Client: Ross Corporation was a family business based in Eugene, Oregon that had achieved worldwide prominence by producing terminal equipment for the forest products industry. Their tracked products included movable towers, feller-bunchers, and log loaders. Customers included the world's largest wood products businesses and the primary competitor was S. Madill, Ltd.

Challenge: Initial discussions to explore a potential merger with S. Madill, Ltd. were unproductive due to different valuation expectations. While the benefits of combining these competitors were clear to both, a novel tactical approach was required to satisfy each ownership group on the valuation issue.

Process: Exvere performed independent valuations for both firms maintaining confidentiality while sharing certain previously agreed conclusions. The parties then entered into a two-step process in which S. Madill, Ltd. was taken to market first. Upon the completion of that transaction, Ross Corporation was well-positioned as an attractive consolidation candidate in an industry roll-up.

Outcome: S. Madill, Ltd., which had been newly recapitalized by Key Capital Partners, acquired Ross in an all-cash transaction. With the newly acquired Eugene facilities, Madill was then able to close another manufacturing operation in southwest Washington thereby significantly reducing general and administrative expenses. Ross continued to produce their proprietary equipment lines and retained most major customers.