• Client: Day Motor Sports, LLC
• Location: Tyler, TX
• Industry: Industrial Products
• Buyer/Investor: Company Management
• Close Date: November 2023
• Press Release: Matrix Announces the Successful Sale of Day Motor Sports, LLC

Situation
Day Motor Sports, LLC (“Day Motor Sports”) has been a leading bumper-to-bumper distributor of aftermarket parts and supplies for the enthusiast racing industry for nearly a half-century.

In 2011, Gen Cap America, Inc. (“Gen Cap”) acquired a majority stake in the Company to provide liquidity for certain management-owners.

Objective​
With Gen Cap nearing the end of the fund horizon for the vehicle invested in Day Motor Sports, Matrix was retained to provide a return on capital to the fund’s LPs.​

Management remained flexible on their roles going forward and were either willing to entertain offers for their membership interests, but were also ready to stay invested and grow their ownership along with the broader Company.​

​Solution
Matrix manufactured a process that struck a balance between getting a broad market read for valuation and partnership, while not straying from the mandate to exclude all direct competitors from participating.​

With management ready to reinvest meaningfully in the enterprise, Gen Cap elected to sell the business to the existing minority ownership group rather than one of the third-parties. Management is confident in the near-term opportunities present to the business and are eager to create additional value for themselves. ​

• Client: Antilles Power Depot Inc.
• Location: Carolina, Puerto Rico
• Industry: Consumer
• Buyer/Investor: Freije Supply Inc.
• Close Date: June 2023
• Press Release: Matrix Announces the Successful Sale of the Lawn & Garden Division of Antilles Power Depot Inc.

Situation
Antilles Power Depot, Inc. (“Antilles”), headquartered in Puerto Rico, is a leading distributor of backup power generation, marine generation, and marine propulsion equipment in the greater Caribbean region.

In 2002, nearly 15 years after the Company’s founding, Antilles expanded its equipment sales business unit to serve the lawn & garden market, offering customers access to best-in-class mowing and electric products from blue-chip vendors such as Stihl.

Objective
Matrix was engaged to facilitate a full divestiture of the lawn & garden business unit from Antilles.

Solution
Matrix marketed the business unit to a targeted universe of Puerto Rican financiers and operating companies, ultimately selecting a privately-financed strategic operator looking to gain access to Antilles’ strong customer and vendor networks.

Successful carve-out of the lawn & garden division, alongside negotiation of amenable lease terms, allowed Antilles to focus on its core generator business and management-identified initiatives aimed at poising the business for continued growth.

• Client: Apollo Veterinary Medical Hospitals and AVMH Ventures
• Location: Albany, GA
• Industry: Consumer
• Buyer/Investor: Apollo Veterinary Medical Hospitals and AVMH Ventures
• Close Date: June 2023
• Press Release: Matrix Advises Apollo Veterinary Medical Hospitals and AVMH Ventures on the Successful Recapitalization and Acquisition of a Portfolio of Pet Supplies Plus Stores

• Client: Saratoga Casino Holdings
• Location: Saratoga Springs, NY
• Industry: Consumer
• Buyer/Investor: Saratoga Casino Holdings
• Close Date: May 2022
• Press Release: Matrix Announces Capital Raise for Saratoga Casino Holdings

• Client: Shades of Light, LLC
• Location: Midlothian, VA
• Industry: Consumer
• Buyer/Investor: N/A
• Close Date: March 2020
• Press Release: Matrix Announces the Successful Recapitalization of Shades of Light, LLC

Situation
Shades of Light, LLC, headquartered in Midlothian, VA, is an industry-leading multi-channel retailer of lighting and other home décor products.

The Company was founded in 1986 as a single, small lighting store in Richmond, VA and has grown into a national brand with a sophisticated e-commerce website, regular catalog distributions, and multiple physical outlets.

Shareholders Bryan Johnson and Chris Menasco purchased the business in 2011 and implemented an aggressive growth strategy that included constructing a 115,000 square foot distribution and production facility, acquiring in-house manufacturing capabilities, and revitalizing the Company’s website to enhance customer experience.

