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Client:
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Franklin Power Products, Inc. and International Fuel Systems, Inc. (collectively “Remy Diesel”) comprise a leading contract remanufacturing provider of diesel engines and major diesel engine components primarily for mid-duty Ford and Navistar - International trucks.
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Transaction Summary:
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Brookwood Associates advised Remy International, Inc. (“Remy”) and its shareholders, including Court Square Capital Partners and Berkshire Hathaway, Inc., on the corporate divestiture of the assets of the company to Caterpillar, Inc. (“Caterpillar”).
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“I am very pleased with the high degree of competent and professional transaction management provided by Brookwood. They were a great resource to Remy throughout the process."
- John Weber, CEO
Remy
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“We are very pleased with Brookwood’s professional transaction management and the results of the Remy Diesel divestiture. In particular, Brookwood was very effective in achieving attractive resolutions of several challenging transaction issues that arose during the sale process."
- Tom McWilliams, Managing Director
Court Square
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Transaction Highlights:
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Effective Positioning – After conducting thorough due diligence, Brookwood drafted marketing materials that (i) explained the competitive structure and key trends in Remy Diesel’s remanufacturing segment, (ii) emphasized the company’s strong position with Ford and Navistar, (iii) provided an analysis of historical growth in units and margins by product line, and (iv) conveyed a strong foundation for Remy Diesel’s expected growth
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Innovative Structure – Remy’s goals were to achieve a high level of cash consideration in a very clean transaction structure. The transaction terms included very attractive seller indemnity terms and a seller-favorable purchase price mechanism
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Attractive Result – Although our marketing process generated significant interest in Remy Diesel, it was interrupted by an announcement from Remy Diesel’s major customer (Navistar) regarding a newly formed global remanufacturing alliance with Caterpillar, Inc. Despite the chilling effect of this announcement, Brookwood was able to help Remy achieve a very attractive transaction value with Caterpillar, Inc.
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