The Acquiring Company: Tecnomec Agricola, S.A. de C.V. (Tecnomec) was established in 1983. Tecnomec is a very profitable leader in the North American metalworking industry. Tecnomec designs, manufactures, distributes and markets agricultural and light construction attachments and implements.
Why the Company Was Acquired: Tecnomec engaged Capital Alliance Corporation to find the right company to acquire and establish their footprint in the United States. This acquisition enables Tecnomec to diversify their manufacturing and distribution capabilities at the same time they are closer to the North American OEM market.
Capital Alliance’s Performance: Confidential efforts by Capital Alliance resulted in the identification, screening and negotiations with several well qualified target companies. Capital Alliance structured and negotiated the closing of this cross-border acquisition, coordinating a team of legal and operating professionals that resulted in a fair enterprise valuation and terms favorable to the Buyer and Seller.
Terms of the Transaction: 100% of the stock of the Seller was acquired. Payment of the acquisition is made under an earnout agreement based on a multiple of cash flow over a period of three years.
The Selling Company: Garfield Equipment, located in Enid, Oklahoma, is a profitable mono-manufacturer specializing in agriculture and industrial scrapers and has over 39,000 sq. ft. of manufacturing facilities situated on 10 acres. The company was established in 1988.
