Cascadia Capital Assists Control Devices in Finding the Best Strategic Fit with an Expansion Equity Partner - 2007

Challenge

Control Devices, a leading manufacturer of brass and steel valves based in St. Louis, engaged Cascadia Capital in late 2006 to assist the company in assessing its strategic alternatives. The owners had diversified and grown the business into several sectors over the past 20 plus years and were ready to explore a monetization of a minority, majority or all of the company. Control Devices chose Cascadia because of their solid reputation working with middle market businesses and its extensive contacts with strategic and financial buyers and investors.

Solution

Cascadia Capital leveraged its relationships and transactional experience to present Control Devices to several potential strategic and financial suitors. Cascadia Capital presented the company with full sale, majority recap and minority recap alternatives. Cascadia recommended a majority recapitalization that would enable the owners to take money off the table, enable company to access growth capital, and leverage a strong strategic private equity partner. The owners retained a minority ownership position in the business to take part in future growth and any exit premiums of the company.

Results

Cascadia Capital was able to identify a financial partner that would bring strong strategic focus and management strategy to the table and to assist the company with its expansion plans while providing liquidity to the owners. Cascadia assisted the company with its evaluation of its options, ultimately bringing Corridor Capital in a majority recapitalization transaction. Corridor brings strong financial and management acumen to Control Devices that will enable the business to grow and enhance the value of the minority ownership position that the owners maintain.