Lincoln International Assists Buckingham Capital Partners in the Acquisition of CPAC, Inc. (NASDAQ: CPAK)
Chicago, Ill., April 16, 2007 - Lincoln International, a leading mid-market investment bank, advised Buckingham Capital Partners ("BCP") in the merger between CPAC, Inc. ("CPAC") and Buckingham Capital Partners II, L.P. BCP acquired 100% of the publicly-traded common stock of CPAC for $8.65 per share. Total consideration paid by BCP, including payments to option holders and the assumption of $4.6 million of outstanding debt and $5.9 million of cash, amounted to $43.4 million. Concurrent with the merger, the common shares of CPAC were delisted from the NASDAQ Global Market and ceased trading on April 13, 2007.
Based in Leicester, NY, CPAC is a specialty chemicals company with operations in two primary business segments. The Fuller Brands segment manufactures commercial, industrial, and household cleaning products, as well as custom brushes and personal care lines. The CPAC Imaging segment develops and markets innovative imaging chemicals, equipment, and supplies used in photo development processing.
Lincoln International served as exclusive financial advisor to BCP and structured and arranged the private placement of $28.9 million in domestic senior credit facilities, $2.4 million in foreign senior credit facilities, and $11.0 million of junior capital to complete the acquisition. Lincoln International also assisted BCP with the negotiations of the credit agreements and related transaction documents.
"Lincoln International entered the process while we were still competing for the deal," said Shail Sheth, Managing Partner, Buckingham Capital Partners. "Their extensive experience and relationships helped us secure attractive financing proposals in a short period of time, allowing us to strengthen our bid, an important factor in enabling us to win the auction".
Mr. Sheth also noted, "Lincoln International's capital raising expertise allowed us to take advantage of the favorable conditions in the credit markets and arrange attractive senior credit facilities that included borrowings secured by CPAC's foreign assets. This incremental debt capacity reduced our required equity investment and resulted in a more favorable capital structure for BCP with improved return characteristics."
About CPAC, Inc.
Founded in 1969, CPAC is a specialty chemicals company with operations in two primary business segments: Fuller Brands and CPAC Imaging. Based in Great Bend, Kansas, Fuller Brands develops, manufactures and markets approximately 1,600 branded and private label cleaning products with the majority of its sales derived from chemical products. The segment's products include premium household and industrial cleaning chemicals, brushes, brooms, mops and personal care items. CPAC Imaging manufactures and distributes branded and private label chemicals for the color photographic, healthcare and graphic arts markets. In addition, this segment manufactures and sells related equipment, performs silver halide chemical refining services, and distributes photographic paper and other consumables. CPAC Imaging is a global operation with facilities in the United States (2), Europe (2), Asia, and Africa.
About Buckingham Capital Partners
Based in New York, NY, Buckingham Capital Partners is a private investment firm specializing in leveraged buyouts of US-based, lower middle market companies. BCP seeks to make control equity investments in companies through leveraged and management buyouts, industry consolidations, recapitalizations and growth financing transactions. Post acquisition, BCP looks to increase the productivity of its portfolio companies through operational improvements, and seeks to grow earnings by exploring untapped market opportunities and by making strategic add-on acquisitions. BCP's Managing Partners have been investing in private equity since 1994 and have generated superior investment track records. These professionals are supported in their investment decisions by an Executive Board of seven industry veterans with substantial and diverse operating and industry expertise.
About Lincoln International
Lincoln International specializes in merger and acquisition services and private capital raising for leading organizations involved in mid-market transactions. With offices in Chicago, Frankfurt, New York, Los Angeles and Paris, and strategic partnerships with China Everbright and other partner firms in Asia, Lincoln International has strong local knowledge and contacts in the key global economies. The organization provides clients with senior-level attention, in-depth industry expertise, and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest. More information about Lincoln International can be obtained at www.lincolninternational.com.
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