Case Study: Vertex Distribution

Background

Founded in 1882 and based in Attleboro, Massachusetts, Vertex Distribution (originally Pawtucket Fasteners) is a leading master distributor of stainless steel and corrosion resistant industrial fasteners servicing its customers nationwide through multiple distribution facilities across the United States.

Transaction

In 2002 the business was recapitalized in partnership with the management team. Additional capital was subsequently invested in 2003 to support the acquisition of an industry competitor.

Our Involvement

A transaction was structured that supported management’s objective to retain a meaningful stake and the desire for a value-add partner capable of assisting in the future growth of the business. Meaningful value was added through advising the board on acquisition financing, planning, due diligence, deal structuring, and successful integration.

Outcome

After five years of strong performance, management and the shareholder group collectively decided it was an appropriate time to pursue strategic alternatives for the business. The company was sold in 2009 to a strategic buyer.