Onion Crunch, LLC

 

  • Background: Headquartered in New York, NY, Onion Crunch is an all-natural and Kosher crispy, crunchy, fried onion topping in the United States. Onion Crunch is a consumer product goods company specializing in building a brand in the foods industry.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Identified and introduced strategic investors
  • Challenges:
    • Introduction of international product into U.S. market under a new brand
    • Novelty food products in a highly-focused segment
  • Outcome: In January 2013, Onion Crunch received equity financing from strategic investors.

Boxycharm

  • Background: Headquartered in Miami, FL, BOXYCHARM is the premier monthly beauty box subscription service, delivering 4-5 full-size and luxury travel-size products of well-known, popular, chic, and up-and-coming cosmetic brands. BOXYCHARM’s unique value proposition is their ability to provide a combination of the newest and highest quality brands and products in full-size offerings, while most competitors offer sample-size products.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Ran a competitive capital raise process, identifying and contacting over 100 strategic and financial parties
    • Structured a minority recap and growth capital raise with a built-in option for a majority recap
  • Challenges:
    • Earn-out structure to increase valuation of capital infusion contingent on success-based performance benchmarks
    • Minority shareholder buyout
    • No prior relationship with investor
  • Outcome: In February 2016, KarpReilly Investments, LLC invested in BOXYCHARM. Subsequently, in October 2016, KarpReilly exercised their majority recap option. KarpReilly is a private investment firm based in Greenwich, CT.

Constellation Healthcare Technologies

  • Background: Headquartered in Houston, TX, Constellation Healthcare Technologies, Inc., a publicly traded company on the AIM Exchange, provides a holistic, integrated suite of practice management support services to hospitals and medical practices across the United States. The Company’s services include outsourced revenue cycle management for hospital-based and office-based physicians, practice management for primary care and subspecialty pediatric practices, and group purchasing services for vaccine and flu shots between eligible physicians and selected pharmaceutical companies.
  • Cassel Salpeter:
    • Served as the financial advisor to the Company’s Special Committee of the Board of Directors
    • Ran a 30-day “go-shop” period, identifying and contacting approximately 200 potential parties
  • Challenges:
    • Expedited timeline with only 30 days to identify and contact a large number of parties
  • Outcome: The “go-shop” period resulted in the successful sale of the Company in January 2017 to CC Capital Management and management.

HRGi

  • Background: HRGi, headquartered in Orange, CA, provides cost containment solutions to the United States healthcare industry, serving as an intermediary between healthcare payors, such as insurance companies, and out of network healthcare providers, such as hospitals. The Company offers fee negotiation services and manages supplemental preferred provider organization networks through a proprietary single workflow, resulting in significantly lower claims expenses with minimal disruption to current workflow processes. The Company also developed ClaimSAVE, a claims scoring and valuation engine that analyzes each claim individually to identify the largest savings opportunity for each client.
  • Cassel Salpeter:
    • Served as the exclusive financial advisor to the Company
    • Ran a competitive capital raise process, identifying and contacting a select group of financial parties
  • Outcome: In April and May 2017, HRGi received growth capital from Vesey Street Capital Partners and one other institutional investor.

Diversified Aero Services, Inc.

  • Background: Diversified Aero Services, Inc. (“DASI”) is a full-service aftermarket surplus aircraft parts supplier based in Miami, Florida with additional facilities in London and Singapore. DASI specializes in all of the major aircraft platforms, including Airbus, Boeing, Bombardier, and Embraer, offering customers a comprehensive and diverse portfolio of high-quality consumables and rotables from the “nose to the tail.”
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Ran a competitive capital raise process, identifying and contacting over 100 financial parties
    • Structured a minority recap combined with growth capital to expand its footprint and accelerate the purchase of bulk inventory
  • Challenges:
    • Substantive ABL lender in place, which increased the difficulty of raising certain forms of capital
    • Negotiated and executed on a complex “drop-down” transaction structure to optimize tax implications and future operations
  • Outcome:  In July 2017, a global private equity firm purchased a minority interest in DASI, while committing to a substantial follow-on investment amount.

