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 THE RESULT: Caymus Partners advised the majority shareholder of Northern Safety Company, Inc. (“Northern Safety” or the “Company”) in a recapitalization of the Company, including the successful placement of a senior credit facility, senior subordinated notes and preferred equity. Caymus Partners raised $33.5 million in committed financing as part of the overall transaction, which was valued at $55.4 million. Caymus Partners generated substantial value—95 senior lenders, mezzanine investors and private equity investors were contacted within one week. A total of 18 term sheets were generated, resulting in very attractive terms for our client.
"Caymus Partners was an invaluable member of my team, exceeded my expectations and earned my respect and trust. Caymus Partners did an outstanding job of structuring the transaction and positioning the Company to generate significant interest from investors. The senior bankers were involved in every aspect of this successful process."
Sal Longo, President & CEO
Northern Safety Company, Inc.
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Company Description
Northern Safety is a leading designer, manufacturer and distributor of safety and industrial products and protective wear with more than $50 million in revenue. Northern Safety has realized double-digit revenue growth in all but two years since the Company’s founding over 20 years ago. The Company distributes 13,000 SKUs, including its own proprietary branded products.
Client Objective
As part of a New York Supreme Court order, Northern Safety was to be auctioned off to the highest bidder in a pre-defined process under tight time restrictions. Prior to the auction, all bidders were required to have firm financing commitments in place as proof of their ability to fund the transaction. Caymus Partners was engaged by one of the two 50% shareholders of the Company to provide strategic advice and raise the necessary capital to enable its client to win the auction, fund the transaction and acquire control of the Company. Timing was of utmost importance.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Identifying the Right Investors. Caymus Partners identified a pool of investors and lenders that had interest and experience in this type of transaction;
- Positioning the Company. Caymus Partners created a capital structure, pro forma financial projections, an information memorandum and a management presentation that generated immediate interest;
- Maximizing Valuation. Caymus Partners, through a unique capital structure, maximized the use of low cost capital and minimized dilution for the shareholder, while positioning the Company for aggressive future growth opportunities;
- Achieving Quick Results. Caymus Partners was under a tight time frame governed by the Court and contacted 95 investors and lenders within one week, well in advance of the actual bidding; and
- Generating Attractive Terms. Caymus Partners generated 18 term sheets from interested investors and lenders, which resulted in substantial negotiating leverage for our client.
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