Peters Machine, Inc. has completed a going concern sale transaction with Ventoux Capital’s subsidiary, BMC Global, LLC of Blissfield, MI. Ventoux Capital specializes in acquiring smaller distressed manufacturing operations with strong management teams in place, and provides guidance and working capital allowing the company to continue operations. Maryland based Equity Partners HG served as investment banker for the seller.
In late 2016, Peters Machine retained Equity Partners HG as the exclusive broker to sell their 36 year old company specializing in machining and drilling tube sheets and baffles. The company had borrowed to expand its capacity during a period of sharp increase in demand for its service and subsequently experienced a reduction in its revenues due to the financial crisis and a slowdown of corn ethanol production. Equity Partners’ charge was to quickly find a buyer for the business before it was forced to shut down, and the firm ran an exhaustive marketing process reaching out to thousands of prospective buyers. Following a thorough evaluation of the market, Equity Partners narrowed the field down to the three most logical buyers. After extensive negotiations with all three prospective buyers, a competitive, court approved auction was held for the Peters Machine personal property, along with the real estate the business operated in, and several pieces of equipment either owned by the Peters Machine shareholders or controlled by a bankruptcy trustee. BMC was the winning bidder for all of these assets, allowing for the continued operation of the business.
Hank Waida, managing director at Equity Partners HG stated, “Peter’s Machine will add unique capabilities to BMC Global’s manufacturing operations. Building on those synergies and keeping jobs in Decatur, IL will make this acquisition a great success for them. The sale also brought a far greater recovery to creditors than a liquidation of the assets would have.”
Other professionals who worked on the transaction include:
- Jonathan Backman, Law Office of Jonathan A. Backman, counsel to Peters Machine Inc.
- Chris Mehring, Goldstein McClintock, counsel to BMC Global, LLC
- Mark Wenzel, Smith Amundson, counsel to Regions Bank
- Marianne Pogge, chapter 7 trustee