Convert has been acquired by Abbey Road Capital

  • Background: Convert IT Marketing, LLC (“Convert”), founded in 2011 and based in Ft. Lauderdale, FL, provides outsourced pay-per-click marketing solutions for local law firms in specialty practices throughout the U.S. Convert IT’s unique and proprietary strategies deliver superior performance to its 500+ customers in terms of cost and quality of leads, placing it in the top 1% of all digital marketers serving the legal vertical.
  • Cassel Salpeter:
      • Served as exclusive financial advisor to the Company in its divestiture of the Neo Urinary conduit assets
      • Ran a competitive sales process, identifying and contacting strategic and financial parties
      • Provided the owner with advice from pre-engagement to post-close
    • Challenges:
      • Limited buyer universe
      • Multiple offers ahead of the completion of initial calls
  • Outcome: On August 31, 2018, Convert IT was purchased by Abbey Road Capital.

Aviation Deal Report Q2 2018

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Q2 2018: Tech Deal Report

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CORD:USE has been acquired by Cryo-Cell International

  • 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.

Aviation Deal Report Q1 2018

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Lakewood Organic received senior debt financing from Fifth Third Bank

  • Background: Lakewood Organics (“Lakewood”), based in Miami, FL, is an independent family juice company bottling a diverse line of pure organic and premium fruit juice products. Founded in 1935, Lakewood takes great pride in being a responsible steward of the Lakewood brand and holds true to its mission to provide the best quality juices to its customers.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Advised Lakewood in evaluating its financing options and provided assistance throughout the due diligence and closing process
    • Ran a targeted debt raise process, contacting 18 lenders
  • Challenges:
    • Assets held by different entities including the operating business, intellectual property, and real estate
    • Expedited timeline to close
  • Outcome: In May 2018, Lakewood Organics received senior debt financing from Fifth Third Bank to help support the Company in its pursuit of numerous growth initiatives.

Sys2k has been acquired by Serent Capital

  • Background: Systems 2000, Inc. (“Sys2k”) is a SaaS business that provides a mission-critical dealership management system for the specialty vehicle market, including RV, marine, auto, heavy duty trucks, bus and emergency vehicles. With over 350 customers throughout the U.S. and Canada and a strong recurring revenue base, the Sys2k platform is highly regarded due to its true multi-company, multi-location system offering full DMS capabilities across all departments of a dealership.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Ran a limited sales process, contacting 19 specifically targeted financial and strategic buyers
  • Challenges:
    • Management required guidance and support to satisfy due diligence requests due to small size and limited resources
  • Outcome: In March 2018, Sys2k was 100% acquired by Serent Capital, broadening their portfolio of system-of-record software businesses and automobile technology investments. 

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.