Ward's Cabinetry - Sale Leaseback

THE TRANSACTION:

Founders Investment Banking, LLC acted as the exclusive advisor to Foundation Sale Leaseback Fund I for the purchase of the headquarters and manufacturing facility of Ward’s Cabinetry, LLC.

THE COMPANY:

Ward’s Cabinetry, LLC is a manufacturer and assembler of semi-custom frameless style cabinets based in Clanton, Alabama. Founded over 30 years ago, Ward’s has a well established brand in its niche and sells its products through independent kitchen and bath dealers in 21 states throughout the Southeastern and Mid-Atlantic regions of the United States.

THE SOLUTION:

Under the leadership of new owners following a recapitalization in 2004, Ward’s Cabinetry began experiencing revenue and profitability growth that led management to re-evaluate the suitability of their existing capital structure. To help alleviate this strain, Founders developed a sale leaseback solution that would unlock the premium equity value buried in their corporately owned real estate property. Management determined that this transaction would accomplish several of their key financial objectives:

• generate equity capital to invest in the expansion of the core manufacturing operations;
• create additional working capital to help finance revenue growth;
• solidify the balance sheet to help the Company secure a new senior debt facility that would improve overall financial flexibility and provide better support for Ward’s strong growth trajectory.