NEW YORK
The Financial Restructuring Group of Morgan
Joseph TriArtisan LLC (“Morgan Joseph”) served as exclusive
investment banker on the sale of the operating assets of Potomac Supply
Corporation, a vertically integrated forest products company based in
Kinsale, Virginia, to an affiliate of American Industrial Partners, a
middle-market private equity firm focused on acquiring and improving
North American-headquartered industrial businesses.
Founded in 1948, Potomac Supply Corporation manufactures a diverse range
of wood products, including treated lumber, wood pellets, decking,
fencing and pallets, in its wood-processing and production facilities.
Following liquidity constraints due to abnormally weak lumber markets
resulting from the U.S. economic crisis and other internal factors, the
Company filed for protection under Chapter 11 of the U.S. Bankruptcy
Code in the Eastern District of Virginia (Richmond) on January 20, 2012.
Morgan Joseph assisted the Company in exploring numerous strategic
alternatives that resulted in the sale of substantially all of the
Company’s operating assets to Potomac Supply, LLC, an affiliate of
American Industrial Partners. The sale was made pursuant to Section 363
of the U.S. Bankruptcy Code.
Morgan Joseph was involved in all aspects of the transaction, including
preparation of all marketing materials, due diligence, financial
modeling, and negotiation of the purchase agreement.
“Our Group was retained in April 2012 to assist the company in exploring
strategic alternatives, ultimately leading to the transaction with
American Industrial Partners, which will allow for a new well financed
future for Potomac,” said James (“Jim”) Decker, Head of Morgan Joseph’s
Financial Restructuring Group. “This places the Company now in the
highly capable hands of an experienced partner in the building products
industry and allows Potomac to expand its capabilities for its
customers.”
In addition to Mr. Decker, the Morgan Joseph team members involved in
implementing the transaction included Stephen Clarke, Managing Director
in the Industrials Group, and from the firm’s Financial Restructuring
practice, Alex Fisch, Director, and Si Li, Analyst. Pillsbury Winthrop
Shaw Pittman LLP represented Potomac.
About American Industrial Partners
American Industrial Partners (www.americanindustrial.com)
is a private equity firm specializing in investments in turnarounds;
leveraged buyouts; management buyouts; corporate divestitures, PIPES,
structured preferred equity investments; recapitalizations; equity
bridging transactions; strategic add-on acquisitions; going-private
transactions; debt with warrants; carve-outs; international expansion;
re-financings; project management and finance; public equity and
Canadian income trust offerings in middle-market and mature companies.
The firm primarily invests in industrial services, manufacturing,
information technology, and materials sectors. The firm primarily
invests in privately or publicly held companies based in North America
with a focus on the U.S., Mexico, and Canada, serving domestic and
global markets. American Industrial Partners was founded in 1989 and is
based in New York, New York.
About Morgan Joseph TriArtisan LLC
Morgan Joseph TriArtisan LLC (www.mjta.com)
is an investment bank engaged in providing financial advice, capital
raising and private equity investing. The firm’s services include
mergers, acquisitions and restructuring advice, in addition to private
placements and public offerings of equity and debt.
Media:
Steven S. Anreder
Cristina Bacon
of Anreder &
Company
212-532-3232
steven.anreder@anreder.com
cristina.bacon@anreder.com