Norquay has been acquired by MPD Chemicals, a portfolio company of Addison Capital Partners

  • Background: Norquay Technology, Inc. (“Norquay”) is a specialty chemical manufacturer with over 30 years of expertise in providing the scale-up and production of advanced proprietary custom materials, including organometallic, inorganic, and organic molecules. Norquay’s product line includes chromic, electronic, catalyst, ligand, medical adhesive, and UV performance products, with a customer base that ranges from startups to large multi-national corporations.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Ran a competitive sales process, identifying and contacting over 60 financial and strategic partners
  • Challenges:
    • Balancing owner’s objectives to maximize value while preserving company culture
    • Complexity of the specialty chemical industry and navigating the strict environmental regulations
  • Outcome: In December 2017, Norquay was acquired by MPD Chemicals, a portfolio company of Addison Capital Partners, broadening MPD’s specialty chemical manufacturing capabilities; Norquay’s owner now holds a minority equity stake in MPD.

Trucker Path has been acquired by Renren

  • Background: Trucker Path, Inc., is a leading software platform for the trucking industry. Trucker Path’s core product is the Trucker Path app, a trip planning companion for truck drivers, enabling a large driver community to assist each other in updating the real-time status of relevant points-of-interest on their route. Expanding on the success of the Trucker Path app, Trucker Path also introduced the Truckloads app, a mobile marketplace providing freight load matching with over 3 million loads posted monthly.
  • Cassel Salpeter:
    • Served as the exclusive financial advisor to the Company
    • Ran a competitive sales process contacting approximately 50 potential strategic acquirers, resulting in 6 indications of interest
  • Challenges:
    • The Company had a solid user base and software platform, but had not monetized the assets well
    • Company management and board dynamics
  • Outcome: In December 2017, Trucker Path was acquired by Renren. 

DASI received growth capital from A Global Private Equity Firm

  • 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.

NephroGenex sold assets to Medpace Research

  • Background: NephroGenex, headquartered in Raleigh, NC, is a specialty pharmaceutical Company that focused on the development of therapeutics to treat kidney disease. Based on financial considerations, the firm decided to pause its two key programs: 1) its Phase III clinical program for oral Pyridorin for the treatment of diabetic nephropathy and 2) its Phase I ready program for IV Pyridorin for the treatment of acute kidney injuries.
  • Cassel Salpeter:
    • Served as the exclusive financial advisor to the Company
    • Served as restructuring advisor to debtor in a bankruptcy matter, identifying and contacting over 275 strategic and financial parties
  • Challenges:
    • Drug failed to show a significant effect over the placebo in Phase III clinical trails
    • Complexity and duration of bankruptcy proceedings
  • Outcome: On May 10, 2017, the United States Bankruptcy Judge for the District of Delaware entered an order confirming the Sale pursuant to a Plan of Reorganization under Chapter 11 of the Bankruptcy Code. The plan became effective on May 24, 2017.

HRGi received growth capital from Vesey Street Capital Partners

  • 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.

Constellation Healthcare Technologies has been acquired by CC Capital Management

  • 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.

Boxycharm participated in a majority recap and received growth capital from KarpReilly

  • 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.

The LANG Companies has been acquired by IG Design Group

  • Background: Headquartered in Waukesha, Wisconsin, The LANG Companies, Inc. is a leading supplier of specialty consumer and gift products, offering some of the most well-known brands in the industry. Lang delivers innovative and exclusive products while holding licensing rights for several professional sports league, college, and other brands.
  • Cassel Salpeter:
    • Served as exclusive financial advisor to the Company
    • Ran a competitive sales process, identifying and contacting over 150 strategic and financial parties
    • Provided assistance throughout all phases of the sales process, due diligence, and auction through closing
  • Challenges:
    • Undertaking the sale of a specialized niche business within the declining calendar segment of the consumer products industry
    • Navigated the sale process after the Company underwent several strategic changes due to successful and failed initiatives
    • Maximized value and provided an exit for private equity investors and shareholders, while identifying a strategic partner looking to continue the legacy of the Company
  • Outcome: In July 2016, The LANG Companies, Inc. was sold to IG Design Group plc, a UK based designer and manufacturer of gift packaging and greetings, social expression giftware, stationery and creative play products.

Avenger Flight Group received growth capital from Patriot Capital and Seacoast Capital

  • Background:   Headquartered in Ft. Lauderdale, FL, Avenger Flight Group, LLC provides commercial aviation simulation and training to domestic and international airlines using state of the art simulators located in Ft. Lauderdale, Las Vegas, Mexico City and Dallas.  Avenger also provides classroom training for trainers and pilots.
  • Cassel Salpeter:
    • Served as the exclusive financial advisor to the Company
    • Ran a competitive growth capital raise process, identifying and contacting over 50 strategic and financial parties
  • Challenges:
    • Complex existing capital structure
    • Capital intensive business
  • Outcome: In May 2016, Patriot Capital and Seacoast Capital invested in Avenger Flight Group.  Patriot Capital is a private investment firm based in Baltimore, MD.  Seacoast Capital is a private investment fund based in Boston, MA.

Boxycharm participated in a minority recap and received growth capital from KarpReilly

  • 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. KarpReilly is a private investment firm based in Greenwich, CT.