Objective
Matrix was retained by Shades of Light, LLC to provide a full suite of liquidity alternatives that included majority and minority equity recapitalization partnerships as well as debt capital for the purpose of a membership interest redemption for a significant shareholder.

Solution
Carefully and strategically crafted transaction dynamic messaging to preserve potential capital provider interest while maintaining leverage through a structured process.

Proactively articulated a business narrative that refuted many anticipated buyer apprehensions.

Understood both the objectives of individual shareholders and the business needs to achieve its growth prospects in order to deliver a solution that exceeded client expectations.

• Client: G.G. Schmitt & Sons, Inc.
• Location: Lancaster, PA
• Industry: Industrial Products
• Buyer/Investor: Patrick Industries, Inc. (NASDAQ: PATK)
• Close Date: September 2019
• Press Release: Matrix Announces the Successful Sale of G.G. Schmitt & Sons, Inc.

Situation
G.G. Schmitt & Sons, Inc., headquartered in Lancaster, PA, is a manufacturer of component products serving the marine and various other industrial markets

Since its founding in 1951, the Company has operated as a family-oriented enterprise and has grown into one of the industry’s most reputable providers of fabricated and superior metal products

Objective
Matrix was retained by G.G. Schmitt & Sons, Inc. and the Schmitt family to pursue a 100% sale of the business with the goal of maximizing proceeds and positioning the Company and its management team for future growth

Solution
Highlighted the Company’s exceptional performance in its core market to a selected universe of buyers that valued marine industry fundamentals

Identified numerous synergistic opportunities for prospective acquirers that enhanced the Company’s earnings base

Closed the transaction within two months of launching to a select buyers universe, at a value that exceeded client expectations

• Client: Certified Tire & Service Centers, Inc.
• Location: Riverside, CA
• Industry: Consumer
• Buyer/Investor: Monro, Inc. (NASDAQ: MNRO)
• Close Date: May 2019
• Press Release: Matrix Announces the Successful Sale of Certified Tire & Service Centers, Inc.

Situation
Certified Tire & Service Centers, Inc. (“Certified Tire”) is a leading independent automotive service chain on the West Coast with 40 active locations, making it the 3rd largest independent tire dealer headquartered in California and the 27th largest in the United States.

Objective
Jeff Darrow, President and Owner of Certified Tire, engaged Matrix to run a narrow process to a select group of large strategic acquirers.

Solution
Matrix identified several sophisticated, well-financed buyers in the automotive aftermarket that could value the enterprise off of four-wall profitability.

Management and Matrix quickly identified Monro, Inc. as a buyer with a stated interest in expanding to California and the ability to provide a transaction structure palatable to Mr. Darrow.

Monro ultimately closed on a highly complex transaction that included several related-party real estate entities, consents required from nearly 30 third-party landlords, multiple family members requiring new employment contracts, and the need to transition several back office employees that would cease employment shortly after closing.

• Client: Engineered Metals and Composites, Inc.
• Location: West Columbia, SC
• Industry: Industrial Products
• Buyer/Investor: Patrick Industries, Inc. (NASDAQ: PATK)
• Close Date: September 2018
• Press Release: Matrix Announces the Successful Sale of Engineered Metals and Composites, Inc.

Situation
Engineered Metals and Composites, Inc. (“EM&C”) is a leading designer and manufacturer of custom marine towers, frames, and other fabricated component products for OEMs in the marine industry. EM&C is strategically positioned in a region that is home to some of the largest saltwater boat manufacturers in North America.

Objective
Matrix was retained by EM&C to pursue a 100% sale of the business with the goal of achieving a liquidity event and to provide wealth diversification for the Company’s shareholders.

Solution
Matrix worked closely with the management to team to develop a multi-step plan which included a direct approach to the major consolidator in the marine space, with all parties prepared to launch to the broader universe of targeted buyers if an acceptable bid was not presented.

