Appliance Repair Parts Distributor

Company Overview

 

Appliance Repair Parts Distributor - two related Companies are involved in the kitchen appliance aftermarket parts business - one is a leading domestic distributor of aftermarket / repair parts and supplies to end users and repair firms; the other is an international master distributor of repair parts and supplies to wholesale distributors.

Engagement Overview

The Companies were owned by two partners.  One  of the partners, who was nearing retirement age, was looking for a liquidity event and, while the other partner also sought liquidity, he wanted to continue working and growing the business. 

Fort Dearborn was hired as the exclusive financial advisor to generate a liquidity event for the partners through a sale process. Fort Dearborn prepared the information memorandum and concentrated our marketing efforts on private equity buyers that could provide liquidity while allowing one of the partners to stay involved.

After receiving multiple qualified offers, the partners changed FDA’s mandate from securing a buyer for 100% of the business to raising capital to facilitate the buy-out of the retiring partner by the other partner. Fort Dearborn’s marketing process generated interest from many capital providers that were eager to finance the buy out.

Fort Dearborn’s extensive transaction advisory and capital markets experience was beneficial in identifying buyout financing sources, negotiating, and quickly closing the transaction that was suitable to both partners.

Results
•  FDP led the successful buyout of the retiring partner.

•  The selling partner received  his desired liquidity.

•  FDP’s capital markets experience created a competitive process that resulted in excellent terms on the buyout debt and a quick closing.