Role of CDI Office
CDI was engaged for the following activities;
- Develop the Divestment Plan with the Owner
- Develop the Information Memorandum
- Identify acquirers of the business
- Contact the potential acquirers and manage communication with each acquirer
- Negotiate Non-Binding Offers
- Finalize the Non-Binding Offer
- Develop and manage the virtual data room, corporate advisors and face to face meetings
Description of Client
Dry-Treat is a B2B business whose products include innovative sealers for hard surface protection. It distributes high-margin innovative premium products for the protection and maintenance of porous mineral building materials, primarily for the residential marketplace.
The business fundamentals include;
- History and Brand – The Company’s Brand is highly recognized and has a long history in the high end residential/DIY marketplace
- Products – Superior design and performance. The Company has added new products to meet market demand. Core products remain a strong part of revenue stream.
- Service – Delivery and quality of service has seen long relationships with dealer network
- Dealer Network – The Company has developed an extensive dealer network in its markets. Although they have been difficult to develop, having many small independent dealers has made a solid and stable customer base, which is better than relying on the high volume- low margin retail chains.
- Sales – Australia, USA and UK/Western Europe
- Innovator – Researches and develops new products and technologies
Description of Acquirer
California Products Corporation, a leading manufacturer of sports surfaces, architectural and environmental containment coatings. Its strategy is based on surface coating business including interior and exterior paints, surface coatings and sport surface systems. It is a global business.
It acquisition of Rebound Ace Sports, an Australian, manufacturer of innovative sports surface systems used for tennis, netball, basketball, volleyball, badminton, gymnastics, cricket and other multi-sport uses. The purchasing of Dry treat expands its Australian presence and compliments CPC USA business.
Comment from Client Stuart Anderson (owner of Dry-Treat) says “CDI provided excellent and invaluable guidance, support and advice throughout the entire process. This included compiling the Information Memorandum, searching for a suitable purchaser, due diligence and the actual sale procedure. As it turned out the sale was a little more complex than any of us expected. I always felt the team kept me up to date with developments and acted in my best interest. I can confidently say that the deal would not have occurred without their perseverance and insight. I am deeply grateful and would gladly recommend the team to anyone who is considering the sale of their business.
Please contact me via CDI should you wish to discuss any matter.