Understanding the Company’s business and the seller’s objectives, Patrick Industries, Inc. elected to submit a preemptive offer that accomplished these goals and preempted a formal process.

Matrix negotiated exclusively with Patrick Industries, Inc. and closed a transaction that achieved terms, conditions, and value that exceeded the seller’s expectations.

• Client: VIP Parts, Tires & Service
• Location: Lewiston, ME
• Industry: Consumer
• Buyer/Investor: O'Reilly Auto Parts
• Close Date: December 2012

Situation
VIP, headquartered in Lewiston, Maine, operates as one of the largest companies in Northern New England that specializes in the sale of parts and accessories, tires, and services through a network of 56 locations in Maine, New Hampshire and Massachusetts.

Objective
Matrix was retained by VIP to pursue a sale of the retail parts and accessories portion of the business to a strategic buyer that would continue to operate the business collaboratively with the tire and service portion of VIP under the same roof going forward.

Solution
Matrix conducted an expedited and competitive process among select strategic acquirers and obtained indications of interest and letters of intent prior to selecting the buyer.

Buyer was chosen due to attractive valuation, acceptable legal and ancillary agreement terms and willingness to close transaction expeditiously.

The successful result provided our client with an attractive liquidity event for the retail portion of the business while allowing ongoing supplier relationship with the buyer for the service business post-transaction.

• Client: VIP Parts, Tires & Service
• Location: Lewiston, ME
• Industry: Consumer
• Buyer/Investor:
• Close Date: December 2012

• Client: Old Dominion Peanut Company
• Location: Norfolk, VA
• Industry: Consumer
• Buyer/Investor: Hammond's Candies
• Close Date: December 2012

Situation
Old Dominion Peanut Company, Inc. (“ODP”), headquartered in Norfolk, Virginia and founded in 1913, is the largest manufacturer and marketer of branded brittle and peanut candy in the U.S. ODP was purchased by Bill Del Chiaro and a group of private investors in 2004 from the Brown family. Under the leadership of ODP’s management team and shareholders, the Company expanded its distribution channels, marketing & branding and product offering.

Given the seasonality of ODP’s market and commodity pricing pressure during 2010 – 2011, an initial process was put on hold.

Objective
ODP and its shareholders wanted to create a successful exit strategy for their investment and needed assistance identifying strong strategic and financial buyers to provide a liquidity event and succession plan for Bill Del Chiaro, ODP’s President & CEO.

Solution
Matrix’s relationships and knowledge of the top competitors in the food and snack industry, combined with Matrix’s familiarity and expertise with financial buyers, provided the Company with a number of exit options.

Working closely with management, Matrix analyzed and evaluated the Company’s options and preferences and introduced offers from strategic buyers and financial sponsors that were interested in acquiring 75% to 100% of the Company.

Matrix proactively negotiated through complex working capital, environmental & deferred tax topics.

After providing ODP with a number of options, ODP’s shareholders chose Hammond’s Candies, a family owned and operated manufacturer of hard-candy and snacks based in Denver, Colorado, to acquire ODP.

• Client: RCC Western Stores
• Location: Rapid City, SD
• Industry: Consumer
• Buyer/Investor: Boot Barn
• Close Date: August 2012

Situation
RCC Western Stores (“RCC”), headquartered in Rapid City, South Dakota, is one of the oldest and most respected retailers in the western apparel and footwear industry. Founded in 1984, the company expanded its territory over the years to encompass 30 stores in 12 states throughout the South and Midwest. Known for its customer service and breadth of products, RCC quickly became a leader in the specialty retail industry in the U.S.

Objective
RCC wanted to create a successful succession plan and needed assistance in identifying a strong financial or strategic partner to provide a liquidity event for the company’s shareholders.

Solution
Prior to RCC officially engaging Matrix as their sole sell-side advisor, Matrix learned through their industry contacts that one of RCC’s competitors was on the market.

