CASE STUDY — SELL SIDE

Sector: Industrials
Industry: Specialty Chemicals
Premium Spray Products
Has been acquired by:

Company

Premium Spray Products, Inc. (“PSP” or the “Company”) is a leading specialty chemical manufacturer and distributor specializing in high-quality spray polyurethane foam products for residential, commercial, and industrial applications. PSP is based in Marietta, Georgia, with an additional location in Regina, Saskatchewan. The Company’s products are sold throughout North America and into international markets, and offer superior performance compared to more traditional offerings. Customers include distributors and contractors as well as homeowners, builders, and architects. PSP is a recognized technical leader in the industry and invests in continuing research and development to create new formulations. PSP is one of the fastest growing companies in the industry and it has multiple strategic opportunities to generate ongoing long-term growth.

Situation

PSP was founded in 2009 by Mac Hess, CEO and Shareholder, who is an industry veteran with more than 40 years of urethane experience. While the Company was poised for a continuation of accelerated growth, the Company’s control owner was a private equity firm who had reached their return on investment time horizon and was interested in an exit. Another private equity firm approached the Company with an offer to acquire the business, and PSP had not retained an M&A advisor. After six months of negotiations, and with strategic buyer prospects expressing interest, PSP declined to move forward with the private equity offer.

Advisory Role

BCA was engaged by PSP as its exclusive financial advisor in its sale process. After an extensive review of the spray foam and specialty chemicals markets, BCA ran a broad sales process with a focus on strategic and private equity buyers with existing investments in the industry or had interest in acquiring spray foam companies.

Result

Bravaldo Capital Advisors stepped in quickly, and due to a competitive process and negotiation leverage, successfully sold PSP to a private equity owned strategic buyer for a purchase price that significantly exceeded the original private equity offer.

Bravaldo Capital Advisors

Bravaldo Capital Advisors is a boutique Atlanta based mergers & acquisitions and corporate finance advisory firm, providing independent economic and financial advice and execution services for lower middle market companies in a variety of industries with revenues typically between $10 million and $300 million. BCA offers a full range of transaction and advisory services, guiding clients through sell-side transactions and exit strategy planning, growth through acquisition, debt restructuring and corporate recapitalization. The BCA team is a senior deal team with extensive knowledge and insight into the full life cycle of M&A and corporate finance engagements.