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 THE RESULT: Caymus Partners served as the exclusive financial advisor to The LGL Group, Inc. (AMEX:LGL) ("LGL Group" or the "Company") in the divestiture of its Lynch Systems division to Olivotto Industries S.p.A. The sale allows the Company to concentrate on the frequency control business through its MtronPTI division. With the sale, the Company will be in a position to accelerate and execute certain growth initiatives and increase overall profitability.
"Caymus Partners was critical in helping us complete this transaction. They helped provide financial support which ultimately allowed us to bring the transaction over the finish line. It was a pleasure to work with Caymus Partners and I have great respect for their hard work, attention to detail and professionalism."
Jerry Healy, CEO
LGL Group
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Company Description
LGL Group, formerly Lynch Corporation, was incorporated in 1928 in Indiana and evolved to become a multi-industry holding company. The Company's MtronPTI subsidiary is a designer, manufacturer and marketer of custom designed electronic components that are used primarily to control the frequency or timing of signals in electronic circuits. LGL's divested Lynch Systems subsidiary designed, developed, manufactured and marketed a broad range of manufacturing equipment for the consumer glass industry.
MtronPTI has over 40 years of experience designing, manufacturing and marketing crystal based frequency control products. MtronPTI manufactures and sells these crystal based frequency control products for end-use in a number of markets including the telecommunications and network equipment industries, as well as the military, avionics, medical devices, instrumentation, industrial devices and global positioning systems markets.
Client Objective
LGL Group retained Caymus Partners as its exclusive financial advisor in order to explore strategic alternatives to enhance shareholder value. The sale of Lynch Systems gives the Company a substantially stronger balance sheet and the ability to further explore internal and external growth initiatives.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Maximizing Valuation. To maximize valuation, Caymus Partners helped identify the most logical buyers and negotiate a transaction which met the Company's goals;
- Identifying the Transaction. Caymus Partners helped the Company navigate through a series of alternatives which included a possible joint venture and two other opportunities relating to the sale of the entire business;
- Efficient Process. Caymus Partners constructed an offering memorandum and investor presentation, built a detailed pro forma financial model, and properly positioned the Company to select from multiple proposals in a timely manner;
- Positioning the Company. Caymus Partners modeled pro forma financials and created a management presentation that properly positioned the Company and generated a great amount of interest in Lynch Systems.
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