Strategic add-on propels buyer to new level...
JP Industries, Inc. (JPI) was formed by a group of senior operating managers who had left Masco Industries to start their own business. Their expertise was in two manufacturing sectors: vehicle components, and plumbing products. JPI had made a number of small acquisitions in both segments and had used their experience to obtain higher productivity and greater financial returns than the previous owners. JPI, which had gone public and had available both cash and equity to finance their transactions, wanted to grow the company significantly, and wanted one large acquisition to move them to the next level.
JPI informed Valufinder of their acquisition criteria, which was added into Valufinder's proprietary database of buyer's criteria. Subsequently, Valufinder, in speaking to the Jim Walters Corporation (Walters), a large publicly traded building products manufacturer, about another piece of business, inquired per our prospecting procedures about other divisions of Walters that might be for sale. We specifically asked if the Briggs Division might be for sale. Briggs, with sales of nearly $100 million, was a leading manufacturer in the second tier of porcelain sinks, tubs, and toilets.
Valufinder identified and reached out to organizations we never even thought about as potential sellers. They introduced us to several excellent companies that as far as I knew had not been on the market. Valufinder found the right company for us and assisted us in completing the transaction. The acquisition lifted our company to the next level. We appreciate their help and responsiveness and look forward to doing more deals with them.Miguel Nistal
Executive Vice President
JP Industries
In preparation for the Briggs' conversation, we had researched our database and had identified JPI as a potential buyer. Briggs was not for sale, but we were asked the reason for our inquiring. We explained that we had a potentially interested buyer, JPI, and why they would be motivated. Walters felt that the inquiry was intriguing and asked Valufinder to discreetly probe JPI's interest level, without revealing the Briggs name or too much detail about Briggs. Walters had not actively thought about divesting and did not want any rumors to get started in the marketplace, which they felt would be very disruptive to Briggs' business. We called JPI and, as requested by Walters, did not reveal the name, but provided enough information to get a meaningful response. With a positive answer, we called Walters, who after some deliberation, decided to pursue the opportunity and have an initial conference call.
The conference call led to a meeting, which in turn led to a Letter of Intent within two weeks, and a closing three months later. Valufinder initiated and facilitated the entire process up to and through the closing.