SSG Advises Weaber in Asset Sale to Resilience Capital Affiliate
SSG Capital Advisors, LLC (SSG) acted as the exclusive investment banker to Weaber, Inc. in the sale of substantially all of its assets to an affiliate of Resilience Capital Partners LLC. The sale was effectuated through Article 9 of the Uniform Commercial Code (UCC) and closed on December 30, 2011.
The company is a hardwood saw mill and hardwood products manufacturer headquartered in Lebanon, PA. Weaber manufactures a wide range of lumber products, including surfaced four sides boards, flooring, kiln-dried random width lumber, mouldings, stair parts, finger jointed products and edge-glued products. Weaber’s capital investments, innovative and proprietary software tools and process improvements established the company as one of the most modern hardwood lumber mills in the country, with exceptional quality control standards and flexible manufacturing.
Weaber invested heavily in its facilities throughout the early 2000s. The company funded this expansion with a combination of debt and family capital and the ensuing downturn in the housing market caused the company’s revenue and profitability to decline. Weather issues in the second half of 2011 further exacerbated liquidity as the company’s suppliers were unable to provide adequate materials causing revenue to further decline.
SSG was engaged to market Weaber to a broad spectrum of industry and financial parties to find a strategic partner with a significant capital base to grow the business and ensure long-term viability. SSG’s ability to quickly go to market while highlighting Weaber’s position as a market leader provided the company and its stakeholders good market feedback to properly assess alternatives.
Ultimately, Weaber was sold to an affiliate of Resilience Capital Partners, providing both the financial and operational stability necessary to support the company’s business plan and long-term growth. Weaber was Resilience’s second acquisition under its platform investment focused on niche building supplies following the acquisition of Taylor Lumber in 2010. The Weaber acquisition broadened the product mix of the merged companies and produced key operational and sales and marketing synergies.
Other professionals who worked on the transaction include: Frederick S. Wolfson of Reilly Wolfson Sheffey Schrum & Lundberg, counsel to Weaber, Inc.; Irving E. Walker and Roger M. Iorio of Cole, Schotz, Meisel, Forman & Leonard, counsel to Weaber Inc.’s senior lender; and Charles W. Hardin, Margaret A. Kebrdle and Melanie S. Shwab of Jones Day, counsel to Resilience Capital Partners.
Headquartered in Cleveland, OH, Resilience Capital Partners is a private equity firm with a team of in-house operating experts that bring large company resources to the lower middle market.
SSG Capital Advisors, LLC is an independent boutique investment bank that assists middle-market companies, as well as their stakeholders, complete special situation transactions.