CORD:USE cord blood blank

  • Background: CORD:USE Cord Blood Bank (“Cord”), based in Orlando, FL, owns and operates a cord blood bank that focuses on building an inventory of umbilical cord blood stem cell units for patients in need of a life-saving transplant.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Advised Cord in evaluating its strategic options and provided assistance throughout the due diligence and closing process
    • Ran a broad sales process, contacting 115 parties
  • Challenges:
    • Small footprint – Marketing in select markets
    • Sizeable amount of debt
    • Complex capital structure
  • Outcome: In June 2018, Cord was acquired by Cryo-Cell International, Inc. The upfront consideration consisted of cash and shares of Common Stock with the potential for contingency cash payments based upon pre-determined milestones.

Sancilio Pharmaceuticals Company, Inc.

  • Background: Sancilio Pharmaceuticals Company, Inc. (“Sancilio”), based in Riviera Beach, FL, is an integrated specialty pharmaceutical company that develops, manufactures, and commercializes pharmaceutical products, over-the-counter and behind-the-counter products, and dietary supplements in the dental and women’s health markets.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Ran a competitive sales process, identifying and contacting over 300 strategic and financial parties
    • Provided assistance throughout all phases of the Chapter 11 Section 363 sales process, due diligence, and auction
  • Challenges:
    • Expedited sales timeline with less than six weeks to identify and solicit interest from potential bidders
    • Simultaneous, multiple sales processes for different divisions of the Company
  • Outcome: On August 1, 2018, the Ocean Blue division of Sancilio Pharmaceuticals Company, Inc. was purchased by K.D. Pharma Bexbach GmbH, headquartered in Bexbach, Germany.

Sancilio Pharmaceuticals Company, Inc.

  • Background: Sancilio Pharmaceuticals Company, Inc. (“Sancilio”), based in Riviera Beach, FL, is an integrated specialty pharmaceutical company that develops, manufactures, and commercializes pharmaceutical products, over-the-counter and behind-the-counter products, and dietary supplements in the dental and women’s health markets.
  • Cassel Salpeter:
      • Served as financial advisor to the Company
      • Ran a competitive sales process, identifying and contacting over 300 strategic and financial parties
      • Provided assistance throughout all phases of the Chapter 11 Section 363 sales process, due diligence, and auction
  • Challenges:
      • Expedited sales timeline with less than six weeks to identify and solicit interest from potential bidders
      • Simultaneous, multiple sales processes for different divisions of the Company
  • Outcome: On August 8, 2018, Altemia and the ALT Platform, a Phase III ready product for the treatment of sickle cell disease; a prenatal and dental portfolio of prenatal vitamins and fluorides; and the plant and labs of Sancilio Pharmaceuticals Company, Inc., were purchased by Micelle Biopharma, Inc.

South-Am Freeze Dry Spa

  • Background: South-Am Freeze Dry SpA (“South-Am”), founded in 2004 and based in Chile, is a full-service manufacturer of premium freeze-dried fruits, vegetables, and powders, driven by top standards of food safety and traceability. South-Am fuses creativity and innovation with world-class quality standards.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Distressed operations with excess plant capacity and negative cash flow
    • Spin-out of a non-core business unit
  • Challenges:
    • Niche industry with a limited number of potential buyers
    • Expedited timeline to close
    • Spin-out of a non-core business unit
  • Outcome: On August 14, 2019, Van Drunen Farms (“VDF”) acquired a majority interest in South-Am. VDF is a world leader in agriculture, food science, and dehydrating fruits, vegetables, and grains.
  • The partnership formed between South-Am and VDF provided South-Am with a significant minority stake, and quickly filled excess plant capacity, providing a path to profitability.

Avadel Specialty Pharmaceuticals, LLC

  • Background:  Avadel Specialty Pharmaceuticals, LLC (“ASP”), based in Chesterfield, MO, is a pharmaceutical company engaged in the business of commercializing, marketing, and distributing NOCTIVA™ (desmopressin acetate) nasal spray.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Ran a competitive sales process, identifying and contacting over 100 strategic and financial parties
    • Provided assistance throughout all phases of the Chapter 11 Section 363 sales process, due diligence, and auction.
  • Challenges:
    • NOCTIVA™ had limited sales and required a full commercialization effort to make the drug financially successful
    • ASP entered into an unfavorable license agreement which potential bidders ultimately had to renegotiate
  • Outcome:  On April 15, 2019, the court approved the sale of certain ASP assets to Roivant Sciences GmbH, headquartered in Basel, Switzerland.