Given Matrix’s industry relationships and knowledge of the top competitors in the western apparel retail sector, Matrix established that Boot Barn, a portfolio company of Freeman Spogli & Co., would be the best fit and most aggressive acquirer. In order to proactively preempt the elimination of Boot Barn as a potential buyer, Matrix advised RCC to pursue an exclusive approach to Boot Barn.

Matrix and RCC worked expeditiously with Boot Barn & Freeman Spogli, holding a management presentation with all parties 3½ weeks after signing the engagement agreement. Matrix worked extensively with management to analyze all aspects of the company including the company’s four-wall profit, new store openings and working capital in advance of the presentation to Boot Barn and Freeman Spogli. Matrix was able to finalize execution of an LOI two weeks after the initial presentation, and signing of the purchase agreement, four weeks after the LOI.

Matrix was able to close the deal with RCC and Boot Barn prior to Boot Barn pursuing other acquisition targets. This preemptive approach allowed RCC’s shareholders to maximize their value and to create a succession plan for the company and its heritage.

• Client: NAMCO, LLC
• Location: Manchester, CT
• Industry: Consumer
• Buyer/Investor: NAMCO, LLC
• Close Date: June 2012

Situation
NAMCO, LLC, headquartered in Manchester, CT, is a retailer of pools, pool supplies and recreational equipment with 44 locations throughout the Northeast and Mid-Atlantic.

Objective
Matrix was retained by NAMCO and its majority shareholder, J.H. Whitney & Co., to refinance the Company’s line of credit with a new $20 million facility that would provide sufficient liquidity for the Company’s seasonal sales patterns.

Solution
Matrix targeted a broad universe of lenders with a comprehensive memorandum detailing the Company’s business and outlining what was being sought in a new credit facility.

Entered into extensive conversations with several lenders interested in the opportunity.

Closed transaction with a newly formed lender, Salus Capital Partners, capable of providing the seasonal overadvance required to help NAMCO operate through seasonal low periods.

• Client: ShelterLogic, LLC
• Location: Watertown, CT
• Industry: Consumer
• Buyer/Investor: Management, RFE and Charter Oak Equity
• Close Date: August 2011

Situation
ShelterLogic, headquartered in Watertown, CT, is a leading, global manufacturer and marketer of fabric-covered, steel frame shelters and canopies for diverse consumer and commercial applications, including sheds, garages and recreational pop-up canopies.

Objective
Matrix was originally retained by ShelterLogic, including its largest shareholders Albion Investors and Montauk Capital, to refinance maturing mezzanine debt. After securing several compelling proposals, the Company elected to pursue a sale of the business due to its strong performance and differing shareholder objectives.

Solution
Matrix conducted a robust and competitive process among private equity groups and received numerous Indications of Interest before conducting management presentations.

Buyer was chosen due to attractive valuation and willingness to overcome certain impediments to the transaction.

Deal closed above client expectations; management received partial liquidity and remained shareholders with attractive equity option pool.

• Client: Power Plate
• Location: Irvine, CA
• Industry: Consumer
• Buyer/Investor:
• Close Date: December 2010

• Client: Tru-Kay
• Location: Lincoln, RI
• Industry: Consumer
• Buyer/Investor:
• Close Date: July 2009

• Client: Club Colors
• Location: Schaumburg, IL
• Industry: Consumer
• Buyer/Investor: CID Capital
• Close Date: June 2007

Situation
Club Colors is a Schaumburg, IL based value-added provider of promotional products and logo apparel to the corporate and collegiate market.

Objective
Matrix was retained by Club Colors’ parent. RAF Industries, to conduct a full auction process. Shareholders not only desired to move quickly and maximize their return, but also wanted to ensure that management would have a supportive partner going forward with whom they could co-invest.

Solution
Matrix contacted both financial and strategic buyers and distributed Confidential Information Memoranda to interested parties and ultimately received multiple Indications of Interest.

After completing management presentations, RAF Industries and Management selected CID Capital as the acquirer due to its favorable valuation and deal terms, enthusiasm for the business, and willingness to form a strategic partnership with management in order to grow the business over the next several years.

