SC&H Capital’s team served as the exclusive, court-approved investment banker to secure a buyer for Cardinal Homes.
The SC&H Capital team conducted an exhaustive search and closed the best deal possible for the company within two months.
Cardinal Homes, a made-to-order, modular building component manufacturer, invested heavily in production equipment upgrades and renovations to streamline productivity – right before the 2008 housing bubble burst.
Though it survived the 2008 Recession, the company “struggled to carry the expenses of the loan” that allowed the company to upgrade. In the end, according to Fred Cross, principal, SC&H Capital, “The overhead was too much for them to bear.”
Cardinal Homes, a subsidiary of Alouette Holdings, is a crucial employer in its southern Virginia town of Wylliesburg. Company leaders recognized they’d need to find a buyer that shared their priority and commitment to saving jobs. Cardinal Homes leaders also recognized they needed skilled advisers to lead the search and transaction, therefore turned to SC&H Capital’s distressed M&A experts, formerly Equity Partners.
Kituwah, a company owned by the Eastern Band of the Cherokee Tribe, not only submitted the highest offer, but shared Cardinal Homes’ commitment to the region and community’s long-term financial well-being. With the transaction complete, the production line is still running.
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SC&H Capital’s new special situations team, working efficiently and quickly to find solutions, “we really came up with the best-case scenario, and quickly,” said Cross. “We closed the deal for our client within 55 days of being hired.”
“Cardinal will maintain jobs and its business can, and will, continue to grow,” he added._x000D_
SC&H Capital, an affiliate of SC&H Group, is an investment banking and advisory firm providing merger and acquisition (M&A), employee stock ownership plan (ESOP), special situations, and business valuation solutions to middle market and growth companies nationwide.
