The Selling Company: Odom Industries, Inc. is a provider of specialized custom formed segmental heads and the manufacturer of large, heavy and complex process equipment utilized by the petrochemical, power generation and oil and gas industries.
Why the company was sold: Long lead times, capital constraints and growing business demand placed significant restrictions on the owners and diminished their ability to grow along with industry demand.
Capital Alliance’s Performance: Capital Alliance teamed with our Montreal, Canada M&A International partner, FTM Synergis Capital, to support a buy-side engagement on behalf of Hason Steel of Lanoraie, Quebec (Hason). Hason is a growing mid-market manufacturer of heavy equipment both similar and complementary to that produced by Odom Industries (Odom). Hason’s U.S. Gulf Coast customers were too distant for the company to capitalize on a period of strong demand for its products. Hason hired FTM Synergis and Capital Alliance to identify acquisition targets and to support the completion of a transaction that could solve their growth problem. Capital Alliance identified a number of potential candidates during an intensive search, eventually recommending Odom as the best target. Overcoming the reluctance of Odom’s owners to engage with Hason, Capital Alliance brought the parties together and effectively communicated the benefits of a deal to Odom, resulting in a commitment by both parties to complete a deal. Capital Alliance also sourced third-party accounting and diligence resources to overcome complications caused by Odom’s weak financial condition and to structure a transaction satisfactory to buyer and seller.
Terms of the Transaction: Hason acquired the assets of Odom via a Stalking Horse Bid under Section 363 of U.S. bankruptcy law. Hason made Debtor in Possession (DIP) financing available to Odom to continue operations and to maximize the chances of success with their bid. Approved by the court, the transaction was completed and Odom was renamed Hason USA.
The Acquiring Company: Hason Steel, located in Lanoraie, Quebec, Canada, is a leading custom fabricator of fluid catalytic cracking (FCC) equipment, pressure vessels and related process equipment for the refining and petrochemical industries, principally in North America.