Merrill Industries

Introduction

Merrill Industries was a successful family-run manufacturer of boxes, foam, and related materials for shipping and storage based out of Connecticut. Although business was good for this mid-sized firm, the owners were ready to cash out. Tim Ryan, Managing Director of the Shoreham Group, sensed that Merrill would be a perfect acquisition for his agency, which focuses on high-growth companies.

Challenge

While the Shoreham Group had a portion of the funds required to make this acquisition, additional capital was needed to pursue the deal. Tim Ryan, Shoreham’s Managing Director, contacted FGI for guidance in securing the additional financing. With limited equity infusion, Mr. Ryan sought to find leverage in the form of debt. FGI’s expansive knowledge of the debt markets streamlined these efforts to provide creative options beyond pure equity capital.

Solution

After carefully reviewing Merrill’s books and historical performance, FGI probed the market for viable options to facilitate the transaction. The biggest challenge was that the size of this family business was under the radar of most well known funds. FGI’s unique knowledge of the market helped pinpoint specific groups that would fit Shoreham’s needs, bringing in two mezzanine groups which jointly financed the required capital. That, combined with Shoreham’s initial equity, completed the sale.

Results

A key aspect that FGI focused on, which is often overlooked for a transaction of this size, was to ensure the synergies of all parties involved worked well together. With that in mind, FGI helped structure a transaction that pleased all parties and ultimately enabled the Shoreham Group to make the acquisition.