Transaction Overview
- Represented XL Specialized Trailers, Inc., a portfolio company of Granite Hill Equity Partners and Rockwood, in its sale to Bull Moose Tube Company.
- XL Specialized Trailers, Inc. is a leading manufacturer of highly engineered heavy haul trailers for the commercial, construction, agricultural and wind/energy markets.
- Within its target market, XL is the dominant provider of highly specialized trailers. The majority of the Company’s trailers are designed, engineered and built to meet specific customer needs.
- Founded in 1962 as Bull Moose Tube Company, Bull Moose Industries has sought to build on its success as a leading manufacturer of tube steel by focusing on continued company growth.
- Bull Moose Industries is owned by the Caparo diversified global industrial interests of British Indian businessman The Right Honourable Lord Swraj Paul.
Key Observations
- XL offered an exceptionally strong leadership team that was committed to remaining with the business for the next few years, providing a high level of confidence to buyers that its historical success would continue.
- Due to the significant cost of heavy payloads and the correspondingly high “cost of failure” associated with damage during transit, manufacturers of heavy-haul trailers must uphold high standards of safety, quality and reliability. These traits are among the hallmarks of XL’s brand and reputation.
- The Company re-structured its debt under a re-capitalization in 2009. All equity owners re-invested in the Company to support future capital expenditures and cash flow.
- We positioned the Company as the leading manufacturer with expertise in engineering and manufacturing operational excellence. We emphasized the growth opportunities within multiple end markets, strategic partnership with a large OEM and its proven ability to expand its existing product line into other markets. Our presentation of the Company led to a robust auction among both strategic and financial buyers.
- Simultaneously with this transaction, Bull Moose Industries is expanding into other industrial manufacturing markets and intends to continue this expansion via acquisitions.