The shareholders of Tulsa Power Products selected Acquisition Advisors to represent them in divestiture/recapitalization of their company. Acquisition Advisors developed and executed a quiet, confidential and effective strategy that resulted in a transaction that met all of the client’s primary goals and objectives.
Headquartered in Tulsa, Oklahoma, Tulsa Power Products manufactures specialty, proprietary, branded material handling equipment used in the manufacture and handling of wire, cable, hose, pipe, tube and other flexible materials. The dominant market sector is energy. Secondary sectors served include telecommunications and a bevy of process industries and cable and wire manufacturers and distributors.
More Than Just a Business and Transaction – It’s Real People, Real Lives, Real Dreams.
Controlling ownership in Tulsa Power was held by a passive individual investor who lived in Kansas City – Don Alexander. He purchased his stake in 1999. Incidentally, David L. Perkins, Jr. – Managing Partner of Acquisition Advisors – represented the seller in that transaction, and that deal was structured in a way that provided some ownership to key employees of Tulsa Power. These employees remained with the business after the ownership transition of 1999 and, in fact, top managers were given some ownership. In turn, the employees rewarded Alexander with loyalty and, in the ensuing years, they grew the business considerably.
In the fall of 2007, Perkins and Alexander decided that Tulsa Power could likely be sold for a tidy profit. Doing so would be a great thing for the employees who held ownership and, of course, for Alexander. But he cared greatly about the employees and wanted to be sure they were well taken care of. Perkins assured Alexander that such was possible since Acquisition Advisors specializes in transactions in which the seller places importance on more than just money, particularly care for the employees and the business itself.
In short, Acquisition Advisors screened hundreds of buyer candidates, based on purchase price and terms, and if they would keep the business in its current location and keep the existing employees. The winning bidder was Dubin Clark – a private-equity group in Greenwich, Connecticut. The result was a nice payday for Alexander and key managers who owned a stake. All employees were retained, key managers received an equity stake in “the new Tulsa Power” and Alexander reinvested some of his proceeds and took a minority interest.
The deal was a win-win for everyone – just the kind of deal Acquisition Advisors likes to do.
I had worked with David Perkins before on a deal so I knew his work quality, work ethic, knowledge and character. Acquisition Advisors was a natural choice and, once again, they did a great job. We got a nice deal done. A winner for all the parties, we think.
Tulsa, Oklahoma, USA
Greenwich, Connecticut, USA