CASE STUDY — SELL SIDE

Sector: Industrials
Industry: Linen Supply
Riegel Linen
Has been acquired by:

Company

Riegel Consumer Products Division. (“Riegel”), a division of Mount Vernon Mills, Inc. (“Mount Vernon Mills” or “Parent”) is an importer, manufacturer and supplier of tablecloths, napkins, sheets, towels, bedding and other linens for hotels, restaurants, linen suppliers, retailers, and healthcare customers. Riegel is a market leader in product innovation and enabling products to endure the heavy wear and tear of the commercial laundering environment. Founded in 1838 and headquartered in Aiken, SC, Riegel operates a manufacturing facility in McCormick, SC and a network of salespeople and warehouses strategically located across the U.S. Mount Vernon Mills is a Mauldin, SC headquartered, diversified, and integrated textile manufacturer supplying fabrics to the apparel and industrial markets.

Situation

After more than a 30-year ownership by Mount Vernon Mills, Riegel had evolved to become less compatible and synergistic with Mount Vernon Mills and the Parent had made the strategic decision to divest Riegel. At the time of its acquisition in 1985, Riegel was manufacturing 100% domestically, and it was purchasing materials from other divisions of Mount Vernon Mills. As Riegel’s production had moved offshore, and the Parent’s had remained domestic, Riegel was no longer centric to the Parent’s domestic manufacturing operation. Furthermore, Riegel was unique within Mount Vernon Mills, as it was the only consumer products related division of the Parent.

Advisory Role

BCA was engaged by Mount Vernon Mills as its exclusive financial advisor in the sale of Riegel. BCA ran a broad marketing process, with a focus on strategic buyers and private equity groups with investments or operations within the consumer products, linen and home furnishing industries, as well as divestiture-focused private equity firms.

Result

Bravaldo Capital Advisors ran a highly competitive process, obtained multiple offers for the business, and sold Riegel to a corporate carve-out focused private equity firm.
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.