MINNEAPOLIS, MINNESOTA – Quazar Capital Corporation is pleased to announce that their client, Triton Operations, LLC, a Plymouth, Minnesota based company, has successfully completed a management buyout of Webster Hardwoods.
THE COMPANY -Webster Industries is one of the largest producers of hardwood lumber and railroad ties in the upper Midwest. Headquartered in Bangor, Wisconsin the privately held company operates two sawmills, a lumber concentration yard, drying operations and a wood preserving facility. Webster Hardwoods, a division of Webster Industries, Inc., produces hardwood lumber for sale to distributors and manufacturers.
THE SITUATION – David Larson and Mark Heinz, the President and Vice President, of Webster Industries, Inc. approached Quazar Capital Corporation with the desire to purchase a lumber company. The management group decided to hire Quazar because, “We valued Quazar’s expertise and professionalism. We felt like we would have the very best representation possible.” After briefly pursuing a few acquisition options, David and Mark were presented with an opportunity to buy the Webster Hardwoods division of Webster Industries, Inc. With David and Mark’s recent positive contributions and reinvention of the company, they recognized this as a great opportunity and the natural next step.
UNIQUE CHALLENGE – In a concurrent transaction, Stella-Jones, Inc., a public Canadian company, acquired the Wood Preserving division of Webster Industries, Inc. Therefore, not only was the transaction negotiated with the current business owner but also needed to be collaborated with the multi-national public company. When asked about Quazar’s participation, David Larson states, “I always felt that I had solid representation throughout every aspect of the transaction. I think that without Bruce’s management abilities, banking knowledge, and negotiating skills we would not have been able to do the deal. It really was essential to the whole transaction.”
THE RESOLUTION – In addition to representing the management group, Quazar Capital Corporation also assisted them with a variety of financing tools including subordinated debt, buyer financing, senior debt and equity. Quazar’s sister company, Central Minnesota Growth and Transition Fund (www.thegrowthfund.com) agented $500,000 of subordinated debt financing. LaSalle Business Credit provided working capital and equipment financing and Associated Bank provided financing for the real estate for a total financing package of approximately $20,000,000.