QuantumClean, the #3 market share leader in its segment became aware that Applied Materials, Inc. (“Applied”), a leading global provider of equipment, services and software to the manufacturers of advanced semiconductor, flat panel display and solar photovoltaic products, was in the market to sell its CPS Group, the market leader in its segment and a competitor of QuantumClean. The Company had been unsuccessful so far in its internal efforts to attract the attention of Applied or of its bankers as a potential acquiror.
Engaged by the Company with two weeks to the deadline for the bidding process outlined by Applied’s investment bankers, BPC quickly put together marketing materials and reached out to its close relationships of private equity (PE) sponsors. BPC was able to secure the initial backing of a highly reputable PE firm in the Company’s bid for the CPS assets and the Company was able to submit a term sheet with committed financing by the PE firm, which secured for QuantumClean the right to participate in the process.
The Company subsequently entered into an exclusive letter of intent with Applied with a new set of funding sources. BPC worked closely with the Company, assisting QuantumClean in its negotiations of the M&A transaction with the seller, as well as its negotiations with its PE sponsors and mezzanine lenders who provided the funding for the transaction. QuantumClean received an investment from Argosy Partners, Spring Capital and New Spring Capital in form of equity and subordinated debt, and senior credit facilities from Fox Chase Bank. The transaction was closed on May 13, 2011.
Bryant Park Capital CEO Joel Magerman and Managing Director Volfi Mizrahi led the transaction with support from Managing Director Forbes Burtt.
“BPC’s senior bankers supported us throughout the process, from term sheet to definitive agreement negotiations with the seller, and assisted us in our negotiations with the funding sources. In addition, they provided us with invaluable analytical support. The BPC team was a pleasure to work with and a key contributor to our successful closing of the transaction.”