SSG Advises Burner Systems in Stock Sale to Aterian Affiliate
SSG Capital Advisors, LLC (SSG) acted as the exclusive investment banker to Burner Systems International, Inc. (BSI) in the sale of its stock to an affiliate of Aterian Investment Partners. The transaction closed on May 23, 2012.
BSI is a global supplier for the $1 billion gas appliance industry with headquarters in Chattanooga, TN and additional manufacturing facilities in Mexico, France, England and Turkey. BSI produces components, assemblies and complete system solutions for cooking and heating equipment.
The company derives its revenue from the residential remodeling, replacement and new construction markets. Given the downturn in the economy and the protracted bottoming of the housing market, the company’s sales and profitability declined in recent years. BSI had sufficient liquidity to execute on its near and medium term goals; however, the company looked to strengthen its capital base and solidify its operations for future growth.
SSG was retained as BSI’s exclusive investment banker to explore strategic alternatives, including a potential sale. Leveraging its prior transactional experience in the appliance component sector as well as its relationships with special situation oriented private equity firms, SSG conducted a comprehensive marketing program, which resulted in a competitive bidding process for BSI. Aterian submitted an offer that maximized the value of the business and provided the company and its management team with the long-term support to facilitate its future growth. In addition to conducting the marketing process, SSG was instrumental in facilitating resolution of cross-border due diligence issues and consensus among key stakeholder groups to allow the transaction to close on a timely basis.
Other professionals who worked on the transaction include: Jonathan F. Kent, Mark W. Degler, W. Scott Parrish, John David Spiller, Jr. and Merrill F. Nelson, II of Miller & Martin, U.S. counsel to Burner Systems International; Gonzalo E. Ruy-Diaz Benhumea and Ivan Guerrero Sanchez of Portilla, Ruy-D