• Client: Addressograph
• Location: Rocky Mount, VA
• Industry: Consumer
• Buyer/Investor: Addressograph
• Close Date: May 2007

Situation
DataCard Corporation, a thriving $350 million manufacturer of photo ID, embossing and encoding systems realized that its Addressograph Division, whose primary product is pressure sensitive credit card imprinters, had been declining due in large part to competition from more advanced magnetic technologies.

Consequently, DataCard decided the best strategy was to divest Addressograph and subsequently offered the division to the existing management team for $14 million.

Deciding that the price seemed steep, the management team engaged Matrix to advise them on the transaction.

Solution
Matrix thoroughly analyzed Addressograph and identified key areas of operation that would justify a lower purchase price. Because of this analysis, DataCard finally agreed to sell the division for only $8.5 million.

Matrix then arranged long-term financing that required the management team to provide only 10 % cash at closing.

Only 11 months after the transaction closed, Matrix successfully engineered a $23 million recapitalization of Addressograph that resulted in management realizing $21.2 million in liquidity while still maintaining a 45 % ownership stake in the new entity.

• Client: Board Dudes, Inc.
• Location: Corona, CA
• Industry: Consumer
• Buyer/Investor: RoseArt Industries, Inc
• Close Date: January 2006

Situation
Board Dudes, Inc., based in Corona, California, is a leading designer and marketer of branded school, office and home products sold through the mass retail channel nationwide.

Objective
The principals of Board Dudes had the majority of their personal net worth tied up in the business. The owners sought a larger parent to help fund working capital for their rapidly growing Company, as well as personal liquidity and risk diversification for themselves.

Solution
At the time of engagement, the company was generating a low EBITDA level that did not reflect the enormous growth potential of the business. Matrix advised the owners to wait until the Company could clearly demonstrate it was on track to achieve its anticipated growth in order to achieve maximum value for the Company.

Rose Art, a subsidiary of Mega Bloks, was attracted to the Company’s top notch product development, and had already made overtures to the Company. Rose Art was included in a process that included private equity groups and strategic buyers.

Rose Art ultimately acquired Board Dudes for roughly a 50% premium over its initial offer, due largely to the leverage created through the broad auction process.

• Client: Standard Commercial Corporation
• Location: Wilson, NC
• Industry: Consumer
• Buyer/Investor: Dimon
• Close Date: May 2005

Solution
Standard Commercial Corporation, based in Wilson, NC, is the world’s third largest dealer of leaf tobacco.

Objective
Matrix was hired as the financial advisor to handle the transaction negotiations.

Solution
Matrix successfully negotiated the merger between Standard Commercial, and Dimon the world’s largest dealer of leaf tobacco, to form Alliance One.

• Client: Donsons Distributing, Inc.
• Location: Henderson, CO
• Industry: Consumer
• Buyer/Investor: Vistar
• Close Date: May 2005

Situation
Founded in 1957, Donsons was a leading independent broadline foodservice distributor serving eating establishments, healthcare facilities, schools and institutions located along the Rocky Mountain Front Range. The Company had grown organically and through acquisitions to approximately $50 million in revenues. However, it was operating in an industry experiencing hyper-consolidation, and management began to realize that a lack of scale was going to limit future growth and profitability. Further, the primary owner had grown-up working in the business, and he was seeking a liquidity event to diversify his personal net-worth.

Objective
Donsons engaged Matrix to assess all strategic alternatives in order to maximize shareholder value. Management determined that it was in the best interest of the shareholders to seek a merger partner or an outright acquirer.

Solution
In order to maximize shareholder value, Matrix developed an approach that sought a wide range of potential buyers, including private equity firms, large strategic buyers, niche distributors and select branded food manufacturers.

The ultimate buyer was Denver based Vistar Corporation, which is a portfolio company of Wellspring Capital, a private equity firm. Vistar is a leading distributor of food products and other supplies to targeted specialized segments of the away-from-home food market: pizza and Italian restaurants, vending operators, theatres, sandwich chains, office coffee service operations and arena and concession operators.

