Guntersville Fabrication & Sprinkler Co. - Strategic Sale

THE TRANSACTION:

Founders Investment Banking, LLC acted as the sole adviser to the shareholders of Guntersville Fabrication & Sprinkler Co. in the sale to Ferguson Fire & Fabrication, Inc., a division of Wolseley, PLC.

THE COMPANY:

Founded in 1971, Guntersville Fabrication & Sprinkler Co. is a leading fabricator and value-added distributor of fire suppression systems and supplies in the Southeast & Midwestern United States. The bulk of the Company’s products are used in the construction of commercial and industrial projects. Guntersville Fabrication & Sprinkler Co. maintains fabrication facilities in Alabama and Georgia, with a strong distribution retail presence in Atlanta, Birmingham and Northeast Alabama markets.

THE SOLUTION:

The existing management team, who were also the founders of the company, had a significant portion of their personal net worth represented by their ownership in the company. As the sole shareholders, they had a desire to capitalize on the value they built in the company and achieve significant personal liquidity. Founders recommended pursuing a dual process to evaluate selling to a strategic buyer or recapitalizing with a private equity investor. Ultimately, a sale to a strategic best met their overall objectives:

• realize liquidity on their ownership of the operating company;
• ensure ongoing cash flow stream via employment agreements;
• create significant value in real estate holdings with credit-grade, long-term leases put in place with corporate tenant;
• reduce and eliminate ongoing personal liability risks.