|
 |
SELECTED EXVERE CASE STUDY
Safway Supply  Client: Safway Supply, Inc., founded in 1947, is one of the Northwest's leading providers of scaffolding and construction supply products and services. Safway supplies Pacific Northwest construction markets with numerous supplies including sealants, hand tools, fasteners, safety equipment, and metal framing, as well as rents lifts and other power tools. Additionally, the Company provides scaffold design, erection and rental services. The company has eight branches located in Washington, Oregon, Idaho, Montana and Wyoming. Challenge: Safway's owners wished to divest the scaffold business and related assets, while retaining the construction supply business and related assets. Based on Exvere's experience with similar unit divestitures, we anticipated concerns from prospective purchasers that the divisions would be difficult, and expensive, to separate, which would result in a discounted valuation. Process: In preparation for the divestiture, Exvere worked closely with its client to separate shared management, personnel, assets and facilities, and reflect this separation in management's financial statements. Next, Exvere's detailed offering memorandum addressed how the two divisions would operate as separate companies, highlighting areas of personnel and asset allocation, infrastructure requirements and necessary facility improvements. Outcome: By anticipating and addressing prospective purchaser concerns, Exvere's client was able to obtain favorable indications of interest, and ultimately offers, from multiple parties. This enabled Safway's owners to make an informed decision regarding the divestiture of its scaffolding unit, and ultimately, to enter into a mutually attractive deal with Thyssen Krupp Services AG. |