The acquisition of Donsons by Vistar was a strong strategic fit as Donsons provided Vistar a much needed best-in-class distribution facility and a greater penetration into Denver’s independent restaurant market. Vistar paid approximately 8.0x Donsons historical adjusted EBITDA.

• Client: Fleet Laboratories – Clean Chemical Sweden AB
• Location: Lynchburg, VA
• Industry: Consumer
• Buyer/Investor: Fleet Laboratories
• Close Date: January 2005

Situation
Fleet is a Lynchburg, Virginia based manufacturer and marketer of branded personal care and hygiene products with approximately $200 million in sales. Fleet was already active in many European countries, including the U.K., Spain, Italy and Australia.

Objective
Fleet sought to acquire a company or brand that would complement its existing product lines and increase its European distribution.

Management struggled with how best to manage such a broad and geographically dispersed acquisition mandate and sought to avoid having to research, interview and hire advisors in multiple countries.

Solution
Matrix Capital partnered with Dutch M&A International firm Holland Corporate Finance to co-manage the overall effort of other European member firms to identify, research and contact acquisition candidates.

Member firms from Holland, Belgium, France, Germany, Italy, Spain, Denmark, Norway, Sweden, Hungary, Poland, Switzerland and the U.K. collectively identified a number of preliminary targets.

CCS, a portfolio company of Swedish private equity firm Segulah was ultimately identified as having the strongest fit. At that point, Swedish member firm Avantus Corporate Finance assisted the team as the “local” advisor on the transaction.

• Client: Fleet Laboratories – SunTrust Bank NA
• Location: Lynchburg, VA
• Industry: Consumer
• Buyer/Investor: SunTrust Bank NA
• Close Date: December 2004

Situation
Fleet is a Lynchburg, Virginia based manufacturer and marketer of branded personal care and hygiene products with approximately $200 million in sales. Fleet was in the process of closing on its acquisition of Swedish skincare manufacturer CCS from private equity firm Segulah.

Objective
Fleet sought to secure a senior, unsecured facility to finance its acquisition. The facility needed to close in a very tight time frame in order to avoid delaying the close of the CCS acquisition.

The facility needed to provide Fleet with enough flexibility to draw down and pay back principal balances in several different currencies to help offset currency translation risks from its foreign subsidiaries.

Solution
Matrix was engaged to solicit terms and conditions from several leading commercial banks. All banks were contacted within days of Matrix being engaged, and Term Sheets were obtained within 10 days of being engaged.

After Matrix negotiated significant discounts to the initially proposed LIBOR margin and commitment fee, the Company’s incumbent bank, SunTrust, was ultimately selected. The end result was a 60% reduction of the proposed commitment fee and a 10% reduction in the LIBOR margin. Total cost savings over the first five years of the negotiated facility were up to $375,000 compared to the other offers received.

• Client: Fike’s Dairy
• Location: Uniontown, PA
• Industry: Consumer
• Buyer/Investor: United Dairy
• Close Date: February 2004

Situation
Fike’s Dairy, Inc., based in Uniontown, Pennsylvania, is a leading, regional, fresh milk supplier, serving grocery chains, convenience stores and food distributors throughout the Mid-Atlantic markets.

Objective
Having successfully owned and operated Fike’s Dairy for over 14 years, the shareholders believed the consolidation in the industry would provide an opportunity to maximize the value of their investment.

Solution
Matrix worked with the shareholders to devise a strategy that would maximize shareholder value and liquidity from a transaction. It was determined that a broad auction of Fike’s Dairy to a universe of potential strategic buyers was best suited to meet these objectives.

Matrix identified and contacted many strategic buyers and received several preliminary offers for the business.

Ultimately, Matrix and the shareholders selected United Dairy, Inc., headquartered in Martins Ferry, Ohio and Fike’s leading competitor for fluid milk business in the Pittsburgh market, to complete the transaction.