emerging growth companies highly-customized financial advisory solutions. The firm’s principal approach accounts for the complexities of ownership perspective, economic condition, and management expectations to deliver solutions optimized to each clients’ specific needs and desires. Periculum was first recognized by ACG Indiana in its inaugural Deal of the Year, the 2004 acquisition of Maxon Corporation by Hammond, Kennedy, Whitney & Company, Inc.

12.18

Periculum Advises Paradise 4 Paws, LLC. in its Reception of Investment from National Veterinary Associates, Inc.

Periculum Capital Company, LLC (“Periculum”) is pleased to announce that Paradise 4 Paws, LLC (“P4P” or the “Company”) has received an investment from National Veterinary Associates, Inc. (“NVA”). Periculum acted as the exclusive financial advisor to P4P, leveraging its extensive experience in the pet industry to execute a successful transaction in the rapidly evolving pet care services segment.

Headquartered in Chicago, Illinois, P4P is a leading pet care services provider, offering boarding, daycare, grooming, and training across 13 nationwide locations. The Company operates a unique “hub-and-spoke” business model, with anchor Paradise 4 Paws “resort” locations at major U.S. airports complemented by urban Pooch “hotel” and “club” locations serving the surrounding metropolitan area. As a result, the Company effectively maximizes market penetration by capturing both the traveling-related overnight boarding and daily daycare demand of discerning pet parents. With its significant brand recognition and extensive experience opening new airport locations, P4P is well-positioned to establish itself as the leading comprehensive pet care services provider in a highly fragmented industry.

Founded in 2008, P4P had historically relied primarily on family and friends of the management team to fund its growth. Following its recent acquisition of the Pooch Hotel platform from Petco, the Company was seeking growth capital to solidify its position and continue to expand its footprint. Given Periculum’s prior success executing deals in the pet space, P4P engaged Periculum to explore various strategic alternatives available to the Company. After running a customized process targeting select strategic companies and private equity firms with industry expertise, management determined that NVA was the ideal partner to support the growth of the existing platform and accelerate P4P’s future development.

P4P’s founder and CEO Saq Nadeem reflected on the positive outcome stating, “Periculum was instrumental in crafting a unique transaction structure that not only met our capital needs but also aligned P4P and NVA for a successful long-term relationship.”

10.18

Periculum Advises Pretzels, Inc. in its Sale to Peak Rock Capital

Periculum Capital Company, LLC (“Periculum”) is pleased to announce the sale of Pretzels, Inc. (“Pretzels” or the “Company”) to Peak Rock Capital (“Peak Rock”). Periculum acted as the exclusive financial advisor to Pretzels. The transaction further expands Periculum’s established resume of completed transactions in its growing food vertical.

Headquartered in Bluffton, Indiana, Pretzels manufactures an extensive array of salty-snack products, including traditional, peanut-butter-filled, flavored, seasonal, and gluten-free pretzels, as well as extruded products. Serving a diverse, blue-chip customer base comprised of leading grocers and national brands, Pretzels has maintained an outstanding reputation for excellent customer service and exceptional product quality since its founding in 1978 by Bill Mann and Bill Huggins.

A number of factors have driven significant changes in the salty-snack space over the last several years, including the continued growth of private label versus branded products and an increased focus on healthy and “better-for-you” products. In order to capitalize on these changing industry dynamics, the Company built a state-of-the-art facility in Plymouth, Indiana in 2017 to complement its existing operations in Bluffton, while simultaneously making the decision to seek an outside investment partner.

Pretzels selected Periculum to execute a customized process to find a partner that would meet the objectives of both the Huggins and Mann families as well as the current management team. The objectives included getting an attractive valuation for the business and finding a partner that would fit the Company’s culture while providing the expertise and capital to help facilitate growth. After running a targeted process that resulted in significant buyer interest, the Company’s shareholders determined that Peak Rock was the best partner to help transition company leadership while supporting the remaining owners and management team as they continue to expand the business.

Co-CEO and EVP of Sales, Chip Mann, remarked, “Our experience working with Periculum was very rewarding and they truly understood our needs. They helped us achieve an exceptional outcome and found a partner in Peak Rock that should allow us to capitalize on a variety of exciting opportunities ahead.”

“We had a positive experience working with the Periculum team throughout the Pretzels transaction process,” added Robert Strauss, Managing Director of Peak Rock. “We are excited to partner with the Company’s talented management team and the Huggins and Mann families to grow this snack platform through product innovation, investments in the Company’s capabilities, and add-on acquisitions.”

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.”