GPI is a unique resource for managers seeking to actualize their visions through acquisition.
Management Driven Industry Consolidation: GPI partners with managers that have the passion and vision to build a premier industry player through a multiple acquisition strategy. CEO candidates have been top executives in one of their industry's most successful companies. They desire to execute their business plans as owners, not as employees, with the advantage of hindsight.
For qualified managers, GPI and its clients provide (i) resources to complete the business plan, (ii) $20 million to $200 million of equity capital, (iii) a search team to identify and acquire platform and add-on companies, and (iv) operational control. The management team is rewarded with a significant equity interest in the consolidating entity.
Management Buyout Services: GPI partners with management seeking to purchase or recapitalize their company. Our services include: information collection, valuation, financial modeling, transaction structuring and negotiation, capital raising and due diligence coordination.
GPI is under retainer with private equity groups that manage over $1.5 billion of equity capital. Our role is to initiate, screen, develop and close attractive acquisition opportunities in partnership with management. Our principals have been advisors and equity participants in over 30 transactions where management received a significant carried interest.
Management Driven Industry Consolidation – Case Study
Millennium Rail, Inc. was one of the largest railcar repair and maintenance companies in the United States
Industry Characteristics
Our private equity client, Kamm Theodore identified railcar repair and maintenance as an attractive industry. They retained GPI to perform an opportunity study to verify their investment thesis. Our research found that railcar repair and maintenance was a multi-billion dollar market with no pure-play, well-capitalized industry leader. In addition, the industry was growing at twice the rate of GNP, aided by positive Federal legislation.
Manager
GPI identified the universe of managers that had P&L responsibility running large railcar maintenance and repair companies. We quickly recruited William Groos to lead this effort. Mr. Groos was previously the President of Rescar, the largest independent operator in the industry.
Equity Capital
GPI and Kamm Theodore teamed up with Oaktree Capital Management to form Millennium Rail and provide funding to execute the business plan.
Acquisitions
GPI researched over 430 companies, of which over 90 met Millennium Rail's acquisition criteria. We conducted an aggressive search and identified over 10 owners who were interested in discussing the sale of their business. We advised Millennium Rail in the purchase of its platform company Berwind Railway Services, a sizable industry player. We then advised them in the acquisition of MBF Industries, greatly expanding Millennium’s presence in the central US market. Shortly after becoming the second largest full-service provider of freight car repair and maintenance services in North American, the Company was acquired by Watco, a national operator of railroads and leading provider of railcar services.
In a transaction initiated and advised by GPI
Millennium Rail, Inc. has acquired Berwind Railway Service Company
Buyer:
Headquartered in Westchester, IL, Millennium Rail, Inc. was a company formed to consolidate the freight car repair and maintenance industry. Millennium Rail is backed by Oaktree Capital Management LLC, a leading global alternative investment management firm and Kamm Theodore, a Los Angeles based private investment firm.Buyer Type:
Private Investment Groups
Seller:
Hollidaysburg, PA based Berwind Railway Service Company is a fully-integrated provider of repair and maintenance services to the rail industry providing services such as fleet management, freight cars and tank cars general repair, rebuilding, inspection, painting wheel replacement and parts fabrication.Transaction Type:
AcquisitionIn a transaction initiated and advised by GPI
Millennium Rail, Inc. has acquired MBF Industries Hockley Railcar Services
Buyer:
Headquartered in Westchester, IL, Millennium Rail, Inc. is the second largest full-service provider of freight car repair and maintenance services to the North American freight rail industry. Millennium Rail is backed by Oaktree Capital Management LLC, a leading global alternative investment management firm and Kamm Theodore, a Los Angeles based private investment firm.Buyer Type:
Portfolio company of private investment groups Oaktree Capital Management LLC and KT.