LESTER PRAIRIE, MINNESOTA – Quazar Capital Corporation is pleased to announce the successful Management Buyout of the Lester business from Butler Manufacturing Company, a subsidiary of BlueScope Steel Limited of Australia.
OUR CLIENT – Lester Building Systems is one of the largest manufacturers of engineered wood frame building systems in the United States. With almost 60 years of experience in the market, they have established a reputation for top-quality and value.
THE SITUATION – John Hill, President of Lester Buildings, led the buyout group of seven senior managers representing key operations of the company. The management group was presented with an opportunity to purchase the Lester division when Butler made the decision to divest itself from the wood frame construction business. John and his management group took advantage of this opportunity and began interviewing professionals to represent his group in negotiations with the multi-national company. John decided to hire Quazar Capital Corporation because he “liked the feeling of a smaller company and felt that Bruce had a lot of industry knowledge and contacts.”
UNIQUE CHALLENGE – In the middle of negotiations with Butler, BlueScope Steel Company approached Butler and purchased them. This challenged the goals of the management team and the desired outcome began to dissipate. However, the tenacious attitude of both groups and the inherent desire to ‘get the deal done’ pressed on. As John states, “I was very impressed how Quazar hung-in-there with us. There were plenty of times that it became questionable whether the deal would go through or not, but Bruce believed in us and had confidence that it would work out. I think a lot of firms would have backed out when the deal got difficult but Bruce really stuck with it.” Upon completion of BlueScope Steel purchasing Butler, Quazar and the management team resumed their negotiations.
THE RESOLUTION – Quazar presented the management team with a variety of financing options and helped them weigh the risks versus rewards for each option. In the end, LaSalle Business Credit provided them with $7.5 million of financing for working capital, equipment, and real estate. Lester’s management team purchased the company from Butler, bringing the company back to its local, private ownership roots.