The Financial Restructuring Group of Morgan Joseph TriArtisan served as exclusive investment banker on the recent sale of the operating assets of Potomac Supply Corporation, a softwood mill operator and provider of wood treatment services, to Potomac Supply, LLC, a new company formed by American Industrial Partners.
Founded in 1948, Potomac Supply Corporation manufactures a range of wood products, including treated lumber, wood pellets, decking, fencing and pallets, in its wood-processing and production facilities. Potomac Supply is based in Kinsale, VA which is located 70 miles northeast of Richmond, VA (www.potomacsupply.com).
Following liquidity constraints due to abnormally weak lumber markets resulting from the U.S. economic crisis and other internal factors, Potomac Supply Corporation filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the Eastern District of Virginia on January 20, 2012. Morgan Joseph assisted the company in exploring strategic alternatives that resulted in the sale of substantially all of the company’s operating assets to Potomac Supply, LLC. 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 Decker, Head of Morgan Joseph’s Financial Restructuring Group. “This transaction places the company 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 Alex Fisch, Director, and Si Li, Analyst from the firm’s Financial Restructuring Group.
Morgan Joseph TriArtisan is an investment and merchant 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. Morgan Joseph TriArtisan is based in New York (www.mjta.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-29-13
