AirWorx

The largest independent aerial equipment rental, sales and repair services company in Central and Northern Indiana. AirWorx serves its customers' non-residential construction and maintenance rental needs with a fleet of over 700 aerial units operating from two locations in Indiana and one in Ohio.

Engagement Goals

Brookwood advised Airworx and Source Capital (sponsor) on its sale to Hammond, Kennedy, Whitney & Co., an Indianapolis-based private equity firm, and Management.

Owner and Management Goals – Source Capital had been instrumental in "professionalizing" AirWorx and providing capital to more than double the size of the aerial fleet. AirWorx's continued growth would require substantial additional resources; thus Management and Source agreed it was best to seek a new owner. Brookwood was asked to balance the desire to maximize valuation with a desire to find a buyer interested in supporting Management's aggressive growth goals.

Overcoming Challenges – Brookwood had to overcome consistent investor concerns, including exposure to the commercial construction cycle, geographic concentration and assumed high capital expenditure requirements. Perhaps more challenging were the deteriorating macroeconomic conditions and tightening credit markets. Brookwood demonstrated that AirWorx's disciplined fleet acquisition strategy, "one-stop" business model and longstanding customer relationships provided a growing and defensible market position and strong free cash flow characteristics.

Excellent Result – The thorough marketing process generated both financial and strategic buyer interest, allowing Source and Management to compare various transaction alternatives. Ultimately, Source and Management chose a transaction that provided: (i) substantial liquidity to both Source and Management; (ii) an experienced buyer interested in driving growth; and (iii) an increased ownership position for Management.