MINNEAPOLIS, MINNESOTA – Quazar Capital Corporation is pleased to announce the sale of its client, Prest Rack, Inc., a South Dakota-based company, to Excel Storage Products, a portfolio company of Excel Capital Partners, LP, an Ohio-based private equity firm.
THE COMPANY – Prest Rack, Inc. manufactures and supplies a broad line of material handling storage solutions throughout the United States. Established in 1979, the Company has extensive product lines including teardrop-style selective rack systems, structural racks, cantilever racks, rack supported buildings, structural mezzanine systems, and engineered dynamic storage systems.
THE BUYER – Excel Storage Products is a portfolio company of Excel Capital Partners, an Ohio-based private equity firm. Excel Storage Products is a leading manufacturer of high quality industrial storage rack systems and is headquartered in East Stroudsburg, Pennsylvania. The Company has a 40-year history of extensive rack system engineering and manufacturing and a strong focus on superior customer service.
ENTER QUAZAR – Quazar Capital Corporation was engaged to take the Company to market, locate prospective buyers, and advise on negotiations.
UNIQUE CHALLENGE – The Prest Rack, Inc., ownership group consisted of financial investors and industry professionals. Each owner had very distinct goals and objectives. Additionally, the company was heavily invested in new plant and equipment. Cash flow valuations alone were not going to satisfy the financial needs of the ownership group. Quazar was able to locate and structure a transaction with a strategic buyer who found value in the plant and equipment improvements and had the ability to pay for them. Bruce Cassidy Jr., Principal of Excel Capital Partners stated, “Prest is a strategic fit with our existing business as it opens new markets through additional product offerings and moves us towards our goal of a national footprint. Prest has invested significant capital in plant and equipment improvements over the past few years, and the combined entity is poised to add synergistic value to our customers, employees, and investors.”
THE RESOLUTION – “The merger with Excel Storage Products, a larger industry player, will provide more resources and opportunities for the customers and employees of Prest Rack, Inc.,” commented George Prest, President of Prest Rack, Inc. The combination of Prest Rack, Inc. and Excel Storage Products should prove to be a major force in the Material Handling and Logistics Industry.